ALKAMI TECHNOLOGY, INC.

Alkami Technology, Inc. operates as a cloud-based digital sales and service platform provider, primarily serving community, regional, and super-regional financial institutions (FIs) in the United States. The company's core mission is to enable these FIs to compete with larger, technologically advanced banks by offering a comprehensive, integrated ecosystem of premium technology and fintech solutions delivered as a SaaS offering. The U.S. banking industry is substantial, with nearly $26 trillion in assets across over 9,000 FIs as of December 31, 2023 ⁴, presenting a significant market opportunity. Alkami targets the top 2,500 FIs by assets, excluding megabanks, a segment estimated to represent over 200 million registered users ⁵. The industry is characterized by heightened user expectations for digital experiences, an increasingly digital competitive landscape, evolving regulatory environments, and a significant shift towards mobile and cloud-based solutions. FIs are making substantial technology investments, with the four largest U.S. banks spending over $45 billion in aggregate on technology in 2024 ⁶.

Alkami's competitive positioning is rooted in its comprehensive integration capabilities, deep industry expertise in retail and business banking, reputation for high-quality client support, rapid innovation, and its unified cloud-based digital banking and SaaS solutions. The company differentiates itself through a personalized user experience across multiple interaction points, over 300 real-time integrations to back-office systems and third-party fintech solutions as of December 31, 2025 ⁷, and deep data capabilities that synthesize insights for monetization. While the market is highly competitive, with rivals including core processing vendors and point solution providers, Alkami believes its integrated platform and speed-to-market provide a distinct advantage.

The core business model revolves around long-term, subscription-based contractual arrangements for the Alkami Digital Sales & Service Platform, with an average contract life of approximately 70 months as of December 31, 2025 ⁸. Revenue is predominantly generated through a per-registered-user pricing model, with incremental fees above contractual minimums for each licensed solution. Tiered pricing with per-registered-user discounts incentivizes clients to promote digital engagement. The company's ability to grow revenues from existing clients is evidenced by a 115% increase in annual recurring revenue from existing digital banking clients from December 31, 2024, to December 31, 2025 ⁹. Alkami serves 301 FIs through its Digital Banking Platform and over 960 clients including those subscribing to ACH Alert, Segmint, or MANTL products as of December 31, 2025 ¹⁰.

The Alkami Digital Sales & Service Platform offers ten product categories encompassing 36 products and over 300 integrations as of December 31, 2025 ¹¹. These categories include Onboard & Account Opening, Marketing, Data Insights, Account Management, Payments & Receivables, Admin, Risk, & Reporting, Business & Commercial Banking, Retail Banking, Financial Analytics, and Extensibility. The Onboard & Account Opening solution, enhanced by the MANTL acquisition, provides unified omnichannel capabilities for opening consumer and business deposit and loan accounts, featuring intuitive workflows, configurable automation, built-in compliance, and real-time fraud decisioning. The Marketing and Data Insights categories leverage Segmint's unique data models and behavioral data tags for targeted campaigns and predictive analytics. The Admin, Risk, & Reporting category benefits from the ACH Alert acquisition, enhancing multi-channel payment fraud prevention and suspicious transaction monitoring.

For the fiscal year ended December 31, 2025, total revenues were $443.6 million ¹², with SaaS subscription services accounting for 95.0% ¹³ of this total, or $421.674 million ¹⁴. Gross profit was $256.599 million ¹⁵, resulting in a gross margin of 57.8% ¹⁶. Operating expenses totaled $310.235 million ¹⁷, leading to a loss from operations of $53.636 million ¹⁸. Net loss for the year was $47.652 million ¹⁹, and diluted EPS was $(0.46) ²⁰. The company reported $63.457 million ²¹ in cash and cash equivalents and $35.635 million ²² in marketable securities as of December 31, 2025. Total debt included $336.230 million ²³ in convertible senior notes, net, and $15.0 million ²⁴ in revolving loan outstanding.

