[PART I - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The unaudited condensed consolidated financial statements for Q1 2025 show significant asset and liability growth from the MANTL acquisition, with improved net loss [Unaudited Condensed Consolidated Balance Sheets](index=3&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) Total assets nearly doubled to $837.2 million by March 31, 2025, driven by the MANTL acquisition, while liabilities surged due to new debt Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | **$837,161** | **$437,277** | **+91.4%** | | Cash and cash equivalents | $61,660 | $94,359 | -34.6% | | Goodwill | $400,158 | $148,050 | +170.3% | | Intangibles, net | $178,801 | $29,021 | +516.1% | | **Total Liabilities** | **$503,117** | **$80,247** | **+527.0%** | | Convertible senior notes, net | $334,720 | $— | N/A | | Revolving loan | $60,000 | $— | N/A | | **Total Stockholders' Equity** | **$334,044** | **$357,030** | **-6.4%** | [Unaudited Condensed Consolidated Statements of Operations](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) Revenues grew 28.5% to $97.8 million in Q1 2025, with net loss improving to $7.8 million due to a tax benefit, despite higher operating expenses Condensed Consolidated Statements of Operations (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Revenues | $97,835 | $76,127 | +28.5% | | Gross Profit | $57,760 | $44,032 | +31.2% | | Loss from Operations | $(15,396) | $(12,365) | +24.5% | | Net Loss | $(7,816) | $(11,433) | -31.6% | | Net Loss Per Share (Basic & Diluted) | $(0.08) | $(0.12) | -33.3% | - Operating expenses in Q1 2025 included a **$1.7 million** loss on impairment of intangible assets and **$2.4 million** in acquisition-related expenses, which were not present or were minimal in Q1 2024[10](index=10&type=chunk) [Unaudited Condensed Consolidated Statements of Changes in Stockholders' Equity](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) Stockholders' equity decreased to $334.0 million in Q1 2025, primarily due to a capped call transaction and net loss, partially offset by stock-based compensation - A capped call transaction reduced additional paid-in capital by **$33.9 million** in Q1 2025[14](index=14&type=chunk) - Stock-based compensation added **$16.4 million** to additional paid-in capital in Q1 2025, compared to **$13.9 million** in Q1 2024[14](index=14&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash flows in Q1 2025 were dominated by the MANTL acquisition, funded by new debt, resulting in a net decrease of $32.7 million in cash and equivalents Summary of Cash Flows (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(5,664) | $951 | | Net cash (used in) provided by investing activities | $(389,413) | $6,808 | | Net cash provided by (used in) financing activities | $362,378 | $(4,507) | | **Net (decrease) increase in cash** | **$(32,699)** | **$3,252** | - The acquisition of MANTL for **$375.5 million** (net of cash acquired) was the primary use of cash in investing activities[16](index=16&type=chunk) - Financing activities were driven by proceeds from issuing **$335.5 million** in convertible senior notes and borrowing **$60.0 million** under a revolving loan[16](index=16&type=chunk) [Notes to the Unaudited Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the MANTL acquisition, new debt instruments including $345 million in convertible notes, and a $8.4 million tax benefit from the acquisition - On March 17, 2025, the Company acquired MANTL for approximately **$375 million**, net of cash acquired, to augment and diversify its offerings[29](index=29&type=chunk)[30](index=30&type=chunk)[32](index=32&type=chunk) - The Company issued **$345 million** in 1.50% convertible senior notes due 2030 and entered into a related **$33.9 million** capped call transaction to reduce potential dilution[54](index=54&type=chunk)[61](index=61&type=chunk) - The credit facility was amended, increasing the revolving loan commitment to **$225 million**, with **$60 million** borrowed in March 2025 to help fund the MANTL acquisition[48](index=48&type=chunk)[49](index=49&type=chunk) - A provisional deferred tax benefit of **$8.4 million** was recorded due to the partial release of a pre-existing valuation allowance, triggered by the net deferred tax liability from the MANTL acquisition[67](index=67&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 revenue growth driven by user expansion and RPU, the strategic MANTL acquisition, increased operating expenses, and altered liquidity [Overview](index=23&type=section&id=MD%26A%20Overview) Alkami's cloud-based digital banking platform drives subscription revenue, with Q1 2025 revenues reaching $97.8 million and a net loss of $7.8 million - Alkami's business model centers on a proprietary, cloud-based, multi-tenant digital banking platform for financial institutions[91](index=91&type=chunk) - Growth is driven by both organic expansion and strategic acquisitions, with MANTL in March 2025 enhancing account opening solutions[92](index=92&type=chunk) Q1 2025 Financial Highlights | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Revenues | $97.8 million | $76.1 million | | Net Loss | $7.8 million | $11.4 million | [Recent Developments](index=25&type=section&id=Recent%20Developments) Q1 2025 saw three major strategic transactions: the MANTL acquisition for $375 million, issuance of $345 million in convertible notes, and an increased $225 million credit facility - **MANTL Merger:** Acquired MANTL, a provider of onboarding and account opening solutions, for ~**$375 million** net of cash acquired[101](index=101&type=chunk) - **Credit Agreement Amendment:** Increased revolving loan commitment to **$225 million** and extended the maturity date to February 2030[102](index=102&type=chunk) - **Convertible Notes