Alkami Technology, Inc 8-K, filed Apr 30, 2025
Alkami Technology, Inc. (ALKT)
8-K
2025-04-30
For: 2025-04-25
View Original
Added on
April 11, 2026
About this 8-K
Alkami Technology, Inc filed this 8-K on April 30, 2025, reporting on events of April 25, 2025.
Items reported
- Item 2.02: Financial results
- Item 5.02: Director or officer change, or executive pay
- Item 7.01: Regulation FD disclosure
- Item 9.01: Financial statements and exhibits
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 25, 2025
(Exact Name of Registrant as Specified in its Charter)
(State or Other Jurisdiction of Incorporation) (Commission File Number) (IRS Employer Identification No.)
(Address of Principal Executive Offices) (Zip Code)
(877 ) 725-5264
Registrant’s Telephone Number, Including Area Code
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On April 30, 2025, the Company issued a press release announcing its financial results for the quarter ending March 31, 2025. A copy of the press release is furnished herewith as Exhibit 99.1 and is incorporated by reference herein.
The information set forth in this Item 2.02, including Exhibit 99.1, is being furnished and shall not be deemed “filed” for purposes of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. The information in this Item 2.02, including Exhibit 99.1, shall not be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
The Company today announced that Bryan Hill, our Chief Financial Officer, notified the Company on April 25, 2025, that he intends to retire on the earlier of February 27, 2026, or 15 days after the Company hires his successor (the “Retirement Date”). In connection with Mr. Hill’s retirement, he and the Company have entered into a consulting agreement. The consulting agreement 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. The consulting agreement provides compensation of $5,000 per month, provides for the payout of Mr. Hill’s 2025 Senior Executive Bonus Plan at the same time as other executive officers and provides continued vesting of his Restricted Stock Units through December 15, 2026.
The foregoing description of Mr. Hill’s consulting agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the agreement, which is filed herewith as Exhibit 10.1 and incorporated by reference herein.
Item 7.01. Regulation FD Disclosure.
On April 30, 2025, the Company posted an investor presentation to its website at www.alkami.com (the “Investor Presentation”). A copy of the Investor Presentation is furnished herewith as Exhibit 99.2 and is incorporated herein by reference.
The information set forth in this Item 7.01, including Exhibit 99.2, is being furnished and shall not be deemed “filed” for purposes of the Exchange Act, or otherwise subject to the liabilities of that Section. The information in this Item 7.01, including Exhibit 99.2, shall not be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing. By furnishing the information contained in the Investor Presentation, the Company makes no admission as to the materiality of any information in the Investor Presentation that is required to be disclosed solely by reason of Regulation FD.
Item 9.01. Financial Statements and Exhibits.
| Exhibit Number | Description | |||||||
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | |||||||
*Certain schedules and exhibits have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The Company will furnish supplementally copies of omitted schedules and exhibits to the Securities and Exchange Commission or its staff upon its request.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Alkami Technology, Inc. | ||||||||||||||
| Date: | April 30, 2025 | By: | /s/ W. Bryan Hill | |||||||||||
| W. Bryan Hill | ||||||||||||||
| Chief Financial Officer | ||||||||||||||
Alkami Consulting Agreement Alkami Technology, Inc. Page 1 of 7 Consulting Agreement Alkami Technology, Inc. (“Alkami”), with a place of business at 5601 Granite Parkway, Suite 120, Plano, TX 75024, desires to retain the continued service of William Bryan Hill (“Hill”), Alkami’s Chief Financial Officer upon his retirement pursuant to the terms of this Consulting Agreement (the “Agreement”). WHEREAS Hill has been serving in the capacity of Alkami’s Chief Financial Officer; and WHEREAS Hill has announced his intention to retire from Alkami upon the earlier of the hiring (with the actual date being mutually agreed, but within 15 days of such hiring) of a replacement Chief Financial Officer or February 27, 2026 (the “Retirement Date”); and WHEREAS Alkami desires to engage Hill as a consultant after his retirement; and WHEREAS the parties now desire to document the engagement pursuant to which Hill will remain with Alkami as a continuing (i.e., without cessation) Service Provider (as defined in Alkami’s equity plan documents) as described herein. NOW, THEREFORE, the parties agree as follows: 1. Scope of Work. As of the Retirement Date and without cessation of service, Hill will begin performing the work as described on the attached Statement of Work (“SOW”), or as set forth in such other form as agreed between Hill and Alkami. 2. Term of Agreement. Unless terminated earlier in accordance with Section 9 of this Agreement, the term of this Agreement will be from the Effective Date (as defined below) until December 31, 2026 (the “Term”). 3. Compensation. Hill’s compensation will be as set forth in the attached SOW. Hill will invoice Alkami monthly for amounts due under this Agreement (via email), and Alkami will pay such invoices within thirty (30) days of Alkami’s receipt thereof. 4. Communication and Administration. Alkami’s Chief Executive Officer will serve as administrator of the services provided pursuant to this Agreement. Hill will return all Alkami material, systems and information upon request. 