Analysts Have Been Trimming Their Alkami Technology, Inc. (NASDAQ:ALKT) Price Target After Its Latest Report

As you might know, Alkami Technology, Inc. (NASDAQ:ALKT) recently reported its quarterly numbers. It looks like a positive result overall, with revenues of US$98m beating forecasts by 3.7%. Statutory losses of US$0.08 per share were roughly in line with what the analysts had forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the consensus forecast from Alkami Technology's ten analysts is for revenues of US$445.4m in 2025. This reflects a major 25% improvement in revenue compared to the last 12 months. Per-share losses are supposed to see a sharp uptick, reaching US$0.42. Before this earnings announcement, the analysts had been modelling revenues of US$443.4m and losses of US$0.28 per share in 2025. While this year's revenue estimates held steady, there was also a very substantial increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

Check out our latest analysis for Alkami Technology

With the increase in forecast losses for next year, it's perhaps no surprise to see that the average price target dipped 6.0% to US$39.30, with the analysts signalling that growing losses would be a definite concern. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Alkami Technology analyst has a price target of US$46.00 per share, while the most pessimistic values it at US$28.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Alkami Technology shareholders.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Alkami Technology's growth to accelerate, with the forecast 35% annualised growth to the end of 2025 ranking favourably alongside historical growth of 25% per annum over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Alkami Technology to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on Alkami Technology. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Alkami Technology analysts - going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Alkami Technology that you need to take into consideration.

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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.