Issuance:** Issued **$345 million** principal amount of 1.50% Convertible Senior Notes due 2030[103](index=103&type=chunk) [Results of Operations](index=29&type=section&id=Results%20of%20Operations) Q1 2025 revenues grew 28.5% to $97.8 million, driven by user growth and RPU, with gross margin improving to 59.0% despite increased operating expenses Revenue and Key Metrics Comparison | Metric | Q1 2025 | Q1 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Revenues | $97,835K | $76,127K | +$21,708K | +28.5% | | Annual Recurring Revenue (ARR) | $403,885K | $302,659K | +$101,226K | +33.4% | | Registered Users | 20,461K | 18,113K | +2,348K | +13.0% | | Revenue per Registered User (RPU) | $19.74 | $16.71 | +$3.03 | +18.1% | - Cost of revenues increased by **$8.0 million** (24.9%), slower than revenue growth, leading to a gross margin improvement to **59.0%**[133](index=133&type=chunk) - Total operating expenses increased by **$16.8 million** (29.7%), driven by higher personnel costs, MANTL acquisition expenses (**$2.4M**), and an impairment loss (**$1.7M**)[135](index=135&type=chunk) [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) The company held $95.3 million in cash and equivalents as of March 31, 2025, with the MANTL acquisition funded by new debt, and expects sufficient liquidity for the next 12 months - The company had **$95.3 million** in cash and marketable securities as of March 31, 2025[146](index=146&type=chunk) - The MANTL acquisition was funded via the issuance of 2030 Convertible Notes, borrowings on the Revolving Facility, and balance sheet cash[147](index=147&type=chunk) Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash from operating activities | $(5,664) | $951 | | Net cash from investing activities | $(389,413) | $6,808 | | Net cash from financing activities | $362,378 | $(4,507) | [Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate fluctuations on its credit agreement, with minimal impact expected due to short-term investments - The primary market risk is interest rate risk associated with the Amended Credit Agreement[167](index=167&type=chunk)[168](index=168&type=chunk) - Due to the short-term nature of cash equivalents and marketable securities, the company does not believe an increase in market rates would have a significant negative impact on the value of its investments[169](index=169&type=chunk) [Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting - Management concluded that as of March 31, 2025, the company's disclosure controls and procedures were effective at the reasonable assurance level[170](index=170&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[171](index=171&type=chunk) [PART II - OTHER INFORMATION](index=39&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any legal proceedings expected to materially adversely affect its business or financial condition - The company states it is not currently party to any litigation expected to have a material adverse effect on its business[172](index=172&type=chunk) [Risk Factors](index=39&type=section&id=Item%201A.%20Risk%20Factors) New risk factors primarily relate to increased indebtedness from the 2030 Convertible Notes, including cash flow limitations, repurchase challenges, and potential stock dilution - Increased indebtedness from the 2030 Convertible Notes could limit cash flow, increase vulnerability to adverse economic conditions, and limit flexibility[174](index=174&type=chunk)[179](index=179&type=chunk) - The company may be unable to raise sufficient funds to repurchase the 2030 Convertible Notes if required after a "fundamental change" or to pay cash due upon maturity or conversion[175](index=175&type=chunk) - The conversion of the 2030 Convertible Notes could dilute the ownership interests of existing stockholders[181](index=181&type=chunk) - The company is subject to counterparty risk with the financial institutions involved in the capped call transactions, which are intended to reduce dilution[184](index=184&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=41&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities occurred during the reporting period - None [Defaults Upon Senior Securities](index=41&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported during the period - None [Mine Safety Disclosures](index=41&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This disclosure item is not applicable to the company's operations - None [Other Information](index=41&type=section&id=Item%205.%20Other%20Information) No Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were adopted or terminated by directors or officers in Q1 2025 - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement in Q1 2025[188](index=188&type=chunk) [Exhibits](index=42&type=section&id=Item%206.%20Exhibits) This section indexes exhibits filed with the Form 10-Q, including the MANTL merger agreement, convertible notes indenture, and amended credit agreement - Lists key legal and financial documents filed as exhibits, such as the MANTL merger agreement and the indenture for the 2030 Convertible Notes[190](index=190&type=chunk) [Signatures](index=43&type=section&id=Signatures) The report was duly signed by the Chief Executive Officer and Chief Financial Officer on May 1, 2025 - The report was signed by the Principal Executive Officer and Principal Financial Officer on May 1, 2025[195](index=195&type=chunk)