5. Rights in Work Product / Work for Hire. The work product of Hill’s services, including all results, and all ideas, developments and inventions which Hill conceives or reduces to practice during the course of Hill’s performance under this Agreement, will be the exclusive property of Alkami. All such information and material, and any such ideas, developments and inventions, will be deemed Alkami proprietary information and will be a “Work For Hire” under the patent and copyrights laws of the United States and will be the exclusive property of Alkami as a “Work For Hire.” 6. Warranty. Hill warrants that through the term of this Agreement he will continue to abide by the applicable terms of Alkami’s Employee Handbook, Master Information Security Policy, Code of Ethics and Conduct and Insider Trading Policy and the Employee Proprietary Information Agreement previously executed by him, provided, that any reference to employment or term of similar effect shall be deemed to include services under this Agreement. He further warrants that on the Retirement Date he will execute that certain Release of Claims as set forth in Exhibit A. 7. Confidential Information. Hill’s confidentiality obligations under the Employee Proprietary Information Agreement shall also apply to this Agreement through its term. 8. Independent Contractor. It is understood and agreed that as of the Retirement Date, Hill will be acting as an independent contractor and not as an agent or employee of Alkami. Hill agrees that, except as a result of Hill’s status as a previous employee of Alkami, Hill will not be entitled to any employee benefits offered by Alkami to its employees and agrees not to claim entitlement thereto. Hill shall solely control when, where and how the performance of services under this Agreement is accomplished, including, but not limited to controlling the working environment and providing the tools and equipment of employment. Subject to Hill’s warranty herein, Hill is free to offer the same or similar services to third parties. Hill assumes all risks and hazards encountered in Hill’s performance of this Agreement. 9. Termination by Alkami. A. Without Cause. From and after the Effective Date, this Agreement may be terminated for convenience by Alkami upon five (5) days’ prior written notice (email is sufficient) to Hill. In such event, Alkami’s sole obligation will be to pay Hill the prorated value of any authorized work already performed, the acceleration of the then-unvested Eligible
Alkami Consulting Agreement Alkami Technology, Inc. Page 2 of 7 RSUs (as defined in the SOW) and the full payment of the 2025 SEBP Payout (as defined in the SOW but calculated based on the most recent projection of what such payment would be). B. With Cause. This Agreement may be terminated by Alkami upon providing Hill a notice of Termination if Hill materially breaches this Agreement or Alkami has “Cause” as defined in his Amended and Restated Employment Agreement with the Company (the “Employment Agreement”) and fails to cure such breach or such Cause within thirty (30) days of written notice describing such breach or Cause. 10. Termination by Hill. This Agreement may be terminated for convenience by Hill upon five (5) days’ prior written notice (email is sufficient) to Alkami. In such event, Alkami’s sole obligation will be to pay Hill the prorated value of any authorized work already performed; provided that in the event of termination of this Agreement as a result of Hill’s Death or Disability (as defined in the Employment Agreement), Hill shall also be entitled to the prorated value of the 2025 SEBP Payout once it is determined. 11. Binding Agreement. This Agreement will be binding upon the successors and assigns of Alkami and will be binding upon the Hill’s heirs, legal representatives, successors and assigns. 12. Governing Law. The terms and conditions of this Agreement and performance hereunder will be governed and construed in accordance with the laws of the State of Texas without regard to its conflict of laws provisions. The parties agree to submit all disputes arising from this Agreement to the state and federal courts located in Collin County, Texas. 13. Assignment. This Agreement will not be assignable by Hill without the prior, written consent of Alkami, nor will any portion of the SOW be delegated to Hill’s agents or subcontractors without the prior, written consent of Alkami. Any purported assignment, including full or partial assignment, or delegation to any agent or subcontractor not consented to in writing by Alkami will be void from inception. 14. Modification. This Agreement may be modified only by a written instrument signed by duly authorized representatives of the parties. 15. Waiver. Failure by either party to enforce any of the provisions of this Agreement will not be deemed to be a waiver of such provisions or any subsequent breach thereof. 16. Publicity. Neither party will, without securing the written consent of the other party, publicly announce or disclose the terms and conditions of this Agreement or advertise or release any publicity in regard thereto, except as may be required by law. 17. Taxes. Hill will be solely responsible for the payment of all applicable taxes arising from Hill’s performance of and payment for the services specified herein (except with respect to any required withholdings related to the 2025 SEBP Payout and Restricted Stock Unit (“RSU”) vesting). 18. Survival. The terms reasonably expected to survive shall survive the expiration or termination of this Agreement. 19. Entire Agreement. This document constitutes the entire Agreement between the parties with respect to the subject matter hereof and supersedes all previous communications, representations, understandings and agreements, whether oral or written, between the parties relating to same.
Alkami Consulting Agreement Alkami Technology, Inc. Page 3 of 7 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of April 29, 2025, which will be the Effective Date. William Bryan Hill Alkami Technology, Inc. Accepted: Accepted: Signed: /s/ William Bryan Hill Signed: /s/ Alex Shootman Printed Name: William Bryan Hill Printed Name: Alex Shootman Title: Chief Financial Officer Title: Chief Executive Officer
Alkami Consulting Agreement Alkami Technology, Inc. Page 4 of 7 Alkami Technology, Inc. Statement of Work No.1 This SOW, together with that certain Consulting Agreement (the “Agreement”) between the parties and attached hereto, documents the understanding between Alkami and Hill with respect to certain services to be performed by Hill and more particularly defined in this SOW. Unless otherwise defined in this SOW, each capitalized term in this SOW will have the meaning set forth in the Agreement. The term of this SOW will begin and end as set forth below, unless earlier terminated by one of the parties as provided in the Agreement. Description of the Services After the Retirement Date, the services hereunder shall consist of being reasonably available to answer questions as requested from time to time by Alkami’s Chief Executive Officer (the “Alkami Project Manager”) and the newly-hired Chief Financial Officer of the Company. Compensation of Contractor As and from the Retirement Date through December 15, 2026 Hill’s compensation per month will consist of: • Continued accrual of Hill’s Senior Executive Bonus Plan (“SEBP”) payout for the year 2025, to be paid at the time and at the same percentage (the “2025 SEBP Payout”) as the SEBP payout for 2025 is made to other members of the Alkami Executive team; • A consulting fee of $5,000 per month; and • Continued vesting of Hill’s previously-granted RSUs. All such equity, as vested through December 15, 2026, shall be defined as the “Eligible RSUs.”
