Core Viewpoint - Alkami Technology (ALKT) has experienced significant selling pressure, resulting in a 28.6% decline over the past four weeks, but analysts anticipate improved earnings in the near future [1] Group 1: Technical Analysis - The Relative Strength Index (RSI) is a key technical indicator used to identify oversold conditions, with a reading below 30 typically indicating that a stock is oversold [2] - ALKT's current RSI reading is 27.5, suggesting that the heavy selling may be nearing exhaustion, potentially leading to a price rebound [5] - The RSI helps investors identify entry opportunities when a stock is undervalued due to excessive selling pressure [3] Group 2: Fundamental Analysis - There has been a strong consensus among sell-side analysts to raise earnings estimates for ALKT, with a 15.8% increase in the consensus EPS estimate over the last 30 days [7] - An upward trend in earnings estimate revisions is generally associated with price appreciation in the near term [7] - ALKT holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate trends and EPS surprises, indicating a strong potential for a turnaround [8]

Group 1 - Alkami Technology, Inc. is a leading provider of cloud-based digital banking solutions for financial institutions in the U.S. [2] - The company enables clients to grow confidently, adapt quickly, and build thriving digital communities through various services [2] - Alkami's offerings include retail and business banking, onboarding and account opening, payment security, and data and marketing solutions [2] Group 2 - Alkami's executive leadership, including CEO Alex Shootman and CFO Bryan Hill, will present at the KeyBanc Technology Leadership Forum on August 11, 2025 [1] - A webcast and replay of the presentation will be available on the company's investor relations website following the conference [1]

PART I - FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Presents Alkami Technology, Inc.'s unaudited condensed consolidated financial statements for Q2 2025 and FY 2024, detailing Balance Sheets, Statements of Operations, Stockholders' Equity, and Cash Flows, with notes [Unaudited Condensed Consolidated Balance Sheets](index=3&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) Total assets significantly increased, driven by the MANTL acquisition's impact on intangibles and goodwill. Liabilities also rose due to new convertible senior notes and revolving loan borrowings Balance Sheet Metrics | Metric (in thousands) | June 30, 2025 | December 31, 2024 | Change ($ thousands) | Change (%) | | :-------------------- | :------------ | :---------------- | :------------------- | :--------- | | Total assets | $840,389 | $437,277 | $403,112 | 92.2% | | Intangibles, net | $172,182 | $29,021 | $143,161 | 493.3% | | Goodwill | $403,814 | $148,050 | $255,764 | 172.8% | | Total liabilities | $496,373 | $80,247 | $416,126 | 518.6% | | Convertible senior notes, net | $335,208 | — | $335,208 | N/A | | Revolving loan | $50,000 | — | $50,000 | N/A | | Total stockholders' equity | $344,016 | $357,030 | $(13,014) | (3.6%) | [Unaudited Condensed Consolidated Statements of Operations](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) Significant revenue growth for Q2 and H1 2025 was offset by increased net losses, primarily due to higher operating expenses, including amortization of acquired intangibles and interest expense Three Months Ended June 30 | Metric (in thousands) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Change ($ thousands) | Change (%) | | :-------------------- | :------------------------------- | :------------------------------- | :------------------- | :--------- | | Revenues | $112,059 | $82,160 | $29,899 | 36.4% | | Gross profit | $65,618 | $48,771 | $16,847 | 34.5% | | Loss from operations | $(15,863) | $(13,207) | $(2,656) | 20.1% | | Net loss | $(13,591) | $(12,317) | $(1,274) | 10.3% | | Basic and diluted EPS | $(0.13) | $(0.13) | $0.00 | 0.0% | Six Months Ended June 30 | Metric (in thousands) | Six months ended June 30, 2025 | Six months ended June 30, 2024 | Change ($ thousands) | Change (%) | | :-------------------- | :----------------------------- | :----------------------------- | :------------------- | :--------- | | Revenues | $209,894 | $158,287 | $51,607 | 32.6% | | Gross profit | $123,378 | $92,803 | $30,575 | 32.9% | | Loss from operations | $(31,259) | $(25,572) | $(5,687) | 22.2% | | Net loss | $(21,407) | $(23,750) | $2,343 | (9.9%) | | Basic and diluted EPS | $(0.21) | $(0.24) | $0.03 | (12.5%) | [Unaudited Condensed Consolidated Statements of Changes in Stockholders' Equity](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity) Total stockholders' equity decreased for H1 2025, driven by net loss and capped call transactions, partially offset by stock-based compensation and ESPP/stock option proceeds Stockholders' Equity Changes | Metric (in thousands) | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------------- | :----------------------------- | :----------------------------- | | Balance December 31 | $357,030 | $324,941 | | Stock-based compensation | $36,253 | $29,262 | | Capped call transaction | $(33,879) | — | | Net loss | $(21,407) | $(23,750) | | Balance June 30 | $344,016 | $327,184 | [Unaudited Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow shifted to negative, investing activities saw significant outflow from the MANTL acquisition. Financing activities provided substantial cash inflow from convertible notes and revolving loan borrowings Cash Flow Activities | Cash Flow Activity (in thousands) | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash (used in) provided by operating activities | $(4,507) | $1,499 | | Net cash (used in) provided by investing activities | $(392,360) | $22,275 | | Net cash provided by (used in) financing activities | $354,934 | $(3,269) | | Net (decrease) increase in cash and cash equivalents | $(41,933) | $20,505 | | Cash and cash equivalents, end of period | $52,426 | $61,432 | - Net cash used in investing activities for the six months ended June 30, 2025, was primarily driven by the **$375.5 million acquisition of MANTL**[15](index=15&type=chunk)[157](index=157&type=chunk) - Net cash provided by financing activities for the six months ended June 30, 2025, was largely due to **$335.5 million from the issuance of 2030 Convertible Notes** and **$60.0 million from revolving loan borrowings**[15](index=15&type=chunk)[159](index=159&type=chunk) [Notes to the Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed explanations of accounting policies, significant transactions, and financial statement items, including MANTL acquisition, debt, revenue, and income taxes, crucial for understanding financial position [Note 1. Organization](index=8&type=section&id=Note%201.%20Organization) Alkami Technology, Inc. provides cloud-based digital banking solutions to U.S. financial institutions via its multi-tenant platform through long-term, subscription-based contracts - Alkami Technology, Inc. provides cloud-based digital banking solutions to community, regional, and super-regional financial institutions in the United States[17](index=17&type=chunk) - The company's Alkami Digital Banking Platform helps FIs onboard and engage new users, accelerate revenues, and improve operational efficiency, supported by a proprietary, true cloud-based, multi-tenant architecture[17](index=17&type=chunk) - Alkami cultivates deep client relationships through long-term, subscription-based contractual arrangements, aligning growth with client success[17](index=17&type=chunk) [Note 2. Summary of Significant Accounting Policies](index=8&type=section&id=Note%202.%20Summary%20of%20Significant%20Accounting%20Policies) Outlines significant accounting policies for interim unaudited condensed consolidated financial statements, covering basis of presentation, use of estimates, operating segment, and recent accounting pronouncements - The interim unaudited condensed consolidated financial statements are prepared in accordance with GAAP for interim financial information and do not include all disclosures required for complete annual financial statements[19](index=19&type=chunk)[20](index=20&type=chunk) - Management makes significant estimates and assumptions, particularly in revenue recognition and business combinations, which could differ from actual results[22](index=22&type=chunk)[23](index=23&type=chunk) - The company operates as a single reportable segment, with the CEO assessing performance based on net loss[24](index=24&type=chunk) - The FASB issued ASU 2024-03, 'Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures,' effective for fiscal years beginning after December 15, 2026, which the Company is currently evaluating for impact[26](index=26&type=chunk) [Note 3. Business Combination](index=9&type=section&id=Note%203.