Group 1: Earnings Performance - Alkami Technology reported quarterly earnings of $0.13 per share, exceeding the Zacks Consensus Estimate of $0.09 per share, and up from $0.04 per share a year ago, representing an earnings surprise of 44.44% [1] - The company posted revenues of $97.84 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 3.83%, compared to year-ago revenues of $76.13 million [2] - Alkami has surpassed consensus EPS estimates for four consecutive quarters [2] Group 2: Stock Performance and Outlook - Alkami shares have declined approximately 28% since the beginning of the year, while the S&P 500 has decreased by 5.5% [3] - The current consensus EPS estimate for the upcoming quarter is $0.09 on revenues of $108.12 million, and for the current fiscal year, it is $0.41 on revenues of $442.89 million [7] - The estimate revisions trend for Alkami is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Group 3: Industry Context - The Internet - Software industry, to which Alkami belongs, is currently ranked in the bottom 44% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment [5]

Financial Data and Key Metrics Changes - In Q1 2025, the company reported total revenue of $97.8 million, representing a year-over-year growth of 28.5% [23] - Adjusted EBITDA improved to $12.1 million compared to $3.8 million in the same quarter last year [23] - The company exited the quarter with an Annual Recurring Revenue (ARR) of approximately $400 million, reflecting a 33% increase [23] Business Line Data and Key Metrics Changes - Subscription revenue grew by 27% in Q1 2025, accounting for 95% of total revenue [23] - The company added 36 new digital banking clients, representing 1.1 million digital users, and exited the quarter with 278 live clients and 20.5 million registered users [24] - Revenue per user (RPU) increased by 18% to $19.74, driven by the Mantle acquisition and successful add-on sales [25] Market Data and Key Metrics Changes - The company reported a strong demand environment for digital banking, with no observed decline in demand from regional and community financial institutions [6][10] - The company’s sales pipeline remains robust, with a healthy mix of new logos and client renewals [25] - The company expects to churn only four clients in 2025, representing less than 1% of ARR, indicating strong client retention [24] Company Strategy and Development Direction - The company is focused on enhancing its product offerings in onboarding and account opening, retail and commercial functionality, user experience, and personalization [13] - The Mantle acquisition is expected to drive cross-selling opportunities and enhance the company's competitive position in the digital banking space [15][44] - The company is building a strategic development center in India to increase product and engineering capacity while maintaining profitability commitments [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the 2026 financial objectives outlined in previous earnings calls, citing a strong implementation backlog and sales pipeline [6] - The management noted that digital banking has shifted from a budget agenda to a capital allocation agenda for clients, emphasizing its strategic importance [9] - The company anticipates that the Mantle business will be accretive to adjusted EBITDA in 2026, with expected ARR under contract of approximately $60 million by the end of 2025 [33] Other Important Information - The company completed the acquisition of Mantle on March 17, 2025, for an enterprise value of $393 million [30] - The company ended the quarter with $95 million in cash and marketable securities and expanded its credit facility from $125 million to $225 million [29] Q&A Session Summary Question: Was the $5 million spend for the offshore initiative lighter in Q1? - Yes, it was a lighter expense in Q1, with the majority expected to concentrate in Q3 and Q4 of 2025 [36][37] Question: What contributed to the growth in revenue per user? - Mantle contributed about 1.8 to RPU this quarter, with a more normalized growth rate expected going forward [39][40] Question: Can you frame the cross-selling opportunity with Mantle? - Mantle had five transactions sold into the Alchemy base, and the integration is expected to be smoother than previous acquisitions [44][46] Question: Where is the most traction seen with the Mantle acquisition? - Balanced demand is observed in both banks and credit unions, with a focus on enhancing account opening experiences [51][53] Question: What are the implications of potential deregulation in the banking industry? - Open banking could present opportunities for customers to gain market share if they have the right technology [93][94] Question: What would it take for banks to slow spending on digital banking? - There would need to be extraordinary dislocation for banks to halt their digital banking projects, as these are often budgeted line items [97][98]

Financial Data and Key Metrics Changes - In Q1 2025, the company reported total revenue of $97.8 million, representing a year-over-year growth of 28.5% [24] - Adjusted EBITDA improved to $12.1 million compared to $3.8 million in the same quarter last year, marking a significant increase [24] - The company exited the quarter with an Annual Recurring Revenue (ARR) of approximately $400 million, reflecting a 33% increase year-over-year [24][25] - The average revenue per user (RPU) was $19.74, up 18% compared to the previous year [26] Business Line Data and Key Metrics Changes - Subscription revenue grew by 27% in Q1 2025, accounting for 95% of total revenue [24] - The company added 36 new digital banking clients, representing 1.1 million digital users, and exited the quarter with 278 live clients [25] - The Mantle acquisition contributed significantly to the growth in RPU, with an estimated contribution of 1.8 to RPU this quarter [41] Market Data and Key Metrics Changes - The company reported a registered user growth of approximately 2.3 million or 13% compared to the previous year [25] - The demand for digital banking services remains strong, with no observed decline despite macroeconomic uncertainties [7][9] - The company noted a balanced demand from both banks and credit unions, with a focus on