Alkami Consulting Agreement Alkami Technology, Inc. Page 5 of 7 EXHIBIT A GENERAL RELEASE OF CLAIMS This General Release of Claims (“Release”) is entered into as of ________, between William Bryan Hill (“Executive”) and Alkami Technology, Inc., a Delaware corporation (the “Company” and, together with Executive, the “Parties”), effective eight days after Executive’s signature hereto, unless Executive revokes Executive’s acceptance of this Release as provided in Paragraph 1(c), below. 1. Executive’s Release of the Company. Executive understands that by agreeing to this Release, Executive is agreeing not to sue, or otherwise file any claim against, the Company or any of its directors, officers, employees, investors or other agents for any reason whatsoever based on anything that has occurred in connection with his employment or other relationship with the Company and the conclusion of that employment or other relationship that the Company as of the date Executive signs this Release. (a) On behalf of Executive and Executive’s heirs, assigns, executors, administrators, trusts, spouse and estate, Executive hereby releases and forever discharges the “Releasees” hereunder, consisting of the Company and each of its owners, affiliates, subsidiaries, predecessors, successors, assigns, agents, directors, officers, partners, employees, and insurers, and all persons acting by, through, under or in concert with them, or any of them, of and from any and all manner of action or actions, cause or causes of action, in law or in equity, suits, debts, liens, contracts, agreements, promises, liability, claims, demands, damages, loss, cost or expense, of any nature whatsoever, known or unknown, fixed or contingent (hereinafter called “Claims”), which Executive now has or may hereafter have against the Releasees, or any of them, by reason of any matter, cause, or thing whatsoever from the beginning of time to the date hereof, including, without limiting the generality of the foregoing, any Claims arising out of, based upon, or relating to Executive’s hire, employment, remuneration or resignation by the Releasees, or any of them, Claims arising under federal, state, or local laws relating to employment, Claims of any kind that may be brought in any court or administrative agency, including any Claims arising under Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. § 2000, et seq.; Americans with Disabilities Act, as amended, 42 U.S.C. § 12101 et seq.; the Rehabilitation Act of 1973, as amended, 29 U.S.C. § 701 et seq.; Age Discrimination in Employment Act, as amended, 29 U.S.C. § 621, et seq.; Civil Rights Act of 1866, and Civil Rights Act of 1991; 42 U.S.C. § 1981, et seq.; Equal Pay Act, as amended, 29 U.S.C. § 206(d); regulations of the Office of Federal Contract Compliance, 41 C.F.R. Section 60, et seq.; the Family and Medical Leave Act, as amended, 29 U.S.C. § 2601 et seq.; the Fair Labor Standards Act of 1938, as amended, 29 U.S.C. § 201 et seq.; the Employee Retirement Income Security Act, as amended, 29 U.S.C. § 1001 et seq.; the Worker Adjustment and Retraining Notification Act, as amended, 29 U.S.C. § 2101 et seq.; the Texas Labor Code, including the Texas Payday Act, the Texas Anti-Retaliation Act, the Texas Commission on Human Rights Act and § 451.001 of the Texas Workers’ Compensation Act, and all of their respective implementing regulations; Claims for wages under the Texas Labor Code and any other federal, state or local laws of similar effect; the employment and civil rights laws of California; Claims for breach of contract; Claims arising in tort, including, without limitation, Claims of wrongful dismissal or discharge, discrimination, harassment, retaliation, fraud, misrepresentation, defamation, defamation, infliction of emotional distress, violation of public policy, and/or breach of the implied covenant of good faith and fair dealing; and Claims for damages or other remedies of any sort, including, without limitation, compensatory damages, punitive damages, injunctive relief and attorney’s fees.
Alkami Consulting Agreement Alkami Technology, Inc. Page 6 of 7 (b) Notwithstanding the generality of the foregoing, Executive does not release the following claims: (i) Remuneration under and claims related to a breach of the Consulting Agreement executed by the parties on or about April ___, 2025 (the “Consulting Agreement”); (ii) Claims for unemployment compensation or any state disability insurance benefits pursuant to the terms of applicable state law; (iii) Claims for workers’ compensation insurance benefits under the terms of any worker’s compensation insurance policy or fund of the Company; (iv) Claims to continued participation in certain of the Company’s group benefit plans pursuant to the terms and conditions of COBRA; (v) Claims to any benefit entitlements vested as the date of Executive’s employment termination, pursuant to written terms of any Company or affiliate employee benefit plan, program or policy; (vi) Claims for indemnification under Executive’s indemnification agreement with the Company, the Company’s Bylaws or any other applicable law; and (vii) Executive’s right to bring to the attention of the Equal Employment Opportunity Commission claims of discrimination; provided, however, that Executive does release Executive’s right to secure any damages for alleged discriminatory treatment. (c) Acknowledgement. In accordance with the Older Workers Benefit Protection Act of 1990, Executive has been advised of the following: (i) Executive should consult with an attorney before signing this Release; (ii) Executive has been given at least 21 days to consider this Release; (iii) Executive has seven days after signing this Release to revoke it. If Executive wishes to revoke this Release, Executive must deliver notice of Executive’s revocation in writing, no later than 5:00 p.m. on the 7th day following Executive’s execution of this Release to Alex Shootman, Chief Executive Officer. Executive understands that if Executive revokes this Release, it will be null and void in its entirety, and Executive will not be entitled to the benefits described in that certain Consulting Agreement. 2) Executive Representations. Executive warrants and represents that (a) he has not filed or authorized the filing of any complaints, charges or lawsuits against the Company or any of its affiliates with any governmental agency or court, and that if, unbeknownst to Executive, such a complaint, charge or lawsuit has been filed on his behalf, he will immediately cause it to be withdrawn and dismissed, (b) he has reported all hours worked as of the date of this Release and has been paid all compensation, wages, bonuses, commissions, and/or benefits to which he may be entitled and no other compensation, wages, bonuses, commissions and/or benefits are due to him, except for those wages that are paid in arrears and as provided in the Consulting Agreement, (c) he has no known workplace injuries or occupational diseases and has been provided and/or has not been denied any leave requested under the Family and Medical Leave Act or any similar state law, (d) the execution, delivery and performance of this Release by Executive does not and will not conflict with, breach, violate or cause a default under any agreement, contract or instrument to which Executive is a party or any judgment, order or decree to which Executive is subject, and (e) upon the execution and delivery of this Release by the Company and
Alkami Consulting Agreement Alkami Technology, Inc. Page 7 of 7 Executive, this Release will be a valid and binding obligation of Executive, enforceable in accordance with its terms. 3) Severability. The provisions of this Release are severable. If any provision is held to be invalid or unenforceable, it shall not affect the validity or enforceability of any other provision. 4) Choice of Law. This Release shall in all respects be governed and construed in accordance with the laws of the State of Texas, including all matters of construction, validity and performance, without regard to conflicts of law principles. 5) Integration Clause. This Release and the Consulting Agreement contain the Parties’ entire agreement with regard to the transition and separation of Executive’s employment, and supersede and replace any prior agreements as to those matters, whether oral or written. This Release may not be changed or modified, in whole or in part, except by an instrument in writing signed by Executive and the Chief Executive Officer of the Company. 6) Execution in Counterparts. This Release may be executed in counterparts with the same force and effectiveness as though executed in a single document. Digital signatures shall have the same force and effectiveness as original signatures. 7) Intent to be Bound. The Parties have carefully read this Release in its entirety; fully understand and agree to its terms and provisions; and intend and agree that it is final and binding on all Parties. Intending to be legally bound, the Parties have executed the foregoing on the dates shown below. DATED: ______________ __________________________________ William Bryan Hill DATED: _______________ By: _______________________________ Alex Shootman Chief Executive Officer
Exhibit 99.1
Alkami Announces First Quarter 2025 Financial Results
Company Also Announces Planned Retirement of CFO Bryan Hill
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
The company reports its financial results in accordance with accounting principles generally accepted in the United States of America, or GAAP. However, the company believes that, in order to properly understand its short-term and long-term financial, operational and strategic trends, it may be helpful for investors to exclude certain non-cash or non-recurring items when used as a supplement to financial performance measures in accordance with GAAP. These items result from facts and circumstances that vary in both frequency and impact on continuing operations. The company also uses results of operations excluding such items to evaluate the operating performance of Alkami and compare it against prior periods, make operating decisions, determine executive compensation, and serve as a basis for long-term strategic planning. These non-GAAP financial measures provide the company with additional means to understand and evaluate the operating results and trends in its ongoing business by eliminating certain non-cash expenses and other items that Alkami believes might otherwise make comparisons of its ongoing business with prior periods more difficult, obscure trends in ongoing operations, reduce management’s ability to make useful forecasts, or obscure the ability to evaluate the effectiveness of certain business strategies and management incentive structures. In addition, the company also believes that investors and financial analysts find this information to be helpful in analyzing the company’s financial and operational performance and comparing this performance to the company’s peers and competitors.
