Alkami (ALKT) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue grew 28.5% year-over-year to $97.8 million, driven by user growth, ARPU expansion, and new clients; adjusted EBITDA rose to $12.1 million from $3.8 million.

• Registered users increased by 2.3 million to 20.5 million, with 278 digital banking platform clients at quarter-end.

• Annual recurring revenue (ARR) increased 33% to $404 million; remaining performance obligation (RPO) reached $1.6 billion, up 31%.

• Closed the MANTL acquisition (valued between $375–$393 million), expanding product suite and client base, and began cross-selling.

• CFO Bryan Hill announced retirement, with a transition and consulting plan through December 2026.

Financial highlights

• Q1 2025 revenue: $97.8 million, up 28.5% year-over-year; adjusted EBITDA: $12.1 million (margin 12.3%), up from $3.8 million.

• Non-GAAP gross margin expanded to 64.3% from 61.7%; GAAP gross margin improved to 59.0% from 57.8%.

• Subscription revenue comprised 95% of total revenue; SaaS subscription services accounted for 94.9%.

• ARR reached $404 million, up 33%; RPU rose 18% to $19.74, with MANTL contributing $1.80 to RPU.

• Net loss narrowed to $7.8 million from $11.4 million year-over-year; net loss margin improved to (8.0)% from (15.0)%.

Outlook and guidance

• Q2 2025 revenue guidance: $109–$110.5 million; adjusted EBITDA: $9–$10 million.

• Full-year 2025 revenue guidance: $443–$447 million (33–34% growth); adjusted EBITDA: $49.5–$52.5 million.

• MANTL expected to contribute $31.4 million in revenue and a $5 million adjusted EBITDA loss in 2025; accretive to EBITDA in 2026.

• MANTL's ARR under contract at year-end 2025 expected to be $60 million, growing over 30% year-over-year.

• Long-term targets: 65% gross margin and 19% adjusted EBITDA margin by 2026.