Financial Performance - Alkami Technology reported quarterly earnings of $0.13 per share, missing the Zacks Consensus Estimate of $0.15 per share, but showing an increase from $0.09 per share a year ago, resulting in an earnings surprise of -13.33% [1] - The company posted revenues of $112.95 million for the quarter ended September 2025, which was below the Zacks Consensus Estimate by 0.87%, compared to $85.91 million in the same quarter last year [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.17 on revenues of $120.39 million, and for the current fiscal year, it is $0.58 on revenues of $444.24 million [7] - The estimate revisions trend for Alkami was favorable ahead of the earnings release, resulting in a Zacks Rank 1 (Strong Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Internet - Software industry, to which Alkami belongs, is currently in the top 30% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - Alkami achieved total revenue of $113 million in Q3 2025, representing year-over-year growth of 31.5% and organic growth exceeding 20% [13] - Adjusted EBITDA increased to $16 million, compared to $8.3 million in the year-ago quarter, highlighting the operating leverage of the financial model [13][19] - Subscription revenue grew 31.5% in Q3 2025, accounting for 96% of total revenue [13] - Annual Recurring Revenue (ARR) increased over 31% to $449 million, with approximately $67 million of ARR and backlog for implementation [13][14] Business Line Data and Key Metrics Changes - The digital banking platform added 10 new clients, including a significant new logo transaction, and now serves five of the top 20 credit unions in the U.S. [6][15] - The Mantle business added 29 new clients, with 15 being new to Alkami, indicating strong cross-sale efforts [6][15] - Year-to-date, the company signed 23 new logos with the digital banking platform and 39 new relationships with the onboarding platform [7][8] Market Data and Key Metrics Changes - Alkami serves 413 financial institutions, with 124 being banks and 289 credit unions [10] - The company has identified over 900 credit unions and nearly 1,000 banks in the top 2,500 financial institutions that are not on a modern platform [6][54] - The market reaction to the combination of Alkami and Mantle has been positive, with 80% of bank and credit union leaders indicating a favorable impact [8] Company Strategy and Development Direction - Alkami is focused on integrating its digital banking, onboarding, and data marketing technologies to enhance customer experience and drive growth [10][75] - The company aims to leverage its strong sales pipeline and cross-selling opportunities to expand its market presence [15][70] - The Mantle acquisition is seen as a game changer, providing a competitive edge by combining multiple platforms [35][75] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth opportunities ahead, citing a resilient market and the potential for significant client acquisition [6][19] - The company anticipates a step-up in organic revenue growth in Q4 2025, driven by a higher number of user implementations [25][50] - Management noted that the demand for modern digital banking solutions remains consistent despite market disruptions [34] Other Important Information - Alkami appointed Cassandra Hudson as the new Chief Financial Officer, succeeding Bryan Hill, who will remain in a consulting role [4][5] - The company reported a non-GAAP gross margin of 63.7% for Q3 2025, reflecting nearly 100 basis points of expansion year-over-year [16] Q&A Session Summary Question: Can you elaborate on the organic growth for Q4 and the impact of Mantle? - Management highlighted that the timing of implementations affects quarterly growth, with Q4 expected to see a significant increase in user implementations compared to Q3 [24][25] Question: How is the competitive environment evolving? - Management noted a shift in the community bank market towards adopting best-of-breed solutions rather than relying solely on core providers [32][33] Question: What is the interest in AI and its applications in digital banking? - There is significant interest among financial institutions in using generative AI and agentic technology, with many exploring use cases [38][39] Question: Can you discuss the record number of implementations this quarter? - The services team has improved their implementation methodology, allowing for faster and more efficient client onboarding [60][61] Question: What factors contributed to the increase in backlog this quarter? - The backlog increased due to a rise in digital users and strong sales from the Mantle acquisition, with a significant number of clients under contract [63][64]

Alkami Technology Third 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 man ...