The company defines “Non-GAAP Cost of Revenues” as cost of revenues, excluding (1) amortization and (2) stock-based compensation expense. The company believes that investors and financial analysts find this non-GAAP financial measure to be useful
in analyzing the company’s financial and operational performance, comparing this performance to the company’s peers and competitors, and understanding the company’s ability to generate income from ongoing business operations.
The company defines “Non-GAAP Gross Margin” as gross profit, plus (1) amortization and (2) stock-based compensation expense, all divided by revenue. The company believes that investors and financial analysts find this non-GAAP financial measure to be useful in analyzing the company’s financial and operational performance, comparing this performance to the company’s peers and competitors, and understanding the company’s ability to generate income from ongoing business operations.
The company defines “Non-GAAP Research and Development Expense” as research and development expense, excluding stock-based compensation expense. The company believes that investors and financial analysts find this non-GAAP financial measure to be useful in analyzing the company’s financial and operational performance, comparing this performance to the company’s peers and competitors, and understanding the company’s ongoing expenditures related to product innovation.
The company defines “Non-GAAP Sales and Marketing Expense” as sales and marketing expense, excluding stock-based compensation expense. The company believes that investors and financial analysts find this non-GAAP financial measure to be useful in analyzing the company’s financial and operational performance, comparing this performance to the company’s peers and competitors, and understanding the company’s ongoing expenditures related to its sales and marketing strategies.
The company defines “Non-GAAP General and Administrative Expense” as general and administrative expense, excluding stock-based compensation expense. The company believes that investors and financial analysts find this non-GAAP financial measure to be useful in analyzing the company’s financial and operational performance, comparing this performance to the company’s peers and competitors, and understanding the company’s underlying expense structure to support corporate activities and processes.
The company defines “Non-GAAP Income Before Income Taxes” as loss before income taxes, plus (1) gain on financial instruments, (2) amortization, (3) stock-based compensation expense, (4) acquisition-related expenses, and (5) loss on impairment of intangible assets. The company believes that investors and financial analysts find this non-GAAP financial measure to be useful in analyzing the company’s financial and operational performance, comparing this performance to the company’s peers and competitors, and understanding the company’s ability to generate income from ongoing business operations.
The company defines “Adjusted EBITDA” as net loss plus (1) (benefit from) provision for income taxes, (2) gain on financial instruments, (3) interest income, net, (4) depreciation and amortization (5) stock-based compensation expense, (6) acquisition-related expenses, and (7) loss on impairment of intangible assets. The company believes adjusted EBITDA provides investors and other users of our financial information consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations.
In addition, the Company also uses the following important operating metrics to evaluate its business:
The company defines “Annual Recurring Revenue (ARR)” by aggregating annualized recurring revenue related to SaaS subscription services recognized in the last month of the reporting period as well as the next 12 months of expected implementation services revenues in the last month of the reporting period. We believe ARR provides important information about our future revenue potential, our ability to acquire new clients, and our ability to maintain and expand our relationship with existing clients.
The company defines “Registered Users” as an individual or business related to an account holder of an FI client on our digital banking platform and has access as of the last day of the reporting period presented. We exclude individuals or businesses that solely use the products and services of our acquisitions. We price our digital banking platform based on the number of registered users, so as the number of registered users of our digital banking platform increases, our ARR grows. We believe growth in the number of registered users provides important information about our ability to expand market adoption of our digital banking platform and its associated software products, and therefore to grow revenues over time.
The company defines “Revenue per Registered User (RPU)” by dividing ARR for the reporting period by the number of registered users as of the last day of the reporting period. We believe RPU provides important information about our ability to grow the number of software products adopted by new clients over time, as well as our ability to expand the number of software products that our existing clients add to their contracts with us over time.
The company does not provide a reconciliation of our adjusted EBITDA outlook to GAAP net loss because certain significant information required for such reconciliation is not available without unreasonable efforts, including benefit from/provision for income taxes, gain/loss on financial instruments, stock-based compensation expense, and acquisition-related expenses, net, all of which may be significant.
