Alkami Technology Inc ((ALKT)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Alkami Technology Inc’s recent earnings call for the third quarter of 2025 showcased a robust performance with significant revenue growth and successful client acquisitions. The sentiment during the call was predominantly positive, with the company’s achievements overshadowing minor challenges such as implementation timing issues and slight client attrition. The overall outlook remains optimistic, reflecting a strong performance.
Strong Revenue Growth
Alkami Technology Inc reported an impressive 31.5% year-over-year revenue growth, reaching $113 million. This growth was primarily driven by organic growth exceeding 20%. Subscription revenue also saw a parallel increase of 31.5%, making up 96% of the total revenue. These figures highlight Alkami’s robust financial health and its ability to sustain growth momentum.
New Client Acquisitions and Market Expansion
The company successfully added 10 new clients to its digital banking platform, marking a significant expansion in its market presence. Notably, this includes the largest new logo transaction in Alkami’s history. The company now serves five of the top 20 credit unions in the United States, underscoring its growing influence in the financial sector.
Increased Registered Users
Alkami’s platform reached a milestone of 21.6 million registered users, an increase of 2.1 million from the previous year. This growth in user base reflects the platform’s increasing popularity and the company’s successful strategies in user acquisition and retention.
MANTL Integration Success
The integration of MANTL has been a success, with 29 new clients added in the quarter, including 15 new to Alkami. The company now has 44 clients subscribing to both the Alkami digital banking platform and the MANTL onboarding and account opening solution, indicating a successful synergy between the two platforms.
Product Innovation and Development
Alkami continues to innovate with the completion of design work for their digital sales and service platform, which is set to be showcased at their upcoming spring customer conference. Additionally, the release of a new money movement hub and enhanced treasury management features demonstrate Alkami’s commitment to product development.
Improved Financial Metrics
The company’s adjusted EBITDA improved significantly to $16 million, up from $8.3 million in the same quarter last year. This improvement highlights Alkami’s operational leverage and its ability to enhance profitability alongside revenue growth.
Client Attrition
Despite the positive developments, Alkami experienced minor client attrition, with three clients leaving the platform over the last three quarters. However, this represents less than 1% of the annual recurring revenue (ARR), indicating minimal impact on the company’s overall performance.
Implementation Timing Challenges
Some new client implementations were delayed during the quarter, causing a marginal impact on in-quarter revenue. While this presents a challenge, the overall impact is minimal compared to the company’s strong growth trajectory.
Slight Decrease in Backlog ARR
There was a slight decrease in the ARR in backlog for implementation, dropping from $68 million last quarter to $67 million. This minor decline is not expected to significantly affect the company’s long-term growth prospects.
Forward-Looking Guidance
Alkami provided optimistic guidance for the upcoming quarter and full year 2025. The company anticipates Q4 revenue to be between $119.6 million and $121.1 million, with adjusted EBITDA projected at $16.1 million to $17.1 million. For the full year, revenue is expected to range from $442.5 million to $444 million, with adjusted EBITDA between $56 million and $57 million. This guidance reflects a nearly $4 million increase above the midpoint of previous forecasts, supported by a strong sales pipeline for Q4 and 2026.
In conclusion, Alkami Technology Inc’s earnings call for Q3 2025 painted a picture of a company on a strong growth trajectory, with significant revenue increases, successful client acquisitions, and effective integration of new platforms. Despite minor challenges, the overall sentiment remains positive, with forward-looking guidance reinforcing confidence in continued growth and expansion.