We feel now is a pretty good time to analyse Alkami Technology, Inc.'s (NASDAQ:ALKT) business as it appears the company may be on the cusp of a considerable accomplishment. Alkami Technology, Inc. offers cloud-based digital banking solutions in the United States. On 31 December 2023, the US$2.3b market-cap company posted a loss of US$63m for its most recent financial year. The most pressing concern for investors is Alkami Technology's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts' expectations for the company.

According to the 10 industry analysts covering Alkami Technology, the consensus is that breakeven is near. They expect the company to post a final loss in 2025, before turning a profit of US$32m in 2026. The company is therefore projected to breakeven around 2 years from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 80% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won't go into details of Alkami Technology's upcoming projects, though, keep in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we'd like to point out is that Alkami Technology has no debt on its balance sheet, which is rare for a loss-making growth company, which usually has a high level of debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

This article is not intended to be a comprehensive analysis on Alkami Technology, so if you are interested in understanding the company at a deeper level, take a look at Alkami Technology's company page on Simply Wall St. We've also put together a list of relevant aspects you should further research:

1. Valuation: What is Alkami Technology worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Alkami Technology is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Alkami Technology's board and the CEO's background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.