| ALKAMI TECHNOLOGY, INC. | |||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||
| (In thousands, except share and per share data) | |||||||||||
| (UNAUDITED) | |||||||||||
| March 31, | December 31, | ||||||||||
| 2025 | 2024 | ||||||||||
| Assets | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | 61,660 | $ | 94,359 | |||||||
| Marketable securities | 33,637 | 21,375 | |||||||||
| Accounts receivable, net | 46,790 | 38,739 | |||||||||
| Deferred costs, current | 13,640 | 13,207 | |||||||||
| Prepaid expenses and other current assets | 18,514 | 13,697 | |||||||||
| Total current assets | 174,241 | 181,377 | |||||||||
| Property and equipment, net | 22,992 | 22,075 | |||||||||
| Right-of-use assets | 14,579 | 14,565 | |||||||||
| Deferred costs, net of current portion | 37,041 | 37,178 | |||||||||
| Intangibles, net | 178,801 | 29,021 | |||||||||
| Goodwill | 400,158 | 148,050 | |||||||||
| Other assets | 9,349 | 5,011 | |||||||||
| Total assets | $ | 837,161 | $ | 437,277 | |||||||
| Liabilities and Stockholders' Equity | |||||||||||
| Current liabilities | |||||||||||
| Accounts payable | $ | 5,180 | $ | 6,129 | |||||||
| Accrued liabilities | 27,406 | 24,520 | |||||||||
| Deferred revenues, current portion | 29,137 | 13,578 | |||||||||
| Lease liabilities, current portion | 1,559 | 1,343 | |||||||||
| Total current liabilities | 63,282 | 45,570 | |||||||||
| Deferred revenues, net of current portion | 25,635 | 15,526 | |||||||||
| Deferred income taxes | 2,346 | 1,822 | |||||||||
| Convertible senior notes, net | 334,720 | — | |||||||||
| Revolving loan | 60,000 | — | |||||||||
| Lease liabilities, net of current portion | 16,910 | 17,109 | |||||||||
| Other non-current liabilities | 224 | 220 | |||||||||
| Total liabilities | 503,117 | 80,247 | |||||||||
| Stockholders’ Equity | |||||||||||
Preferred stock, $0.001 par value, 10,000,000 shares authorized and 0 shares issued and outstanding as of March 31, 2025 and December 31, 2024 | — | — | |||||||||
Common stock, $0.001 par value, 500,000,000 shares authorized; and 103,019,976 and 102,088,783 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively | 103 | 102 | |||||||||
| Additional paid-in capital | 817,958 | 833,129 | |||||||||
| Accumulated deficit | (484,017) | (476,201) | |||||||||
| Total stockholders’ equity | 334,044 | 357,030 | |||||||||
| Total liabilities and stockholders' equity | $ | 837,161 | $ | 437,277 | |||||||
| ALKAMI TECHNOLOGY, INC. | |||||||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||||
| (In thousands, except share and per share data) | |||||||||||||||||||||||
| (UNAUDITED) | |||||||||||||||||||||||
Three months ended March 31, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| Revenues | $ | 97,835 | $ | 76,127 | |||||||||||||||||||
Cost of revenues(1) | 40,075 | 32,095 | |||||||||||||||||||||
| Gross profit | 57,760 | 44,032 | |||||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Research and development | 26,885 | 22,820 | |||||||||||||||||||||
| Sales and marketing | 17,899 | 13,843 | |||||||||||||||||||||
| General and administrative | 23,771 | 19,315 | |||||||||||||||||||||
| Acquisition-related expenses | 2,378 | 60 | |||||||||||||||||||||
| Amortization of acquired intangibles | 568 | 359 | |||||||||||||||||||||
| Loss on impairment of intangible assets | 1,655 | — | |||||||||||||||||||||
| Total operating expenses | 73,156 | 56,397 | |||||||||||||||||||||
| Loss from operations | (15,396) | (12,365) | |||||||||||||||||||||
| Non-operating income (expense): | |||||||||||||||||||||||
| Interest income | 1,096 | 1,082 | |||||||||||||||||||||
| Interest expense | (801) | (73) | |||||||||||||||||||||
| Gain on financial instruments | — | 112 | |||||||||||||||||||||
| Loss before income taxes | (15,101) | (11,244) | |||||||||||||||||||||
| (Benefit from) provision for income taxes | (7,285) | 189 | |||||||||||||||||||||
| Net loss | $ | (7,816) | $ | (11,433) | |||||||||||||||||||
| Net loss per share attributable to common stockholders: | |||||||||||||||||||||||
| Basic and diluted | $ | (0.08) | $ | (0.12) | |||||||||||||||||||
| Weighted average number of shares of common stock outstanding: | |||||||||||||||||||||||
| Basic and diluted | 102,430,673 | 96,945,232 | |||||||||||||||||||||
(1) Includes amortization of acquired technology of $1.9 million and $1.3 million for the three months ended March 31, 2025 and 2024, respectively.
| ALKAMI TECHNOLOGY, INC. | |||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
| (In thousands) | |||||||||||
| (UNAUDITED) | |||||||||||
Three months ended March 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net loss | $ | (7,816) | $ | (11,433) | |||||||
| Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||||||||||
| Depreciation and amortization expense | 3,430 | 2,562 | |||||||||
| Accrued interest on marketable securities, net | (279) | (294) | |||||||||
| Stock-based compensation expense | 16,093 | 13,552 | |||||||||
| Amortization of discount and debt issuance costs | 192 | 32 | |||||||||
| Loss on impairment of intangible assets | 1,655 | — | |||||||||
| Gain on financial instruments | — | (112) | |||||||||
| Deferred taxes | (8,312) | 25 | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Accounts receivable | (6,572) | (218) | |||||||||
| Prepaid expenses and other current assets | (5,416) | (1,633) | |||||||||
| Accounts payable and accrued liabilities | (2,002) | (3,873) | |||||||||
| Deferred costs | (158) | (1,311) | |||||||||
| Deferred revenues | 3,521 | 3,654 | |||||||||
| Net cash (used in) provided by operating activities | (5,664) | 951 | |||||||||
| Cash flows from investing activities: | |||||||||||
| Purchase of marketable securities | (21,883) | (7,149) | |||||||||
| Proceeds from sales, maturities and redemptions of marketable securities | 9,900 | 15,626 | |||||||||
| Purchases of property and equipment | (485) | (306) | |||||||||
| Capitalized software development costs | (1,446) | (1,363) | |||||||||
| Acquisition of business, net of cash acquired | (375,499) | — | |||||||||
| Net cash (used in) provided by investing activities | (389,413) | 6,808 | |||||||||
| Cash flows from financing activities: | |||||||||||
| Debt issuance costs paid | (779) | — | |||||||||
| Proceeds from issuance of convertible senior notes | 335,513 | — | |||||||||
| Proceeds from borrowing under revolving loan | 60,000 | — | |||||||||
| Purchase of capped call transaction | (33,879) | — | |||||||||
| Payments for taxes related to net settlement of equity awards | — | (5,678) | |||||||||
| Proceeds from stock option exercises | 1,523 | 1,171 | |||||||||
| Net cash provided by (used in) financing activities | 362,378 | (4,507) | |||||||||
