Summary
Alkami Technology posted fiscal 2025 first-quarter revenue of $97.8 million, up 28.5% from the year-ago quarter. Gross profit rose 31.2% to $57.8 million, and GAAP gross margin reached 59.0%, up 1.2 percentage points. The company remains unprofitable on a GAAP basis. Operating loss widened to $15.4 million, while net loss narrowed to $7.8 million. Diluted EPS loss narrowed to $0.08. GAAP operating margin was negative 15.7%, up 0.5 percentage points. Non-GAAP gross margin was 64.3%, and Adjusted EBITDA was $12.1 million. Management said revenue growth outpaced cost of revenues growth, which lifted the gross margin.
Operational metrics kept improving. Annual recurring revenue reached $404 million, up 33%. Registered users totaled 20.5 million, up 2.3 million from a year earlier. Alkami served 278 digital banking platform clients. It signed 4 new digital banking platform clients, implemented 7 clients, and carried 36 new clients in implementation backlog, representing 1.1 million digital users. Last-twelve-month churn was less than 1%, against long-term expected annual churn of 2% to 3%. Subscription revenue mix was 95% as of March 31, 2025. Remaining performance obligations rose 33.3% to $1.6 billion. Current deferred revenue rose 133.2% to $29.1 million. The company attributed the user gains to existing clients and to new clients implemented on the platform, net of attrition.
The MANTL acquisition closed on March 17, 2025, for approximately $375 million net of cash acquired. MANTL added a modest amount of first-quarter revenue and a small Adjusted EBITDA loss. Management expects the deal to add revenue for the full year 2025 and to be accretive to Adjusted EBITDA in 2026. MANTL's annual recurring revenue under contract at December 31, 2025 is expected to be approximately $60 million, which represents growth of over 30%. The purchase was funded with $345 million principal amount of 1.50% convertible senior notes due 2030, $60 million of revolving loan borrowings, and cash from the balance sheet. Operating cash flow was negative $5.7 million, down from the prior-year quarter. Capital expenditures were $0.5 million, up 58.5%.
Guidance covers both the next quarter and the full fiscal year. For the second quarter ending June 30, 2025, management guided Adjusted EBITDA to a range of $9.0 million to $10.0 million. For the full fiscal year ending December 31, 2025, guidance is Adjusted EBITDA of $49.5 million to $52.5 million. The full-year outlook includes the MANTL contribution and the impact of the India expansion. Management pointed to continued new client expansion, existing user growth and revenue per registered user expansion as the drivers of revenue growth.
Alkami also announced CFO Bryan Hill's planned retirement. Hill will remain CFO until the earlier of February 27, 2026, or 15 days after a successor is hired, then move to a consultant role through December 15, 2026. Risks include the company's limited operating history and history of operating losses, managing rapid growth, attracting and retaining clients, long sales cycles, reliance on third-party software, cybersecurity breaches, competition, a downturn or consolidation in the financial services industry, regulatory changes, and integration of acquisitions. The MANTL integration and the new convertible debt add execution and balance sheet considerations.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2025 | Q4 FY2024 | QoQ | Q1 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $97.8M | $89.7M | +9.1% | $76.1M | +28.5% |
| Gross profit | $57.8M | $53.2M | +8.6% | $44.0M | +31.2% |
| Gross margin | 59.0% | 59.4% | -0.3 pp | 57.8% | +1.2 pp |
| Research & development | $26.9M | $25.3M | +6.1% | $22.8M | +17.8% |
| Sales & marketing | $17.9M | $14.6M | +23.0% | $13.8M | +29.3% |
| General & administrative | $23.8M | $21.6M | +10.2% | $19.3M | +23.1% |
| Total operating expenses | $73.2M | $61.8M | +18.3% | $56.4M | +29.7% |
| Operating income (loss) | -$15.4M | -$8.6M | -78.5% | -$12.4M | -24.5% |
| Operating margin | -15.7% | -9.6% | -6.1 pp | -16.2% | +0.5 pp |
| Net income (loss) | -$7.8M | -$7.6M | -2.3% | -$11.4M | +31.6% |
| Net margin | -8.0% | -8.5% | +0.5 pp | -15.0% | +7.0 pp |
| Diluted EPS | -$0.08 | -$0.08 | ±$0.00 | -$0.12 | +$0.04 |
Risks
New $345.0 million 2030 Convertible Notes issued March 13, 2025, plus $60.0 million borrowed under the revolver for the MANTL acquisition. Risks include default, covenant restrictions that limit cash settlement of conversions, and potential inability to repurchase notes upon a fundamental change, which could accelerate other debt.
Conversion of the 2030 Convertible Notes could dilute existing stockholders. Capped Calls are intended to reduce dilution but are subject to a cap and counterparty risk.
Exposure to credit risk of the option counterparties for the Capped Calls. If a counterparty defaults, the company may suffer more dilution and adverse tax consequences.
Amortization of debt discount and issuance costs will result in higher reported loss than cash interest. If conversion conditions are met, the notes may be reclassified as a current liability, materially reducing reported working capital.
MANTL acquisition closed March 17, 2025 for $375 million, resulting in a $1.7 million impairment of historical intangible assets. Integration risks and limited revenue contribution of $1.4 million in the quarter.
SaaS KPIs
All quarters →Non-GAAP Gross Margin
Adjusted EBITDA
Registered Users
Revenue per Registered User (RPU)
Annual Recurring Revenue (ARR)
LTM churn
Remaining Performance Obligation (RPO)
Digital Banking Clients
Subscription Revenue Mix
Implementation Backlog
Summary, forecast, risks and KPIs are extracted from ALKAMI TECHNOLOGY, INC.'s SEC filings for Q1 FY2025 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.