One-glance verdict
Within fair range
$30.85 our estimate vs market $20.51
Wall Street consensus: $22.00 (-28.7% lower than our fair-value estimate)
34% below our estimate
Fundamentals snapshot
Alkami Technology, Inc.
ALKT · NMS · Technology · Software - Application
Current price
$20.51
52-week range
$13.98 - $26.89
Market cap
$2.19B
Balance sheet
Distressed
-5.11x Concerning
Net debt $277.20M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
1 Risk
2 rewards · 1 risks
- Reward Revenue grew 7.2% last year.
- Reward Free cash flow was positive in 2/10 years.
- Risk Return on equity was -12.8% last year — the company lost money on shareholders' equity.
What this company does
Alkami Technology, Inc.
Alkami Technology builds the software that powers the online and mobile banking apps for small and mid-sized banks and credit unions. The company makes money by charging these financial institutions a recurring fee (income that comes in on a predictable schedule, like a Netflix subscription) to use its platform. This matters because it helps smaller banks offer modern digital features to compete with the giant national banks, creating a steady and predictable business for Alkami.
How the company got here
Founded in 2009, Alkami Technology set out to provide modern, cloud-based digital banking software to smaller banks and credit unions. This was a time when many financial institutions were using older, less flexible systems. The company grew steadily and went public in 2021, which gave it more capital (money to invest in the business) to expand. To broaden its services, Alkami has acquired other companies, such as ACH Alert for fraud prevention, Segmint for data and marketing, and MANTL for opening new accounts online.
What it actually does
Alkami provides a digital platform that community banks and credit unions use to offer online and mobile banking to their customers. Think of it as the technology behind your local bank's app or website that lets you check your balance, transfer money, and open a new account. Alkami itself is not a bank; it doesn't hold deposits or make loans. Instead, it supplies the digital tools that help these smaller financial institutions compete with large national banks.
SaaS Subscription Services
This is Alkami's main line of business and makes up the vast majority of its revenue (the total amount of money the company brings in). The company sells its digital banking platform to financial institutions as a subscription, similar to how you might pay for a streaming service. This provides a steady and predictable stream of income. The subscription gives banks and credit unions access to Alkami's core platform for retail and business banking.
Implementation and Other Services
This is a smaller part of Alkami's business that involves helping new clients get set up on its platform. When a bank or credit union decides to use Alkami's software, Alkami provides services to install and configure the system. This generates one-time revenue for the company. This segment is much smaller than the subscription business but is an important part of bringing new customers on board.
What management is betting on now
Alkami's leadership is focused on becoming a complete 'Digital Sales and Service Platform' for financial institutions. This means going beyond just providing a mobile banking app and also offering tools for opening accounts, marketing to customers, and preventing fraud. A key part of this strategy is encouraging existing clients to buy more of these add-on services, which increases the revenue per customer. The company is also investing in artificial intelligence (AI) to help its clients better understand and anticipate their customers' needs.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$10.68M
FY2024 Q4
$5.95M
FY2025 Q1
$-6.15M
FY2025 Q2
$760.00K
FY2025 Q3
$30.53M
FY2025 Q4
$16.22M
FY2026 Q2
$16.45M
Revenue
$129.84M
Net income
$-8.90M
Diluted EPS
-0.08
Operating cash flow
$17.22M
Free cash flow
$16.45M
Fetching…
Sources
Revenue
$120.79M
Net income
$-11.44M
Diluted EPS
-0.11
Operating cash flow
$16.61M
Free cash flow
$16.22M
Fetching…
Sources
Revenue
$112.95M
Net income
$-14.80M
Diluted EPS
-0.14
Operating cash flow
$30.81M
Free cash flow
$30.53M
Fetching…
Sources
Revenue
$112.06M
Net income
$-13.59M
Diluted EPS
-0.13
Operating cash flow
$1.16M
Free cash flow
$760.00K
Fetching…
Sources
Revenue
$97.83M
Net income
$-7.82M
Diluted EPS
-0.08
Operating cash flow
$-5.66M
Free cash flow
$-6.15M
Fetching…
Sources
Revenue
$89.66M
Net income
$-7.64M
Diluted EPS
-0.07
Operating cash flow
$6.11M
Free cash flow
$5.95M
Fetching…
Sources
Revenue
$85.91M
Net income
$-9.44M
Diluted EPS
-0.09
Operating cash flow
$10.99M
Free cash flow
$10.68M
Fetching…
Sources
Is it cheap or expensive?
Fair value $30.85 vs current price $20.51
Wall Street consensus is the average analyst price target: $22.00 (-28.7% lower than our fair-value estimate).
Our most-likely fair value is $30.85 a share — about 50.4% away from today's price of $20.51, so the stock currently looks fairly priced.
Is it drowning in debt?
Distressed
Net debt $277.2M. Interest coverage -5.1x.
Net debt
$277.20M
Interest coverage
-5.11x
Alkami Technology, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
ALKT
BASELINE
Alkami Technology, Inc.
Total debt $358.16M Interest coverage -5.11x This is the baseline the peer rows are being compared against.
Total debt $40.93M Interest coverage 8.11x This peer still has a real interest-payment cushion, while ALKT does not.
Total debt $77.82M Interest coverage 117.88x This peer still has a real interest-payment cushion, while ALKT does not.
Total debt — Interest coverage 3.72x This peer still has a real interest-payment cushion, while ALKT does not.
Total debt $338.63M Interest coverage 0.21x This peer still has a real interest-payment cushion, while ALKT does not.
Total debt $21.26B Interest coverage 4.50x This peer still has a real interest-payment cushion, while ALKT does not.
What you should know
The case for and against ALKT
2 Rewards
1 Risk
Rewards
-
Revenue grew 7.2% last year.
-
Free cash flow was positive in 2/10 years.
Risks
-
Return on equity was -12.8% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
18.87x
P/B
6.05x
P/S
4.48x
EV/EBITDA
-111.66x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
57.4%
Operating margin
-5.8%
Net margin
-9.2%
ROE
-12.8%
ROA
-2.6%
Health
Liquidity and balance-sheet strength
Debt / equity
0.99x
Current ratio
2.13x
Quick ratio
1.66x
Total debt
$358.16M
Total cash
$80.95M
Growth
How the business has been compounding
Revenue TTM
$475.65M
Revenue 5Y CAGR
30.7%
EPS TTM
-0.43
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$65.79M
Free CF TTM
$41.36M
FCF margin
8.7%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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