Alkami Technology Inc
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.74%.
Did ALKT Beat Earnings? Q1 2025 Results
Alkami Technology posted a mixed first quarter for 2025, delivering a revenue beat but a notable earnings miss as acquisition activity reshaped the company's financial profile. Revenue climbed 28.5% year-over-year to $97.83 million, topping the $94.38 million consensus estimate by 3.66%, while the company reported a loss per share of $0.08, falling well short of the $0.09 consensus by 192.06%. The gap was largely driven by $2.38 million in acquisition-related expenses tied to the closing of the MANTL deal on March 17, 2025, which added omnichannel account-opening capabilities to Alkami's digital banking platform and contributed $1.40 million in first-quarter revenue. Annual recurring revenue grew 33% year-over-year to $403.88 million, underscoring durable demand from the company's 278 platform clients. Looking ahead, management guided full-year 2025 revenue of $443.00 million to $447.00 million and Adjusted EBITDA of $49.50 million to $52.50 million, with MANTL expected to become Adjusted EBITDA accretive in 2026.
- 28.5% revenue growth driven by new clients, existing client user growth, and ARPU growth
- ARR grew 33% to $404 million
- Registered users grew 13% to 20.5 million
- RPU increased 18% to $19.74
- Non-GAAP gross margin expanded to 64.3% from 61.7%
- Adjusted EBITDA more than tripled to $12.1 million from $3.8 million
- Net dollar retention of 113%
- LTM churn less than 1%
- 95% subscription revenue mix
- Remaining performance obligation of $1.6 billion, up 31% year-over-year
“In the first quarter, we delivered another outstanding quarter of strong revenue growth and profitability, with revenue growth of 28.5% and Adjusted EBITDA of $12.1 million. We exited Q1 with 20.5 million users on the Alkami platform, up 2.3 million compared to the year-ago quarter, and we continued to lead the industry in market share gains.”
Alkami Technology CEO, on the earnings call
Forward Guidance & Outlook
For Q2 2025, Alkami guides GAAP total revenue of $109.0 million to $110.5 million and Adjusted EBITDA of $9.0 million to $10.0 million. For full-year 2025, the company expects GAAP total revenue of $443.0 million to $447.0 million and Adjusted EBITDA of $49.5 million to $52.5 million. Full-year guidance includes approximately $31.4 million of MANTL revenue and a $5.0 million MANTL Adjusted EBITDA loss; management expects MANTL to be accretive to Adjusted EBITDA in 2026. MANTL's ARR under contract at year-end 2025 is expected to be approximately $60 million, representing over 30% growth. Guidance also includes the impact of Alkami's India expansion. The company targets gross margin improvement of 200-300 basis points per year through 2026 and a long-term Adjusted EBITDA margin target of 20% by 2026.
ALKT YoY Financials
Figures from SEC filings and company reports. Not investment advice.