Alkami Technology

Bull case

Alkami Technology is well positioned because its cloud-native, multi-tenant digital banking platform is gaining traction through cross-selling, with net dollar retention above 115% as of FY25 and cross-sales contributing 54% of TCV, while DSSP and MANTL deepen the product suite and expand the addressable market. The business also benefits from strong recurring economics, including less than 1% ARR churn over the past three years, average contract lengths of about 70 months, and a customer base that has grown from three live banking clients in 2022 to 54 banks under contract and 42 live by 2Q26. On top of that, management’s reaffirmed 2026 guidance, improving cash generation to $22 million of operating cash flow, and $81 million of cash and marketable securities support the view that the company can scale profitably while continuing to gain share.

Bear case

• Alkami Technology is viewed negatively because its growth depends entirely on financial institutions, leaving it exposed to weak macro conditions, low interest rates, tighter regulation, and customer loss through bank failures or consolidation.
• The company also operates in a highly competitive digital banking market against entrenched vendors like Q2, Temenos, Fiserv, Jack Henry, and FIS, which can pressure bookings, revenue growth, and pricing even as Alkami relies on partnerships with some rivals.
• Fundamentally, execution risk is elevated by dependence on AWS and third-party processing systems, while privacy or security failures under CCPA, GDPR, and other rules could trigger litigation, fines, reputational damage, and materially adverse business effects, despite 2Q26 revenue guidance of $128.0M-$129.0M and full-year 2026 revenue guidance of $527.1M-$530.9M.