Alkami Growth Accelerates With MANTL Deal, Boosts Digital Banking And Cross-Sell Potential: Analyst

Alkami Technology, Inc ALKT stock gained Friday after Wall Street analysts rerated it after its fourth-quarter report on Thursday.

The company reported fourth-quarter revenue of $89.66 million, above the consensus of $89.65 million.

Adjusted EPS of 11 cents exceeded the consensus of 8 cents.

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Alkami Technology projects a first-quarter revenue of $93.5 million-$95 million compared to the consensus of $95.03 million.

JPMorgan analyst Alexei Gogolev remained Overweight on Alkami Technology with a price target of $45.

Gogolev noted the fourth-quarter results as solid, reflected through robust market share gains. Fiscal 2025E revenue growth and EBITDA on an organic basis were broadly in line with the consensus, implying an impressive 24% growth and five percentage point EBITDA margin expansion to over 13%.

However, the key focus of today’s announcement was the acquisition of MANTL, a premier account opening solution, which will help Alkami Technology’s FIs acquire new customers. The purchase price is equivalent to ~13% of Alkami Technology’s market cap but will expand its digital user base by 40%, allowing for an even more robust cross-sell opportunity.

The acquisition also turns Alkami Technology into a front-to-back service provider in the digital banking space, providing an opportunity to grab more market share.

Gogolev projected first-quarter revenue of $94 million and adjusted EPS of 9 cents.

Price Action: ALKT stock is up 5.67% at $30.48 at the last check Friday.

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