| Net (decrease) increase in cash and cash equivalents | (32,699) | 3,252 | |||||||||
| Cash and cash equivalents, beginning of period | 94,359 | 40,927 | |||||||||
| Cash and cash equivalents, end of period | $ | 61,660 | $ | 44,179 | |||||||
| ALKAMI TECHNOLOGY, INC. | |||||||||||||||||||||||
| RECONCILIATION OF GAAP TO NON-GAAP MEASURES | |||||||||||||||||||||||
| (In thousands, except per share data) | |||||||||||||||||||||||
| (UNAUDITED) | |||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||
| March 31, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| GAAP total revenues | $ | 97,835 | $ | 76,127 | |||||||||||||||||||
| March 31, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| Annual Recurring Revenue (ARR) | $ | 403,885 | $ | 302,659 | |||||||||||||||||||
| Registered Users | 20,461 | 18,113 | |||||||||||||||||||||
| Revenue per Registered User (RPU) | $ | 19.74 | $ | 16.71 | |||||||||||||||||||
| Non-GAAP Cost of Revenues | |||||||||||||||||||||||
| Set forth below is a presentation of the company’s “Non-GAAP Cost of Revenues.” Please reference the “Explanation of Non-GAAP Measures” section. | |||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||
| March 31, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| GAAP cost of revenues | $ | 40,075 | $ | 32,095 | |||||||||||||||||||
| Amortization | (2,498) | (1,775) | |||||||||||||||||||||
| Stock-based compensation expense | (2,636) | (1,178) | |||||||||||||||||||||
| Non-GAAP cost of revenues | $ | 34,941 | $ | 29,142 | |||||||||||||||||||
| Non-GAAP Gross Margin | |||||||||||||||||||||||
| Set forth below is a presentation of the company’s “Non-GAAP Gross Margin.” Please reference the “Explanation of Non-GAAP Measures” section. | |||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||
| March 31, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| GAAP gross margin | 59.0 | % | 57.8 | % | |||||||||||||||||||
| Amortization | 2.6 | % | 2.3 | % | |||||||||||||||||||
| Stock-based compensation expense | 2.7 | % | 1.6 | % | |||||||||||||||||||
| Non-GAAP gross margin | 64.3 | % | 61.7 | % | |||||||||||||||||||
| Non-GAAP Research and Development Expense | |||||||||||||||||||||||
| Set forth below is a presentation of the company’s “Non-GAAP Research and Development Expense.” Please reference the “Explanation of Non-GAAP Measures” section. | |||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||
| March 31, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| GAAP research and development expense | $ | 26,885 | $ | 22,820 | |||||||||||||||||||
| Stock-based compensation expense | (5,434) | (3,998) | |||||||||||||||||||||
| Non-GAAP research and development expense | $ | 21,451 | $ | 18,822 | |||||||||||||||||||
| Non-GAAP Sales and Marketing Expense | |||||||||||||||||||||||
| Set forth below is a presentation of the company’s “Non-GAAP Sales and Marketing Expense.” Please reference the “Explanation of Non-GAAP Measures” section. | |||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||
| March 31, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| GAAP sales and marketing expense | $ | 17,899 | $ | 13,843 | |||||||||||||||||||
| Stock-based compensation expense | (2,847) | (2,031) | |||||||||||||||||||||
| Non-GAAP sales and marketing expense | $ | 15,052 | $ | 11,812 | |||||||||||||||||||
| Non-GAAP General and Administrative Expense | |||||||||||||||||||||||
| Set forth below is a presentation of the company’s “Non-GAAP General and Administrative Expense.” Please reference the “Explanation of Non-GAAP Measures” section. | |||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||
| March 31, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| GAAP general and administrative expense | $ | 23,771 | $ | 19,315 | |||||||||||||||||||
| Stock-based compensation expense | (9,085) | (6,345) | |||||||||||||||||||||
| Non-GAAP general and administrative expense | $ | 14,686 | $ | 12,970 | |||||||||||||||||||
| Non-GAAP Income Before Income Taxes | |||||||||||||||||||||||
| Set forth below is a presentation of the company’s “Non-GAAP Income Before Income Taxes.” Please reference the “Explanation of Non-GAAP Measures” section. | |||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||
| March 31, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| GAAP loss before income taxes | $ | (15,101) | $ | (11,244) | |||||||||||||||||||
| Gain on financial instruments | — | (112) | |||||||||||||||||||||
| Amortization | 3,066 | 2,134 | |||||||||||||||||||||
| Stock-based compensation expense | 20,002 | 13,552 | |||||||||||||||||||||
| Acquisition-related expenses | 2,378 | 60 | |||||||||||||||||||||
| Loss on impairment of intangible assets | 1,655 | — | |||||||||||||||||||||
| Non-GAAP income before income taxes | $ | 12,000 | $ | 4,390 | |||||||||||||||||||
| Adjusted EBITDA | |||||||||||||||||||||||
| Set forth below is a presentation of the company’s “Adjusted EBITDA.” Please reference the “Explanation of Non-GAAP Measures” section. | |||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||
| March 31, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| GAAP net loss | $ | (7,816) | $ | (11,433) | |||||||||||||||||||
| (Benefit from) provision for income taxes | (7,285) | 189 | |||||||||||||||||||||
| Gain on financial instruments | — | (112) | |||||||||||||||||||||
| Interest income, net | (295) | (1,009) | |||||||||||||||||||||
| Depreciation and amortization | 3,430 | 2,562 | |||||||||||||||||||||
| Stock-based compensation expense | 20,002 | 13,552 | |||||||||||||||||||||
| Acquisition-related expenses | 2,378 | 60 | |||||||||||||||||||||
| Loss on impairment of intangible assets | 1,655 | — | |||||||||||||||||||||
| Adjusted EBITDA | $ | 12,069 | $ | 3,809 | |||||||||||||||||||
Investor Relations Contact
Steve Calk
ir@alkami.com
Media Relations Contacts
Marla Pieton
marla.pieton@alkami.com
Valerie Kerner
alkami@fullyvested.com
Alkami Technology, Inc. Proprietary Information. Alkami Technology First Quarter 2025