Financial Performance - GAAP total revenue for Q3 2025 was $113.0 million, an increase of 31.5% compared to the same quarter last year[7] - Annual recurring revenue (ARR) reached $449 million, up 31% year-over-year, with revenue per registered user at $20.83, a 19% increase[4] - Adjusted EBITDA for Q3 2025 was $16.0 million, compared to $8.3 million in the year-ago quarter, exceeding the target by 18%[4] - Revenues for the three months ended September 30, 2025, increased to $112.954 million, up 31.5% from $85.906 million in the same period of 2024[25] - Gross profit for the nine months ended September 30, 2025, was $187.520 million, representing a 30.8% increase compared to $143.420 million in 2024[25] - Annual Recurring Revenue (ARR) reached $449.034 million, a 31.3% increase from $342.101 million in 2024[29] - Adjusted EBITDA for Q3 2025 was $15.964 million, up from $8.318 million in Q3 2024, indicating a 92.5% increase year-over-year[43] Guidance and Projections - The company provided guidance for Q4 2025, expecting GAAP total revenue in the range of $119.6 million to $121.1 million[8] - For the fiscal year 2025, Alkami anticipates GAAP total revenue between $442.5 million and $444.0 million[8] Assets and Equity - The total assets as of September 30, 2025, were $835.175 million, significantly up from $437.277 million at the end of 2024[23] - Total stockholders' equity decreased to $350.116 million as of September 30, 2025, from $357.030 million at the end of 2024[23] Losses and Expenses - The company reported a GAAP net loss of $(14.8) million for Q3 2025, compared to $(9.4) million in the same quarter last year[7] - The company reported a net loss of $14.804 million for the three months ended September 30, 2025, compared to a net loss of $9.442 million in 2024[25] - For the nine months ended September 30, 2025, GAAP net loss totaled $36.211 million, compared to a loss of $33.192 million for the same period in 2024[43] - Stock-based compensation expense increased to $20.729 million in Q3 2025 from $15.257 million in Q3 2024, reflecting a 36.3% rise[43] - Interest expense for Q3 2025 was $1.952 million, compared to an income of $0.967 million in Q3 2024, marking a significant shift in financial costs[43] - Depreciation and amortization expenses rose to $7.869 million in Q3 2025 from $2.679 million in Q3 2024, a substantial increase of 194.5%[43] - Total operating expenses for the nine months ended September 30, 2025, were $231.660 million, up from $179.420 million in 2024[25] User Growth and Market Expansion - The company launched 13 new financial institutions in Q3 2025, including six banks, marking a record for Alkami[4] - Registered users grew to 21,552, up 10.6% from 19,499 in the previous year[29] Cash Flow and Liquidity - Net cash provided by operating activities for the nine months ended September 30, 2025, was $26.300 million, an increase from $12.486 million in 2024[27] - Cash and cash equivalents at the end of the period were $57.316 million, down from $80.956 million in 2024[27] Other Financial Metrics - GAAP gross margin was 56.8%, down from 58.9% in the year-ago quarter, while non-GAAP gross margin improved to 63.7% from 62.8%[7] - Non-GAAP gross margin for the three months ended September 30, 2025, was 63.7%, compared to 62.8% in 2024[33] - The provision for income taxes showed a benefit of $0.029 million in Q3 2025, compared to a benefit of $0.019 million in Q3 2024[43] - Acquisition-related expenses for Q3 2025 were $0.247 million, while for the nine months, they totaled $3.138 million, up from $0.195 million in the same period last year[43] - The company incurred acquisition-related expenses of $3.138 million for the nine months ended September 30, 2025[25] - The company reported a loss on impairment of intangible assets of $1.655 million for the nine months ended September 30, 2025[43] - Secondary offering costs were recorded at $0.810 million in Q3 2024, with no such costs reported in Q3 2025[43]

Core Insights - The report by Alkami Technology highlights the significant wealth transfer of an estimated $124 trillion over the next 25 years, emphasizing the crucial role women will play in managing family finances and the need for financial institutions to adapt their strategies to retain these banking relationships [1][3]. Digital Banking Preferences - Research indicates that 93% of women prioritize user experience and functionality, while 87% value online customer service [5]. - Women consider their primary financial institution significant due to factors such as online or mobile banking usage (50%), frequent debit card use (49%), direct deposit (44%), and where they keep most of their money (44%) [5]. Anticipatory Banking - Financial institutions are encouraged to provide personalized and anticipatory experiences to women, moving beyond a one-size-fits-all approach to foster trust and long-term loyalty [2][3]. - The findings support Alkami's Women in Banking initiative, which aims to elevate discussions around women's influence in financial services and the importance of meeting their expectations for digital engagement and support [3]. Research Methodology - The study was conducted by The Center for Generational Kinetics, involving 1,500 U.S. participants aged 22-65, and took place online from February 24, 2025, to March 14, 2025 [6].

