Summary
Alkami closed fiscal 2025 with fourth quarter revenue of $120.8 million, up 34.7% from the year-ago quarter. Full year revenue reached $443.6 million, up 32.9%. The top line benefited from the MANTL acquisition, new client wins, existing client user growth and ARPU gains. GAAP gross margin was 57.2% in the quarter, down 2.2 percentage points from the prior-year quarter. For the full year, GAAP gross margin was 57.8%, down 1.1 percentage points. Non-GAAP gross margin was 63.4% in the quarter against 63.1% a year earlier, and 64.1% for the full year against 62.7% in 2024. Management said the non-GAAP improvement tracked a plan to lift gross margin 200 to 300 basis points per year through 2026.
Profitability stayed mixed. The quarter's GAAP net loss was $11.4 million, and the loss widened from the prior-year quarter. Full year GAAP net loss was $47.7 million, a wider loss than the prior year, and diluted EPS was negative $0.46, a wider loss than the prior year. The quarter's operating loss widened to $9.5 million. Non-GAAP adjusted EBITDA was $19.1 million in the quarter, up from $10.2 million, and $59.1 million for the full year, up from $26.9 million. Management credited scale and efficiencies in research and development, sales and marketing, and general and administrative spending for the adjusted EBITDA gain.
Operationally, Alkami ended 2025 with $480.3 million in annual recurring revenue, up 35%. Registered users reached 22.4 million, up 2.4 million or 12%. Remaining performance obligation was $1.7 billion, up 21.4%, equal to 3.6 times live ARR. The company served 301 digital banking clients, up from 272 a year earlier. It signed 16 new digital banking platform clients in the fourth quarter and implemented 11, leaving an implementation backlog of 42 new clients representing 1.6 million digital users. For the full year, Alkami signed 39 new logos, including 11 banks, and the fourth quarter was its best new logo quarter in four years. More than 50% of new logo online banking deals in the second half landed customers under the Platform umbrella. Net dollar retention was 115%, subscription revenue mix was 95%, and 2025 digital banking ARR churn was less than 1% against a long-term expected annual churn modeled at 2% to 3%. The MD&A also notes 30 client renewals during the year and more than 300 real-time integrations.
Cash generation improved sharply. Fourth quarter operating cash flow was $16.6 million, up 171.7%, and full year operating cash flow was $42.9 million, up 130.7%. Capital expenditures were $0.39 million in the quarter, up 142.8%, and $1.54 million for the full year, up 29.0%. Current deferred revenue was $34.77 million, up 156.1%. The balance sheet carried a $15 million revolving loan balance and $345 million of convertible notes issued in March 2025 to help fund MANTL, and total interest expense for the year was $9.5 million. Management flagged $77.5 million in future purchase commitments, with $44.4 million due within the next 12 months, plus $23.2 million in operating lease payments, of which $2.8 million falls in the next 12 months.
On the outlook, Alkami guided adjusted EBITDA to $21.1 million to $21.9 million for the first quarter ending March 31, 2026, and to $93.5 million to $97.5 million for the full fiscal year ending December 31, 2026. The company also issued top-line guidance for both periods in the same release. Longer term, management targets 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 remain. Management cited a volatile macro environment through most of 2025, a sales cycle of roughly three to 12 months, and an implementation window generally of six to 12 months. The business also faces intense competition, cybersecurity exposure, reliance on third-party software and services, regulatory developments, and the work of integrating MANTL. Alkami carries a history of operating losses, and both the quarter and the full year showed GAAP operating and net losses. Gross margin pressure from amortization of acquired intangibles and higher third-party partner costs is a factor to watch.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2025 | Q3 FY2025 | QoQ | Q4 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $120.8M | $113.0M | +6.9% | $89.7M | +34.7% |
| Gross profit | $69.1M | $64.1M | +7.7% | $53.2M | +29.8% |
| Gross margin | 57.2% | 56.8% | +0.4 pp | 59.4% | -2.2 pp |
| Research & development | $31.2M | $30.1M | +3.6% | $25.3M | +23.0% |
| Sales & marketing | $19.9M | $19.3M | +3.0% | $14.6M | +36.8% |
| General & administrative | $25.4M | $25.6M | -0.8% | $21.6M | +17.9% |
| Total operating expenses | $78.6M | $77.0M | +2.0% | $61.8M | +27.1% |
| Operating income (loss) | -$9.5M | -$12.9M | +26.3% | -$8.6M | -10.1% |
| Operating margin | -7.9% | -11.4% | +3.5 pp | -9.6% | +1.8 pp |
| Net income (loss) | -$11.4M | -$14.8M | +22.7% | -$7.6M | -49.7% |
| Net margin | -9.5% | -13.1% | +3.6 pp | -8.5% | -1.0 pp |
| Diluted EPS | -$0.11 | -$0.14 | +$0.03 | -$0.08 | -$0.03 |
Risks
The March 2025 MANTL acquisition expanded Alkami's onboarding and account opening offerings, but MD&A attributes higher amortization and an impairment of historical developed technology, customer relationships, and capitalized software to the deal, and Alkami may fail to integrate MANTL or achieve expected benefits.
Alkami issued 1.50% Convertible Senior Notes due 2030 in March 2025; the accounting method amortizes issuance costs into interest expense, which the filing says results in higher reported losses, while conversion could dilute stockholders and a fundamental change could require cash repurchase.
The Amended Credit Agreement, as amended in February 2025, contains restrictive covenants including minimum recurring revenue and liquidity levels, and restricts cash settlement of the 2030 Convertible Notes; a default could accelerate indebtedness and force bankruptcy protection.
As a financial technology provider, Alkami has experienced cybersecurity attacks and attempts and expects to remain a target; the filing notes AI is increasing threat actor sophistication, and a breach could trigger regulatory investigations, litigation, client terminations, and material remediation costs.
FY2025 gross margin declined to 57.8% from 58.9%, and Q4 gross margin declined to 57.2% from 59.3%; MD&A cites higher amortization from MANTL and higher costs of third-party partner solutions that are resold at lower margins.
The company incorporates AI into products and operations and relies on third-party AI; risk factors cite inability to control third-party AI availability or pricing, regulatory uncertainty, bias or hallucination, IP disclosure, and AI-enabled cyberattacks as potential harms to competitiveness and reputation.
MD&A states the typical sales cycle is three to 12 months with implementation generally six to 12 months; risk factors note implementation delays can defer revenue recognition and in some cases revenue may never be recognized, creating timing unpredictability.
Revenue depends on financial institutions; risk factors warn a downturn, consolidation, or decrease in technology spend in the financial services industry could materially reduce demand, and large FIs may demand more favorable pricing or contract terms.
Growth depends on CEO Alex Shootman, CFO Cassandra Hudson, and key development, sales, and support employees; competition for skilled personnel is intense, and a decline in the perceived value of Alkami stock could impair equity-based retention.
The company and its clients face evolving U.S. and international privacy and data security laws, including GLBA, CCPA, and GDPR, with GDPR fines up to 20 million euros or 4% of global revenue, plus state private rights of action for certain data breaches.
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 Clients
Implementation Backlog Clients
Implementation Backlog Digital Users
Subscription Revenue Mix
Summary, forecast, risks and KPIs are extracted from ALKAMI TECHNOLOGY, INC.'s SEC filings for Q4 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.