Comparing 2025 to 2024, total revenues increased by $109.790 million ²⁵, or 32.9% ²⁶, primarily driven by a $102.4 million ²⁷ increase in SaaS subscription services revenue. The MANTL acquisition contributed $34.9 million ²⁸ to revenue in 2025. Cost of revenues increased by $49.821 million ²⁹, or 36.3% ³⁰, primarily due to higher costs from third-party partners ($22.9 million ³¹), increased personnel-related costs ($12.1 million ³²), and a significant increase in amortization of intangible assets ($11.2 million ³³) related to the MANTL acquisition. Gross margin decreased from 58.9% in 2024 ³⁴ to 57.8% in 2025 ³⁵, mainly due to the increased amortization of intangible assets. Research and development expenses rose by $22.185 million ³⁶, or 23.1% ³⁷, to $118.396 million ³⁸. Sales and marketing expenses increased by $20.376 million ³⁹, or 34.1% ⁴⁰, to $80.141 million ⁴¹. General and administrative expenses increased by $17.242 million ⁴², or 20.6% ⁴³, to $100.892 million ⁴⁴. Acquisition-related expenses surged by $3.268 million ⁴⁵ to $3.463 million ⁴⁶ in 2025, primarily for the MANTL acquisition. A loss on impairment of intangible assets of $1.655 million ⁴⁷ was recognized in 2025 due to the MANTL acquisition's impact on certain historical developed technology, customer relationships, and capitalized software assets. Net loss increased from $40.835 million in 2024 ⁴⁸ to $47.652 million in 2025 ⁴⁹.

During 2025, Alkami completed the acquisition of MANTL on March 17, 2025, for approximately $375 million ⁵⁰, net of cash acquired, which provides onboarding and account opening solutions. In connection with this acquisition, the company entered into a Third Amendment to its Amended and Restated Credit Agreement on February 27, 2025, extending the Revolving Facility maturity to February 27, 2030 ⁵¹ and increasing the commitment by $100 million ⁵² to a total of $225 million ⁵³. On March 13, 2025, Alkami issued $345 million ⁵⁴ principal amount of 1.50% Convertible Senior Notes due 2030 ⁵⁵. The company also established a new subsidiary in India during 2024 to support potential future operational needs, though these operations remain immaterial to consolidated financial statements as of December 31, 2025 ⁵⁶.

Alkami intends to continue investing in its business to support growth and expand its addressable market. A primary growth strategy involves deepening existing client relationships by increasing both the number of registered users and the number of products per client. The company has expanded its product set from nine products in 2015 to 36 products as of December 31, 2025 ⁵⁷, with clients purchasing an average of 16 products in 2025 ⁵⁸. Alkami expects cross-selling to continue contributing meaningfully to growth. Furthermore, with 22.4 million ⁵⁹ live registered digital banking users as of December 31, 2025, representing an estimated 73% ⁶⁰ of its clients' total account holders, the company sees substantial opportunity to grow its registered user base within existing clients.

Another key growth area is winning new clients, as the company believes the market remains underserved by legacy solutions. Alkami is increasingly attracting FIs with more sophisticated needs, and in the second half of 2025, over 50% ⁶¹ of deals won included new clients purchasing solutions inclusive of the Alkami Sales and Service Platform. The company's bank and credit union win rates increased during this period, as did the proportion of deals including the Alkami Sales and Service Platform.

Alkami plans to broaden and enhance its product suite through continued investment in research and development, which represented 26.7% ⁶² of revenues in 2025. This commitment to innovation includes developing proprietary products and collaborating with its platform partner network to meet evolving client needs. The company's multi-tenant architecture, single code base, and continuous delivery model enable rapid deployment of new features and products.

