ALKAMI TECHNOLOGY, INC.
For the period ended Mar 31, 2026. Filed Apr 30, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed Apr 30, 2026
ALKT$13.41+0.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-10-31.
0001529274-25-000162
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-04-30.
0001529274-26-000032
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 167 previous paragraphs and 157 current paragraphs.
82 unchanged; 58 reworded; 15 added; 24 removed; 3 previous and 2 current paragraphs rearranged.
Tables are not compared: 9 previous and 9 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (15)
Current report
•risks and challenges associated with the development and use of AI technologies;
Current report
•our ability to meet certain operating and financial covenants and restrictions under our Amended Credit Agreement;
Current report
•risks from our accounting method of the 2030 Convertible Notes;
Current report
•the volatility of the trading price of our common stock;
Current report
•risks from actions of activist stockholders or others; and
Current report
•significant expenses and administrative burdens as a public company
Current report
Provision for (Benefit From) Income Taxes
Current report
(1)Stockholder matters related expenses consist primarily of legal, consulting, advisory fees, and other related costs to stockholder matters that are outside of the ordinary course of our business. We believe such expenses do not have a direct correlation to the operation of our business and may vary in size depending on timing, nature, and resolution of such stockholder matters.
Current report
Revenues increased by $28.3 million, or 28.9%, for the three months ended March 31, 2026 compared to the same period in 2025.
Current report
Sales and marketing expenses increased by $2.1 million, or 11.5%, for the three months ended March 31, 2026 compared to the same period in 2025. For the three months ended March 31, 2026, the increase was primarily due to a $2.8 million increase in personnel-related costs, resulting from headcount growth in our sales and marketing teams, partially offset by a decrease in costs related to the timing of industry conferences and trade shows of $1.1 million.
Current report
General and administrative expenses decreased by $0.9 million, or 3.2%, for the three months ended March 31, 2026, compared to the same period in 2025. For the three months ended March 31, 2026, the decrease was primarily due to lower acquisition-related expenses of $2.0 million and lower stock-based compensation expense of $1.4 million, partially offset by an increase in stockholder matters related expenses of $2.2 million.
Current report
Provision for (Benefit From) Income Taxes
Current report
Net Cash Used In Operating Activities
Current report
Share Repurchase Program
Current report
On April 23, 2026, the Board authorized a share repurchase program to repurchase up to $100 million of the Company’s common stock. Repurchases under the program may be made from time to time, at management’s discretion, using a variety of methods, including open market purchases, privately negotiated transactions, and other means all in accordance with federal securities laws and other applicable legal requirements, including pursuant to one or more Rule 10b5-1 trading plans. The timing and size of any repurchases will be determined by management based on prevailing share prices, general economic and market conditions, the Company’s liquidity and capital needs, and other factors deemed relevant. The share repurchase program does not obligate the Company to repurchase any specific number of shares and may be modified, suspended, or terminated at any time at the discretion of the Board of Directors. The Company’s capital allocation strategy focuses on driving growth through acquisitions, deleveraging the balance sheet and now, enhancing stockholder value through opportunistic share repurchases.
Removed paragraphs (24)
Previous report
•our limited operating history, our history of operating losses and our ability to use our net operating loss carryforwards;
Previous report
•loss of emerging growth company status;
Previous report
Recent Developments
Previous report
Merger with MANTL. On March 17, 2025, the Company consummated its previously announced merger with MANTL, pursuant to an Agreement and Plan of Merger (the "Merger Agreement"), dated February 27, 2025, with MANTL surviving as a wholly owned subsidiary of the Company. MANTL provides onboarding and account opening solutions that allow financial institutions to acquire commercial, business and retail customers through a variety of channels for many deposit account types. The aggregate consideration paid in exchange for all of the outstanding equity interests of MANTL was approximately $375 million, net of cash acquired. Approximately $9.1 million of the consideration was placed into escrow to secure certain post-closing indemnification obligations in the Merger Agreement. See Note 3 to the Notes to the Unaudited Condensed Consolidated Financial Statements for additional details.
