5. Alkami Technology, Inc. (NASDAQ:ALKT)
Year-to-Date Performance: -16.42%
Average Price Target Upside Potential According to Analysts: 45.91%
Number of Hedge Fund Holders: 30
Alkami Technology, Inc. (NASDAQ:ALKT) is a leading cloud-based digital banking solutions provider for financial institutions in the United States. The company offers retail and business banking, digital account opening, payment security, and data and marketing solutions for banks and credit unions. Alkami Technology, Inc. (NASDAQ:ALKT) is one of the worst-performing stocks to buy in the fintech space.
In its Q4 2021 earnings call, which it referenced in its Q4 2024 earnings call, Alkami Technology, Inc. (NASDAQ:ALKT) pointed out its long-term business goals, which included succeeding in the bank market, leveraging add-on sales to drive growth, investing in its platform, and using acquisitions to drive expansion. By the end of 2024, the company had 42 banks under contract, including 23 live on the Alkami platform and 19 in its backlog. This compares to 8 banks on the company’s platform by the end of 2021. In 2024, Alkami Technology, Inc. (NASDAQ:ALKT) also became the top digital banking provider for credit unions in terms of mobile users. In 2024, add-on sales made up 45% of new bookings, up from 24% in 2021.
In February 2025, Alkami Technology, Inc. (NASDAQ:ALKT) announced its agreement to acquire MANTL for an enterprise value of $400 million. MANTL is a premier account opening solution that allows financial institutions to onboard commercial, business and retail customers across various channels for virtually any deposit account type. This transaction is expected to complement Alkami Technology, Inc.’s (NASDAQ:ALKT) existing digital banking and data marketing solutions to create an advanced digital sales and services platform for financial institutions.
