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Investing.com - Citizens lowered its price target on Alkami Technology Inc (NASDAQ:ALKT) to $40.00 from $46.00 on Friday, while maintaining a Market Outperform rating on the digital banking platform provider. The stock currently trades at $21.99, down about 40% year-to-date, though InvestingPro data shows the stock is trading near its Fair Value.
The price target reduction follows Alkami’s decision to lower its revenue guidance for the year, partly due to some new client implementations shifting to the fourth quarter of 2025. Despite this adjustment, InvestingPro data reveals that analysts still anticipate 33% revenue growth for fiscal year 2025, with the company maintaining strong liquidity as evidenced by a current ratio of 2.68.
Despite the revenue adjustment, Alkami increased its profitability outlook for the year, prompting Citizens to maintain its positive rating on the stock.
For the fourth quarter of 2025, Alkami now forecasts adjusted EBITDA of $16.1 million to $17.1 million on revenue of $119.6 million to $121.1 million, representing growth of 33-35% (22% organic).
For the full fiscal year 2025, the company raised its adjusted EBITDA guidance to between $56.0 million and $57.0 million, up from its previous forecast of $51.5 million to $54.0 million, while revenue is expected to be $442.5 million to $444.0 million, representing 33% growth with approximately 23% organic growth.
In other recent news, Alkami Technology Inc. announced its third-quarter earnings for 2025, which fell short of expectations. The company reported an earnings per share (EPS) of -$0.14, significantly missing the anticipated $0.12, resulting in a surprise of -216.67%. Revenue was also slightly below forecasts, coming in at $113 million compared to the expected $113.58 million. These recent developments highlight the challenges Alkami Technology is facing in meeting analyst projections. There were no reports of mergers or acquisitions during this period. Additionally, no updates on analyst upgrades or downgrades were provided. Investors may look to upcoming quarters for potential improvements in financial performance.
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