enhancing account opening experiences [53] Company Strategy and Development Direction - The company aims to leverage its digital banking platform to enhance customer acquisition and onboarding experiences, emphasizing the importance of a seamless digital experience [10][87] - Investments are being made in product development, particularly in onboarding, user experience, and personalization [14] - The company is building a strategic development center in India to increase product and engineering capacity while maintaining profitability commitments [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the 2026 financial objectives, citing a strong sales pipeline and successful acquisition integration [7] - The demand for digital banking is viewed as essential for regional and community financial institutions to compete effectively [8] - Management indicated that the current macroeconomic environment has not led to a reduction in digital banking demand, with clients prioritizing their digital agendas [9][10] Other Important Information - The Mantle acquisition was completed on March 17, 2025, for an enterprise value of $393 million, which is expected to be accretive to adjusted EBITDA in 2026 [31][34] - The company has expanded its credit facility from $125 million to $225 million, enhancing its financial flexibility [30] Q&A Session Summary Question: Was the $5 million spend for the offshore initiative lighter in Q1? - Yes, it was a lighter expense in Q1, with the majority of the expense expected to concentrate in the third and fourth quarters of 2025 [38] Question: What contributed to the growth in revenue per user? - Mantle was the largest contributor, followed by success in add-on sales and new clients adopting more products [40] Question: Can you frame the cross-selling opportunity with Mantle? - Mantle had five transactions sold into the Alchemy base, and the integration is expected to yield significant cross-selling opportunities [46] Question: Where is the most traction seen with the Mantle acquisition? - Balanced demand is observed from both banks and credit unions, with a focus on enhancing account opening experiences [53] Question: What would it take for banks to slow spending on digital banking? - It would require extraordinary dislocation, as banks are managing expenses but not cutting digital banking projects [99][100]

Financial Data and Key Metrics Changes - In Q1 2025, the company reported total revenue of $97.8 million, representing a year-over-year growth of 28.5% [23] - Adjusted EBITDA improved to $12.1 million compared to $3.8 million in the same quarter last year, marking a significant increase [23] - The company exited the quarter with an Annual Recurring Revenue (ARR) of approximately $400 million, reflecting a 33% increase year-over-year [23][24] Business Line Data and Key Metrics Changes - Subscription revenue grew by 27% in Q1 2025, accounting for 95% of total revenue [23] - The company added 36 new digital banking clients, contributing to a total of 278 live clients and 20.5 million registered users, which is a 13% increase year-over-year [24] - The revenue per user (RPU) increased by 18% to $19.74, driven by the Mantle acquisition and successful add-on sales [25] Market Data and Key Metrics Changes - The company reported a strong demand environment for digital banking, with no observed decline in demand despite macroeconomic uncertainties [6][10] - The company’s sales pipeline remains robust, with a healthy mix of new client acquisitions and renewals [25] - The Mantle acquisition is expected to enhance the company's competitive position in both bank and credit union markets, with balanced demand observed in both segments [50] Company Strategy and Development Direction - The company is focused on enhancing its product offerings in onboarding and account opening, retail and commercial functionality, user experience, and personalization [13] - A strategic development center is being established in India to increase product and engineering capacity while maintaining profitability commitments [16] - The company aims to leverage its unique financial model to strengthen its competitive position in the SaaS market [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the 2026 financial objectives, citing a strong implementation backlog and sales pipeline [6] - The demand for digital banking is viewed as essential for regional and community financial institutions to compete effectively [6][10] - Management remains optimistic about the future, indicating that digital banking projects are prioritized by clients despite economic uncertainties [96][100] Other Important Information - The Mantle acquisition, valued at $400 million, was completed earlier than expected and is anticipated to be accretive to adjusted EBITDA in 2026 [31][33] - The company has expanded its credit facility from $125 million to $225 million, enhancing its financial flexibility [30] Q&A Session Summary Question: Was the $5 million spend for the offshore initiative still a lighter expense in Q1? - Yes, it was a lighter expense in Q1, with the majority of the expense expected to concentrate in the third and fourth quarters of 2025 [36][37] Question: How much did Mantle contribute to the growth in revenue per user? - Mantle contributed about 1.8 to RPU this quarter, with a more normalized growth rate expected going forward [39][40] Question: What is the opportunity for cross-selling Mantle into the existing base? - Initial success has been seen with five transactions sold into the Alchemy base, and there is confidence in the cross-selling opportunity [42][43] Question: Where is the most traction being seen with the Mantle acquisition? - Balanced demand is observed in both banks and credit unions, with a focus on enhancing account opening experiences [50] Question: What would it take for banks to slow spending on digital banking projects? - It would require extraordinary dislocation for banks to halt their digital banking projects, as these are often budgeted line items [96][100]

