Free cash flow swung from a $6.1M deficit in 2024Q2 to $20.0M in 2026Q3 (14.9% margin), but operating cash flow relies heavily on $19.2M of stock-based compensation, and $10.0M in buybacks suggests management is offsetting dilution.
Alkami Technology, Inc. (ALKT) cash flow statement — 7-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 |
|---|
| Cash from Operations | 57.63M | 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 % | 1992.37% | 130.71% | 206.26% | 53.68% | -30.49% | 24.08% | 2.4% | - |
| Net Income | -37.05M | -47.65M | -40.84M | -62.91M | -58.6M | -46.82M | -51.35M | -41.87M |
| Depreciation & Amortization | 32.58M | 26.91M | 10.51M | 10.63M | 8.07M | 3.44M | 2.77M | 2.23M |
| Stock-Based Compensation | 56.39M | 76.19M | 59.44M | 51.23M | 0 | 14.54M | 1.95M | 1.25M |
| Deferred Taxes | 528K | -11.79M | 109K | -32K | -690K | 85K | 15.82M | -509K |
| Other Non-Cash Items | 21.28M | 2.75M | -865K | -3.59M | 29.88M | 3.08M | 61K | 43K |
| Working Capital Changes | -16.1M | -3.5M | -9.76M | -12.83M | -16.45M | -3.29M | -7.4M | -226K |
| Change in Receivables | -10.84M | -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 | 5.41M | 19.71M | 3.32M | 91K | -1.37M | 6.83M | 3.07M | 4M |
| Cash from Investing | -10.02M | -397.59M | 23.04M | 33.91M | -224.01M | -22.02M | -27.22M | -3.69M |
| Capital Expenditures | -4.18M | -1.54M | -1.2M | -1.06M | -4.7M | -1.12M | -2.15M | -3.69M |
| CapEx % of Revenue | 0.82% | 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 | -4.8M | -7.15M | -6.66M | -5.23M | 0 | -2.58M | 0 | 0 |
| Cash from Financing | -54.61M | 323.79M | 11.79M | -87.82M | 61.18M | 192.27M | 225.05M | 30.19M |
| Debt Issued (Net) | -26.9M | 348.62M | 0 | -85M | 59.54M | -313K | 24.99M | 0 |
| Equity Issued (Net) | -16.48M | 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 | -25M | 0 | 0 | 0 | 0 | -3.5M | -14.54M | 0 |
| Other Financing | -11.24M | -33.88M | -13.18M | -19.93M | -3.67M | 8.24M | 697K | -112K |
| Net Change in Cash | -7M | -30.9M | 53.43M | -71.41M | -196.24M | 141.29M | 159.68M | -12.58M |
| Free Cash Flow | 54.61M | 41.36M | 17.4M | -23.79M | -38.84M | -32.66M | -40.29M | -42.77M |
| FCF Margin % | 10.67% | 9.32% | 5.21% | -8.98% | -19.02% | -21.46% | -35.93% | -58.16% |
| FCF Growth % | 85.45% | 137.7% | 173.14% | 38.75% | -18.95% | 18.95% | 5.8% | - |
| FCF per Share | 0.51 | 0.40 | 0.18 | -0.25 | -0.43 | -0.36 | -0.48 | -0.51 |
| FCF Conversion (FCF/Net Income) | -1.47x | -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 |
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.
Key Metrics
Top Statement Risk
Stock-based compensation dependence
Metrics are mathematically derived from official filings.
Operating Cash Flow Masks Persistent Losses
According to the reported quarterly figures, Alkami generated $21.9M in operating cash flow in 2026Q3 against a net loss of $6.7M, a gap that is largely explained by $19.2M of stock-based compensation and $8.3M of depreciation and amortization added back to earnings. The OCF to net income ratio is negative across most quarters, indicating the cash signal is driven by non-cash charges rather than underlying profitability.
The gap between net income and operating cash flow is the central feature of this cash profile, and it appears to reflect non-cash expense add-backs rather than earnings quality in the conventional sense. When stock-based compensation is removed from the equation, operating cash generation becomes far less impressive, suggesting that shareholders are bearing a real economic cost through dilution even though it does not appear as a cash outflow. Investors should monitor whether operating cash flow continues to exceed net income once SBC is treated as a recurring operating expense.
Free Cash Flow Turns Positive but Volatile
Based on the reported figures, free cash flow moved from a $6.1M deficit in 2024Q2 to $20.0M in 2026Q3, with a free cash flow margin of 14.9% in the latest quarter, though the series remains uneven with a -4.1% margin in 2026Q1.
The recovery in free cash flow appears meaningful in direction, yet the quarterly pattern is lumpy and dependent on working capital swings, as seen in the $21.1M working capital outflow in 2026Q1 that pushed free cash flow negative. A sustained run of positive quarters would be more persuasive than the recent cluster, and investors should weigh the trajectory against the quality of the add-backs that support it. The data suggests the improvement is real but has not yet proven durable.
Asset-Light Capital Intensity Profile
As reported in the financial statements, capital expenditure runs at roughly 0.2% to 1.4% of revenue in recent quarters, with a 3.2% spike in 2024Q3, indicating a business that requires minimal physical investment relative to its scale.
Low capital intensity is consistent with a software platform model, meaning cash generation is less constrained by reinvestment needs than in asset-heavy industries. The spikes in capex relative to revenue appear episodic rather than structural, so they do not materially alter the overall conclusion. Depreciation and amortization remain well above capex, which may reflect capitalized software and acquired intangibles amortizing over time.
Cash Retained Rather Than Returned
Based on Alkami's reported figures, the company paid no dividends across the ten-quarter window and recorded share repurchases of $10.0M in 2026Q3 and $15.0M in 2026Q2, with no buybacks in most earlier periods.
Capital deployment is modest and sporadic, with buybacks appearing only in the most recent quarters, which may signal an early shift toward returning capital but does not yet establish a consistent program. Given the stock-based compensation burden, repurchases may partly offset dilution rather than represent discretionary capital return. The $375.5M acquisition outflow in 2025Q1 is a significant deployment event that warrants further investigation into its strategic rationale and subsequent cash contribution.
Cash Strength Depends on Non-Cash Add-Backs
Based on reported quarterly figures, stock-based compensation of $16M to $21M per quarter accounts for a material share of the gap between net losses and positive operating cash flow, suggesting the cash profile may overstate economic cash generation.
If stock-based compensation were treated as a cash-equivalent cost, the apparent cash strength of the business would narrow considerably, and the FCF margin trajectory may look materially less favorable. This analysis is an inference from the reported figures rather than a proven conclusion, since the economic cost of equity compensation is debated. Investors should monitor whether operating cash flow can sustain positive levels as stock-based compensation is reduced or as the company shifts toward cash-settled arrangements.