2 © A lk am i T ec h n o lo gy , I n c. This presentation 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. The company reports its financial results in accordance with accounting principles generally accepted in the United States of America, or GAAP. However, the company believes that, in order to properly understand its short-term and long-term financial, operational and strategic trends, it may be helpful for investors to exclude certain non-cash or non-recurring items when used as a supplement to financial performance measures in accordance with GAAP. These items result from facts and circumstances that vary in both frequency and impact on continuing operations. These non-GAAP financial measures provide the company with additional means to understand and evaluate the operating results and trends in its ongoing business by eliminating certain non-cash expenses and other items that Alkami believes might otherwise make comparisons of its ongoing business with prior periods more difficult, obscure trends in ongoing operations, reduce management’s ability to make useful forecasts, or obscure the ability to evaluate the effectiveness of certain business strategies and management incentive structures. In addition, the company also believes that investors and financial analysts find this information to be helpful in analyzing the company’s financial and operational performance and comparing this performance to the company’s peers and competitors. Cautionary Statement Regarding Forward-Looking Statements
3 © A lk am i T ec h n o lo gy , I n c. Who We Are • Cloud-based digital banking platform serving U.S. financial institutions What We Do • Empower FIs to grow, drive user engagement and improve operational efficiency • Leverage broad product set enabling retail and commercial banking How We Do It • Powerful, scalable technology stack • Modern architecture, multi-tenant • Continuous integration, delivery and deployment Who We Serve • Community, regional and super-regional FIs Alkami Technology, Inc. We enable FIs to effectively compete with larger, more technologically advanced and well-resourced competitors Financial Institutions Digital Banking Consumer and Commercial Users FinTech Partners
4 © A lk am i T ec h n o lo gy , I n c. U.S. Digital Banking User Distribution Users in millions by asset range, including megabanks Source: FI Navigator, December 2023
5 © A lk am i T ec h n o lo gy , I n c. Alkami’s Addressable Market: User Characteristics 250M+ digital users, excluding megabanks Total market digital users growing 5-8% historically, driven by: ● Increasing number of accounts per customer ● Ease of new account opening via digital tools ● Demographics, including post-COVID shift to exurban areas, decline in unbanked and underbanked customers Digital user growth historically uncorrelated with contraction in branches or number of FIs Addressable Market = FIs with assets from $100M to $450B, representing 250M+ digital users Legacy Providers include Fiserv, FIS, JKHY, DI and other small or point solutions; Competitor data as of 12/31/24 Sources: SEC filings, NCUA, FDIC, FI Navigator, Cornerstone Advisors and Alkami internal research Legacy Providers: 210M+ Historical User Growth: 5-8% Competitor: 24.7M Alkami: 20.5M
6 © A lk am i T ec h n o lo gy , I n c. Go-To-Market Cadence We focus on the top 2,500 FIs excluding the megabanks Industry average contract length is 5 years, translating to approximately 500 contracts up for renewal annually 500 Annual Renewals 2,500 Target Clients v 9,000+ FIs Over 9,000 FIs in the United States• Sales team drives outbound lead generation, cross selling and account management • Client success team supports retention and deepens the relationships with our clients Highly targeted annual renewal class allows us to focus sales resources Note: Excludes financial institutions with assets greater than $450B
7 © A lk am i T ec h n o lo gy , I n c. Alkami’s Addressable Market Growing, healthy $14 billion TAM Total Addressable Market • 250M digital users x $58 ARPU • Digital users growing 5% to 8% annually • 30+ products today vs. 9 in 2015 Digital Banking Platform • 250M digital users x $35 ARPU • Existing client digital penetration of <80% expected to converge to near 100% DOA/LOS • Acquired Q3 2021 - Digital Account Opening & Unsecured Loan Origination • Acquired Q1 2025 - Omnichannel Onboarding & Account Opening ACH Alert • Acquired Q4 2020 - Fraud Prevention Segmint • Acquired Q2 2022 - Managed Marketing & AI 250M users represents FIs with assets between $100M and $450B Sources: NCUA, FDIC, FI Navigator, Cornerstone Advisors and Alkami internal research
8 © A lk am i T ec h n o lo gy , I n c. Combination Expected to Position Alkami as Premier Digital Banking Provider Expands Market Position Expected to position Alkami as a leader in digital sales and service platform Unlocks and expands TAM Onboard + Engage + Grow strategy drives competitive advantage Proven ability to leverage acquisitions (ACH Alert, Segmint) Stimulates GTM Strategy Minimal overlap with existing Alkami clients Significant Cross-Sell Opportunity Expected to be accretive to Alkami growth Attractive Financial Profile Commitment to empowering regional & community financial institutions Client as North Star Shared Culture of Innovation
9 © A lk am i T ec h n o lo gy , I n c. Partner Ecosystem Data & Marketing Security & Fraud Billing & Receivables Financial Wellness Card Management Commercial Services MANTL Extends Alkami’s Product and Customer Footprint Sales Channel Retail Account Opening Business Account Opening Customer LOS Business LOS Card Experience Money Movement ● The #1 retail banking platform ● Consumer and business ● Omnichannel account opening ● Accelerated entrance into LOS market Marketing Data Insights SHARED Strength ALKAMI Strength MANTL Strength Service Channel ● The best data and market platform ● Land and expand to grow relationships ● Driving higher attach rates, wallet share ● Enhancing customer stickiness Clients Client Type Banks Credit Unions Consumer / Retail Business / Corporate ● Proven playbook in CU market ● Accelerated push into bank market ● Consumer and business banking needs FinTech Partners Branch Manager
10 © A lk am i T ec h n o lo gy , I n c. Multiple Levers Driving Growth ● Clients driven by new logo wins, historically among credit unions, with a growing presence among banks ● Registered users grow as we add new logos and as clients add users ● RPU driven by product penetration at initial sale and by add on sales, and is offset by volume discounts as existing clients add users Note: RPU and ARR include subscription and recurring implementation services revenue and MANTL
11 © A lk am i T ec h n o lo gy , I n c. C o n fi d en ti al Alkami Digital Sales & Service Platform Digital Banking Engage users with an intuitive experience that simplifies self service Data & Marketing Leverage data from digital banking and core to target relevant products and services Onboarding & Account Opening Onboard new account holders and/or additional accounts for existing customers or members 50K demographic & psychographic tags and 12 AI predictive models to acquire customers and cross-sell products Awarded “Best Banking App” by Tearsheet in 2024 and the fastest-growing among all banks and credit unions combined Core-agnostic, omnichannel onboarding and account opening that supports virtually all deposit types, segments, and roles
