Alkami (ALKT) Q3 2025 earnings summary

Executive summary

• Achieved Q3 2025 revenue of $113.0 million, up 31.5%–32% year-over-year, driven by MANTL acquisition, new client wins, user growth, and higher ARPU.

• Adjusted EBITDA reached $16.0 million, nearly doubling from $8.3 million a year ago, with margin improvement.

• Net loss for Q3 2025 was $14.8 million, reflecting continued investment and integration costs.

• Record new client launches: 13 digital banking clients and 15 MANTL clients went live, with strong cross-sell momentum.

• Announced Cassandra Hudson as incoming CFO, succeeding Bryan Hill.

Financial highlights

• Subscription/SaaS revenue represented 95.5%–96% of total revenue, with Q3 revenue at $113.0 million.

• Annual Recurring Revenue (ARR) grew over 31% to $449 million; net dollar retention at 113%, churn below 1%.

• Registered users rose to 21.6 million, up 10.5%–11% year-over-year; RPU increased 18.8%–19% to $20.83.

• Non-GAAP gross margin for Q3 was 63.7%, up year-over-year; GAAP gross margin was 56.8%, down due to MANTL amortization.

• Operating expenses rose 26.2% year-over-year, driven by personnel and integration costs.

Outlook and guidance

• Q4 2025 revenue guidance: $119.6M–$121.1M; adjusted EBITDA: $16.1M–$17.1M.

• Full-year 2025 revenue guidance: $442.5M–$444M; adjusted EBITDA: $56M–$57M, raised by nearly $4M.

• Management expects continued growth from user expansion, new client wins, and deeper product adoption.

• Gross margin may fluctuate due to ongoing investments and integration.

• Existing cash and credit resources expected to support operations and growth for at least 12 months.