%20Business%20Combination) Alkami acquired MANTL on March 17, 2025, for **$375 million**, net of cash. MANTL contributed **$10.3 million** in Q2 2025 revenue, significantly increasing goodwill and identifiable intangible assets - Alkami Technology, Inc. acquired Fin Technologies, Inc. dba MANTL on March 17, 2025, for approximately **$375 million**, net of cash acquired[27](index=27&type=chunk)[28](index=28&type=chunk) - MANTL provides onboarding and account opening solutions for financial institutions, augmenting Alkami's single reportable segment[27](index=27&type=chunk)[30](index=30&type=chunk) Acquired Assets and Liabilities | Acquired Assets/Liabilities (in thousands) | Adjusted Fair Value as of June 30, 2025 | | :----------------------------------------- | :-------------------------------------- | | Goodwill | $255,763 | | Intangible assets | $153,500 | | Total assets acquired | $417,010 | | Total liabilities assumed | $37,906 | | Net assets acquired | $379,104 | Purchased Identifiable Intangible Assets | Purchased Identifiable Intangible Assets (in thousands) | Weighted-Average Amortization Period (in years) | Total (in thousands) | | :-------------------------------------- | :---------------------------------------------- | :------------------- | | Customer relationships | 15 | $72,500 | | Developed technology | 5 | $75,300 | | Tradenames | 10 | $5,700 | | Total identifiable intangible assets | | $153,500 | - The MANTL acquisition contributed **$10.3 million in revenue** for the three months ended June 30, 2025, and **$11.7 million** for the six months ended June 30, 2025[33](index=33&type=chunk) - The acquisition resulted in a provisional deferred tax benefit of **$12.0 million** due to the partial release of the Company's pre-existing valuation allowance[31](index=31&type=chunk)[64](index=64&type=chunk) [Note 4. Property and Equipment, Net](index=10&type=section&id=Note%204.%20Property%20and%20Equipment%2C%20Net) Property and equipment, net, increased to **$24.2 million** as of June 30, 2025, from **$22.1 million** at December 31, 2024, primarily due to capitalized software development costs and higher depreciation Property and Equipment Details | Property and Equipment (in thousands) | June 30, 2025 | December 31, 2024 | | :------------------------------------ | :------------ | :---------------- | | Capitalized software development costs | $23,328 | $19,728 | | Equipment and software | $3,169 | $2,934 | | Leasehold improvements | $10,238 | $10,229 | | Total property and equipment | $36,735 | $32,891 | | Less: accumulated depreciation and amortization | $(12,545) | $(10,816) | | Property and equipment, net | $24,190 | $22,075 | - Depreciation and amortization expense was **$2.1 million** for the six months ended June 30, 2025, up from **$1.8 million** in the prior year[34](index=34&type=chunk) [Note 5. Revenues and Deferred Costs](index=10&type=section&id=Note%205.%20Revenues%20and%20Deferred%20Costs) Total revenues significantly increased, primarily from SaaS subscription services, which form the majority of revenue. Deferred commissions and implementation costs related to client contracts were capitalized and amortized Revenue Sources | Revenue Source (in thousands) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :---------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | SaaS subscription services | $105,859 | $78,371 | $198,667 | $151,383 | | Implementation services | $3,244 | $2,110 | $5,516 | $3,958 | | Other services | $2,956 | $1,679 | $5,711 | $2,946 | | Total revenues | $112,059 | $82,160 | $209,894 | $158,287 | - SaaS subscription services accounted for **94.5%** and **94.7%** of total revenues for the three and six months ended June 30, 2025, respectively[97](index=97&type=chunk) - The remaining performance obligation totaled approximately **$1.6 billion** as of June 30, 2025, with **49.5%** expected to be recognized over the next 24 months[38](index=38&type=chunk) - Deferred commissions capitalized increased to **$3.5 million** for the six months ended June 30, 2025, from **$2.9 million** in the prior year, with amortization included in sales and marketing expenses[40](index=40&type=chunk) - Deferred implementation costs capitalized increased to **$5.3 million** for the six months ended June 30, 2025, from **$5.2 million** in the prior year, with amortization included in cost of revenues[41](index=41&type=chunk) [Note 6. Accounts Receivable, net and Prepaid expenses and other current assets](index=12&type=section&id=Note%206.%20Accounts%20Receivable%2C%20net%20and%20Prepaid%20expenses%20and%20other%20current%20assets) Accounts receivable, net, and prepaid expenses and other current assets both significantly increased as of June 30, 2025, reflecting growth in trade receivables and other current assets Accounts Receivable and Prepaid Expenses | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Accounts receivable, net | $47,679 | $38,739 | | Prepaid expenses and other current assets | $28,411 | $13,697 | - The increase in prepaid expenses and other current assets was primarily due to a **$9.1 million pending vendor refund receivable** as of June 30, 2025, which was received in July 2025[155](index=155&type=chunk) [Note 7. Accrued Liabilities](index=13&type=section&id=Note%207.%20Accrued%20Liabilities) Total accrued liabilities increased to **$31.0 million** as of June 30, 2025, from **$24.5 million** at December 31, 2024, driven by higher bonus, commissions, and other accruals Accrued Liabilities Details | Accrued Liability (in thousands) | June 30, 2025 | December 31, 2024 | | :------------------------------- | :------------ | :---------------- | | Bonus accrual | $9,398 | $7,989 | | Commissions accrual | $2,119 | $1,708 | | Accrued consulting and professional fees | $1,467 | $653 | | Other accrued liabilities | $11,631 | $8,633 | | Total accrued liabilities | $30,965 | $24,520 | [Note 8. Debt](index=13&type=section&id=Note%208.%20Debt) Alkami amended its credit facility, extending maturity and increasing revolving loan commitment to **$225 million**. The company also issued **$345 million** in 1.50% convertible senior notes due 2030, partially funding the MANTL acquisition - The Amended Credit Agreement extended the Revolving Facility maturity to February 27, 2030, and increased the commitment to **$225 million**[45](index=45&type=chunk) - The company had **$50 million** outstanding on the Revolving Facility as of June 30, 2025, with an effective interest rate of **7.68%**[46](index=46&type=chunk) - Alkami issued **$345 million** principal amount of **1.50% convertible senior notes** due March 15, 2030, with a conversion price of approximately **$32.82 per share**[51](index=51&type=chunk) 2030 Convertible Notes Interest Expense | 2030 Convertible Notes Interest Expense (in thousands) | Three months ended June 30, 2025 | Six months ended June 30, 2025 | | :----------------------------------------------------- | :------------------------------- | :----------------------------- | | Contractual interest expense | $1,293 | $1,509 | | Amortization of debt discount and issuance costs | $488 | $624 | | Total interest expense | $1,781 | $2,133 | - The net carrying amount of the 2030 Convertible Notes was **$335.2 million** as of June 30, 2025, with an estimated fair value of **$406 million**[56](index=56&type=chunk)[57](index=57&type=chunk) [Note 9. Stockholders' Equity](index=17&type=section&id=Note%209.%20Stockholders%27%20Equity) Stock-based compensation expense significantly increased for Q2 and H1 2025, partly due to accelerated vesting of equity awards related to the MANTL acquisition Stock-based Compensation Expense | Stock-based Compensation Expense (in thousands) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :---------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Cost of revenues | $1,706 | $1,347 | $4,342 | $2,525 | | Research and development | $5,424 | $4,256 | $10,858 | $8,254 | | Sales and marketing | $3,550 | $2,291 | $6,397 | $4,322 | | General and administrative | $8,835 | $7,119 | $17,920 | $13,464 | | Total stock-based compensation expenses | $19,515 | $15,013 | $39,517 | $28,565 | - The MANTL acquisition resulted in an additional **$3.9 million of stock-based compensation expense** for the six months ended June 30, 2025, due to accelerated vesting of unvested equity awards[61](index=61&type=chunk) [Note 10. Income Taxes](index=17&type=section&id=Note%2010.