Alkami (ALKT) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue grew 28.9% year-over-year to $126.1 million, driven by MANTL acquisition, new client wins, user growth, and higher ARPU, with SaaS subscription services comprising 95.8%–96% of total revenue.

• Registered users increased 12% to 23.0 million, with 6 new digital banking clients signed and 7 implemented, bringing the total to 307.

• Adjusted EBITDA more than doubled to $22.3 million, reflecting improved scale and operational efficiencies.

• Integrated MANTL acquisition, adding 61 new clients since early 2025 and contributing $14.9 million in Q1 2026 revenue.

• Announced a $100 million share repurchase program, reflecting confidence in long-term growth and cash flow.

Financial highlights

• Non-GAAP gross margin was 64.4% in Q1 2026, flat or slightly up year-over-year despite temporary higher database costs; GAAP gross margin was 58.6%.

• Subscription revenue mix reached 96% as of March 31, 2026.

• ARR increased 22% year-over-year to $494 million, with $71 million in backlog pending implementation.

• Adjusted EBITDA reached $22.3 million (17.7% margin), up from $12.1 million in Q1 2025.

• Free cash flow for Q1 2026 was $(7.4) million, a slight improvement from $(7.6) million in Q1 2025.

Outlook and guidance

• Q2 2026 revenue expected at $128–$129 million, with adjusted EBITDA of $17.9–$18.7 million.

• Full-year 2026 revenue guidance is $527.1–$530.9 million, adjusted EBITDA $94.9–$97.9 million.

• Non-GAAP gross margin expected at ~65% for 2026, with margin expansion to 19%+ in H2 and long-term target approaching 70% by 2030.

• Digital banking ARR churn for 2026 projected at less than 1%, below the long-term modeled range of 2–3%.

• Long-term model targets Rule of 45 by 2030, with annual adjusted EBITDA margin expansion of ~300 basis points.