Summary
Alkami Technology reported first-quarter 2026 revenue of $126.1 million, up 28.9% from the year-ago quarter. GAAP gross margin was 58.6%, compared with 59.0% in the prior-year quarter. The company recorded a GAAP net loss of $(10.0) million and diluted EPS of $(0.09). Adjusted EBITDA was $22.3 million, compared with $12.1 million a year earlier. The MANTL acquisition contributed $14.9 million of revenue in the quarter. Management said the quarter included 6 new digital banking logos and 14 new MANTL logos. Half of the new logos were DSSP clients.
Operating metrics showed continued scale. Annual recurring revenue reached $493.6 million, up 22% from the year-ago quarter. Registered users totaled 23.0 million, up 2.5 million or 12%. Revenue per registered user was $21.46, up 9%. Digital banking platform clients grew to 307 from 278, a 10% increase. The company had 40 new clients in implementation backlog, representing 1.4 million digital users. Remaining performance obligation was $1.7 billion, or 3.5 times live ARR. Subscription revenue mix was 96%, and net dollar retention for digital banking was 115%. Management expects 2026 digital banking ARR churn of less than 1%, compared with a long-term expected annual churn of 2% to 3%.
Costs rose with the business. Cost of revenues was $52.3 million, up 30.4%. Gross profit was $73.9 million. Operating expenses were $79.6 million, up 8.8%. Research and development expense was $31.0 million, up 15.3%. Sales and marketing expense was $20.0 million, up 11.5%. General and administrative expense was $26.9 million, down 3.2%. Loss from operations was $(5.7) million. Interest expense was $2.3 million. Provision for income taxes was $2.8 million. Non-GAAP gross margin was 64.4%, compared with 64.3%. Adjusted EBITDA margin was 17.7%.
Cash generation remained negative on a GAAP basis. Net cash used in operating activities was $4.8 million. Free cash flow was $(7.4) million. The company repaid $15.0 million on its revolving loan and had no borrowings outstanding under the facility as of March 31, 2026. The board authorized a share repurchase program of up to $100 million. Management also noted 4 client renewals in the quarter and an average contract life of approximately 70 months.
Guidance points to continued growth. For the second quarter ending June 30, 2026, management guided GAAP total revenue to $128.0 million to $129.0 million and Adjusted EBITDA to $17.9 million to $18.7 million. For the full fiscal year ending December 31, 2026, guidance is for GAAP total revenue of $527.1 million to $530.9 million and Adjusted EBITDA of $94.9 million to $97.9 million. The long-term framework targets gross margin approaching 70% in 2030, Adjusted EBITDA margin expansion of approximately 300 basis points annually from 2026 to 2030, and a Rule of 45 in 2030. Risks include a limited operating history and history of operating losses, the ability to manage rapid growth, attract and retain clients, long and unpredictable sales cycles, intense competition, integration of acquisitions, cybersecurity breaches, regulatory changes, reliance on the financial services industry, and indebtedness.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2026 | Q4 FY2025 | QoQ | Q1 FY2025 | YoY |
|---|---|---|---|---|---|
| Revenue | $126.1M | $120.8M | +4.4% | $97.8M | +28.9% |
| Gross profit | $73.9M | $69.1M | +6.9% | $57.8M | +27.9% |
| Gross margin | 58.6% | 57.2% | +1.4 pp | 59.0% | -0.5 pp |
| Research & development | $31.0M | $31.2M | -0.6% | $26.9M | +15.3% |
| Sales & marketing | $20.0M | $19.9M | +0.2% | $17.9M | +11.5% |
| General & administrative | $26.9M | $25.4M | +5.8% | $23.8M | +13.2% |
| Total operating expenses | $79.6M | $78.6M | +1.3% | $73.2M | +8.8% |
| Operating income (loss) | -$5.7M | -$9.5M | +39.9% | -$15.4M | +62.9% |
| Operating margin | -4.5% | -7.9% | +3.3 pp | -15.7% | +11.2 pp |
| Net income (loss) | -$10.0M | -$11.4M | +12.9% | -$7.8M | -27.5% |
| Net margin | -7.9% | -9.5% | +1.6 pp | -8.0% | +0.1 pp |
| Diluted EPS | -$0.09 | -$0.11 | +$0.02 | -$0.08 | -$0.01 |
Risks
Interest expense was $2.3 million for the three months ended March 31, 2026, up from $0.8 million in the prior-year period, largely due to the 2030 Convertible Notes. Non-operating expense increased by $1.8 million period-over-period due to higher net interest expense.
Alkami's typical sales cycle is approximately three to 12 months, with subsequent implementation generally six to 12 months depending on integration depth. The company had only 4 client renewals in the three months ended March 31, 2026, so delays or failures in winning and implementing clients could slow revenue growth.
Future success depends on renewing clients, and renewals are an important lever for long-term gross margin targets because Alkami generally achieves approximately 70% gross margin upon renewal. The company reported 4 client renewals in the quarter ended March 31, 2026.
Each digital banking client win is a competitive takeaway, and future success significantly depends on growing the FI client base through competitive wins. Product depth and innovation are key determinants in a replacement market against incumbents and broader competition.
General and administrative expenses for the three months ended March 31, 2026 included $2.2 million of stockholder matters related expenses, which are outside the ordinary course of business and partially offset a $0.9 million decrease in G&A. These matters could continue to add legal, consulting, and advisory costs.
The MANTL acquisition contributed $14.9 million of revenue in the three months ended March 31, 2026, but increased amortization of intangible assets. Gross margin decreased to 58.6% from 59.0% in the prior-year period, primarily due to higher amortization from the MANTL acquisition.
Alkami relies on the financial services industry as the source of its revenue, so a downturn, consolidation, or decrease in technological spend in that industry could reduce demand. Forward-looking factors also cite regulations and laws applicable to the company, its clients, and its solutions, including the impact of tariffs and trade policies.
SaaS KPIs
All quarters →Non-GAAP Gross Margin
Adjusted EBITDA
Registered Users
Revenue per Registered User (RPU)
Average Contract Life
Digital Banking Platform Clients
Remaining Performance Obligation (RPO)
Real-time Integrations
Implementation Backlog
SaaS Subscription Revenue (% of Total Revenue)
Summary, forecast, risks and KPIs are extracted from ALKAMI TECHNOLOGY, INC.'s SEC filings for Q1 FY2026 (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.