#United States #Financial Services #digital banking #Alkami Technology #Plano, Texas

Alkami Technology Reports Q2 2025 Financial Results

Alkami Technology, Inc. (NASDAQ: ALKT), recognized for its innovative cloud-based digital banking solutions, has revealed remarkable financial results for the second quarter of 2025, which ended on June 30th. The company has shown substantial growth, affirming its place as a leader in providing essential digital solutions for financial institutions across the United States.

Financial Highlights

During the second quarter, Alkami reported total revenues of $112.1 million, marking a 36.4% increase compared to the same period in the previous year. This growth was accompanied by a GAAP gross margin recorded at 58.6%, slightly down from 59.4% from the previous year. Importantly, Alkami’s Non-GAAP gross margin improved to 65.1%, up from 63.2%, reflecting efficient cost management amid noteworthy revenue growth.

Despite the growth in revenues, Alkami encountered a net loss of $13.6 million for the quarter, widening from a loss of $12.3 million during the same quarter last year. However, the company reported an Adjusted EBITDA of $11.9 million, a significant jump from $4.6 million year-on-year. This indicates optimistic operational practices driving value in the face of elevated expenses.

CEO Alex Shootman expressed his satisfaction with these results, stating, "We are very pleased to report strong financial performance for the second quarter, with revenue growth of 36% and Adjusted EBITDA of $12 million. Our user base reached 20.9 million, which is an increase of 2.3 million users compared to the previous year."

Demand for Digital Transformation

Alkami continues to witness strong demand for digital banking solutions, particularly from regional and community financial institutions. As more than 250 million digital users are still locked into legacy systems that lack modern functionalities, the need for comprehensive, integrated solutions is clear. Shootman emphasized the importance of streamlined onboarding and account management, which influenced Alkami's strategic acquisition of MANTL. In the second quarter alone, MANTL successfully added 23 new clients, further enhancing Alkami’s digital banking portfolio.

Bryan Hill, CFO, highlighted the company’s impressive metrics, stating that Alkami's annual recurring revenue (ARR) also showed robust growth at $424 million, an increase of 32% year-on-year, with revenue per registered user rising to $20.28, a 17% increase from last year.

Future Outlook

Looking ahead, Alkami has set ambitious financial targets for its third quarter, projecting total revenue to range between $112.5 million and $114 million and Adjusted EBITDA between $13 million and $14 million. For the entire fiscal year ending December 31, 2025, Alkami anticipates total revenues between $443 million and $447 million, alongside an Adjusted EBITDA estimate between $51.5 million and $54 million.

Conference Call Details: Alkami will host a conference call today at 5 PM ET to discuss its latest financial results in greater detail. Investors can join the call via the Alkami investor relations website or dial in using the domestic number 1-800-836-8184 or international line 1-646-357-8785, accessing the call with the passcode 07594. The replay will also be available shortly after the session concludes.

About Alkami Technology

Alkami Technology, Inc. is a pioneer in providing digital banking solutions tailored for financial institutions. With a mission to aid clients in thriving within evolving digital landscapes, Alkami offers an array of services that cover banking operations, account management, and marketing analyses, ensuring that institutions can build and maintain successful digital communities. For more insights into Alkami and its offerings, visit their official website at alkami.com.