Alkami Technology, Inc. (ALKT) AI Stock Analysis
ALKT AI stock analysis summary
AI ResearchAlkami Technology, Inc. (ALKT) provides cloud-based digital banking platforms for credit unions and banks in the United States. Revenue grew at a 5-year CAGR of 31.7% to reach $443.6M in FY2025, while free cash flow reached $41.4M. However, its trailing twelve month net margin was -9.2%, and the stock declined 38.8% over the past year.
- Market cap
- $1.47B
- Revenue (TTM)
- $489.7M
- P/E
- —
- 1Y return
- -38.8% S&P 500 16.8%
- Avg. target
- $19.86 44.6% vs last close
Bull case
- Revenue expanded at a 31.7% 5-year CAGR through FY2025, reaching $443.6M.
- Free cash flow improved from -$32.7M in FY2021 to $41.4M in FY2025.
- Analysts maintain a mean price target of $19.86, reflecting a 44.6% premium to the last close of $13.73.
Bear case
- Alkami reported a trailing twelve month net margin of -9.2% and EPS of -$0.43.
- The company carries $358.2M in total debt against $81.0M in cash and short-term investments as of June 30, 2026.
- Shares fell 40.5% year-to-date and trade 22.0% below their 200-day moving average.
What Alkami Technology does
Alkami Technology, Inc. specializes in providing cloud-based digital banking solutions for financial institutions across the United States. Its flagship Alkami Platform allows community banks, regional banks, and credit unions to onboard users, drive engagement, generate revenue, and improve operational efficiency. Built on a proprietary, cloud-based, multi-tenant architecture, the platform offers scalability and flexibility for institutions of various sizes. Founded in 2009 and based in Plano, Texas, the company employs 1,225 people and supports institutions seeking to modernize their digital banking capabilities.
Growth and profitability
Alkami expanded revenue from $152.2M in FY2021 to $443.6M in FY2025, representing a 5-year revenue CAGR of 31.7%. Annual revenue growth reached 32.9% in FY2025 with a gross margin of 57.8%. Although net income was -$47.7M in FY2025, operating cash flow and free cash flow turned positive in FY2024 at $18.6M and $17.4M, rising to $42.9M and $41.4M in FY2025. Over the trailing twelve months ended June 30, 2026, revenue totaled $489.7M with an operating margin of -5.8% and EPS of -$0.43. For the latest quarter, quarterly revenue grew 15.9% year-over-year.
Balance sheet and cash flow
As of June 30, 2026, Alkami held $81.0M in cash and short-term investments against total debt of $358.2M, resulting in net debt of $277.2M. Total assets stood at $831.1M alongside shareholders' equity of $362.7M. The company reported a current ratio of 2.13 and a debt-to-equity ratio of 0.99. In FY2025, capital expenditures were $1.5M, while share count increased 20.1% over five years.
Valuation and performance
At a last close of $13.73 on October 16, 2026, Alkami had a market cap of $1.47B and an enterprise value of $1.84B. The stock trades at a price-to-sales multiple of 3.0x and an EV-to-revenue multiple of 3.8x, compared to a price-to-sales of 2.8x for the median of its US-listed Technology peers. Alkami's price-to-book ratio is 4.3x. Over the past year, ALKT fell 38.8%, compared to a 16.8% gain for the S&P 500 (SPY). Over five years, the stock fell 50.3%, trailing the S&P 500 return of 83.0%.
What analysts expect
Wall Street coverage consists of 4 Strong Buy, 2 Buy, 1 Hold, and 1 Sell ratings. The mean price target is $19.86, representing a 44.6% premium over the last close of $13.73. For the current fiscal year ending December 31, 2026, consensus estimates project revenue of $529.9M and EPS of $0.81. Next fiscal year estimates project revenue of $618.1M and EPS of $1.10. Alkami beat EPS estimates in 1 of the last 4 quarters, with its next earnings date scheduled for October 28, 2026.
Key risks and what to watch
- Quarterly revenue growth slowed to 15.9% for the quarter ended June 30, 2026, down from 32.9% in FY2025.
- Operating margin was -5.8% over the trailing twelve months, below the 13.2% median of its US-listed Technology peers.
- The company's share count grew 20.1% over five years, representing ongoing dilution for shareholders.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this ALKT AI stock analysis
This page is an AI-written research summary of Alkami Technology, Inc. (ALKT). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: ALKT income statement, ALKT balance sheet, ALKT key metrics, ALKT analyst forecast, ALKT chart. See the ALKT stock overview for the latest quote and news.
ALKT AI stock analysis FAQ
Does Alkami Technology pay a dividend?
Alkami Technology does not pay a dividend. The company directs capital toward operations, recording capital expenditures of $1.5M in FY2025.
What is Alkami Technology's debt position?
As of June 30, 2026, Alkami reported total debt of $358.2M and cash and short-term investments of $81.0M, resulting in net debt of $277.2M. Its debt-to-equity ratio stood at 0.99.
How fast is Alkami Technology's revenue growing?
Alkami delivered a 5-year revenue CAGR of 31.7% through FY2025, when revenue grew 32.9% to $443.6M. In the latest quarter ended June 30, 2026, quarterly revenue growth was 15.9% year-over-year.
What are analysts forecasting for ALKT?
Analysts estimate FY2026 revenue of $529.9M and EPS of $0.81, followed by FY2027 revenue of $618.1M and EPS of $1.10. Across 8 ratings, the mean price target is $19.86.