Financial Performance - Alkami's Q1 2025 revenue grew by 28.5%, driven by new clients, existing client user growth, and ARPU growth[47] - The company's ARR increased by 33% to $404 million[48] - The remaining performance obligation (RPO) reached $1.6 billion, representing 3.9x live ARR, up 31% year-over-year[48] - Q1'25 includes MANTL revenue of $1.4 million based on acquisition closing date of March 17, 2025[60] Client and User Growth - Alkami implemented 7 clients in Q1 2025, bringing the total digital platform client count to 278[48] - The company exited Q1 2025 with 20.5 million registered users, up 2.3 million or 13% year-over-year[48] - Alkami signed 4 new digital banking platform clients in Q1[48] Market and Product Strategy - Alkami's total addressable market (TAM) is a growing, healthy $14 billion[18] - The company focuses on the top 2,500 financial institutions (FIs) excluding megabanks, with approximately 500 contracts up for renewal annually[16] - Full year 2025 revenue guidance of $443 million to $447 million and Adj EBITDA guidance of $49.5 million to $52.5 million[72] MANTL Acquisition - Full year guidance includes revenue of approximately $31.4 million and an Adj EBITDA loss of $5.0 million from the MANTL acquisition[72] - MANTL's ARR under contract at December 31, 2025 is expected to be approximately $60 million, representing a growth rate of over 30% based on the same metric in 2024[72]

[Company Announcements & Highlights](index=1&type=section&id=Company%20Announcement%20%26%20Highlights) Alkami reported strong Q1 2025 financial results, including significant revenue growth and user expansion, announced its CFO's planned retirement, and provided a positive financial outlook for 2025 [First Quarter 2025 Financial Highlights](index=1&type=section&id=1.1%20First%20Quarter%202025%20Financial%20Highlights) Alkami achieved strong revenue growth and profitability in Q1 2025, significantly increasing user numbers and expanding market share through the acquisition of MANTL Key Financial and Operational Metrics for Q1 2025 | Metric | Amount/Value | YoY Change | | :----------------------- | :-------------- | :------------- | | Revenue Growth | 28.5% | Growth | | Adjusted EBITDA | $12.1 million | - | | Alkami Platform Users | 20.5 million | Increased by 2.3 million | | Annual Recurring Revenue (ARR) | $404 million | 33% Growth | | Revenue Per User (RPU) | $19.74 | 18% Growth | - The company continued to expand its banking market share, enhance upsells, and invest in its platform in Q1, recently extending capabilities through the acquisition of MANTL[4](index=4&type=chunk) - The MANTL acquisition, completed on March 17, 2025, is expected to increase Alkami's overall revenue growth and gross margin expansion, and is projected to be accretive to Adjusted EBITDA in 2026[4](index=4&type=chunk) [CFO Planned Retirement](index=1&type=section&id=1.2%20CFO%20Planned%20Retirement) Alkami announced CFO Bryan Hill's planned retirement, initiating a search for his successor, with Mr. Hill continuing as CFO until February 27, 2026, or 15 days post-successor appointment, then transitioning to an advisory role - Chief Financial Officer Bryan Hill plans to retire, and the company has initiated a search for his successor[5](index=5&type=chunk) - Mr. Hill will serve as CFO until February 27, 2026, or 15 days after a successor is appointed, and then as an advisor until December 15, 2026, to assist with the transition[5](index=5&type=chunk) - Bryan Hill has played a pivotal role since joining Alkami in 2019, driving company value, leading the IPO, expanding financing access, and overseeing four acquisitions[6](index=6&type=chunk) [2025 Financial Outlook](index=1&type=section&id=1.3%202025%20Financial%20Outlook) Alkami provided financial guidance for Q2 and the full fiscal year 2025, projecting continued revenue growth and improved Adjusted EBITDA, detailing MANTL acquisition's expected full-year contribution 2025 Financial Guidance | Metric | Q2 2025 Guidance | FY 2025 Guidance | | :------------------- | :------------------- | :------------------- | | GAAP Total Revenue | $109.0 million - $110.5 million | $443.0 million - $447.0 million | | Adjusted EBITDA | $9.0 million - $10.0 million | $49.5 million - $52.5 million | Expected MANTL Contribution to 2025 Financial Performance | Metric | Expected Contribution | | :--------------------------------- | :------------------- | | Q1 Total Revenue Contribution | $1.4 million | | Q1 Adjusted EBITDA Loss Contribution | ($0.1 million) | | Full-Year Revenue Contribution | Approximately $31.4 million | | Full-Year Adjusted EBITDA Loss Contribution | $5 million | | Contracted Annual Recurring Revenue as of December 31, 2025 | Approximately $60 million (over 30% YoY growth) | [About Alkami](index=3&type=section&id=1.4%20About%20Alkami) Alkami Technology, Inc. is a leading cloud-based digital banking solutions provider for U.S. financial institutions, empowering clients to grow, adapt quickly, and build thriving digital communities - Alkami Technology, Inc. is a leading cloud-based digital banking solutions provider for U.S. financial institutions[11](index=11&type=chunk) - The company helps clients transform through retail and business banking, account opening, payment security, and data and marketing solutions[11](index=11&type=chunk) [Financial Statements (Unaudited)](index=6&type=section&id=Financial%20Statements%20(Unaudited)) This section presents Alkami's unaudited condensed consolidated financial statements, including balance sheets, statements of operations, and cash