%20Income%20Taxes) A significant income tax benefit was recorded for Q2 and H1 2025, primarily due to the partial release of a pre-existing valuation allowance from the MANTL acquisition, which generated a net deferred tax liability Income Tax Metrics | Income Tax Metric (in thousands) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Income tax (benefit from) provision | $(4,296) | $185 | $(11,581) | $374 | | Effective tax rate | 24.0% | (1.5%) | 35.1% | (1.6%) | - The MANTL acquisition generated a net deferred tax liability of **$12.6 million**, leading to a provisional deferred tax benefit of **$12.0 million** from the partial release of Alkami's pre-existing valuation allowance[64](index=64&type=chunk)[148](index=148&type=chunk) - The company is evaluating the impact of the recently enacted OBBBA, which retroactively repeals the requirement to amortize Section 174 R&D expenses over five years[66](index=66&type=chunk) [Note 11. Fair Value of Financial Instruments](index=19&type=section&id=Note%2011.%20Fair%20Value%20of%20Financial%20Instruments) Financial instruments, including cash equivalents and marketable securities, are measured at fair value using a three-tier hierarchy, with most assets classified as Level 1 or Level 2 Financial Assets Fair Value | Financial Assets (in thousands) | June 30, 2025 (Total Fair Value) | Level 1 (in thousands) | Level 2 (in thousands) | Level 3 (in thousands) | | :------------------------------ | :------------------------------- | :--------------------- | :--------------------- | :--------------------- | | Cash equivalents | $37,585 | $37,585 | $— | $— | | Marketable securities | $34,686 | $22,269 | $12,417 | $— | | Total assets | $72,271 | $59,854 | $12,417 | $— | - The fair value of the 2030 Convertible Notes was estimated at **$406 million** as of June 30, 2025, based on Level 2 inputs[57](index=57&type=chunk) [Note 12. Earnings Per Share](index=19&type=section&id=Note%2012.%20Earnings%20Per%20Share) Basic and diluted net loss per share were identical due to net losses, rendering potentially dilutive shares, including 2030 Convertible Notes and Capped Calls, anti-dilutive Net Loss and EPS | EPS Metric (in thousands, except EPS) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss | $(13,591) | $(12,317) | $(21,407) | $(23,750) | | Basic and diluted EPS | $(0.13) | $(0.13) | $(0.21) | $(0.24) | Anti-dilutive Common Share Equivalents | Anti-dilutive Common Share Equivalents | As of June 30, 2025 | As of June 30, 2024 | | :------------------------------------- | :------------------ | :------------------ | | Stock options | 983,034 | 2,860,009 | | Restricted Stock Units | 7,491,398 | 7,347,640 | | ESPP | 29,488 | 28,748 | | 2030 Convertible Notes | 10,511,495 | — | | Total anti-dilutive common share equivalents | 19,015,415 | 10,236,397 | [Note 13. Commitments and Contingencies](index=21&type=section&id=Note%2013.%20Commitments%20and%20Contingencies) The company is involved in ordinary course legal proceedings but does not expect any pending claims to materially adversely affect its financial position or results of operations - The company may be party to legal actions, including intellectual property claims, but believes current liabilities from such proceedings are not material[75](index=75&type=chunk) [Note 14. Leases](index=21&type=section&id=Note%2014.%20Leases) The company amended its Plano, Texas office lease, reducing space and extending the term to August 31, 2033. Operating lease expense remained stable, with future lease liabilities detailed - The company reduced its leased office space in Plano, Texas, by approximately **one-third** and extended the lease term to August 31, 2033[76](index=76&type=chunk) Lease Expense | Lease Expense (in thousands) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Operating lease expense | $671 | $674 | $1,343 | $1,343 | | Short-term lease expense and other | $351 | $129 | $526 | $432 | | Total lease expense | $1,022 | $803 | $1,869 | $1,775 | Future Operating Lease Liabilities | Future Operating Lease Liabilities (in thousands) | June 30, 2025 | | :------------------------------------------------ | :------------ | | 2025 (six months remaining) | $1,457 | | 2026 | $2,843 | | 2027 | $2,636 | | 2028 | $2,777 | | 2029 | $3,067 | | Thereafter | $11,912 | | Total minimum lease payments | $24,692 | | Less: present value discount | $(6,595) | | Total lease liability balance | $18,097 | [Note 15. Goodwill and Other Intangibles](index=22&type=section&id=Note%2015.%20Goodwill%20and%20Other%20Intangibles) Goodwill significantly increased to **$403.8 million** as of June 30, 2025, primarily due to the MANTL acquisition. A **$1.7 million** impairment loss was recognized on certain intangible assets and capitalized software development costs - Goodwill increased to **$403.8 million** as of June 30, 2025, from **$148.1 million** at December 31, 2024, largely due to the MANTL acquisition, which added **$255.8 million**[79](index=79&type=chunk) Intangible Assets | Intangible Assets (in thousands) | As of June 30, 2025 (Net Carrying Value) | As of December 31, 2024 (Net Carrying Value) | | :------------------------------- | :--------------------------------------- | :------------------------------------------- | | Customer Relationships | $86,580 | $16,285 | | Developed Technology | $79,563 | $12,198 | | Tradenames | $6,014 | $513 | | Total amortizable intangible assets | $172,157 | $28,996 | | Website domain name (Indefinite-lived) | $25 | $25 | | Total intangible assets | $172,182 | $29,021 | - Amortization expense on intangible assets was **$9.0 million** for the six months ended June 30, 2025, a substantial increase from **$3.4 million** in the prior year, primarily due to MANTL acquisition[81](index=81&type=chunk)[143](index=143&type=chunk) - A **$1.7 million impairment loss** was recognized for the six months ended June 30, 2025, on developed technology, customer relationship intangible assets, and capitalized software development costs due to the MANTL acquisition[82](index=82&type=chunk)[144](index=144&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Provides a comprehensive discussion and analysis of Alkami's financial condition and results of operations, highlighting revenue growth, operating expenses, acquisitions, key metrics, and liquidity [Overview](index=25&type=section&id=Overview) Alkami provides cloud-based digital banking solutions, expanding its product suite and market reach through strategic acquisitions like MANTL. Revenues show strong growth, but net losses persist due to significant growth investments - Alkami's vision is to create an integrated ecosystem of premium technology and fintech solutions delivered as a SaaS solution[89](index=89&type=chunk) - The company has made several acquisitions to expand its offerings, including ACH Alert (fraud prevention), MK Decisioning Systems (onboarding/account opening), Segmint (data analytics), and MANTL (onboarding/account opening)[89](index=89&type=chunk) - Total revenues increased by **36.4% to $112.1 million** for the three months ended June 30, 2025, and by **32.6% to $209.9 million** for the six months ended June 30, 2025, compared to the same periods in 2024[95](index=95&type=chunk) - Net losses were **$13.6 million** and **$21.4 million** for the three and six months ended June 30, 2025, respectively, driven by continued investment in sales, marketing, product development, and client activities[97](index=97&type=chunk) [Recent Developments](index=27&type=section&id=Recent%20Developments) Recent developments include the **$375 million** MANTL acquisition, amendment of the credit agreement to increase and extend the revolving facility, and issuance of **$345 million** in 1.50% convertible senior notes due 2030 - Alkami completed the merger with MANTL on March 17, 2025, for approximately **$375 million**, net of cash acquired[98](index=98&type=chunk) - The Third Amendment to the Amended Credit Agreement extended the Revolving Facility maturity to February 27, 2030, and increased the commitment[99](index=99&type=chunk) - The company issued **$345 million** principal amount of **1.50% Convertible Senior Notes** due 2030 on March 13, 2025[100](index=100&type=chunk) [Factors Affecting our Operating Results](index=27&type=section&id=Factors%20Affecting%20our%20Operating%20Results) Key factors influencing Alkami's operating results include growing its FI client base, deepening customer penetration, expanding its product suite, client renewals, and maintaining innovation through R&D investments - As of June 30, 2025, Alkami served **280 FIs** through its Digital Banking Platform and over **900 clients** including acquisitions[101](index=101&type=chunk) - Revenue generation is primarily based on a per-registered-user pricing