Free cash flow remains highly volatile, swinging from a $30.5M inflow in 2025Q3 to a $5.2M outflow in 2026Q1, heavily influenced by $17.3M in stock-based compensation and fluctuating working capital requirements.
| Cash from Operations | 45.67M | 42.91M | 18.6M | -17.5M | -37.79M | -28.96M | -38.15M | -39.09M |
| Operating CF Margin % | - | 9.67% | 5.57% | -6.61% | -18.5% | -19.03% | -34.01% | -53.15% |
| Operating CF Growth % | 509.58% | 130.71% | 206.26% | 53.68% | -30.49% | 24.08% | 2.4% | - |
| Net Income | -49.8M | -47.65M | -40.84M | -62.91M | -58.6M | -46.82M | -51.35M | -41.87M |
| Depreciation & Amortization | 31.61M | 26.91M | 10.51M | 10.63M | 8.07M | 3.44M | 2.77M | 2.23M |
| Stock-Based Compensation | 77.41M | 76.19M | 59.44M | 51.23M | 0 | 14.54M | 1.95M | 1.25M |
| Deferred Taxes | -3.15M | -11.79M | 109K | -32K | -690K | 85K | 15.82M | -509K |
| Other Non-Cash Items | 3.55M | 2.75M | -865K | -3.59M | 29.88M | 3.08M | 61K | 43K |
| Working Capital Changes | -13.95M | -3.5M | -9.76M | -12.83M | -16.45M | -3.29M | -7.4M | -226K |
| Change in Receivables | -4.64M | -11.28M | -3.24M | -9.25M | -4.01M | -6.28M | -3.38M | -2.96M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | -3.07M | -4M |
| Change in Payables | 5.97M | 19.71M | 3.32M | 91K | -1.37M | 6.83M | 3.07M | 4M |
| Cash from Investing | -12.4M | -397.59M | 23.04M | 33.91M | -224.01M | -22.02M | -27.22M | -3.69M |
| Capital Expenditures | -2.6M | -1.54M | -1.2M | -1.06M | -4.7M | -1.12M | -2.15M | -3.69M |
| CapEx % of Revenue | 0.55% | 0.35% | 0.36% | 0.4% | 2.3% | 0.74% | 1.91% | 5.02% |
| Acquisitions | 0 | -375.5M | 0 | 0 | -131.84M | -18.33M | -25.07M | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | -6.73M | -7.15M | -6.66M | -5.23M | 0 | -2.58M | 0 | 0 |
| Cash from Financing | -54.52M | 323.79M | 11.79M | -87.82M | 61.18M | 192.27M | 225.05M | 30.19M |
| Debt Issued (Net) | -63.8M | 348.62M | 0 | -85M | 59.54M | -313K | 24.99M | 0 |
| Equity Issued (Net) | 8.5M | 9.05M | 24.98M | 17.11M | 5.3M | 189.31M | 199.36M | 30.31M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | -4.97M | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | -3.5M | -14.54M | 0 |
| Other Financing | 779K | -33.88M | -13.18M | -19.93M | -3.67M | 8.24M | 697K | -112K |
| Net Change in Cash | -21.25M | -30.9M | 53.43M | -71.41M | -196.24M | 141.29M | 159.68M | -12.58M |
| Free Cash Flow | 44.22M | 41.36M | 17.4M | -23.79M | -38.84M | -32.66M | -40.29M | -42.77M |
| FCF Margin % | 9.37% | 9.32% | 5.21% | -8.98% | -19.02% | -21.46% | -35.93% | -58.16% |
| FCF Growth % | 732.69% | 137.7% | 173.14% | 38.75% | -18.95% | 18.95% | 5.8% | - |
| FCF per Share | 0.42 | 0.40 | 0.18 | -0.25 | -0.43 | -0.36 | -0.48 | -0.51 |
| FCF Conversion (FCF/Net Income) | -0.89x | -0.90x | -0.46x | 0.28x | 0.64x | 0.62x | 0.74x | 0.93x |
| Interest Paid | 0 | 0 | 283K | 7.06M | 3.61M | 1.1M | 352K | 0 |
| Taxes Paid | 0 | 0 | 375K | 332K | 249K | 32K | 67K | 0 |
Persistent GAAP operating losses
As reported in recent financial statements, Alkami's operating cash flow frequently diverges from net income, with the 2025Q3 period showing a significant $30.8M operating cash inflow despite a $14.8M net loss, largely driven by non-cash adjustments and shifts in working capital requirements.
The persistent gap between net income and operating cash flow suggests that Alkami's reported losses are heavily influenced by non-cash charges, particularly stock-based compensation. Investors should monitor whether this cash-generative capacity is sustainable or if it remains overly reliant on favorable timing of working capital inflows.
Based on the provided quarterly data, Alkami's free cash flow trajectory remains highly inconsistent, swinging from a peak of $30.5M in 2025Q3 to a $5.2M outflow in 2026Q1, indicating that the company has yet to establish a predictable pattern of self-funded growth.
The lack of a stable FCF margin suggests that the company's operational scale is still insufficient to absorb the high fixed costs of its cloud infrastructure and personnel. This volatility warrants further investigation into whether the recent cash outflows are indicative of seasonal implementation cycles or a broader structural challenge in achieving consistent profitability.
According to the latest quarterly filings, Alkami experienced a $21.1M working capital outflow in 2026Q1, a sharp reversal from the $16.5M inflow observed in 2025Q3, highlighting the sensitivity of the company's cash position to the timing of client payments and implementation milestones.
These fluctuations appear to be tied to the onboarding process for new credit union clients, where implementation fees and deferred revenue recognition create lumpy cash flow patterns. Analysts should interpret these swings as a reflection of the company's project-based revenue model rather than a fundamental deterioration in collection efficiency.
As disclosed in recent SEC filings, Alkami's cash flow statement is significantly bolstered by stock-based compensation, which reached $17.3M in 2026Q1, effectively masking the underlying cash burn required to maintain the company's competitive position in the digital banking software market.
The reliance on equity-based incentives to manage cash expenses suggests that the company's true economic cost of talent is not fully captured in its operating cash flow. Investors should consider the dilutive impact of this compensation strategy when evaluating the company's long-term ability to generate cash for shareholders.
Quick answers to the most common questions about buying ALKT stock.
Alkami Technology, Inc. (ALKT) generated $42.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Alkami Technology, Inc. (ALKT) generated $41.4M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Alkami Technology, Inc. (ALKT) spent $1.5M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.