flows, reflecting the company's financial position and performance [Condensed Consolidated Balance Sheets](index=6&type=section&id=2.1%20Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, Alkami's balance sheet shows significant growth in total assets and liabilities, primarily driven by the MANTL acquisition and related financing activities, leading to substantial increases in intangible assets and goodwill Key Balance Sheet Data (as of March 31) | Metric | 2025 (in thousands) | 2024 (in thousands) | YoY Change | | :-------------------------- | :-------------- | :-------------- | :----------- | | **Assets** | | | | | Total Assets | 837,161 | 437,277 | 91.4% | | Intangible Assets, net | 178,801 | 29,021 | 516.1% | | Goodwill | 400,158 | 148,050 | 170.3% | | **Liabilities** | | | | | Total Liabilities | 503,117 | 80,247 | 526.9% | | Convertible Senior Notes, net | 334,720 | — | N/A | | Revolving Loan | 60,000 | — | N/A | | **Stockholders' Equity** | | | | | Total Stockholders' Equity | 334,044 | 357,030 | -6.5% | [Condensed Consolidated Statements of Operations](index=7&type=section&id=2.2%20Condensed%20Consolidated%20Statements%20of%20Operations) Alkami in Q1 2025 achieved significant revenue growth and improved gross profit, while net loss narrowed year-over-year, despite increased operating expenses due to acquisition-related costs and intangible asset impairment Key Statements of Operations Data (for the three months ended March 31) | Metric | 2025 (in thousands) | 2024 (in thousands) | YoY Change | | :-------------------------- | :-------------- | :-------------- | :----------- | | Revenue | 97,835 | 76,127 | 28.5% | | Cost of Revenue | 40,075 | 32,095 | 24.9% | | Gross Profit | 57,760 | 44,032 | 31.2% | | Total Operating Expenses | 73,156 | 56,397 | 29.7% | | Operating Loss | (15,396) | (12,365) | -24.5% | | Net Loss | (7,816) | (11,433) | 31.6% (Improvement) | | Net Loss Per Share, Basic and Diluted | (0.08) | (0.12) | 33.3% (Improvement) | - Acquisition-related expenses increased from **$60 thousand** in Q1 2024 to **$2,378 thousand** in Q1 2025[29](index=29&type=chunk) - An intangible asset impairment loss of **$1,655 thousand** was recognized in Q1 2025, with no such loss in Q1 2024[29](index=29&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=2.3%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) In Q1 2025, Alkami's cash outflow from operating activities increased, investment activities saw a significant outflow primarily due to the MANTL acquisition, while financing activities generated substantial cash inflow from convertible senior notes and revolving loans Key Statements of Cash Flows Data (for the three months ended March 31) | Metric | 2025 (in thousands) | 2024 (in thousands) | | :--------------------------------- | :-------------- | :-------------- | | Net Cash (Used in) Provided by Operating Activities | (5,664) | 951 | | Net Cash (Used in) Provided by Investing Activities | (389,413) | 6,808 | | Acquisition of Businesses, net of cash acquired | (375,499) | — | | Net Cash Provided by (Used in) Financing Activities | 362,378 | (4,507) | | Proceeds from Issuance of Convertible Senior Notes | 335,513 | — | | Proceeds from Revolving Loan Borrowings | 60,000 | — | | Net (Decrease) Increase in Cash and Cash Equivalents | (32,699) | 3,252 | | Cash and Cash Equivalents at End of Period | 61,660 | 44,179 | [Non-GAAP Financial Measures and Key Business Metrics](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Key%20Business%20Metrics) This section explains Alkami's non-GAAP financial measures and key business metrics, providing reconciliations to GAAP and insights into operational performance and strategic trends [Explanation of Non-GAAP Financial Measures and Key Business Metrics](index=3&type=section&id=3.1%20Explanation%20of%20Non-GAAP%20Financial%20Measures%20and%20Key%20Business%20Metrics) Alkami provides non-GAAP financial measures and key business metrics like ARR, registered users, and RPU to offer investors a clearer view of operational performance, strategic trends, and profitability by excluding certain non-cash or non-recurring items - Non-GAAP financial measures aim to help investors better understand the company's short-term and long-term financial, operational, and strategic trends by excluding certain non-cash or non-recurring items[13](index=13&type=chunk) - Annual Recurring Revenue (ARR) is defined as the annualized recurring revenue from SaaS subscription services recognized in the last month of the reporting period, plus expected implementation service revenue for the next 12 months[22](index=22&type=chunk) - Registered Users are defined as individual or business account holders of financial institution clients using the company's digital banking platform as of the last day of the reporting period[23](index=23&type=chunk) - Revenue Per User (RPU) is defined as ARR for the reporting period divided by the number of registered users on the last day of the reporting period, reflecting the ability to adopt new products and expand existing customer products[24](index=24&type=chunk) [Reconciliation of GAAP to Non-GAAP Measures](index=9&type=section&id=3.2%20Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) This section provides detailed reconciliations of GAAP to various non-GAAP financial metrics, adjusting for items like amortization, stock-based compensation, and acquisition-related expenses to present a clearer view of underlying operational performance, alongside key business metrics Key Business Metrics (as of March 31) | Metric | 2025 | 2024 | | :---------------------- | :------- | :------- | | GAAP Total Revenue (in thousands) | 97,835 | 76,127 | | Annual Recurring Revenue (ARR) (in thousands) | 403,885 | 302,659 | | Registered Users (in thousands) | 20,461 | 18,113 | | Revenue Per