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Alkami Technology, Inc.
NASDAQ: ALKT Technology IT 🔎 Screen
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$2.1B
Market Cap
P/E
PEG
-9.7%
ROCE
-13.3%
ROE
1.02
D/E
-10.9%
OPM
-25.1%
% from 52W High
59
α RS
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About

Alkami Technology, Inc. provides a cloud-based digital sales and service platform for financial institutions in the United States. The company offers the Alkami digital sales & service platform, which includes the Alkami digital banking platform, onboarding & account opening, and data & marketing modules. Its solutions enable financial institutions to onboard and engage new users, accelerate revenues, and enhance operational efficiency, with the support of proprietary, cloud-based, and multi-tenant architecture. It serves community, regional, super-regional credit unions, and banks. The company was founded in 2009 and is based in Plano, Texas.

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3-Statement Financial Model
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📊 MIXED Alkami Q1 2026 revenue $126.1M (+29% YoY), 23M users, ARR $494M
Revenue & Profitability
Q1 2026 revenue of $126.1 million, up 29% year-over-year (MANTL contributed ~14ppt). Adjusted EBITDA was $22.3 million (17.7% margin). ARR reached $494 million (+22%). Full-year 2026 guidance: revenue $527.1M-$530.9M (18.8-19.7% growth), adjusted EBITDA $94.9M-$97.9M (18.2% margin at midpoint). Q2 2026 revenue expected $128M-$129M (14.2-15.1% growth).
Outlook
Management sees a large and resilient market of over 2,000 regional banks and credit unions still relying on legacy infrastructure. Demand for digital transformation remains strong, with institutions wanting to compete with mega banks and fintechs. The replacement market is constrained by long-term contracts, but Alkami expects consistent new logo wins (30-40/year) and increasing conversion rates as DSSP demonstrates value. AI is seen as a major enabler for personalization, underwriting, and fraud management.
Growth Drivers
Key growth levers include: new logo additions (6 in Q1, consistent with historical average); expansion within existing clients (clients grow >100% of initial ARR over 5 years; cohorts older than 2016 spend ~4x landing ARR); DSSP adoption (48 clients now have all 3 products, with 30% higher ARR versus traditional offering); increasing bank penetration (banks now 13% of live clients, up from 2% four years ago); MANTL standalone logo growth (61 new clients since early 2025); and upcoming monetization of AI capabilities such as Alkami Engage.
Balance Sheet & CapEx
Not discussed as a separate line item. Management noted temporary higher database technology costs impacting gross margin (64.4% in Q1), expected to decline by end of 2026. Investments are being made in AI capabilities and offshore operations to drive efficiency. No explicit capex guidance was provided.
Margins
Q1 2026 non-GAAP gross margin was 64.4%, expected to reach ~65% for full year 2026 and approach 70% over time. Adjusted EBITDA margin expanded ~540 bps YoY to 17.7%. Full-year 2026 adjusted EBITDA margin guided to 18.2% at midpoint, with back half north of 19%. Management expects ~500 bps of margin expansion this year, driven by operating leverage, offshore efficiencies, and cost discipline, with ~300 bps annual expansion targeted long-term.
Key Risks
Risks flagged include: long-term contracts constraining conversion velocity (only ~300 renewals per year in target market); termination fee revenue decline creating a headwind to reported growth (especially in Q2 2026); temporary database technology costs; shareholder matter expenses ($2.2-2.8M in recent quarters, expected to moderate); and the challenge of effectively pricing AI capabilities to achieve profitability. No concentration risk or macro headwinds were specifically highlighted.
Generated by AI · Q1 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-07-29
Q2 results exceeded expectations with strong revenue, ARR, and profitability growth. Guidance for 2026 was raised, with margin expansion and continued investment in AI and product innovation. Bank segment and DSSP adoption are driving higher ARPU and long-term growth.
Q1 2026 Q1 2026 2026-04-29
Q1 2026 saw 29% revenue growth and strong adjusted EBITDA, driven by new client wins, MANTL integration, and expanding DSSP adoption. Guidance for 2026 remains robust, with continued margin expansion, low churn, and a new $100 million stock repurchase program.
Q4 2025 Q4 2025 2026-02-25
Delivered robust Q4 and full-year growth, with revenue up 33% and Adjusted EBITDA more than doubling year-over-year. Strong adoption of integrated DSSP platform, expanding client base, and continued margin expansion position the company for durable growth in 2026 and beyond.
Q3 2025 Q3 2025 2025-10-30
Q3 2025 saw 31.5% revenue growth, record client implementations, and strong cross-sell momentum, with ARR and margins expanding. Guidance for Q4 and full-year 2025 was raised, and the company remains confident in its growth runway and product innovation.
Q2 2025 Q2 2025 2025-07-30
Q2 2025 saw 36% revenue growth, strong adjusted EBITDA, and robust user expansion, driven by digital transformation demand and successful Mantle integration. Guidance for 2025 remains strong, with continued margin expansion and a healthy sales pipeline.
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📊 Analysis Methodology

This comprehensive investment analysis was conducted using The Finmagine™ Stock Analysis & Ranking Methodology, a proprietary framework that systematically evaluates stocks across five critical dimensions: Financial Health, Growth Prospects, Competitive Positioning, Management Quality, and Valuation.

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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Conflict of Interest Disclosure:
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Information Sources:
The analysis is based on publicly available information including SEC filings (10-K, 10-Q), annual reports, management commentary, and publicly available financial data. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

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