Alkami Technology, Inc. (NASDAQ: ALKT) shares are soaring 8.69% in pre-market trading on Thursday following the release of its impressive first-quarter 2025 financial results and positive analyst ratings. The digital banking solutions provider reported robust growth across key metrics, surpassing market expectations and reinforcing investor confidence in its long-term prospects.

For Q1 2025, Alkami reported revenue of $97.8 million, representing a year-over-year growth of 28.5%. The company's subscription revenue, which accounted for 95% of total revenue, grew by 27%. Notably, Alkami's annual recurring revenue (ARR) increased by 33%, reaching $404 million by the end of the quarter. The company also saw a significant improvement in its bottom line, with adjusted EBITDA rising to $12.1 million, compared to $3.8 million in the prior year quarter.

Adding to the positive sentiment, Needham analyst Mayank Tandon maintained a Buy rating on Alkami Technology, albeit with a revised price target of $40, down from $54. The analyst's continued bullish stance, despite the target price adjustment, underscores the company's strong performance and promising outlook. Alkami's successful integration of the Mantle acquisition, which added 36 new clients and enhanced cross-selling opportunities, further bolsters its growth prospects. With a robust sales pipeline and increasing demand for digital banking solutions, Alkami has raised its full-year 2025 revenue guidance to between $443 million and $447 million, projecting a growth rate of 33% to 34%.