Strategic acquisitions are also a part of Alkami's growth strategy. The acquisition of ACH Alert added fraud prevention tools, Segmint brought marketing analytics and messaging delivery with patented software, and the recent acquisition of MANTL in March 2025 ⁶³ provides onboarding, account opening, and loan origination solutions. These acquisitions are intended to accelerate strategic objectives and expand the product suite.

Operationally, Alkami expects cost of revenues to continue growing in absolute dollars as the business expands, but to vary as a percentage of revenues based on the utilization of implementation and support personnel and the recognition of fees from bill-pay services and other third-party functionality. The gross margin for 2025 was 57.8% ⁶⁴, a decrease from 58.9% in 2024 ⁶⁵, primarily due to increased amortization of intangible assets from the MANTL acquisition. Research and development costs are expected to increase as the platform expands with new features and functionality. Sales and marketing expenses are also projected to rise with the expansion of direct sales teams. General and administrative expenses are anticipated to increase in absolute terms due to business scaling and public company costs, but are expected to decrease as a percentage of revenue over the long term.

Regarding capital allocation, Alkami intends to continue making investments to support business growth, including funding acquisitions. The company funded the MANTL acquisition through the issuance of the 2030 Convertible Notes, borrowings on its revolving facility, and cash from its balance sheet. The Revolving Facility was increased by $100 million ⁶⁶ to a total of $225 million ⁶⁷ in February 2025. The company issued $345 million ⁶⁸ principal amount of 1.50% Convertible Senior Notes due 2030 ⁶⁹ in March 2025. Alkami believes its existing cash resources, including the Revolving Facility, will be sufficient to finance continued operations, growth strategy, planned capital expenditures, and public company expenses for both the short and long term.

Alkami faces several material risks, including those related to managing rapid growth, attracting and retaining clients, and maintaining its brand. The company's reliance on third-party software, content, and services, including AWS for hosting, exposes it to performance issues, errors, and potential disruptions. Cybersecurity threats, insider threats, and other incidents are ongoing material risks, particularly given the sensitive financial and personal information processed. The company has experienced unlawful attempts to disrupt or gain access to its IT Systems and is vulnerable to future attacks, which could lead to unauthorized access or disclosure of client data and operational disruptions. The use of AI technologies, both internally and by third-party partners, introduces additional cybersecurity risks, including the potential for bias, errors, and intellectual property risks. The market for digital banking solutions is intensely competitive, with many rivals possessing greater financial and technical resources, and the company could lose market share. Alkami is entirely dependent on the financial services industry for revenue, making it vulnerable to industry downturns, consolidation, or decreased technology spending. The evolving technological requirements and regulatory landscape, including new laws related to AI, digital accessibility, privacy, and data protection, could increase compliance costs, restrict product offerings, and lead to legal liabilities or reputational harm. The company's indebtedness, including the $345 million ⁷⁰ 1.50% Convertible Senior Notes due 2030 ⁷¹ and the Revolving Facility, could limit cash flow and expose it to risks if it cannot service or repay the debt. Future acquisitions, while strategic, carry risks of integration difficulties, unanticipated costs, and potential dilution to stockholders.

Management emphasizes Alkami's role as a cloud-based digital sales and service platform provider that empowers community, regional, and super-regional financial institutions to compete effectively. The overall tone highlights significant investment in innovation, product depth, and market expansion. Management's strategic priorities include growing the FI client base, deepening existing client relationships through increased registered user penetration and cross-selling additional products, and continuously enhancing the product suite through internal development and selective acquisitions. The company's commitment to innovation is underscored by its research and development spend, which was 26.7% ⁷² of revenues in 2025. Management also stresses the importance of its multi-tenant architecture, single code base, and continuous delivery model in achieving speed-to-market and maintaining a differentiated platform. The acquisition of MANTL for approximately $375 million ⁷³ in March 2025 ⁷⁴ and the issuance of $345 million ⁷⁵ in 1.50% Convertible Senior Notes due 2030 ⁷⁶ are cited as key actions taken to support growth and fund strategic initiatives.