12 © A lk am i T ec h n o lo gy , I n c. Alkami’s Digital Sales & Service Platform Onboard Engage Grow Guard Sales Service Digital Account Opening Marketing Data Insights Card Experience Customer Service Business Banking Financial Wellness Security & Fraud Protection Money Movement Extensibility Comprehensive digital banking to help FIs manage costs and remain competitive
13 © A lk am i T ec h n o lo gy , I n c. Product Strategy ● Lead with UX ● Deepen integrations with cores & third party systems ● Hyperfocus on Commercial Banking & DAO ● Data Integrity ● Integrating Flux, Segmint and Digital Banking further ● Monetizing data ● Streamlined, trackable and performant APIs ● Enhanced SDK to enable easier customization ● Developer Portal MVP Data Services Platform ServicesDigital Banking The Three Product Pillars
14 © A lk am i T ec h n o lo gy , I n c. How We Achieve Our Long-term Objectives Market Leadership Maintain Strong Credit Union Position Grow Bank Mindshare and Capabilities Drive Add-On Sales Scale and Continued Cost Discipline Continuous Product and Platform Improvement
Alkami Technology, Inc. Proprietary Information. Financial Overview
16 © A lk am i T ec h n o lo gy , I n c. Q1 2025 Financial Performance $M ● Q1’25 revenue growth of 28.5% driven by new clients, existing client user growth and ARPU growth ● GM expansion consistent with our plan to increase GM 200-300 bps per year through 2026 ● Adjusted EBITDA expansion driven by continued scale and efficiencies in Research & Development, Sales & Marketing and General & Administrative Note: Gross margin % on a non-GAAP basis
17 © A lk am i T ec h n o lo gy , I n c. Operating and Financial Highlights Q1 2025 $404M ARR Subscription Revenue Mix as of 3/31/25 95% Subscription Revenue 12/31/24 113% Net Dollar Retention Remaining Performance Obligation as of 3/31/25 $1.6B RPO Digital Banking Clients 278 Q1 2025 244 Q1 2024 Registered Users 20.5M18.1M Q1 2025Q1 2024 ● Signed 4 new digital banking platform clients in Q1 ● Implemented 7 clients in Q1, bringing digital platform client count to 278 ● 36 new clients in implementation backlog, representing 1.1M digital users ● Exited Q1 with 20.5M registered users, up 2.3M or 13%. LTM drivers: (i) FIs implemented represent 1.2M registered users, (ii) existing clients increased their registered users by 1.1M, net of churn ● Increased ARR 33% to $404M ● Remaining performance obligation reached $1.6B representing 3.9x live ARR, up 31% year over year ● LTM churn less than 1% vs long-term expected annual churn modeled at 2-3%
18 © A lk am i T ec h n o lo gy , I n c. Client Base Expansion 2020 151 177 199 236 37 57 67 89 2021 2022 2023 ARR growth driven by larger new logos and increased product penetration 272 104 2024 Total Digital Banking Platform Clients Clients with ARR > $1M
19 © A lk am i T ec h n o lo gy , I n c. Technology Demand and Product Expansion Drive ARR Cohort ARR Expansion Via User Growth and Cross-Sell Success ARR Expansion Drivers ● Long-term contracts ● Escalating contract minimums ● Gross client retention ● Growth in digital user adoption ● Product cross-sell As of 12/31/24
20 © A lk am i T ec h n o lo gy , I n c. Land and Expand Strategy Drives Same-Client Growth ARR $M at go-live and current
21 © A lk am i T ec h n o lo gy , I n c. Strong Historical Revenue Growth $M Note: Q1’25 includes MANTL revenue of $1.4 million based on acquisition closing date of March 17, 2025
22 © A lk am i T ec h n o lo gy , I n c. Gross Margin Expansion Driven by Scale and Efficiency $M
23 © A lk am i T ec h n o lo gy , I n c. Best-in-Class GTM Efficiency ● Long-term contract structure reduces annual GTM motion ● Alkami models annual client retention of 97% - 98% ● 2026E reflects continued growth in S&M spend related to bank market expansion and increased product depth ● Historical high sales team productivity and GTM efficiency; LTM increase in ARR to S&M expense of ~1.2x, among the best in SaaS ● Continued GTM efficiency driven by cross-sale success and upsell opportunities from user growth among our existing client base
24 © A lk am i T ec h n o lo gy , I n c. Clear Path to Manage Equity Dilution Using equity as a strategic element to drive executive and shareholder alignment Actively managing the use of equity compensation and the resulting SBC and shareholder dilution Key drivers include: ● Operating leverage ● Compensation mix: salary, variable cash, equity ● Vesting duration ● Controlled headcount expansion ● Headcount mix, including locations and levels Long-term based on previously-issued expectation of mid-20% revenue growth and Adj. EBITDA margin of 20% by 2026 Includes impact of forfeitures
25 © A lk am i T ec h n o lo gy , I n c. 2025 Financial Guidance ● Full year 2025 revenue guidance of $443 million to $447 million and Adj EBITDA guidance of $49.5 million to $52.5 million ● Second quarter 2025 revenue guidance of $109.0 million to $110.5 million, and adjusted EBITDA guidance of $9.0 million to $10.0 million ● Revenue growth driven by continued new client expansion, existing user growth and ARPU expansion; Adj EBITDA growth driven by continued scale and efficiencies in operating costs ● Full year guidance includes revenue of approximately $31.4 million and an Adj EBITDA loss of $5.0 million from the MANTL acquisition. We believe MANTL will be accretive to Adj EBITDA in 2026. We expect MANTL’s ARR under contract at December 31, 2025 to be approximately $60 million, representing a growth rate of over 30% based on the same metric in 2024. ● Second quarter and full-year guidance also includes the impact of our India expansion $ millions; 2025E reflects midpoint of management guidance provided April 30, 2025
26 © A lk am i T ec h n o lo gy , I n c. Attractive Long-Term Profile Expect margin improvement through scale, product mix and operational efficiency
27 © A lk am i T ec h n o lo gy , I n c. Selected Historical Data 2021 2022 2023 2024 Q1’25 Digital banking platform clients 177 199 236 272 278 Growth % 12% 19% 15% 14% Digital banking platform users (M) 12.4 14.5 17.5 20.0 20.5 Growth % 18% 20% 14% 13% Live ARR ($M) $ 169.0 $ 226.1 $ 291.0 $ 355.9 $ 403.9 Growth % 34% 29% 22% 33% RPU $ 13.68 $ 15.55 $ 16.63 $ 17.81 $ 19.74 Growth % 14% 7% 7% 18% RPO ($M) $ 652 $ 893 $ 1,140 $ 1,366 $ 1,565 Growth % 37% 28% 20% 31% Notes: Segmint and MANTL acquisitions completed in Q2’22 and Q1’25, respectively, driving one-time increases in RPU Growth % reflects year-over-year growth
28 © A lk am i T ec h n o lo gy , I n c. Non-GAAP Reconciliations ($000s)
29 © A lk am i T ec h n o lo gy , I n c. Non-GAAP Reconciliations ($000s)
30 © A lk am i T ec h n o lo gy , I n c. Non-GAAP Reconciliations ($000s)