User (RPU) | $19.74 | $16.71 | [Non-GAAP Cost of Revenues](index=9&type=section&id=3.2.1%20Non-GAAP%20Cost%20of%20Revenues) Non-GAAP cost of revenues for Q1 2025 was $34,941 thousand, adjusted by deducting amortization and stock-based compensation expenses from GAAP cost of revenues Non-GAAP Cost of Revenues Reconciliation (for the three months ended March 31) | Metric | 2025 (in thousands) | 2024 (in thousands) | | :---------------------- | :-------------- | :-------------- | | GAAP Cost of Revenues | 40,075 | 32,095 | | Amortization | (2,498) | (1,775) | | Stock-based Compensation Expense | (2,636) | (1,178) | | Non-GAAP Cost of Revenues | 34,941 | 29,142 | [Non-GAAP Gross Margin](index=9&type=section&id=3.2.2%20Non-GAAP%20Gross%20Margin) Non-GAAP gross margin for Q1 2025 improved to 64.3% from 61.7% in the prior year, reflecting enhanced profitability after adjusting for amortization and stock-based compensation expenses Non-GAAP Gross Margin Reconciliation (for the three months ended March 31) | Metric | 2025 | 2024 | | :---------------------- | :----- | :----- | | GAAP Gross Margin | 59.0 % | 57.8 % | | Amortization | 2.6 % | 2.3 % | | Stock-based Compensation Expense | 2.7 % | 1.6 % | | Non-GAAP Gross Margin | 64.3 % | 61.7 % | [Non-GAAP Research and Development Expense](index=9&type=section&id=3.2.3%20Non-GAAP%20Research%20and%20Development%20Expense) Non-GAAP research and development expense for Q1 2025 was $21,451 thousand, adjusted by deducting stock-based compensation expense from GAAP research and development expense Non-GAAP Research and Development Expense Reconciliation (for the three months ended March 31) | Metric | 2025 (in thousands) | 2024 (in thousands) | | :-------------------------- | :-------------- | :-------------- | | GAAP Research and Development Expense | 26,885 | 22,820 | | Stock-based Compensation Expense | (5,434) | (3,998) | | Non-GAAP Research and Development Expense | 21,451 | 18,822 | [Non-GAAP Sales and Marketing Expense](index=10&type=section&id=3.2.4%20Non-GAAP%20Sales%20and%20Marketing%20Expense) Non-GAAP sales and marketing expense for Q1 2025 was $15,052 thousand, adjusted by deducting stock-based compensation expense from GAAP sales and marketing expense Non-GAAP Sales and Marketing Expense Reconciliation (for the three months ended March 31) | Metric | 2025 (in thousands) | 2024 (in thousands) | | :-------------------------- | :-------------- | :-------------- | | GAAP Sales and Marketing Expense | 17,899 | 13,843 | | Stock-based Compensation Expense | (2,847) | (2,031) | | Non-GAAP Sales and Marketing Expense | 15,052 | 11,812 | [Non-GAAP General and Administrative Expense](index=10&type=section&id=3.2.5%20Non-GAAP%20General%20and%20Administrative%20Expense) Non-GAAP general and administrative expense for Q1 2025 was $14,686 thousand, adjusted by deducting stock-based compensation expense from GAAP general and administrative expense Non-GAAP General and Administrative Expense Reconciliation (for the three months ended March 31) | Metric | 2025 (in thousands) | 2024 (in thousands) | | :-------------------------- | :-------------- | :-------------- | | GAAP General and Administrative Expense | 23,771 | 19,315 | | Stock-based Compensation Expense | (9,085) | (6,345) | | Non-GAAP General and Administrative Expense | 14,686 | 12,970 | [Non-GAAP Income Before Income Taxes](index=10&type=section&id=3.2.6%20Non-GAAP%20Income%20Before%20Income%20Taxes) Non-GAAP income before income taxes for Q1 2025 was $12,000 thousand, a significant improvement from the prior year, reflecting profitability after adjusting for specific non-operating and non-cash items Non-GAAP Income Before Income Taxes Reconciliation (for the three months ended March 31) | Metric | 2025 (in thousands) | 2024 (in thousands) | | :-------------------------- | :-------------- | :-------------- | | GAAP Loss Before Income Taxes | (15,101) | (11,244) | | Gain on Financial Instruments | — | (112) | | Amortization | 3,066 | 2,134 | | Stock-based Compensation Expense | 20,002 | 13,552 | | Acquisition-related Expenses | 2,378 | 60 | | Intangible Asset Impairment Loss | 1,655 | — | | Non-GAAP Income Before Income Taxes | 12,000 | 4,390 | [Adjusted EBITDA](index=11&type=section&id=3.2.7%20Adjusted%20EBITDA) Adjusted EBITDA for Q1 2025 was $12,069 thousand, a substantial increase from the prior year, indicating strong core operational performance after excluding non-cash and non-recurring expenses Adjusted EBITDA Reconciliation (for the three months ended March 31) | Metric | 2025 (in thousands) | 2024 (in thousands) | | :-------------------------- | :-------------- | :-------------- | | GAAP Net Loss | (7,816) | (11,433) | | Income Tax (Benefit) Expense | (7,285) | 189 | | Gain on Financial Instruments | — | (112) | | Interest Income, net | (295) | (1,009) | | Depreciation and Amortization | 3,430 | 2,562 | | Stock-based Compensation Expense | 20,002 | 13,552 | | Acquisition-related Expenses | 2,378 | 60 | | Intangible Asset Impairment Loss | 1,655 | — | | Adjusted EBITDA | 12,069 | 3,809 | [Additional Information](index=3&type=section&id=Additional%20Information) This section provides details on Alkami's conference call, cautionary statements regarding forward-looking information, and investor relations contact information [Conference Call Information](index=3&type=section&id=4.1%20Conference%20Call%20Information) Alkami held a conference call on April 30, 2025, to discuss its financial results, providing webcast and dial-in access, with a replay available on the investor relations website - The company held a conference call on **April 30, 2025, at 5:00 PM ET** to discuss financial results[10](index=10&type=chunk) - A live webcast is available on Alkami's investor relations website at investors.alkami.com[10](index=10&type=chunk) - Domestic