Business Context and Reporting Period
Company: Alkami Technology, Inc. (ALKT)
Filing Type: Form 10-K (Annual Report)
Reporting Period: Fiscal year ended December 31, 2025
Business Overview: Alkami provides a cloud-based digital sales and service platform to community, regional, and super-regional financial institutions (FIs) in the United States. The platform enables FIs to onboard, engage, and grow users through a multi-tenant, SaaS architecture. As of December 31, 2025, the company served 301 FIs through its Digital Banking Platform and over 960 total clients including those using acquired solutions (ACH Alert, Segmint, MANTL).
Key Financial Metrics
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Total Revenue | $443.6 million | $333.8 million | $264.8 million |
| Net Loss | $(47.7) million | $(40.8) million | $(62.9) million |
| Adjusted EBITDA | $59.1 million | $26.9 million | $(1.6) million |
| Gross Margin | 57.8% | 58.9% | 54.4% |
| Operating Cash Flow | $42.9 million | $18.6 million | $(17.5) million |
| Cash & Marketable Securities | $99.1 million | $115.7 million | N/A |
| Debt (Convertible Notes) | $345.0 million | $0 | $0 |
| Debt (Revolving Loan) | $15.0 million | $0 | $0 |
Key Business Metrics:
- Annual Recurring Revenue (ARR): $480.3 million (35.0% increase from 2024).
- Registered Users: 22.4 million (12.1% increase from 2024).
- Revenue per Registered User (RPU): $21.44 (20.4% increase from 2024).
Material Changes vs. Prior Period
- Revenue Growth: Revenue increased 32.9% year-over-year, driven by a $102.4 million increase in SaaS subscription services and a $5.0 million increase in implementation services. The MANTL acquisition contributed $34.9 million in revenue for the period.
- Acquisition of MANTL: In March 2025, Alkami acquired Fin Technologies, Inc. (dba MANTL) for approximately $375 million in aggregate consideration. This added onboarding, account opening, and loan origination solutions to the platform.
- Debt Financing: In March 2025, the company issued $345 million of 1.50% Convertible Senior Notes due 2030. Additionally, the company borrowed $60 million on its Revolving Facility to fund the MANTL acquisition, with $15 million outstanding as of year-end.
- Operating Expenses: Total operating expenses increased 28.6% to $310.2 million. Increases were driven by higher personnel costs (R&D, Sales & Marketing, G&A) and acquisition-related expenses ($3.5 million) and amortization of acquired intangibles ($5.7 million).
- Impairment: The company recorded a $1.7 million loss on impairment of intangible assets related to the MANTL acquisition.
Guidance, Outlook, Risks, and Unusual Items
Management Commentary & Outlook:
Management expects to continue investing in R&D (26.7% of revenue in 2025) and sales/marketing to deepen client relationships and win new clients. The company believes its existing cash resources and Revolving Facility are sufficient to fund operations for the next 12 months and beyond. The strategy focuses on increasing registered user penetration and cross-selling products (average of 16 products per client in 2025).
Risks and Contingencies:
- Cybersecurity: The company faces material risks from cybersecurity threats, including ransomware and data breaches, which could disrupt operations and damage reputation.
- Debt Covenants: The Amended Credit Agreement includes financial covenants regarding recurring revenue growth and liquidity levels. Failure to comply could result in default.
- Convertible Notes: The 2030 Convertible Notes may be converted into common stock, potentially causing dilution. The company may be required to repurchase notes upon a "fundamental change."
- Regulatory Environment: As a provider to FIs, the company is subject to evolving regulations regarding data privacy, security, and banking operations (e.g., GLBA, CCPA, FFIEC guidelines).
Unusual Items:
- Stock-Based Compensation: Total stock-based compensation expense was $80.1 million in 2025, a significant non-cash charge impacting net loss.
- Tax Benefit: The company recorded an income tax benefit of $11.3 million in 2025, primarily due to the partial release of a valuation allowance related to the MANTL business combination.
Investor Verification Checklist
- Debt Service Capacity: Verify the company's ability to meet interest payments on the new $345 million Convertible Notes and the Revolving Facility, especially given the history of net losses.
- Integration of MANTL: Assess the progress of integrating MANTL's technology and personnel, and whether the anticipated revenue synergies are materializing as projected.
- Customer Concentration: Confirm that no single client represents more than 5% of total revenue (as stated in the filing) and monitor churn rates among the 301 Digital Banking Platform clients.
- Valuation Allowance: Review the rationale for the partial release of the valuation allowance on deferred tax assets and the sustainability of the effective tax rate.
- Stock-Based Compensation Dilution: Monitor the impact of the $80.1 million stock-based compensation expense and the 10.5 million shares of potential dilution from the Convertible Notes on future earnings per share.