Summary
Alkami Technology reported second quarter revenue of $112.1 million, up 36.4% from the year-ago quarter. Gross profit was $65.6 million, up 34.5%. Gross margin was 58.6%, down from 59.4%, mainly because amortization of intangibles tied to the MANTL acquisition rose. Operating loss widened to $15.9 million from $13.2 million. Net loss widened to $13.6 million from $12.3 million. Diluted EPS was -$0.13, flat with the prior year. Operating cash flow was $1.16 million, up from $0.55 million. Revenue growth came from user growth, higher revenue per registered user, termination fees from bank mergers, and the MANTL acquisition.
Recurring metrics kept pace. Annual recurring revenue reached $424 million, up 32%. Registered users hit 20.9 million, up 2.3 million from a year ago. Revenue per registered user rose 17%. Remaining performance obligations were $1.6 billion, up 33.3%, and current deferred revenue was $27.16 million, up 116%. Alkami signed 9 new digital banking platform clients in the quarter and implemented 4, bringing the digital banking platform client count to 280. The company served 280 FIs through the Alkami Digital Banking Platform and more than 900 clients when including unique clients only subscribing to ACH Alert, Segmint, or MANTL products. The implementation backlog stands at 40 new clients representing 1.3 million digital users. MANTL added 23 new clients, including three attached to new Alkami digital banking wins and six that were existing Alkami clients. Churn over the last twelve months was less than 1%, well below the long-term expected annual churn of 2-3%. Alkami recorded 6 client renewals in the quarter. Average contract life was roughly 70 months, and the platform carried more than 300 integrations as of June 30, 2025.
Management gave guidance for the third quarter ending September 30, 2025 and for the full fiscal year ending December 31, 2025. Both outlooks cover revenue and Adjusted EBITDA, and management said the third quarter and full-year guidance include the impact of GCC investment. Second quarter Adjusted EBITDA was $11.9 million, up from $4.6 million. The balance sheet shows $52.4 million in cash and cash equivalents and $34.7 million in marketable securities, and the company reported $87.1 million in cash and cash equivalents and marketable securities. The accumulated deficit is $497.6 million. The MANTL deal was funded with $345 million of 2030 convertible notes, a $60 million revolver borrowing, and cash on hand. The company repaid $10 million on the revolver, leaving $50 million outstanding. Interest expense jumped to $3.2 million in the quarter from $0.1 million a year earlier because of the new debt. Interest expense related to the 2030 Convertible Notes and the Revolving Facility was $1.7 million and $1.2 million, respectively, for the three months ended June 30, 2025.
Risks remain significant. Alkami still posts GAAP operating losses and net losses even as revenue scales. Stock-based compensation was $19.5 million in the quarter, a large non-cash expense that Adjusted EBITDA excludes. Operating cash flow for the first six months was -$4.5 million, down from positive $1.5 million a year earlier. The company faces intense competition from legacy providers and must integrate MANTL while managing rapid growth. Its revenue depends on the financial services industry, and sales cycles can run from three to 12 months, with implementation timeframes generally running six to 12 months. Client renewals and new client implementations are critical to the growth story. Alkami also relies on third-party software and services and must guard against cybersecurity breaches. Management flagged that most of the 250 million-plus digital users in the target market still sit on legacy platforms. Other risk factors include the limited operating history, the history of operating losses, evolving regulatory requirements, the ability to attract and retain key employees, and possible downturns in technology spend across the financial services industry.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2025 | Q1 FY2025 | QoQ | Q2 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $112.1M | $97.8M | +14.5% | $82.2M | +36.4% |
| Gross profit | $65.6M | $57.8M | +13.6% | $48.8M | +34.5% |
| Gross margin | 58.6% | 59.0% | -0.5 pp | 59.4% | -0.8 pp |
| Research & development | $30.2M | $26.9M | +12.4% | $23.9M | +26.4% |
| Sales & marketing | $23.0M | $17.9M | +28.4% | $17.0M | +35.5% |
| General & administrative | $26.0M | $23.8M | +9.5% | $20.6M | +26.3% |
| Total operating expenses | $81.5M | $73.2M | +11.4% | $62.0M | +31.5% |
| Operating income (loss) | -$15.9M | -$15.4M | -3.0% | -$13.2M | -20.1% |
| Operating margin | -14.2% | -15.7% | +1.6 pp | -16.1% | +1.9 pp |
| Net income (loss) | -$13.6M | -$7.8M | -73.9% | -$12.3M | -10.3% |
| Net margin | -12.1% | -8.0% | -4.1 pp | -15.0% | +2.9 pp |
| Diluted EPS | -$0.13 | -$0.08 | -$0.05 | -$0.13 | ±$0.00 |
Risks
The 2030 Convertible Notes issued in March 2025 and the Revolving Facility increase leverage and require cash for interest and principal. The Indenture and Amended Credit Agreement contain covenants and restrictions on cash settlement of conversions that could lead to default and acceleration.
The company may be unable to raise funds to repurchase the 2030 Convertible Notes upon a fundamental change or to pay cash due at maturity or conversion, and the Amended Credit Agreement restricts cash settlement of conversions. Failure to pay would default the Indenture and could cross-default other debt.
Conversion of the 2030 Convertible Notes would dilute existing stockholders if settled in shares, and the Capped Calls are intended to reduce dilution but are subject to a cap. Option counterparties may modify hedge positions, which could increase or decrease the market price of the common stock.
Accounting for the 2030 Convertible Notes will cause reported interest expense to exceed cash interest and result in higher reported loss. If convertibility conditions are met, the notes may be reclassified as a current liability and materially reduce reported working capital.
The March 2025 MANTL acquisition and related impairment of historical intangible assets add integration and impairment risk as the company works to realize benefits from the transaction.
Operating cash flow was -$4.51 million year to date, down 400.7% from $1.50 million provided in the prior-year period, and the quarter net loss widened to $13.59 million from $12.32 million. Continued operating losses may pressure liquidity while debt service obligations increase.
SaaS KPIs
All quarters →Non-GAAP Gross Margin
Adjusted EBITDA
Registered Users
Revenue per Registered User (RPU)
Annual Recurring Revenue (ARR)
Digital Banking Platform Clients
LTM churn
Remaining Performance Obligation (RPO)
Implementation Backlog Clients
Implementation Backlog Digital Users
Summary, forecast, risks and KPIs are extracted from ALKAMI TECHNOLOGY, INC.'s SEC filings for Q2 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.