Major Credit Union Win and C-Suite Changes Might Change the Case for Investing in Alkami Technology (ALKT)

• In recent weeks, Alkami Technology announced that Jeanne D'Arc Credit Union has adopted its full Digital Sales & Service Platform, integrating MANTL's Onboarding & Account Opening Solution to streamline member experiences and accelerate digital transformation across multiple banking channels.
• This move highlights Alkami’s growing traction in the financial services sector, coinciding with expanded client relationships and a leadership transition as Cassandra Hudson assumes the CFO role.
• Next, we'll explore how the addition of major credit union clients may reinforce Alkami's revenue outlook and growth narrative.

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Alkami Technology Investment Narrative Recap

To believe in Alkami Technology as a shareholder, you need to see value in its ability to win and expand with regional and community financial institutions by delivering advanced digital banking solutions that meet the sector's evolving needs. The Jeanne D'Arc Credit Union deal strengthens Alkami's position as a preferred partner in digital transformation, but with increasing competition and the risk of industry consolidation, the news may only modestly impact the short-term outlook for growing recurring revenues and margins, without altering the main risks facing the business.

Among recent developments, the renewed and expanded partnership with Belco Community Credit Union stands out. Belco's measurable jump in digital adoption and satisfaction not only demonstrates Alkami's platform engagement but also provides context for why new wins like Jeanne D'Arc could be seen as catalysts for greater client stickiness and upsell opportunities as financial institutions modernize their digital operations.

On the other hand, investors should be aware that while new clients support Alkami’s growth narrative, competitive pressures in the digital banking space mean...

Read the full narrative on Alkami Technology (it's free!)

Alkami Technology's outlook anticipates $743.3 million in revenue and $62.2 million in earnings by 2028. This scenario assumes annual revenue growth of 24.5% and an earnings increase of $100.7 million from the current loss of $-38.5 million.

Uncover how Alkami Technology's forecasts yield a $35.33 fair value, a 82% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members have issued 11 fair value estimates for Alkami, ranging widely from US$16.54 to US$122.14. While investors see different futures for Alkami, keep in mind that accelerating demand for integrated digital onboarding is only one part of the larger story.

Explore 11 other fair value estimates on Alkami Technology - why the stock might be worth 15% less than the current price!

Build Your Own Alkami Technology Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Alkami Technology research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Alkami Technology research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Alkami Technology's overall financial health at a glance.

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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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