Alkami Technology (NASDAQ:ALKT) reported second-quarter revenue and adjusted EBITDA above its expectations, while raising visibility around a full-year outlook that would bring the company close to a five-year financial goal established in 2022.
Chief Executive Officer Alex Shootman said the company’s progress has been supported by its focus on customer acquisition, the continuing digital transformation of community banking and expansion within its existing client base. He said Alkami is increasingly positioning itself as a broader technology platform for regional and community financial institutions rather than solely a digital banking application provider.
Second-Quarter Results and Outlook
Chief Financial Officer Cassandra Hudson said Alkami had approximately $61 million of ARR in backlog, representing 37 new clients and about 1.3 million digital users. The company expects most of that backlog to go live over the next 12 months.
Non-GAAP adjusted EBITDA was $19.4 million, above the high end of the company’s expectations, and represented a 14.9% margin. That was an approximately 430-basis-point expansion from the prior-year quarter. Operating cash flow rose to $22 million from $1.2 million a year earlier, while Alkami ended the quarter with $81 million in cash and marketable securities.
For the third quarter, Alkami expects revenue of $132.7 million to $134.2 million, representing growth of 17.5% to 18.9%, and adjusted EBITDA of $23.5 million to $24.3 million. The midpoint of the EBITDA range implies a 17.9% margin.
For full-year 2026, the company projected:
- Revenue of $528 million to $531 million, up 19% to 19.7%.
- Adjusted EBITDA of $96 million to $98 million.
- An adjusted EBITDA margin of 18.3% at the midpoint.
- Stock-based compensation of less than 14% of revenue.
Hudson said the company expects approximately 500 basis points of full-year margin expansion, supported by operating leverage and cost discipline, while continuing to invest in product innovation and artificial intelligence. She said revenue and margin are expected to step up in the fourth quarter because one-time revenue items, including termination fees, core-conversion work and customer customization requests, are more heavily weighted toward that period.
Banking Expansion and Product Adoption
Alkami signed five new digital banking relationships in the quarter, including three banks. It also added eight MANTL clients and three Data & Marketing clients. Seven clients adopted the company’s Digital Sales & Service Platform, or DSSP, through new-logo or add-on sales, bringing the number of clients contracted for all three DSSP products to 55.
The company brought eight digital banking clients and 18 MANTL clients live during the period. Over the past 12 months, Alkami added 2.7 million users, the largest trailing-12-month user addition since mid-2024, according to Shootman.
The company had 313 clients and 23.6 million registered users at quarter-end, an increase of 2.7 million users, or 13%, year over year. Revenue per user rose 7% to $21.69, which Hudson attributed to cross-selling, increased adoption among current customers and a growing number of live bank clients, which tend to have higher revenue per user due to their commercial and retail mix.
Shootman said the company now has 54 bank clients under contract and 42 live on its digital banking platform, compared with three live bank clients when it began pursuing the market. Bank awareness of Alkami has increased from 37% to 52%, while consideration has risen from 8% to 21%, he said.
Alkami has identified 28 treasury-management capabilities required for banks, delivering 18 of them so far. Six additional capabilities are expected to enter beta testing or become generally available during the second half of 2026. The company supports multiple live implementations across seven bank cores and single implementations across two additional cores. Bank implementation time has improved to less than 11 months in 2025, from more than 13 months in 2023 and 2024.
Expansion Strategy, AI and Capital Allocation
Management emphasized that future growth is expected to rely increasingly on expansion within the installed base. Five-year customer cohorts have grown to more than twice their original platform investment, while 10-year cohorts have grown to roughly four times their initial ARR, Shootman said.
Customers launching in 2026 are expected to have nearly twice the average revenue per user of Alkami’s existing installed base. New clients launched with an average of 16 products, compared with 10 products in 2021. The company now has 50 clients generating at least $2 million in ARR, up from 18 at the end of 2021.
Hudson said Alkami expects mid- to high-single-digit average revenue per user growth for 2026. She noted that first-quarter ARPU growth included timing benefits from the MANTL acquisition, while second-quarter growth was more normalized.
Alkami said products incorporating AI, including behavioral biometrics, unified messaging and predictive marketing, are growing nearly 30% year over year. Shootman said more than 100 employees are using an internal AI prototype daily as the company evaluates where the technology can create measurable value before introducing additional capabilities to clients.
The company expects to pursue a balanced capital-allocation strategy that includes selective acquisitions, debt reduction and opportunistic share repurchases. Alkami repurchased $15 million of stock in the second quarter and an additional $10 million in the third quarter to date under its authorized $100 million repurchase program.
Management said it remains focused on reaching a Rule of 45 profile by 2030, supported by continued credit-union leadership, gradual bank-market expansion, historical add-on sales performance and annual dollar churn of 2% to 3%.
About Alkami Technology (NASDAQ:ALKT)
Alkami Technology, Inc is a provider of cloud-based digital banking and engagement solutions tailored for banks and credit unions. The company’s platform offers a comprehensive suite of online and mobile banking features, including bill payment, peer-to-peer transfers, card management, streamlined account opening and real-time alerts, all designed to enhance the end-user experience and drive customer loyalty.
Built on a multi-tenant, software-as-a-service (SaaS) architecture hosted in the cloud, Alkami’s platform leverages modern APIs and a partner ecosystem to integrate third-party fintech applications and services.