model, incentivizing clients to drive digital adoption[102](index=102&type=chunk) - Product depth, supported by over **300 integrations**, is crucial for winning new clients and expanding Revenue per Registered User (RPU)[103](index=103&type=chunk) - Client renewals are a key driver of revenue stability and long-term gross margin targets, with **6 and 10 renewals** for the three and six months ended June 30, 2025, respectively[103](index=103&type=chunk) - Research and development spend was **27.0%** and **27.2% of revenues** for the three and six months ended June 30, 2025, respectively, reflecting commitment to innovation[104](index=104&type=chunk) [Components of Results of Operations](index=29&type=section&id=Components%20of%20Results%20of%20Operations) Details the composition of Alkami's revenues, cost of revenues, and operating expenses, explaining recognition methods and their impact on gross margin and overall profitability - The majority of revenues are derived from multi-year SaaS subscription services, recognized ratably over the contract term, with an average contract life of approximately **70 months**[105](index=105&type=chunk) - Implementation and other upfront fees are recognized on a straight-line basis over the client's initial agreement term[106](index=106&type=chunk) - Cost of revenues includes personnel costs, third-party cloud hosting, direct costs of bill-pay services, and amortization of acquired technology[109](index=109&type=chunk) - Gross margin for the three and six months ended June 30, 2025, was **58.6%** and **58.8%**, respectively[111](index=111&type=chunk) - Operating expenses include Research and Development, Sales and Marketing, General and Administrative, Acquisition-related expenses, Amortization of acquired intangibles, and Loss on impairment of intangible assets[113](index=113&type=chunk)[114](index=114&type=chunk)[115](index=115&type=chunk)[116](index=116&type=chunk)[117](index=117&type=chunk) [Results of Operations](index=31&type=section&id=Results%20of%20Operations) Alkami saw substantial revenue growth for Q2 and H1 2025, driven by user growth and the MANTL acquisition. Increased operating expenses led to higher net losses for Q2, though H1 net loss improved Financial Performance | Metric (in thousands) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Change ($ thousands) | Change (%) | | :-------------------- | :------------------------------- | :------------------------------- | :------------------- | :--------- | | Revenues | $112,059 | $82,160 | $29,899 | 36.4% | | Cost of revenues | $46,441 | $33,389 | $13,052 | 39.1% | | Gross profit | $65,618 | $48,771 | $16,847 | 34.5% | | Operating expenses | $81,481 | $61,978 | $19,503 | 31.5% | | Loss from operations | $(15,863) | $(13,207) | $(2,656) | 20.1% | | Net loss | $(13,591) | $(12,317) | $(1,274) | 10.3% | | Metric (in thousands) | Six months ended June 30, 2025 | Six months ended June 30, 2024 | Change ($ thousands) | Change (%) | | :-------------------- | :----------------------------- | :----------------------------- | :------------------- | :--------- | | Revenues | $209,894 | $158,287 | $51,607 | 32.6% | | Cost of revenues | $86,516 | $65,484 | $21,032 | 32.1% | | Gross profit | $123,378 | $92,803 | $30,575 | 32.9% | | Operating expenses | $154,637 | $118,375 | $36,262 | 30.6% | | Loss from operations | $(31,259) | $(25,572) | $(5,687) | 22.2% | | Net loss | $(21,407) | $(23,750) | $2,343 | (9.9%) | - Revenue growth was driven by user growth on the digital banking platform, new client implementations, additional solutions sold to existing clients (increasing RPU), and higher termination fees. The MANTL acquisition contributed **$10.3 million** (3 months) and **$11.7 million** (6 months) to revenue[129](index=129&type=chunk)[130](index=130&type=chunk) - Cost of revenues increased due to higher costs from third-party partners, increased amortization of intangible assets (primarily MANTL-related), and higher personnel-related costs[132](index=132&type=chunk)[133](index=133&type=chunk) - Operating expenses increased across all categories (R&D, S&M, G&A) primarily due to headcount growth, stock-based compensation, and acquisition-related expenses[136](index=136&type=chunk)[137](index=137&type=chunk)[138](index=138&type=chunk)[139](index=139&type=chunk)[140](index=140&type=chunk)[141](index=141&type=chunk)[142](index=142&type=chunk)[143](index=143&type=chunk) - Non-operating expense increased due to higher net interest expense from the 2030 Convertible Notes and Revolving Facility[145](index=145&type=chunk) - The income tax benefit of **$11.6 million** for the six months ended June 30, 2025, was primarily due to the partial release of a valuation allowance related to the MANTL acquisition[146](index=146&type=chunk)[148](index=148&type=chunk) [Key Business Metrics](index=32&type=section&id=Key%20Business%20Metrics) Alkami tracks Adjusted EBITDA, ARR, Registered Users, and RPU to measure operational performance and growth, with all metrics showing positive year-over-year growth Annual Recurring Revenue, Registered Users, and RPU | Metric (in thousands, except RPU) | June 30, 2025 | June 30, 2024 | Change ($ thousands) | Change (%) | | :-------------------------------- | :------------ | :------------ | :------------------- | :--------- | | Annual Recurring Revenue (ARR) | $423,763 | $321,284 | $102,479 | 31.9% | | Registered Users | 20,891 | 18,584 | 2,307 | 12.4% | | Revenue per Registered User (RPU) | $20.28 | $17.29 | $2.99 | 17.3% | Adjusted EBITDA | Adjusted EBITDA (in thousands) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :----------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Adjusted EBITDA | $11,921 | $4,554 | $23,990 | $8,363 | - Adjusted EBITDA is a non-GAAP measure defined as net loss before income taxes, financial instrument loss, net interest expense/income, depreciation and amortization, stock-based compensation, acquisition-related expenses, and impairment loss[124](index=124&type=chunk) [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) Alkami's liquidity as of June 30, 2025, includes **$87.1 million** in cash and marketable securities. The MANTL acquisition was funded via convertible notes, revolving loan borrowings, and existing cash. Management deems current resources sufficient for operations - As of June 30, 2025, Alkami had **$87.1 million** in cash and cash equivalents and marketable securities, and an accumulated deficit of **$497.6 million**[149](index=149&type=chunk) - The MANTL acquisition was funded by issuing 2030 Convertible Notes, borrowings from the Revolving Facility, and cash from the balance sheet[150](index=150&type=chunk) - Net cash used in operating activities was **$4.5 million** for the six months ended June 30, 2025, a decrease from **$1.5 million** provided in the prior year[153](index=153&type=chunk)[154](index=154&type=chunk) - Net cash used in investing activities was **$392.4 million** for the six months ended June 30, 2025, primarily due to the **$375.5 million MANTL acquisition**[153](index=153&type=chunk)[157](index=157&type=chunk) - Net cash provided by financing activities was **$354.9 million** for the six months ended June 30, 2025, mainly from **$335.5 million** in convertible senior notes and **$60.0 million** in revolving loan borrowings[153](index=153&type=chunk)[159](index=159&type=chunk) - Total interest expense for the six months ended June 30, 2025, was **$4.0 million**, significantly higher than **$0.1 million** in the prior year, due to the new debt instruments[163](index=163&type=chunk) [Contractual Obligations and Commitments](index=39&type=section&id=Contractual%20Obligations%20and%20Commitments) No material changes to contractual obligations and commitments were reported as of June 30, 2025, compared to the Annual Report on Form 10-K for December 31, 2024 - No material changes to contractual obligations and commitments were reported as of June 30, 2025, compared to the previous annual report[166](index=166&type=chunk) [Off-Balance Sheet Arrangements](index=39&type=section&id=Off-Balance%20Sheet%20Arrangements) The company had no off-balance sheet financing arrangements or relationships with unconsolidated entities during the reported period - The company did not have any off-balance sheet financing arrangements or relationships with unconsolidated entities during the period[167](index=167&type=chunk) [Critical Accounting Policies and Significant Judgments and Estimates](index=39&type=section&id=Critical%20Accounting%20Policies%20and%20Significant%20Judgments%20and%20Estimates) No material changes to critical accounting policies and estimates were reported compared to the Annual Report on Form 10-K for December 31, 2024 - No material changes to critical accounting policies and estimates were reported as compared to the Annual Report on Form 10-K for the year ended December 31, 2024[169](index=169&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=39&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Alkami is primarily exposed to interest rate risk from its Amended Credit Agreement and cash equivalents. This risk is managed through diversified investment-grade securities, with a 10% rate change not expected to materially impact financials - Alkami's primary market risk exposure is from fluctuations in interest rates, particularly related to its Amended Credit Agreement[171](index=171&type=chunk)[172](index=172&type=chunk) - A hypothetical **10% change in interest rates** is not expected to have a material impact on the consolidated financial statements, assuming the Amended Credit Agreement is fully drawn[172](index=172&type=chunk) - The company intends to minimize interest rate risk by maintaining its cash equivalents in a variety of short-term, investment-grade securities[172](index=172&type=chunk) [Item 4. Controls and Procedures](index=39&type=section&id=Item%204.