ALKT

Alkami is a durable, sticky digital-banking SaaS with the kind of revenue engine that justifies ownership: FY2025 revenue of $444M grew 32.9% YoY and the four-year track record is relentless ($152M→$204M→$265M→$334M→$444M). The MD&A explains why this is durable rather than promotional — revenues come 'almost entirely from multi-year contracts' with an average contract life of ~70 months on a per-registered-user pricing model that expands as clients add products. Gross margin of 57.8% and 300+ real-time integrations point to a genuine platform with switching costs, not a commodity vendor.

The single most important number is operating cash flow of $42.9M, up 130.7% YoY against just $1.54M of capex — Alkami is now solidly free-cash-flow positive even while reporting a -$47.7M GAAP net loss. That gap is largely non-cash: D&A jumped 156% to $26.9M, driven by intangibles amortization from the March 2025 MANTL acquisition the MD&A describes. Add ~33% growth to a high-single-digit cash margin and the business clears a Rule-of-40 bar. At a $1.80B market cap the stock trades at only 4.1x sales — undemanding for a 33% grower with inflecting cash generation, which is why I rate it buy rather than merely hold.