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ALKT (Alkami Technology) Degree of Operating Leverage : -0.62 (As of Mar. 2025)


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What is Alkami Technology Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Alkami Technology's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -0.62. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Alkami Technology's Degree of Operating Leverage or its related term are showing as below:

ALKT's Degree of Operating Leverage is ranked better than
68.5% of 2660 companies
in the Software industry
Industry Median: 0.78 vs ALKT: -0.62

Alkami Technology Degree of Operating Leverage Historical Data

The historical data trend for Alkami Technology's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Alkami Technology Degree of Operating Leverage Chart

Alkami Technology Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial 0.42 -0.30 0.63 0.02 -1.07

Alkami Technology Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -0.35 -0.42 -0.36 -1.07 -0.62

Competitive Comparison of Alkami Technology's Degree of Operating Leverage

For the Software - Application subindustry, Alkami Technology's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Alkami Technology's Degree of Operating Leverage Distribution in the Software Industry

For the Software industry and Technology sector, Alkami Technology's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Alkami Technology's Degree of Operating Leverage falls into.


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Alkami Technology Degree of Operating Leverage Calculation

Alkami Technology's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -43.195 (Mar. 2025) / -51.646 (Mar. 2024) - 1 )/( 355.557 (Mar. 2025) / 280.962 (Mar. 2024) - 1 )
=-0.1636/0.2655
=-0.62***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Alkami Technology  (NAS:ALKT) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Alkami Technology Degree of Operating Leverage Related Terms

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Alkami Technology Business Description

Industry
Traded in Other Exchanges
N/A
Address
5601 Granite Parkway, Suite 120, Plano, TX, USA, 75024
Alkami Technology Inc is a cloud-based digital banking solutions provider. The company's solution, the Alkami Digital Banking Platform, allows FIs to onboard and engage new users, accelerate revenues and meaningfully improve operational efficiency, all with the support of a proprietary, true cloud-based, multi-tenant architecture.
Executives
Alex Shootman director, officer: Chief Executive Officer 1301 S. MOPAC EXPRESSWAY, SUITE 100, AUSTIN TX 78746
W Bryan Hill officer: Chief Financial Officer
Douglas A. Linebarger officer: Chief Legal Officer C/O ALKAMI TECHNOLOGY, INC., 5601 GRANITE PARKWAY, SUITE 120, PLANO TX 75024
Stephen Bohanon officer: Chf. Strategist & Sales Offr. C/O ALKAMI TECHNOLOGY, INC., 5601 GRANITE PARKWAY, SUITE 120, PLANO TX 75024
General Atlantic, L.p. director, 10 percent owner 55 EAST 52ND STREET, 33RD FLOOR, NEW YORK NY 10055
General Atlantic Genpar (bermuda), L.p. director, 10 percent owner C/O GENERAL ATLANTIC SERVICE COMPANY,LLC, 55 EAST 52ND ST. 32ND FLOOR, NEW YORK NY 10055
S3 Ventures Fund Iii, L.p. director, 10 percent owner 6300 BRIDGE POINT PARKWAY, BLDG. 1, SUITE 405, AUSTIN TX 78730
George B Kaiser director, 10 percent owner C/O FREDERIC DORWART, LAWYERS PLLC, 124 EAST FOURTH STREET, TULSA OK 74103
Maria Ines Alvarez director C/O ALKAMI TECHNOLOGY, INC., 5601 GRANITE PARKWAY, SUITE 120, PLANO TX 75024
Michael D Hansen director, officer: Chief Executive Officer
Kristy Ramundi officer: Chief Accounting Officer C/O ALKAMI TECHNOLOGY, INC., 5601 GRANITE PARKWAY, SUITE 120, PLANO TX 75024
Raphael Osnoss director C/O ALKAMI TECHNOLOGY, INC., 5601 GRANITE PARKWAY, SUITE 120, PLANO TX 75024
Barbara A. Yastine director 3120 BRECKINRIDGE BLVD., DULUTH GA 30099
Gary Lynn Nelson director C/O ALKAMI TECHNOLOGY, INC., 5601 GRANITE PARKWAY, SUITE 120, PLANO TX 75024
H Eugene Lockhart director OAK HILL FARM, P.O. BOX 489, 4125 LOUISA ROAD, KESWICK VA 22947