%20Controls%20and%20Procedures) Alkami's management concluded disclosure controls and procedures were effective at a reasonable assurance level as of June 30, 2025, with no material changes in internal control over financial reporting during the period - Disclosure controls and procedures were evaluated and deemed effective at the reasonable assurance level as of June 30, 2025[173](index=173&type=chunk) - No material changes in internal control over financial reporting occurred during the period covered by this report[174](index=174&type=chunk) PART II - OTHER INFORMATION [Item 1. Legal Proceedings](index=40&type=section&id=Item%201.%20Legal%20Proceedings) Alkami is not a party to any legal proceedings expected to have a material adverse effect on its business, operating results, cash flows, or financial condition - The company is not involved in any litigation that is believed to have a material adverse effect on its financial position, results of operations, cash flows, or financial condition[175](index=175&type=chunk) [Item 1A. Risk Factors](index=40&type=section&id=Item%201A.%20Risk%20Factors) Highlights additional risk factors, primarily increased indebtedness from 2030 Convertible Notes and Amended Credit Agreement, which could limit cash flow, affect financial condition, and potentially dilute stockholders upon conversion - Increased indebtedness from the 2030 Convertible Notes and Amended Credit Agreement could limit cash flow, increase vulnerability to adverse conditions, and reduce funds available for other purposes[177](index=177&type=chunk)[182](index=182&type=chunk) - The company may be unable to raise funds to repurchase the 2030 Convertible Notes following a fundamental change or pay cash amounts due upon maturity or conversion, potentially leading to default[178](index=178&type=chunk) - Provisions in the Indenture for the 2030 Convertible Notes could make a third-party acquisition more difficult or expensive[179](index=179&type=chunk) - The accounting method for the 2030 Convertible Notes, including amortization of debt discount and issuance costs, will result in higher reported interest expense and potentially reclassify the liability as current, affecting reported working capital[180](index=180&type=chunk)[181](index=181&type=chunk)[183](index=183&type=chunk) - Conversion of the 2030 Convertible Notes could dilute existing stockholders, and transactions by option counterparties related to Capped Calls may affect common stock value[184](index=184&type=chunk)[185](index=185&type=chunk)[186](index=186&type=chunk) - The company is subject to counterparty risk with respect to the Capped Calls, as its exposure is unsecured and dependent on the financial stability of the option counterparties[187](index=187&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=42&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities or use of proceeds to report during Q2 2025 - No unregistered sales of equity securities or use of proceeds were reported[188](index=188&type=chunk) [Item 3. Defaults Upon Senior Securities](index=42&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities to report during the period - No defaults upon senior securities were reported[189](index=189&type=chunk) [Item 4. Mine Safety Disclosures](index=42&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) There were no mine safety disclosures to report during the period - No mine safety disclosures were reported[190](index=190&type=chunk) [Item 5. Other Information](index=42&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during Q2 2025 - No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the three months ended June 30, 2025[191](index=191&type=chunk) [Item 6. Exhibits](index=43&type=section&id=Item%206.%20Exhibits) Lists exhibits filed as part of the Quarterly Report on Form 10-Q, including certifications, XBRL documents, and a consulting agreement - The exhibit index includes certifications from the Principal Executive Officer and Principal Financial Officer, Inline XBRL documents, and a consulting agreement[193](index=193&type=chunk)

Core Viewpoint - Alkami Technology reported quarterly earnings of $0.13 per share, exceeding the Zacks Consensus Estimate of $0.09 per share, and showing a significant increase from $0.04 per share a year ago, representing an earnings surprise of +44.44% [1][2] Financial Performance - The company achieved revenues of $112.06 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.23%, and up from $82.16 million in the same quarter last year [2] - Over the last four quarters, Alkami has consistently surpassed consensus EPS estimates and revenue estimates [2] Stock Performance - Alkami shares have declined approximately 27.4% since the beginning of the year, contrasting with the S&P 500's gain of 8.3% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating expectations of outperforming the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.12 on revenues of $117.26 million, and for the current fiscal year, it is $0.44 on revenues of $448.91 million [7] - The Internet - Software industry, to which Alkami belongs, is currently ranked in the top 30% of over 250 Zacks industries, suggesting a favorable outlook for the sector [8]

Financial Data and Key Metrics Changes - In Q2 2025, the company achieved total revenue of $112.1 million, representing a year-over-year growth of 36% and organic growth of 28% [16][17] - Adjusted EBITDA improved to $11.9 million compared to $4.6 million in the same quarter last year [17] - Annual Recurring Revenue (ARR) increased by 32%, exiting the quarter at $424 million [18] - The company ended the quarter with a registered user growth of approximately 2.3 million, or 12% year-over-year, totaling 20.9 million registered users [18] Business Line Data and Key Metrics Changes - Subscription revenue grew by 35% in Q2, accounting for 95% of total revenue [17] - The Mantle acquisition added 39 new clients in 2025, with 14 being Alchemy digital banking clients, indicating successful cross-selling opportunities [7][8] - The company signed nine new digital banking platform clients and renewed six existing clients during the quarter [21] Market Data and Key Metrics Changes - The company reported a remaining performance obligation of approximately $1.6 billion, representing 3.7 times the live ARR and up 30% compared to the previous year [22] - The company expects to net over 300,000 users from financial institution consolidations in 2025 [20] Company Strategy and Development Direction - The company aims to integrate account opening with online banking and data marketing to enhance user experience and drive cross-sell opportunities [11][13] - The Mantle acquisition is seen as a strategic platform to create new logo relationships, with a focus on onboarding and account opening as essential innovations for attracting core deposits [10][14] - The company plans to manage the Alchemy and Mantle sales teams under one leader to leverage integrated platform capabilities [14][59] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand environment for their products, driven by the necessity for digital transformation in financial institutions [5][14] - The company anticipates continued growth in ARR and user base, with a focus on maintaining low churn rates despite M&A activities within their client base [19][20] - Management remains optimistic about achieving long-term financial objectives and driving shareholder value [28] Other Important