dial-in: **1-800-836-8184**, International dial-in: **1-646-357-8785**, Passcode: **04175**[10](index=10&type=chunk) [Cautionary Statement Regarding Forward-Looking Statements](index=3&type=section&id=4.2%20Cautionary%20Statement%20Regarding%20Forward-Looking%20Statements) Forward-looking statements in this press release are based on management's beliefs and assumptions, involving known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially from expectations, with no obligation to update these statements - Forward-looking statements involve known and unknown risks, uncertainties, and other factors that could cause actual results, performance, or achievements to differ materially from those expressed or implied[12](index=12&type=chunk) - Factors affecting forward-looking statements include limited operating history, ability to manage future growth, ability to attract and retain customers, unpredictability of sales cycles, industry competition, security breaches, acquisition integration, regulatory compliance, and ability to attract and retain key employees[12](index=12&type=chunk) - The company undertakes no obligation to update or revise any forward-looking statements, except as required by applicable law[12](index=12&type=chunk) [Investor Relations Contact](index=11&type=section&id=4.3%20Investor%20Relations%20Contact) This section provides contact information for Alkami's investor relations and media relations - Investor Relations Contact: Steve Calk, Email: ir@alkami.com[48](index=48&type=chunk) - Media Relations Contacts: Marla Pieton, Email: marla.pieton@alkami.com; Valerie Kerner, Email: alkami@fullyvested.com[48](index=48&type=chunk)

Core Insights - Alkami Technology, Inc. reported strong financial performance for Q1 2025, with revenue growth of 28.5% year-over-year and an Adjusted EBITDA of $12.1 million [2][9] - The company has expanded its user base to 20.5 million, an increase of 2.3 million from the previous year, and continues to gain market share in the digital banking sector [2][29] - Alkami's acquisition of MANTL is expected to enhance revenue growth and gross margin, contributing approximately $31.4 million in revenue for the full year 2025 [5][10] Financial Performance - Total revenue for Q1 2025 was $97.8 million, up from $76.1 million in Q1 2024, reflecting a 28.5% increase [9][26] - The company reported a GAAP net loss of $7.8 million, an improvement from a loss of $11.4 million in the same quarter last year [9][26] - Annual recurring revenue (ARR) reached $404 million, representing a 33% increase year-over-year, with revenue per registered user at $19.74, up 18% [2][29] Strategic Developments - Alkami's CEO highlighted ongoing efforts to enhance market presence, improve add-on sales, and invest in platform capabilities, particularly through the recent acquisition of MANTL [2][5] - The company is actively searching for a successor for its retiring CFO, Bryan Hill, who has been instrumental in the company's growth and financial strategy since 2019 [3][4] - The acquisition of MANTL is anticipated to be accretive to Alkami's overall revenue growth and gross margin expansion, with expectations for a positive impact on Adjusted EBITDA by 2026 [5][10] Market Position - Alkami continues to position itself as a leading provider of cloud-based digital banking solutions for financial institutions in the U.S., focusing on transforming retail and business banking [7] - The company aims to maintain its competitive edge by expanding its digital banking platform and enhancing customer engagement through innovative solutions [7][20]

Core Insights - NuMark Credit Union has partnered with Alkami Technology to enhance its digital banking experience for retail and business members, emphasizing a commitment to innovation and user-centric solutions [1][3]. Group 1: Partnership and Technology - The collaboration will utilize Alkami's Digital Banking Platform, which includes rich online banking and ACH capabilities, aimed at providing an intuitive and streamlined interface for NuMark's members [2][4]. - Alkami's Data & Marketing Solutions will enable NuMark to leverage advanced data analytics and personalization tools, allowing for tailored financial solutions and timely insights for members [2][4]. Group 2: Strategic Goals - NuMark's mission is to enrich the financial lives of its members by delivering seamless and personalized banking experiences, which is supported by the innovative technology from Alkami [3][5]. - The partnership is expected to enhance member engagement, support financial wellness, and expand business banking capabilities, ultimately benefiting the communities served by NuMark [3][5]. Group 3: Industry Recognition - Alkami has received certification from J.D. Power in 2024 and 2025 for providing an outstanding mobile banking platform experience, highlighting its commitment to quality in digital banking solutions [6].

Core Viewpoint - Alkami Technology, Inc. is set to report its financial results for the first quarter ending March 31, 2025, on April 30, 2025, after market close [1] Group 1: Financial Reporting - The financial results announcement will be followed by a conference call at 5:00 p.m. ET on the same day to discuss the results with investors [2] - A live webcast of the conference call will be available on the Alkami investor relations website, along with dial-in options for domestic and international participants [2] Group 2: Company Overview - Alkami is recognized as a leading provider of cloud-based digital banking solutions for financial institutions in the U.S., focusing on enabling clients to grow confidently and adapt quickly [3] - The company offers a range of services including retail and commercial banking, digital account opening, payment security, and data and marketing solutions [3]