Summary
Alkami Technology reported second-quarter 2026 revenue of $129.8 million, up 15.9% from the year-ago quarter. Year-to-date revenue was $256.0 million, up 22.0%. Gross profit for the quarter was $73.8 million, up 12.5%, though gross margin slipped to 56.8% from 58.6%, down 1.7 percentage points. Non-GAAP gross margin was 63.0%, compared with 65.1% a year earlier. The operating loss narrowed to $7.7 million from $15.9 million, and operating margin was -5.9%, up 8.2 percentage points from -14.2%. Net loss was $8.9 million, compared with $13.6 million, and diluted EPS was -$0.08, compared with -$0.13. Year-to-date net loss was $18.9 million, compared with $21.4 million, with year-to-date diluted EPS of -$0.18 against -$0.21. Adjusted EBITDA was $19.4 million, compared with $11.9 million, and the adjusted EBITDA margin of 14.9% reflected nearly 430 basis points of expansion.
The quarter brought continued client and product expansion. Annual recurring revenue exited at $511.7 million, up 21% from the year-ago quarter, and registered users reached 23.6 million, up 2.7 million or 13%. Revenue per registered user rose 7.0%. Alkami served 313 digital banking clients, compared with 280 a year earlier. It signed 5 new digital banking platform clients and implemented 8 clients in the quarter. The implementation backlog held 37 new clients representing 1.3 million digital users. Over the last 12 months the company added 37 new digital banking logos, including 15 banks. Remaining performance obligations were $1.7 billion, up 6.2% from $1.6 billion, or 3.4 times live ARR. Current deferred revenue was $33.5 million, up 23.4% from $27.2 million. Management also pointed to net dollar retention of 115% and a subscription revenue mix of 95%.
Margins remain the pressure point. Gross margin fell because of higher third-party and hosting costs, including temporary 2026 database costs. Cost of revenues grew faster than revenue. The operating loss still narrowed sharply because operating expenses were roughly flat against the year-ago quarter. Year-to-date operating loss was $13.4 million, compared with $31.3 million. Adjusted EBITDA growth came from scale and efficiencies across research and development, sales and marketing, and general and administrative functions. Operating cash flow for the first half was $17.2 million, compared with negative $4.5 million a year earlier, and capital expenditures were $0.77 million, down 12.5% from $0.88 million. Free cash flow, a non-GAAP measure, was $12.4 million, compared with negative $8.6 million. The company repurchased 884,575 shares for $15.0 million and had $85.0 million left under its authorization at June 30, 2026. No borrowings were outstanding under the Revolving Facility at that date.
Guidance points to continued expansion. For the third quarter ending September 30, 2026, management guided adjusted EBITDA to a range of $23.5 million to $24.3 million. For the full fiscal year ending December 31, 2026, the company guided adjusted EBITDA to a range of $96.0 million to $98.0 million. Revenue guidance was also provided for both periods. The investor deck outlined a long-term framework of gross margin approaching 70% in 2030, adjusted EBITDA margin expansion of roughly 300 basis points annually from 2026 to 2030, and a Rule of 45 in 2030.
Risks are the familiar set for a growing SaaS business. Alkami cites its limited operating history and history of operating losses, the difficulty of managing rapid growth, and the need to win new clients while retaining and expanding existing ones. Long and unpredictable sales cycles, reliance on third-party software and hosting, integration with client systems, and intense competition all weigh on execution. The company also flags a possible downturn, consolidation, or decrease in technology spend in the financial services industry. Cybersecurity breaches, regulatory developments, AI risks, intellectual property protection, and debt-related risks are listed as well, and the stock repurchase program and possible activist stockholder actions add further uncertainty. Gross margin pressure from third-party and hosting costs stays a key watch item even as adjusted EBITDA and cash generation improve.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2026 | Q1 FY2026 | QoQ | Q2 FY2025 | YoY |
|---|---|---|---|---|---|
| Revenue | $129.8M | $126.1M | +2.9% | $112.1M | +15.9% |
| Gross profit | $73.8M | $73.9M | -0.1% | $65.6M | +12.5% |
| Gross margin | 56.9% | 58.6% | -1.7 pp | 58.6% | -1.7 pp |
| Research & development | $31.4M | $31.0M | +1.3% | $30.2M | +3.9% |
| Sales & marketing | $22.8M | $20.0M | +14.4% | $23.0M | -0.7% |
| General & administrative | $25.6M | $26.9M | -4.9% | $26.0M | -1.7% |
| Total operating expenses | $81.5M | $79.6M | +2.4% | $81.5M | +0.0% |
| Operating income (loss) | -$7.7M | -$5.7M | -35.1% | -$15.9M | +51.4% |
| Operating margin | -5.9% | -4.5% | -1.4 pp | -14.2% | +8.2 pp |
| Net income (loss) | -$8.9M | -$10.0M | +10.7% | -$13.6M | +34.5% |
| Net margin | -6.8% | -7.9% | +1.1 pp | -12.1% | +5.3 pp |
| Diluted EPS | -$0.08 | -$0.09 | +$0.01 | -$0.13 | +$0.05 |
Risks
New risk factor: the Board authorized a stock repurchase program of up to $100.0 million on April 23, 2026. During Q2 2026, the company repurchased 884,575 shares for $15.0 million, leaving $85.0 million available. Repurchases could increase trading price volatility, diminish cash reserves, and reduce the ability to finance growth, fund working capital, or pursue strategic acquisitions.
Gross margin declined to 56.8% in Q2 2026 from 58.6% in Q2 2025, and to 57.7% year to date 2026 from 58.8% year to date 2025. MD&A attributes the decline primarily to increased third-party partner and hosting costs.
MD&A reports higher costs of third-party partners whose solutions are resold as part of the digital platform, plus higher hosting costs, driving the gross margin decline. This reliance on third-party software, content, and hosting providers can pressure margins and operations.
MD&A reports stockholder matters related expenses outside the ordinary course for Q2 and year to date 2026, contributing to general and administrative costs even as total G&A decreased. These matters can consume management attention and add legal, consulting, and advisory costs.
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
Remaining Performance Obligations (RPO)
Subscription Revenue Mix
Summary, forecast, risks and KPIs are extracted from ALKAMI TECHNOLOGY, INC.'s SEC filings for Q2 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.