Information - The company ended the quarter with $87 million in cash and marketable securities, having reduced its revolver by $10 million [27] - The Mantle acquisition is expected to contribute positively to adjusted EBITDA in 2026, despite being dilutive in the short term [26] Q&A Session Summary Question: What kind of starting ARPU for new logos are you seeing compared to the blended average? - Mantle adds 30% to 40% of ARR to a new logo deal, with new logos averaging around $800,000 of ARR [32][33] Question: How did the new user growth break down between new customers and existing ones? - In Q2, 25% of the 400,000 new digital users were from new implementations, while 75% were from existing clients [36] Question: Can you provide an update on the bank channel and how Mantle can improve that opportunity? - Banks under contract represent 13% of total clients, with plans to implement 16 banks on the online banking platform [39][40] Question: Can you quantify the term fees that were pulled forward? - Term fees during the quarter represented about 70% of the revenue beat, with approximately $1 million pulled forward [42] Question: What customer types are most attracted to Mantle? - The buyer for Mantle is almost any financial institution, driven by the need to attract core deposits [48] Question: How does M&A activity impact the company? - The company has benefited from M&A activity, gaining close to 500,000 net digital users over the last four years [91] Question: What is the contribution of Mantle to the backlog this quarter? - Mantle contributed just over $10 million of revenue in the quarter, slightly ahead of expectations [93]

Financial Data and Key Metrics Changes - In Q2 2025, the company achieved total revenue of $112.1 million, representing a year-over-year growth of 36% and organic growth of 28% [14] - Adjusted EBITDA improved to $11.9 million compared to $4.6 million in the same quarter last year [14] - Annual Recurring Revenue (ARR) increased by 32%, exiting the quarter at $424 million [15] - The company ended the quarter with a registered user growth of approximately 2.3 million, or 12% year-over-year, totaling 20.9 million registered users [15] Business Line Data and Key Metrics Changes - Subscription revenue grew by 35% in Q2 2025, accounting for 95% of total revenue [14] - Mantle added 39 new clients in 2025, with 14 being Alchemy digital banking clients, indicating successful cross-selling opportunities [6][14] - The company signed nine new digital banking platform clients and renewed six existing clients during the quarter [18] Market Data and Key Metrics Changes - The company continues to see strong demand across its product portfolio, particularly in the digital banking and onboarding sectors [17] - The bank channel represents 13% of total clients under contract, with plans to implement 16 banks on the online banking platform [35] Company Strategy and Development Direction - The company aims to integrate account opening with online banking and data marketing to enhance user experience and drive growth [9][12] - The Mantle acquisition is expected to create significant cross-sell opportunities and enhance the company's market position [5][12] - The company plans to manage the Alchemy and Mantle sales teams under one leader to leverage integrated platform capabilities [12][56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand environment for their products and the ability to achieve long-term financial objectives [24] - The company anticipates a positive adjusted EBITDA contribution from Mantle in 2026, despite it being dilutive in the near term [22][23] - Management noted that the primary driver of client churn is related to M&A activity, which they expect to benefit from in the long term [16][17] Other Important Information - The company ended the quarter with $87 million in cash and marketable securities, having reduced its revolver by $10 million [23] - The company expects to achieve revenue growth of 31% to 33% for the full year 2025, with adjusted EBITDA guidance raised to $51.5 million to $54 million [24] Q&A Session Summary Question: What kind of starting ARPU for new logos are you seeing compared to the blended average? - Mantle adds 30% to 40% of ARR to a new logo deal, with new logos averaging around $800,000 of ARR [28] Question: How did the new user growth parse out between new customers versus existing? - In Q2 2025, approximately 25% of the 400,000 new digital users were from implementations, while 75% were net additions from existing clients [31] Question: Can you provide an update on the bank channel and how Mantle can improve that opportunity? - The company plans to implement 16 banks on the online banking platform and is pleased with progress in the bank market [35][36] Question: Can you quantify the term fees that were brought ahead? - Term fees during the quarter represented about 70% of the revenue beat, with $1 million shifted from 2025 into the quarter [38] Question: What customer type has been most attracted to Mantle? - The buyer for Mantle is almost any financial institution, driven by the need to attract core deposits [42][43] Question: How does M&A impact the company? - The company has benefited from M&A activity, gaining close to 500,000 net digital users over the last four years [86] Question: What is the contribution of Mantle to the backlog this quarter? - Mantle contributed just over $10 million of revenue in the quarter and is on track to achieve $31.5 million for the year [88][89]

Alkami Technology Second Quarter 2025 Alkami Technology, Inc. Proprietary Information. Cautionary Statement Regarding Forward-Looking Statements 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 ma ...

[Company Overview](index=1&type=section&id=Company%20Overview) Alkami Technology, Inc. is a leading cloud-based digital banking solutions provider for U.S. financial institutions [About Alkami](index=1&type=section&id=About%20Alkami) Alkami provides cloud-based digital banking solutions for U.S. financial institutions, covering retail, business, onboarding, payments, and data services - Alkami is a leading cloud-based digital banking solutions provider for financial institutions in the United States[6](index=6&type=chunk) - Solutions include retail and business banking, onboarding and account opening, payment security, and data and marketing[6](index=6&type=chunk) [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) This section presents Alkami's key financial and operational achievements for the second quarter of 2025, including revenue growth, user metrics, and profitability [CEO and CFO Commentary](index=1&type=section&id=Comments%20on%20the%20News) Alkami's CEO and CFO highlighted strong Q2 2025 financial performance, including **36% revenue growth**, **$12 million Adjusted EBITDA**, and significant user and ARR expansion - CEO Alex Shootman reported strong Q2 financial performance with **36% revenue growth** and **$12 million Adjusted EBITDA**[4](index=4&type=chunk) - Alkami exited Q2 with **20.9 million users** on the platform, up **2.3 million** compared to the year-ago quarter[4](index=4&type=chunk) - CFO Bryan Hill noted Annual Recurring Revenue (ARR) of **$424 million**, up **32%**, and Revenue per Registered User (RPU) of **$20.28**, up **17%** compared to the year-ago quarter[4](index=4&type=chunk) [Key Financial and Operational Metrics (Q2 2025)](index=1&type=section&id=Key%20Financial%20and%20Operational%20Metrics%20(Q2%202025)) Alkami's Q2 2025 saw significant growth in key operational metrics, with Annual Recurring Revenue (ARR) reaching **$423.8 million**, a **32% increase** year-over-year Q2 2025 Key Financial and Operational Metrics | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | YoY Change | | :----- | :--------------------- | :--------------------- | :--------- | | Annual Recurring Revenue (ARR) | $423,763 | $321,284 | +32% | | Registered Users | 20,891 | 18,584 | +12.4% | | Revenue per Registered User (RPU) | $20.28 | $17.29 | +17.3% | [GAAP Financial Performance (Q2 2025)](index=1&type=section&id=GAAP%20Financial%20Performance%20(Q2%202025)) For Q2 2025, Alkami reported GAAP total revenue of **$112.1 million**, a **36.4% increase** year-over-year, though GAAP net loss widened to **$(13.6) million** Q2 2025 GAAP Financial Performance Summary | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | YoY Change | | :----- | :-------------------- | :-------------------- | :--------- | | GAAP Total Revenue | $112.1 | $82.16 | +36.4% | | GAAP Gross Margin | 58.6% | 59.4% | -0.8 pp | | GAAP Net Loss | $(13.6) | $(12.3) | -10.6% (worsened) | [Non-GAAP Financial Performance (Q2 