Is Alkami Technology (ALKT) Cheap Following Earnings Guidance And New Partnerships?
Why Alkami Technology Stock Is Back in Focus
Alkami Technology (ALKT) is drawing fresh attention after reporting second quarter results, issuing new revenue guidance, and announcing data focused partnerships with Arkatechture and Plaid that expand its digital banking offering.
See our latest analysis for Alkami Technology.
Alkami Technology's recent earnings, guidance and new data partnerships have coincided with building momentum in the share price, with a 30 day share price return of 14.29% and a 90 day share price return of 19.67%. However, the year to date share price return is still down 12.57% and the 1 year total shareholder return is down 8.79%, while the 3 year total shareholder return remains positive at 31.59%.
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Bulls point to Alkami Technology's rising revenue, narrower losses and fresh data partnerships. Bears focus on ongoing losses and a pullback year to date. Which side do the current valuation numbers support next?
Most Popular Narrative: 8.5% Undervalued
The most followed narrative values Alkami Technology at $21.67 per share, compared with the last close at $19.83. This frames the stock as trading below that fair value estimate and places extra weight on the growth assumptions behind it.
Demand for platform integration and digital onboarding/account opening capabilities is accelerating among banks and credit unions as they compete for younger, digitally-native account holders. Alkami's strong cross-sell momentum (MANTL, data analytics, marketing modules) and seamless integration strategy position it to capitalize on this shift, likely driving sustained revenue growth and increasing average revenue per user.
Curious what sits underneath that fair value gap. The narrative leans on robust recurring revenue growth, rising margins and a rich future earnings multiple. Interested in seeing which specific growth and profitability assumptions would need to play out to support that $21.67 figure.
Result: Fair Value of $21.67 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, Alkami Technology still faces pressure from ongoing losses and intense competition, and any regulatory or client concentration shock could quickly challenge this view of the company as undervalued.
Find out about the key risks to this Alkami Technology narrative.
Next Steps
If this Alkami Technology story sparks mixed feelings, use that as a cue to move quickly and check the underlying data yourself, then weigh the 2 key rewards.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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