Alkami Technology (NASDAQ:ALKT) reported fourth-quarter and full-year 2025 results that management said exceeded consensus expectations for revenue and adjusted EBITDA, driven by strong sales execution, expanding profitability, and continued progress integrating its MANTL acquisition. Executives also outlined 2026 guidance that reflects ongoing demand but incorporates timing-related headwinds tied to lower termination fees and longer implementation cycles for bundled platform deployments.
Fourth-quarter performance and full-year milestones
Chief Executive Officer Alex Shootman said Alkami grew fourth-quarter revenue 35% year-over-year and delivered adjusted EBITDA of $19 million. For the full year, the company posted 33% revenue growth and adjusted EBITDA of more than $59 million, which Shootman said was more than double the adjusted EBITDA delivered in 2024.
For the fourth quarter, Alkami reported revenue of $120.8 million, up 35% year-over-year, and adjusted EBITDA of $19.1 million, above the high end of its expectations, for a 15.8% adjusted EBITDA margin. Fourth-quarter non-GAAP gross margin was 63.4%, up 30 basis points, while full-year non-GAAP gross margin was 64.1%, expanding nearly 140 basis points.
Sales, client growth, and backlog
Management emphasized new logo momentum across digital banking and MANTL. In the fourth quarter, Alkami signed 16 new digital banking clients, including six banks, and added 33 new MANTL clients, including 18 credit unions. Shootman said 2025 matched the best year in the company’s history for digital banking new logos with 39 new clients, while MANTL delivered the best new client booking year in its history.
Hudson said Alkami exited 2025 with 301 clients and 22.4 million registered users, up 2.4 million users, or 12%, year-over-year. Over the past 12 months, the company implemented 35 clients supporting 1.3 million digital users, while existing clients increased digital adoption by 1.5 million users.
Alkami ended the fourth quarter with annual recurring revenue (ARR) of $480 million, up 35%, and Hudson noted approximately $71 million of ARR in backlog pending implementation. That backlog includes 42 new clients representing roughly 1.6 million digital users, with the majority expected to launch over the next 12 months.
Hudson also highlighted churn and contract visibility, stating Alkami churned less than 1% of digital banking ARR in 2025 and currently expects to churn four digital banking clients in 2026, again representing less than 1% of ARR.
MANTL integration and the Digital Sales & Service Platform
Both Shootman and Hudson said the business is now “functionally integrated” with MANTL and that separating organic versus acquired contributions is becoming less meaningful as more deals include multiple products. Shootman said a central part of the acquisition thesis is the Alkami Digital Sales & Service Platform (DSSP), which integrates digital banking, account origination, and data and marketing.
Shootman said DSSP contributed to improved second-half performance, with 58% of new digital banking deals in the second half resulting in DSSP clients. He also said Alkami saw a 30% uplift in ARR when clients buy DSSP and that bundled deals increase contract lengths for origination and data and marketing, lifting total contract value.
When the company acquired MANTL, 11 Alkami clients had all three DSSP products; by the end of 2025, that figure rose to 45 clients, Shootman said.
On MANTL’s product footprint, Shootman said the origination platform has 161 live clients, including 26 that are also digital banking clients, and is powering more than 1,000 bank and credit union branches across the U.S. He also noted two loan origination clients went live in the fourth quarter and 13 new loan platform clients signed during the quarter. In Q&A, management said the loan offering is still being deployed selectively with “lighthouse” accounts and is not yet broadly available; near-term focus is on retail and HELOC-related capabilities, with optionality to expand over time.
Bank market traction, product roadmap, and AI initiatives
Shootman said the fourth quarter was Alkami’s second-best bank new logo quarter in its history, and that in 2025 the company brought 16 banks live on its digital banking platform. He added Alkami now has 50 banks under contract, with 37 live on the platform.
Management cited several factors they believe can improve bank win rates, including new treasury management features released in 2025 and a follow-on feature bundle planned for the second quarter of 2026. Shootman also pointed to a longer-term market opportunity as banks decouple online banking from core providers, noting that 78% of banks on dominant bank cores use a legacy core-provided online product, compared with 43% of credit unions on dominant credit union cores.
On AI, Shootman said he expects a “net positive” impact for Alkami, citing AI-enabled capabilities already being attached to new logos. He said Segment—described as the AI engine powering Alkami’s data and marketing platform—was attached to all but two new logos in 2025, and a fraud product using AI-driven behavioral signals was attached to 67% of new logos.
He also previewed an upcoming product, Alkami Code Studio, which management plans to show at the April client conference. Shootman described it as an AI-native, closed-loop development agent trained on more than 6 million lines of SDK code, intended to reduce time to deploy SDK-based extensions from months to days. Internally, Shootman said AI agents helped change more than a million lines of code in December and contributed to an 18% increase in developer productivity, while implementation team members are saving nearly two hours per day on average and support ticket closure speed increased 9% even as support headcount growth slowed.
Guidance, timing headwinds, and long-term framework
For the first quarter of 2026, Alkami guided revenue of $124.7 million to $125.7 million (27.5% to 28.5% growth) and adjusted EBITDA of $21.1 million to $21.9 million. For full-year 2026, the company guided revenue of $525.5 million to $530.5 million (18.5% to 19.6% growth) and adjusted EBITDA of $93.5 million to $97.5 million, implying an 18.1% adjusted EBITDA margin at the midpoint.
Hudson said the 2026 outlook assumes continued cross-sell momentum, consistent ARR launches, and high single-digit ARPU (revenue per user) growth, while also incorporating a slight moderation in user growth among existing clients. She also called out a planned 75% decline in termination fee revenue, which she said would reduce reported growth by a few percentage points.
Additionally, Hudson said DSSP deployments may take longer than implementing standalone origination or data and marketing products, and the company is modeling slightly longer implementation cycles closer to 12 months, more typical for digital banking. In Q&A, she said Alkami is currently modeling roughly a two-month shift in revenue timing for origination and data and marketing when sold as part of DSSP.
On profitability, Hudson guided to a full-year 2026 non-GAAP gross margin of approximately 65% and said adjusted EBITDA margin is expected to be “north of 19%” in the back half of 2026, weighted toward the fourth quarter. She also said stock-based compensation is expected to be 14% to 15% of revenue.
During Q&A, Hudson and Shootman addressed higher database technology costs that began in the fourth quarter, with Hudson citing about $2 million of incremental costs and management describing the increase as temporary and expected to decline by the end of 2026 as the company converts off the impacted database arrangement.
Alkami ended the quarter with $99.1 million in cash and marketable securities. Hudson said 2025 operating cash flow was $42.9 million and free cash flow was $34.2 million, and the company repaid $45 million on its revolving credit facility.
Looking further out, Hudson said the company expects to achieve “Rule of Forty-Five” by 2030 and discussed targets including gross margin approaching 70% over time, stock-based compensation declining to about 10% of revenue, and approximately 300 basis points of average annual adjusted EBITDA margin expansion. In response to a question on cash flow, Hudson said Alkami’s target would be 90% free cash flow conversion from adjusted EBITDA in the 2030 timeframe.
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.
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