ALKAMI TECHNOLOGY, INC. (ALKT)·Q2 2025 Earnings Summary

Executive Summary

• Q2 2025 delivered strong top-line growth with GAAP revenue of $112.06M (+36.4% y/y) and non-GAAP gross margin expanded to 65.1%; Adjusted EBITDA rose to $11.9M, materially above the year-ago level .
• Versus Wall Street consensus, revenue beat ($112.06M vs $109.84M*) while Primary EPS was a slight miss (0.070* vs 0.078*); Adjusted EBITDA performance outpaced internal targets, aided by timing of termination fees . Values retrieved from S&P Global.*
• FY25 guidance was maintained for revenue ($443–$447M) and raised for Adjusted EBITDA ($51.5–$54.0M), with Q3 2025 guidance set at revenue $112.5–$114.0M and Adjusted EBITDA $13.0–$14.0M .
• Strategic narrative strengthened: cross-sell momentum from the MANTL acquisition (23 new clients in Q2), rising RPU to $20.28 (+17% y/y), and ARR reached $423.8M (+32% y/y), underpinning sustained growth and margin expansion .

What Went Well and What Went Wrong

What Went Well

• Robust revenue growth and margin expansion with non-GAAP GM of 65.1% and Adjusted EBITDA of $11.9M; “We are very pleased to report strong financial performance… revenue growth of 36% and Adjusted EBITDA of $12 million.” — CEO Alex Shootman .
• MANTL acquisition synergies gaining traction: 23 new clients in Q2 (three attached to new Alkami wins; six cross-sold into Alkami base), improving cross-sell velocity and RPU .
• ARR and RPU growth: ARR reached $423.8M (+32% y/y) and RPU rose to $20.28 (+17% y/y), evidencing pricing power and broader product adoption .

What Went Wrong

• GAAP profitability remained negative: GAAP net loss of $(13.59)M and GAAP diluted EPS of $(0.13) despite operational progress .
• Revenue beat partially driven by timing of termination fees (~$1.0M pulled forward), limiting scope for an outright annual revenue guidance raise this quarter; “term fees during the quarter represented about 70% of the beat” — CFO Bryan Hill .
• Mantle (MANTL) dilutive to adjusted EBITDA margin in 2025 (~190 bps in Q2), with EBITDA accretion expected in 2026, moderating near-term margin progress .

Financial Results

Values retrieved from S&P Global.*

KPIs

Notes:

• Subscription revenue ~95% of total revenue in Q2 2025 (no segment dollar breakout disclosed) .

Guidance Changes

Context: Management maintained FY revenue guide due to the Q2 beat being largely timing-related termination fee revenue; raised FY Adjusted EBITDA guide by ~$1.8M at the midpoint .

Earnings Call Themes & Trends

Management Commentary

• “We exited the second quarter with 20.9 million users… up 2.3 million compared to the year-ago quarter.” — CEO Alex Shootman .
• “Mantle added 23 new clients in the second quarter… Today we believe we deliver the best digital sales and service platform in the industry.” — CEO Alex Shootman .
• “We exited the second quarter with annual recurring revenue of $424 million, up 32%, and revenue per registered user of $20.28, up 17%…” — CFO Bryan Hill .
• “Term fees… represented about 70% of the beat… about $1 million [of $1.6M] shifted from the back half.” — CFO Bryan Hill .

Q&A Highlights

• MANTL contribution and RPU uplift: Mantl typically adds 30–40% of ARR to a new logo; RPU increased to $20.28 (+17% y/y) aided by MANTL and add-ons .
• Revenue beat composition: 70% driven by pulled-forward termination fees ($1M), with associated ARR removed from back-half run-rate .
• Mantl revenue: “Mantle contributed just over $10 million of revenue in the quarter,” tracking toward ~$31.5M FY contribution and ~$60M ARR under contract by YE25 .
• JPM data access fees/Plaid: Management monitoring industry response; core aggregation/verification capabilities remain strategic; Q2 product update: MANTL first fintech to offer Plaid Layer (instant onboarding) .
• Bank channel traction: Mantl’s bank-heavy footprint (≈70%) complements Alkami; pipeline balanced; consolidation M&A historically nets Alkami users .

Estimates Context

• Revenue: Beat — $112.06M actual vs $109.84M consensus* . Values retrieved from S&P Global.*
• Primary EPS: Slight miss — 0.0699 actual* vs 0.0776 consensus*; note company reports GAAP diluted EPS of $(0.13) . Values retrieved from S&P Global.*
• EBITDA: Consensus $9.59M*, company reported Adjusted EBITDA of $11.92M (company-defined, non-GAAP) . Values retrieved from S&P Global.*

Implication: Expect modest upward revisions to FY25 EBITDA estimates (company raised guide), with revenue largely anchored by existing guide due to timing effects; EPS modeling should incorporate non-GAAP adjustments and termination fee timing .

Key Takeaways for Investors

• Revenue quality strong but partially timing-driven: The Q2 beat was aided by termination fees; management held FY revenue guide but raised FY Adjusted EBITDA, signaling operating leverage progress .
• Cross-sell flywheel forming: MANTL is accelerating new logos and base penetration, driving RPU and ARR higher and setting up multi-year revenue synergy, with margin accretion expected in 2026 .
• KPIs trending positively: ARR ($423.8M), users (20.9M), and RPU ($20.28) support sustained growth durability and pricing power .
• Margin expansion intact despite MANTL drag: Non-GAAP GM at 65.1%; MANTL dilutive near term but expected to be EBITDA accretive in 2026; India capability center adds long-term margin tailwind .
• Product differentiation widening: MANTL–Plaid Layer integration improves onboarding conversion/time-to-open, reinforcing competitive positioning vs mega banks/fintechs .
• Watchlist items: Potential industry changes around data access fees, stablecoin offerings, and FedNow adoption; these are early-stage but could shape demand and product strategy .
• Positioning: Bias positive into H2 on operational execution and cross-sell momentum; model conservatively for non-recurring termination fee timing while reflecting raised EBITDA guidance .