Citizens downgrades Alkami Technology stock rating on mixed results

Citizens has downgraded Alkami Technology Inc (NASDAQ:ALKT) stock rating to Market Perform from Market Outperform in response to the company's third-quarter results. With a market capitalization of $1.65 billion, Alkami's stock has plummeted 33% year-to-date, trading at $15.53, far below its 52-week high of $24.46. The firm reported revenue of $134.9 million for Q3 2026, a 19% increase year-over-year, though it included approximately $800,000 of one-time revenue.

Annual recurring revenue stood at $533.2 million, also up 19% year-over-year. Adjusted EBITDA was $26.3 million, corresponding to a 19.5% margin. Despite not being profitable over the last year, analysts anticipate profitability for the current year. The company anticipates Q4 2026 revenue between $139.7 million and $141.2 million, with adjusted EBITDA at $30.0 million to $31.0 million, translating to a 21.7% margin.

Full-year 2026 forecasts project revenue of $530.5 million to $532.0 million, up 20% year-over-year, and adjusted EBITDA of $98.0 million to $99.0 million, representing an 18.5% margin. Management stated they will disclose 2027 guidance during the fourth-quarter earnings call, expected in late February. While Alkami's revenue exceeded expectations, the company posted a loss of $0.06 per share, contrary to forecasts of a $0.20 per share profit.

Investors are more concerned with the earnings shortfall and margin pressures, highlighting ongoing scrutiny of Alkami's financial health and future prospects.