Alkami Technology (ALKT): Assessing Valuation After Expanded Belco Community Credit Union Partnership and Member Adoption Gains

Alkami Technology (ALKT) caught investors’ attention after announcing that Belco Community Credit Union renewed and expanded its partnership. The focus is on accelerating Belco’s digital transformation through Alkami’s banking platform and member engagement solutions.

See our latest analysis for Alkami Technology.

This client win adds to a series of new deployments for Alkami, but momentum hasn’t translated into share price gains yet. After a sharp drop this year, the stock’s year-to-date share price return is -36.6%, and the one-year total shareholder return stands at -39.5%, a sobering contrast to its impressive 48% total return over three years. It is a reminder that while customers are embracing Alkami’s tech, investor sentiment is still catching up.

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With the stock trading at a notable discount to analyst targets, despite steady revenue growth and expanding major client relationships, is Alkami an overlooked value play? Or is the market already accounting for future gains?

Most Popular Narrative: 39% Undervalued

Alkami Technology’s fair value, based on the most popular narrative, sits at $38.44, which is a striking premium over the last close of $23.39. This gap captures significant optimism about accelerating digital transformation and the company’s ability to turn robust growth into sustainable gains.

Growing expectations for advanced, fraud-resistant, omnichannel digital banking experiences are prompting more financial institutions to adopt Alkami's API-driven, cloud-native architecture. This can support secure growth and higher operating leverage. Over time, this trend should improve gross and operating margin profiles.

Read the complete narrative.

Curious how this narrative arrives at such a strong upside? The calculation hides a bold bet: turbocharged expansion, persistent market demand, and dramatic swings in margins ahead. Want to discover exactly which growth levers are powering this ambitious valuation forecast? Find the details behind the story in the full narrative.

Result: Fair Value of $38.44 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, Alkami faces sector-specific risks, including intensifying competition and the impacts of ongoing consolidation among regional financial institutions. These factors could challenge future growth.

Find out about the key risks to this Alkami Technology narrative.

Another View: Evaluating Against Industry Averages

Alkami’s valuation looks less compelling when measured by its revenue-based multiple, which stands at 6.3 times sales. This is higher than both the US Software industry average of 5.4 and the peer group’s 4.9, and sits above our own fair ratio estimate of 5.6. Elevated multiples can amplify downside risk if growth expectations fall short. Is this a sign the market is baking in too much optimism?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Alkami Technology Narrative

If you see things differently or want to dive into the data firsthand, you can shape your own perspective in just a few minutes. Do it your way.

A great starting point for your Alkami Technology research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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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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