Summary
Alkami Technology reported revenue of $113.0 million for the fiscal third quarter ended September 30, 2025, up 31.5% from $85.9 million in the year-ago quarter. Revenue for the first nine months of fiscal 2025 was $322.8 million, up 32.2% from $244.2 million. Growth came from digital user gains at existing clients, new client implementations, more products sold per client, and higher termination fees as clients were acquired in mergers. Annual recurring revenue finished at $449 million, up 31%, and revenue per registered user rose 19% to $20.83. Registered users ended the period at 21.6 million, up from 19.5 million a year earlier.
New client momentum was solid. Alkami implemented 13 financial institutions in the quarter, a record that included six banks, and signed 10 new digital banking platform clients. The digital banking platform client count reached 291, versus 266 a year earlier. Another 37 clients were in the implementation backlog, representing 1.7 million digital users. Management flagged a favorable pipeline among regional and community financial institutions and early interest in the combined Digital Sales and Service Platform, which pairs onboarding and account opening with digital banking and data and marketing tools.
Margins tell a more complicated story. Gross profit rose 26.7% to $64.1 million, but gross margin slipped to 56.8% from 58.9%, pulled down by amortization tied to the MANTL acquisition. Non-GAAP gross margin, which excludes amortization and stock-based compensation, moved the other way, to 63.7% from 62.8%. The operating loss widened to $12.9 million from $10.4 million, and the net loss widened 56.8% to $14.8 million from $9.4 million. Diluted loss per share was $0.14, compared with $0.09 a year earlier.
Adjusted EBITDA, a non-GAAP measure, climbed to $16.0 million from $8.3 million. Operating expenses grew across research and development, sales and marketing, and general and administrative, mostly on headcount growth and higher stock-based compensation. That spending keeps GAAP profitability out of reach even as the top line compounds.
Cash generation was the strongest part of the release. Operating cash flow was $30.8 million for the quarter, up 180.4% from $10.99 million in the year-ago quarter. For the first nine months of fiscal 2025, operating cash flow was $26.3 million, up 110.6% from $12.49 million. Capital expenditures were $0.3 million in the quarter, and the business remains asset light.
Backlog and deferred revenue both expanded. Remaining performance obligations reached $1.6 billion, up from $1.3 billion a year earlier. Current deferred revenue was $31.1 million, up 138.0% from $13.1 million. The March 2025 MANTL purchase was funded with a convertible note offering, a revolver draw and cash on hand, and a balance remained outstanding on the revolver at quarter end.
Guidance comes in two pieces. For the fourth quarter of fiscal 2025, management guided Adjusted EBITDA to $16.1 million to $17.1 million. For the full fiscal year ending December 31, 2025, the Adjusted EBITDA outlook is $56.0 million to $57.0 million. A revenue outlook was also issued for both the fourth quarter and the full fiscal year, and both outlooks include the cost of investment in a global capability center.
The company also announced a CFO transition. Cassandra Hudson becomes chief financial officer on November 1, 2025, replacing Bryan Hill, who is retiring after a tenure that included taking Alkami public and growing ARR from less than $100 million in 2019 to more than $445 million.
Risks are the usual set for a high-growth software vendor. Alkami cites its limited operating history and history of operating losses, the unpredictable and time-consuming nature of its sales cycles, intense competition, and the difficulty of integrating acquisitions such as MANTL. Cybersecurity breaches, reliance on third-party hosting and software, and the debt raised to fund the MANTL deal all stay on the list. Retention looks durable for now, with 2025 churn under 1% against a long-term modeled range of 2% to 3%.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2025 | Q2 FY2025 | QoQ | Q3 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $113.0M | $112.1M | +0.8% | $85.9M | +31.5% |
| Gross profit | $64.1M | $65.6M | -2.2% | $50.6M | +26.7% |
| Gross margin | 56.8% | 58.6% | -1.8 pp | 58.9% | -2.1 pp |
| Research & development | $30.1M | $30.2M | -0.5% | $24.1M | +24.7% |
| Sales & marketing | $19.3M | $23.0M | -15.9% | $14.4M | +34.2% |
| General & administrative | $25.6M | $26.0M | -1.5% | $22.1M | +15.8% |
| Total operating expenses | $77.0M | $81.5M | -5.5% | $61.0M | +26.2% |
| Operating income (loss) | -$12.9M | -$15.9M | +18.8% | -$10.4M | -23.5% |
| Operating margin | -11.4% | -14.2% | +2.8 pp | -12.1% | +0.7 pp |
| Net income (loss) | -$14.8M | -$13.6M | -8.9% | -$9.4M | -56.8% |
| Net margin | -13.1% | -12.1% | -1.0 pp | -11.0% | -2.1 pp |
| Diluted EPS | -$0.14 | -$0.13 | -$0.01 | -$0.09 | -$0.05 |
Risks
The March 2025 issuance of $345 million 2030 Convertible Notes and borrowings under the Amended Credit Agreement increase leverage; interest expense rose to $3.0 million for the quarter and $7.0 million year to date ended September 30, 2025 from $0.2 million and $0.3 million in the prior-year periods. The filing warns that covenants and repayment or repurchase obligations could limit cash flow and cause defaults.
Conversion of the 2030 Convertible Notes may dilute existing stockholders, and the Capped Calls meant to offset dilution expose the company to counterparty risk if option counterparties default. The filing states a counterparty default could cause more dilution than currently anticipated and adverse tax consequences.
Accounting for the 2030 Convertible Notes is expected to produce interest expense greater than cash interest payments, resulting in higher reported loss, and a convertibility trigger could require reclassifying the notes as a current liability and materially reduce reported working capital.
The March 2025 MANTL acquisition for approximately $375 million added debt and amortization; the nine months ended September 30, 2025 included a $1.7 million loss on impairment of historical developed technology, customer relationship, and capitalized developed software assets. Gross margin for the quarter fell to 56.8% from 58.9% in the prior-year quarter, primarily due to increased amortization of intangibles.
Operating loss widened to $12.9 million for the quarter from $10.4 million in the prior-year quarter, and net loss widened to $14.8 million from $9.4 million, as costs grew faster than revenue. The company had an accumulated deficit of $512.4 million as of September 30, 2025.
SaaS KPIs
All quarters →Non-GAAP Gross Margin
Adjusted EBITDA
Registered Users
Revenue per Registered User (RPU)
Annual Recurring Revenue (ARR)
Average Contract Life
Digital Banking Platform Clients
Remaining Performance Obligation (RPO)
Implementation Backlog Clients
Implementation Backlog Digital Users
Real-time Integrations
Summary, forecast, risks and KPIs are extracted from ALKAMI TECHNOLOGY, INC.'s SEC filings for Q3 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.