Alkami Announces First Quarter 2025 Financial Results

Company Also Announces Planned Retirement of CFO Bryan Hill

PR Newswire

PLANO, Texas, April 30, 2025

PLANO, Texas, April 30, 2025 /PRNewswire/ -- Alkami Technology, Inc. (Nasdaq: ALKT) ("Alkami" or "the Company"), a leading cloud-based digital banking solutions provider for financial institutions (FIs) in the U.S., today announced results for its first quarter ending March 31, 2025.

First Quarter 2025 Financial Highlights

   -- GAAP total revenue of $97.8 million, an increase of 28.5% compared to the 
      year-ago quarter; 
 
   -- GAAP gross margin of 59.0%, compared to 57.8% in the year-ago quarter; 
 
   -- Non-GAAP gross margin of 64.3%, compared to 61.7% in the year-ago 
      quarter; 
 
   -- GAAP net loss of $(7.8) million, compared to $(11.4) million in the 
      year-ago quarter; and 
 
   -- Adjusted EBITDA of $12.1 million, compared to $3.8 million in the 
      year-ago quarter. 

Comments on the News

Alex Shootman, Chief Executive Officer, said, "In the first quarter, we delivered another outstanding quarter of strong revenue growth and profitability, with revenue growth of 28.5% and Adjusted EBITDA of $12.1 million. We exited Q1 with 20.5 million users on the Alkami platform, up 2.3 million compared to the year-ago quarter, and we continued to lead the industry in market share gains."

Shootman added, "As we kick off 2025, we are continuing the momentum we have built over the last several years - expanding our presence in the bank market, enhancing add-on sales, investing in our platform, cultivating a great culture, and expanding our capabilities, most recently through our acquisition of MANTL. All of this combines to support our mission to be the premier digital banking provider in the industry."

Bryan Hill, Chief Financial Officer, said, "We exited the first quarter with annual recurring revenue of $404 million, up 33%, and revenue per registered user of $19.74, up 18% compared to the year-ago quarter. In addition, we were pleased to close our acquisition of MANTL on March 17, 2025. We expect MANTL will be accretive to Alkami's overall revenue growth and gross margin expansion, and we expect the impact of the acquisition to be accretive to Adjusted EBITDA in 2026, allowing Alkami to meet or exceed its long-term financial targets."

CFO Planned Retirement

Alkami also announced today the planned retirement of its Chief Financial Officer, Bryan Hill. The Company has initiated a search to identify his successor. Mr. Hill will remain CFO until the earlier of February 27, 2026, or 15 days after the Company hires his successor. In connection with Mr. Hill's retirement, he and the Company have entered into a consulting agreement which provides that, on the retirement date, Mr. Hill will transition to the role of consultant through December 15, 2026, to help facilitate the succession process.

"Since joining Alkami in 2019, Bryan has played a pivotal role in driving value for Alkami, leading our IPO effort, expanding our access to capital, and playing a key role in four acquisitions," said Shootman. "Under his stewardship, Alkami's financial position has never been stronger, and he has built an outstanding accounting and finance organization that will continue to support our growth."

"I want to express my heartfelt gratitude to all Alkamists, our board of directors, and our shareholders for the support and trust you have placed in me over the years. It has been an incredible journey, and I am proud of what we have accomplished together, particularly in driving the company's growth and scaling its profitability," said Hill. "We have a strong leadership team in place, and I am confident that Alkami will continue to thrive and achieve its objective of becoming the industry's leading digital banking platform."

2025 Financial Outlook

The following statements are forward-looking, and actual results could differ materially depending on market conditions and the factors set forth under "Cautionary Statement Regarding Forward-Looking Statements."

Alkami is providing guidance for its second quarter ending June 30, 2025 of:

   -- GAAP total revenue in the range of $109.0 million to $110.5 million; 
 
   -- Adjusted EBITDA in the range of $9.0 million to $10.0 million. 

Alkami is providing guidance for its fiscal year ending December 31, 2025 of:

   -- GAAP total revenue in the range of $443.0 million to $447.0 million; 
 
   -- Adjusted EBITDA in the range of $49.5 million to $52.5 million. 

In the first quarter, MANTL contributed $1.4 million to total revenue and a ($0.1 million) loss to Adjusted EBITDA. Alkami expects MANTL to contribute revenue of approximately $31.4 million and an Adjusted EBITDA loss of $5 million to its 2025 full-year financial performance. Alkami expects MANTL's annual recurring revenue under contract at December 31, 2025 to be approximately $60 million, which represents a year-over-year growth rate of over 30%.

Conference Call Information

The Company will host a conference call at 5:00 p.m. ET today to discuss its financial results with investors. A live webcast of the event will be available on the Alkami investor relations website at investors.alkami.com. In addition, a live dial-in will be available domestically at 1-800-836-8184 and internationally at 1-646-357-8785, using passcode 04175. The webcast replay will be available on the Alkami investor relations website.

About Alkami

Alkami Technology, Inc. is a leading cloud-based digital banking solutions provider for financial institutions in the United States that enables clients to grow confidently, adapt quickly, and build thriving digital communities. Alkami helps clients transform through retail and business banking, onboarding and account opening opening, payment security, and data and marketing solutions. To learn more, visit www.alkami.com.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains "forward-looking" statements relating to Alkami Technology, Inc.'s strategy, goals, future focus areas, and expected, possible or assumed future results, including its future cash flows and its financial outlook. These forward-looking statements are based on management's beliefs and assumptions and on information currently available to management. Forward-looking statements include all statements that are not historical facts and may be identified by terms such as "expects," "believes," "plans," or similar expressions and the negatives of those terms. These forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements, expressed or implied by the forward-looking statements. Factors that may materially affect such forward-looking statements include: Our limited operating history and history of operating losses; our ability to manage future growth; our ability to attract new clients and retain and expand existing clients' use of our solutions; the unpredictable and time-consuming nature of our sales cycles; our ability to maintain, protect and enhance our brand; our ability to accurately predict the long-term rate of client subscription renewals or adoption of our solutions; our reliance on third-party software, content and services; our ability to effectively integrate our solutions with other systems used by our clients; intense competition in our industry; any downturn, consolidation or decrease in technology spend in the financial services industry, including as a result of recent closures of certain financial institutions and liquidity concerns at other financial institutions; our ability and the ability of third parties on which we rely to prevent and identify breaches of security measures (including cybersecurity) and resulting disruptions of our systems or operations and unauthorized access to client customer and other data; our ability to successfully integrate acquired companies or businesses; our ability to comply with regulatory and legal requirements and developments; our ability to attract and retain key employees; the political, economic and competitive conditions in the markets and jurisdictions where we operate; our ability to maintain, develop and protect our intellectual property; our ability to respond to evolving technological requirements to develop or acquire new and enhanced products that achieve market acceptance in a timely manner; our ability to estimate our expenses, future revenues, capital requirements, our needs for additional financing and our ability to obtain additional capital and other factors described in the Company's filings with the Securities and Exchange Commission. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

Explanation of Non-GAAP Financial Measures and Key Business Metrics

(MORE TO FOLLOW) Dow Jones Newswires

April 30, 2025 16:05 ET (20:05 GMT)