Alkami Technology, Inc. (NASDAQ: ALKT) shares surged 8.69% in pre-market trading on Thursday following the company's impressive first-quarter 2025 financial results and optimistic future guidance. The digital banking solutions provider demonstrated robust growth and improved profitability, surpassing market expectations.

The company reported Q1 revenue of $97.8 million, representing a year-over-year growth of 28.5%. This strong performance was driven by a 27% increase in subscription revenue, which accounted for 95% of total revenue. Alkami's Annual Recurring Revenue (ARR) also saw a significant boost, rising 33% to $404 million. The company's adjusted EBITDA reached $12.1 million, a substantial improvement from $3.8 million in the prior year quarter.

Alkami's CEO, Alex Shootman, highlighted the successful closing of the Mantle acquisition, which is expected to enhance the company's product offerings and cross-selling opportunities. The company also reported an increase in registered users on its digital banking platform, reaching 20.5 million, up 13% year-over-year. Looking ahead, Alkami provided an upbeat guidance for Q2 2025, projecting revenue between $109 million and $110.5 million, representing a growth of 33% to 35%. For the full year 2025, the company expects revenue in the range of $443 million to $447 million, indicating a total revenue growth of 33% to 34%. This positive outlook, coupled with the strong Q1 results, has instilled confidence in investors, driving the stock's pre-market rally.