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]