Core Insights - Alkami Technology, Inc. is hosting a webinar focused on layered security strategies for financial institutions to combat evolving fraud threats [1][2] - The discussion will feature leaders from Alkami and ORNL Federal Credit Union, emphasizing the importance of a multi-layered defense approach in modern digital banking [2] - The webinar is scheduled for October 29, 2025, at 12:00 p.m. EDT, aiming to provide practical strategies for enhancing security across various channels [2][3] Company Overview - Alkami provides a digital sales and service platform tailored for U.S. banks and credit unions, integrating onboarding, digital banking, and data marketing solutions [3] - The company has received recognition from J.D. Power for its outstanding mobile banking platform experience in 2024 and 2025 [3][4] - Alkami's platform aims to support financial institutions in adapting to the future of banking through technology that enhances user experience while maintaining security and compliance [3] Industry Context - The financial sector is facing increasingly sophisticated fraud tactics, necessitating a proactive and layered security approach to protect against threats such as synthetic identities and phishing [2][5] - The need for financial institutions to identify threats at every stage of customer interaction, from onboarding to transaction monitoring, is highlighted as essential for effective fraud prevention [2]

Core Insights - Alkami Technology, Inc. is hosting a webinar titled "Hocus Focus: Sharpen Your Marketing with Data That Works," aimed at helping financial marketers leverage data for actionable insights and measurable results [1][2]. Company Overview - Alkami Technology provides a digital sales and service platform for U.S. banks and credit unions, integrating onboarding, digital banking, and data and marketing solutions [3][4]. - The company has been recognized by J.D. Power for providing an "Outstanding Mobile Banking Platform Experience" in 2024 and 2025 [3][4]. Webinar Details - The webinar will feature panelists from Thomaston Savings Bank and Colony Bank, discussing how financial institutions can utilize data to enhance personalization and marketing strategies [2][3]. - Key speakers include Ethan O'Day, Jeff Wright, and Kent Blacksher, who emphasize the importance of data in transforming marketing efforts and improving customer engagement [5]. Marketing Strategy - The discussion will focus on practical methods for financial institutions to optimize resources and create campaigns that resonate with account holders [2]. - Alkami's Data & Marketing Solution is designed to help institutions implement anticipatory banking through personalized, data-driven engagement [2][3].

Group 1 - Alkami Technology, Inc. (NASDAQ:ALKT) has partnered with Hanscom Federal Credit Union (HFCU) to support the launch of a new mobile banking app [1][3] - The mobile app will feature a gamified approach, offering personalized tools for financial wellness, including goal-setting tools and interactive rewards [2] - HFCU will also adopt Alkami's Online Banking Platform, enhancing the digital banking experience across various channels [3][4] Group 2 - Alkami Technology is a financial technology company that provides a digital sales and service platform for banks and credit unions in the US, integrating onboarding, digital banking, and data marketing [4]

Core Insights - Alkami Technology, Inc. has launched its full Digital Sales & Service Platform at Mascoma Bank, enhancing the bank's digital banking capabilities and customer engagement strategies [1][2][3] Company Overview - Mascoma Bank is a $2.9 billion mutual bank with 25 branches and 2 loan offices in Northern New England, founded in 1899 to support local economic health [6] - Alkami provides a unified digital sales and service platform for U.S. banks and credit unions, integrating onboarding, digital banking, and data marketing solutions [5] Digital Banking Strategy - Mascoma views digital banking as a critical sales channel and a foundation for customer engagement, aiming to build stronger relationships through a user-friendly digital experience [2][3] - The full Alkami Platform allows Mascoma to unify onboarding, digital banking, and marketing into a seamless, data-driven experience, enabling anticipatory banking [3][4] Customer Experience Enhancement - The Alkami Digital Sales & Service Platform is designed to enhance customer service and community support, aligning with Mascoma's commitment to customer-centric values [4][6] - Alkami has received recognition from J.D. Power for providing an outstanding mobile banking platform experience in 2024 and 2025 [5]

Core Insights - Alkami Technology, Inc. plans to report its financial results for the third quarter ended September 30, 2025, on October 30, 2025, after market close [1] - A conference call will be held at 5:00 p.m. ET on the same day to discuss the financial results with investors, with a live webcast available [2] Company Overview - Alkami provides a digital sales and service platform for U.S. banks and credit unions, integrating onboarding, digital banking, and data and marketing solutions [3] - The platform is designed to help financial institutions onboard, engage, and grow customer relationships, aligning with the trend towards Anticipatory Banking [3]