Alkami (ALKT) Q4 2025 earnings summary

Executive summary

• Achieved Q4 2025 revenue of $120.8M, up 34.7% year-over-year, and full-year revenue of $443.6M, up 32.9%, driven by the MANTL acquisition, new client wins, user growth, and higher ARPU.

• Adjusted EBITDA more than doubled year-over-year to $19.1M in Q4 and $59.1M for the year, reflecting improved scale and operational efficiencies.

• Ended 2025 with 301 digital banking clients and 22.4M registered users, reflecting 11% and 12% annual growth, respectively.

• Annual recurring revenue (ARR) increased 35% to $480.3M, with subscription revenue comprising 95% of total revenue.

• MANTL acquisition accelerated performance, with record new client bookings and revenue activation.

Financial highlights

• Full-year revenue reached $443.6M, up 32.9% year-over-year; Q4 revenue was $120.8M, up 34.7%.

• Subscription revenue grew 32% for the year, representing 95% of total revenue.

• Adjusted EBITDA for the year was $59.1M (13.3% margin); Q4 Adjusted EBITDA was $19.1M (15.8% margin).

• ARR increased 35% to $480.3M; $71M of ARR in backlog pending implementation.

• Non-GAAP gross margin for the year was 64.1%, up 140 bps; Q4 margin was 63.4%.

• Free cash flow for 2025 was $34.2M, up from $10.7M in 2024.

Outlook and guidance

• Q1 2026 revenue expected at $124.7M–$125.7M; Adjusted EBITDA $21.1M–$21.9M.

• Full-year 2026 revenue guidance: $525.5M–$530.5M; Adjusted EBITDA $93.5M–$97.5M.

• Non-GAAP gross margin expected at ~65% for 2026; Adjusted EBITDA margin to exceed 19% in H2 2026.

• Long-term targets: Rule of 45 by 2030, non-GAAP gross margin approaching 70%, and 90% free cash flow conversion.