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Alkami Technology: Alkami Technology's Strong Q2 Performance

Alkami Technology reported strong financial results for the second quarter of 2025, with revenue growing 36% to $112.1 million and adjusted EBITDA of $11.9 million. The company's revenue growth was driven by a 35% increase in subscription revenue, which represented 95% of total revenue. ARR grew by 32% and reached $424 million. The company also reported a non-GAAP gross margin of 65.1%, representing a nearly 200 basis point expansion compared to the prior year. Operating expenses were $61.5 million, or 54.8% of revenue, representing year-over-year operating leverage of approximately 340 basis points. EPS came out at $0.13, beating estimates of $0.09.

ALKT

USD 22.32

0.77%

A-Score: 3.4/10

Publication date: July 31, 2025

Full Report

Author: Analystock.ai

📋 Highlights
  • Strong Revenue Growth - Revenue grew 36% to $112.1 million, with subscription revenue up 35% and representing 95% of total revenue.
  • Expanding User Base - Registered users increased by 2.3 million to 20.9 million, with MANTL adding 39 new clients in the first half of 2025.
  • Profitability Improvement - Non-GAAP gross margin expanded 200 basis points to 65.1%, with adjusted EBITDA of $11.9 million.
  • Guidance and Outlook - Q3 revenue guidance is $112.5M to $114M, with full-year 2025 revenue expected to grow 33% to 34% to $443M to $447M.
  • MANTL's Contribution - MANTL contributed over $10 million in revenue for Q2 and is expected to accelerate, with a growing pipeline and backlog.

Financial Highlights

The company's financial performance was impressive, with a significant increase in revenue and adjusted EBITDA. According to the company's management, "We delivered another strong quarter, with revenue growth of 36% and adjusted EBITDA of $11.9 million, demonstrating our ability to execute on our growth strategy." The company's cash and marketable securities balance was $87 million, and it used a portion of its cash to reduce its revolver by $10 million.

Acquisition and Integration of MANTL

Alkami's acquisition of MANTL contributed to its growth, with MANTL adding 39 new clients in the first half of 2025, including 14 Alkami digital banking clients. The company expects MANTL to be a significant contributor to its future growth, with a potential to increase its average revenue per user. MANTL's contribution to revenue was over $10 million in the quarter, and the company expects MANTL's revenue to accelerate, with a strong pipeline and a growing backlog.

Guidance and Outlook

Alkami provided guidance for the third quarter of 2025, with revenue expected to be in the range of $112.5 million to $114 million, representing total revenue growth of 31% to 33%. For the full year 2025, the company expects revenue to be in the range of $443 million to $447 million, representing total revenue growth of 33% to 34% and organic revenue growth of 25% to 26%. Adjusted EBITDA is expected to be in the range of $51.5 million to $54 million.

Valuation and Analyst Estimates

Based on the current stock price, Alkami Technology trades at a P/S Ratio of 5.96 and an EV/EBITDA of -60.76. Analysts estimate that the company's revenue will grow by 25.4% next year. With a strong performance in Q2 and a positive outlook, the stock seems to be attractively valued.

Alkami Technology's A-Score