2025)](index=1&type=section&id=Non-GAAP%20Financial%20Performance%20(Q2%202025)) Alkami's Non-GAAP performance in Q2 2025 showed improvement, with Non-GAAP gross margin increasing to **65.1%** and Adjusted EBITDA significantly growing to **$11.9 million** Q2 2025 Non-GAAP Financial Performance Summary | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | YoY Change | | :----- | :-------------------- | :-------------------- | :--------- | | Non-GAAP Gross Margin | 65.1% | 63.2% | +1.9 pp | | Adjusted EBITDA | $11.9 | $4.6 | +158.7% | [2025 Financial Outlook](index=1&type=section&id=2025%20Financial%20Outlook) This section provides Alkami's financial guidance for the third quarter and full fiscal year 2025, including projected revenue and Adjusted EBITDA [Third Quarter 2025 Guidance](index=1&type=section&id=Third%20Quarter%202025%20Guidance) For Q3 2025, Alkami projects GAAP total revenue between **$112.5 million and $114.0 million**, and Adjusted EBITDA between **$13.0 million and $14.0 million** Third Quarter 2025 Financial Guidance | Metric | Q3 2025 Guidance (in millions) | | :----- | :----------------------------- | | GAAP Total Revenue | $112.5M - $114.0M | | Adjusted EBITDA | $13.0M - $14.0M | [Fiscal Year 2025 Guidance](index=1&type=section&id=Fiscal%20Year%202025%20Guidance) Alkami's full fiscal year 2025 guidance anticipates GAAP total revenue in the range of **$443.0 million to $447.0 million**, with Adjusted EBITDA projected between **$51.5 million and $54.0 million** Fiscal Year 2025 Financial Guidance | Metric | FY 2025 Guidance (in millions) | | :----- | :----------------------------- | | GAAP Total Revenue | $443.0M - $447.0M | | Adjusted EBITDA | $51.5M - $54.0M | [Explanation of Non-GAAP Financial Measures and Key Business Metrics](index=2&type=section&id=Explanation%20of%20Non-GAAP%20Financial%20Measures%20and%20Key%20Business%20Metrics) This section defines the non-GAAP financial measures and key business metrics used by Alkami to evaluate its operational performance and strategic progress [Non-GAAP Definitions](index=2&type=section&id=Non-GAAP%20Definitions) Alkami defines various non-GAAP financial measures, including Adjusted EBITDA, to provide a clearer view of operational performance by excluding non-cash and non-recurring items - Non-GAAP financial measures exclude certain non-cash or non-recurring items to help investors understand short-term and long-term financial, operational, and strategic trends[10](index=10&type=chunk) - Non-GAAP Cost of Revenues is defined as cost of revenues, excluding amortization and stock-based compensation expense[11](index=11&type=chunk) - Adjusted EBITDA is defined as net loss plus (benefit from) provision for income taxes, loss on financial instruments, interest expense (income), net, depreciation and amortization, stock-based compensation expense, acquisition-related expenses, and loss on impairment of intangible assets[17](index=17&type=chunk) [Key Business Metrics Definitions](index=4&type=section&id=Key%20Business%20Metrics%20Definitions) Alkami defines key operating metrics including Annual Recurring Revenue (ARR), Registered Users, and Revenue per Registered User (RPU) to evaluate business performance and future revenue potential - Annual Recurring Revenue (ARR) aggregates annualized recurring revenue related to SaaS subscription services and the next 12 months of expected implementation services revenues[18](index=18&type=chunk) - Registered Users are defined as individual or business account holders of an FI client on Alkami's digital banking platform with access as of the last day of the reporting period[19](index=19&type=chunk) - Revenue per Registered User (RPU) is calculated by dividing ARR for the reporting period by the number of registered users, providing insight into product adoption and expansion[20](index=20&type=chunk) [Condensed Consolidated Financial Statements](index=5&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents Alkami's condensed consolidated balance sheets, statements of operations, and cash flows for the reported periods [Condensed Consolidated Balance Sheets](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of June 30, 2025, Alkami's total assets significantly increased to **$840.4 million**, primarily driven by acquisitions, while total liabilities also rose sharply Condensed Consolidated Balance Sheets | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change | | :----- | :--------------------------- | :------------------------------- | :----- | | Total Assets | $840,389 | $437,277 | +92.2% | | Total Liabilities | $496,373 | $80,247 | +518.6% | | Total Stockholders' Equity | $344,016 | $357,030 | -3.6% | - Intangibles, net increased from **$29.0 million** to **$172.2 million**, and Goodwill increased from **$148.1 million** to **$403.8 million**, indicating significant acquisition activity[23](index=23&type=chunk) - New Convertible senior notes, net of **$335.2 million** and a Revolving loan of **$50.0 million** were major contributors to the increase in total liabilities[23](index=23&type=chunk) [Condensed Consolidated Statements of Operations](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) For Q2 2025, Alkami's revenue grew to **$112.1 million**, but net loss increased to **$(13.6) million** due to higher operating and interest expenses Condensed Consolidated Statements of Operations | Metric (Three months ended June 30) | 2025 (in thousands) | 2024 (in thousands) | YoY Change | | :---------------------------------- | :------------------ | :------------------ | :--------- | | Revenues | $112,059 | $82,160 | +36.4% | | Gross Profit | $65,618 | $48,771 | +34.5% | | Total Operating Expenses | $81,481 | $61,978 | +31.5% | | Loss from Operations | $(15,863) | $(13,207) | -20.1% (worsened) | | Net Loss | $(13,591) | $(12,317) | -10.3% (worsened) | | Basic and Diluted Net Loss per Share | $(0.13) | $(0.13) | 0% | - Interest expense increased significantly from **$(74) thousand** in Q2 2024 to **$(3,188) thousand** in Q2 2025[25](index=25&type=chunk) - For the six months ended June 30, 2025, net loss improved to **$(21,407) thousand** from **$(23,750) thousand** in the prior year period[25](index=25&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) For the six months ended June 30, 2025, Alkami experienced a net cash outflow from operating activities of **$(4.5) million**, with significant outflows from investing and inflows from financing activities Condensed Consolidated Statements of Cash Flows | Cash Flow Activity (Six months ended June 30) | 2025 (in thousands) | 2024 (in thousands) | Change | | :------------------------------------------ | :------------------ | :------------------ | :----- | | Net cash (used in) provided by operating activities | $(4,507) | $1,499 | $(6,006) (decrease) | | Net cash (used in) provided by investing activities | $(392,360) | $22,275 | $(414,635) (decrease) | | Net cash provided by (used in) financing activities | $354,934 | $(3,269) | $358,203 (increase) | | Net (decrease) increase in cash and cash equivalents | $(41,933) | $20,505 | $(62,438) (decrease) | - Acquisition of business, net of cash acquired, resulted in a **$(375,499) thousand** cash outflow in investing activities for the six months ended June 30, 2025[27](index=27&type=chunk) - Proceeds from issuance of convertible senior notes (**$335,513 thousand**) and borrowing under revolving loan (**$60,000 thousand**) were major financing inflows[27](index=27&type=chunk) [Reconciliation of GAAP to Non-GAAP Measures](index=8&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) This section provides detailed reconciliations of Alkami's GAAP financial results to its non-GAAP financial measures for various operational metrics [Non-GAAP Cost of Revenues Reconciliation](index=8&type=section&id=Non-GAAP%20Cost%20of%20Revenues) For Q2 2025, Non-GAAP cost of revenues was **$39.1 million**, a **29.3% increase** from Q2 2024, after adjustments Non-GAAP Cost of Revenues Reconciliation | Metric (Three months ended June 30) | 2025 (in thousands) | 2024 (in thousands) | YoY Change | | :---------------------------------- | :------------------ | :------------------ | :--------- | | GAAP cost of revenues | $46,441 | $33,389 | +39.1% | | Amortization adjustment | $(5,636) | $(1,793) | -214.3% | | Stock-based compensation expense adjustment | $(1,706) | $(1,347) | -26.7% | | Non-GAAP cost of revenues | $39,099 | $30,249 | +29.3% | [Non-GAAP Gross Margin Reconciliation](index=8&type=section&id=Non-GAAP%20Gross%20Margin) Alkami's Non-GAAP gross margin improved to **65.1%** in Q2 2025 from **63.2%** in Q2 2024, reflecting the exclusion of certain expenses Non-GAAP Gross Margin Reconciliation | Metric (Three months ended June 30) | 2025 | 2024 | Change (percentage points) | | :---------------------------------- | :--- | :--- | :----------------------- | | GAAP gross margin | 58.6% | 59.4% | -0.8 | | Amortization impact | 5.0% | 2.2% | +2.8 | | Stock-based compensation expense impact | 1.5% | 1.6% | -0.1 | | Non-GAAP gross margin | 65.1% | 63.2% | +1.9 | [Non-GAAP Research and Development Expense Reconciliation](index=8&type=section&id=Non-GAAP%20Research%20and%20Development%20Expense) Non-GAAP research and development expense for Q2 2025 was **$24.8 million**, an increase of **26.2%** from Q2 2024, after excluding stock-based compensation expense Non-GAAP Research and Development Expense Reconciliation | Metric (Three months ended June 30) | 2025 (in thousands) | 2024 (in thousands) | YoY Change | | :---------------------------------- | :------------------ | :------------------ | :--------- | | GAAP research and development expense | $30,231 | $23,909 | +26.4% | | Stock-based compensation expense adjustment | $(5,424) | $(4,256) | -27.4% | | Non-GAAP research and development expense | $24,807 | $19,653 | +26.2% | [Non-GAAP Sales and Marketing Expense Reconciliation](index=9&type=section&id=Non-GAAP%20Sales%20and%20Marketing%20Expense) Non-GAAP sales and marketing expense for Q2 2025 increased to **$19.4 million**, representing a **32.5%** year-over-year increase after adjustments Non-GAAP Sales and Marketing Expense Reconciliation | Metric (Three months ended June 30) | 2025 (in thousands) | 2024 (in thousands) | YoY Change | | :---------------------------------- | :------------------ | :------------------ | :--------- | | GAAP sales and marketing expense | $22,991 | $16,964 | +35.5% | | Stock-based compensation expense adjustment | $(3,550) | $(2,291) | -54.9% | | Non-GAAP sales and marketing expense | $19,441 | $14,673 | +32.5% | [Non-GAAP General and Administrative Expense Reconciliation](index=9&type=section&id=Non-GAAP%20General%20and%20Administrative%20Expense) Non-GAAP general and administrative expense for Q2 2025 was **$17.2 million**, a **27.5% increase** from Q2 2024, after excluding stock-based compensation Non-GAAP General and Administrative Expense Reconciliation | Metric (Three months ended June 30) | 2025 (in thousands) | 2024 (in thousands) | YoY Change | | :---------------------------------- | :------------------ | :------------------ | :--------- | | GAAP general and administrative expense | $26,039 | $20,612 | +26.3% | | Stock-based compensation expense adjustment | $(8,835) | $(7,119) | -24.1% | | Non-GAAP general and administrative expense | $17,204 | $13,493 | +27.5% | [Non-GAAP Income Before Income Taxes Reconciliation](index=9&type=section&id=Non-GAAP%20Income%20Before%20Income%20Taxes) Alkami reported Non-GAAP income before income taxes of **$9.5 million** in Q2 2025, a substantial increase from **$5.3 million** in Q2 2024, after various adjustments Non-GAAP Income Before Income Taxes Reconciliation | Metric (Three months ended June 30) | 2025 (in thousands) | 2024 (in thousands) | YoY Change | | :---------------------------------- | :------------------ | :------------------ | :--------- | | GAAP loss before income taxes | $(17,887) | $(12,132) | -47.4% (worsened) | | Total Adjustments | $27,400 | $17,411 | +57.4% | | Non-GAAP income before income taxes | $9,511 | $5,279 | +80.2% | [Adjusted EBITDA Reconciliation](index=10&type=section&id=Adjusted%20EBITDA) Adjusted EBITDA for Q2 2025 significantly increased to **$11.9 million** from **$4.6 million** in Q2 2024, reflecting strong operational performance after adjustments Adjusted EBITDA Reconciliation | Metric (Three months ended June 30) | 2025 (in thousands) | 2024 (in thousands) | YoY Change | | :---------------------------------- | :------------------ | :------------------ | :--------- | | GAAP net loss | $(13,591) | $(12,317) | -10.3% (worsened) | | Total Adjustments | $25,512 | $16,871 | +51.2% | | Adjusted EBITDA | $11,921 | $4,554 | +161.8% | [Cautionary Statement Regarding Forward-Looking Statements](index=2&type=section&id=Cautionary%20Statement%20Regarding%20Forward-Looking%20Statements) This section warns that forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially, and the company does not undertake to update them - Forward-looking statements are based on management's beliefs and assumptions and involve known and unknown risks and uncertainties that may cause actual results to differ materially[9](index=9&type=chunk) - Factors affecting forward-looking statements include limited operating history, ability to manage future growth, client acquisition and retention, unpredictable sales cycles, intense competition, and regulatory compliance[9](index=9&type=chunk) - The company undertakes no obligation to update or revise any forward-looking statements, except as required by applicable law[9](index=9&type=chunk) [Contact Information](index=10&type=section&id=Contact%20Information) This section provides contact details for investor relations and media inquiries, including names and email addresses for relevant personnel - Investor Relations Contact: Steve Calk, ir@alkami.com[44](index=44&type=chunk) - Media Relations Contacts: Marla Pieton, marla.pieton@alkami.com; Valerie Kerner, alkami@fullyvested.com[44](index=44&type=chunk)

Core Insights - Alkami Technology, Inc. reported strong financial performance for Q2 2025, with revenue growth of 36% and Adjusted EBITDA of $12 million [2][6] - The company exited Q2 with 20.9 million users on its platform, an increase of 2.3 million year-over-year [2] - Alkami continues to see robust demand for digital transformation among regional and community financial institutions, highlighting the need for modern digital banking solutions [2] Financial Performance - GAAP total revenue for Q2 2025 was $112.1 million, a 36.4% increase compared to Q2 2024 [6][22] - GAAP gross margin was 58.6%, slightly down from 59.4% in the year-ago quarter, while Non-GAAP gross margin improved to 65.1% from 63.2% [6][29] - The company reported a GAAP net loss of $(13.6) million, compared to $(12.3) million in the same quarter last year [6][22] Key Metrics - Annual recurring revenue (ARR) reached $424 million, up 32% year-over-year [2][24] - Revenue per registered user (RPU) increased to $20.28, a 17% rise compared to the previous year [2][24] - The company added 23 new clients through its recent acquisition of MANTL, indicating strong growth in client acquisition [2] Future Outlook - Alkami provided guidance for Q3 2025, projecting GAAP total revenue in the range of $112.5 million to $114.0 million and Adjusted EBITDA between $13.0 million and $14.0 million [7] - For the fiscal year ending December 31, 2025, the company expects GAAP total revenue between $443 million and $447 million, with Adjusted EBITDA projected at $51.5 million to $54.0 million [7] Company Overview - Alkami Technology, Inc. is a leading provider of cloud-based digital banking solutions for financial institutions in the U.S., focusing on enabling clients to grow and adapt in a digital-first environment [4]

Core Insights - Alkami Technology, Inc. has announced a new integration between its Full Funnel Marketing solution and HubSpot, aimed at enhancing personalized, data-driven marketing strategies for financial institutions [1][5] - The integration allows financial institutions to automate audience list updates and execute tailored email campaigns, improving marketing efficiency and effectiveness [2][4] Group 1: Integration Benefits - The integration enables financial institutions to save time and enhance campaign outcomes by linking behavioral insights with automated outreach [1] - Financial institutions can maintain up-to-date audience lists in HubSpot with automatic daily refreshes, ensuring communications are relevant and accurate [2] - Campaigns executed through HubSpot benefit from full-cycle attribution reporting via Alkami, providing visibility into revenue impact [2] Group 2: User Experience and Satisfaction - Research indicates that 42% of digital banking users who are satisfied with how their data is used for product recommendations are more likely to remain loyal and recommend the provider [3] - The integration allows marketers to focus on high-impact engagement rather than time-consuming data management, enhancing the overall marketing strategy [4] Group 3: Company Commitment - Alkami's integration exemplifies its commitment to helping financial institutions deliver timely and relevant messages to account holders [5] - The integration is designed to facilitate agile and results-driven marketing, leveraging Alkami's Customer Insights with HubSpot's automation capabilities [5]