Previous report
Third Amendment to Amended and Restated Credit Agreement. In connection with the acquisition of MANTL, on February 27, 2025, the Company entered into a Third Amendment (the “Third Amendment”) to its Amended and Restated Credit Agreement dated as of April 29, 2022 (as amended, the “Amended Credit Agreement”), which, among other things, extended the maturity date of the Revolving Facility, increased the amount of the Revolving Facility commitment, extended the Financial Covenant Trigger Date (as defined therein), reduced the applicable interest rate margins, permitted the acquisition of MANTL pursuant to the terms of the Merger Agreement, permitted certain convertible indebtedness and equity derivative transactions, subject to certain restrictions, and modified certain covenants. See Note 8 to the Notes to the Unaudited Condensed Consolidated Financial Statements for additional information.
Previous report
Issuance of Convertible Senior Notes. On March 13, 2025, the Company issued $345 million principal amount of its 1.50% Convertible Senior Notes due 2030 (the “2030 Convertible Notes” or “Notes”). The Notes were issued pursuant to, and are governed by, an indenture (the “Indenture”), dated as of March 13, 2025, between the Company and U.S. Bank Trust Company, National Association, as trustee (the “Trustee”). Pursuant to the purchase agreement between the Company and the representatives of the initial purchasers of the Notes, the Company granted the initial purchasers an option to purchase, for settlement within a period of 13 days from, and including, the date the Notes are first issued, up to an additional $45 million principal amount of Notes. The Notes issued on March 13, 2025 include $45 million principal amount of Notes issued pursuant to the full exercise by the initial purchasers of such option. See Note 8 to the Notes to the Unaudited Condensed Consolidated Financial Statements.
Previous report
Acquisition-Related Expenses. Acquisition-related expenses are primarily related to legal, consulting and professional fees.
Previous report
Loss on Impairment of Intangible Assets. Loss on impairment of intangible assets related to the impact of the acquisition of MANTL to certain historical developed technology, customer relationships and capitalized developed software assets.
Previous report
(Benefit from) Provision for Income Taxes
Previous report
(1)Pursuant to the requirements of the Fourth Amended and Restated Investors’ Rights Agreement, dated as of September 24, 2020, by and among the Company and the investors listed therein, the Company incurred secondary offering costs on behalf of the selling stockholders related to an underwritten secondary offering that closed on August 12, 2024.
Previous report
Revenues increased $27.0 million, or 31.5%, and $78.7 million, or 32.2%, for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024.
Previous report
The increase of $78.7 million for the nine months ended September 30, 2025 was primarily due to user growth on our digital banking platform from both existing client digital user growth and new client implementations, selling additional solutions to existing clients resulting in increased RPU, and higher termination fees from customers leaving our digital banking platform due to mergers and acquisitions. Our existing clients added 1.4 million digital users and we implemented 32 new clients onto our platform representing 0.9 million digital users. In addition, the revenue contribution from the MANTL acquisition was $22.7 million for the nine months ended September 30, 2025.
Previous report
The increase in cost of revenues for the nine months ended September 30, 2025, was primarily driven by $15.8 million in higher costs of our third-party partners where we resell their solutions as part of the digital platform, a $9.1 million increase in personnel-related costs (which includes stock-based compensation of $2.5 million, of which $1.0 million was related to certain unvested equity awards settled in cash in conjunction with the acquisition of MANTL), a $7.7 million increase in amortization of intangible assets, primarily related to the acquisition of MANTL, $1.2 million in higher hosting costs, and higher net other miscellaneous costs of $0.8 million.
Previous report
For the nine months ended September 30, 2025, the increase was primarily due to a $13.8 million increase in personnel-related costs (which includes stock-based compensation of $3.8 million, of which $1.0 million was related to certain unvested equity awards settled in cash in conjunction with the acquisition of MANTL), resulting from headcount growth in our engineering, information technology and product teams dedicated to platform enhancements and innovation, $1.2 million in higher hosting costs, $1.0 million in higher costs for consulting, and $0.8 million in higher various other net costs. These expenses were partially offset by an increase of $0.5 million in capitalized development costs.
Previous report
Sales and marketing expenses increased $4.9 million, or 34.2%, and $15.0 million or 33.2%, for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024. For the three months ended September 30, 2025, the increase was primarily due to a $4.2 million increase in personnel-related costs (which includes stock-based compensation of $1.2 million), resulting from headcount growth in our sales and marketing teams. In addition, we incurred $0.4 million in higher consulting costs and $0.3 million in higher net other miscellaneous costs.
Previous report
For the nine months ended September 30, 2025, the increase was primarily due to a $12.2 million increase in personnel-related costs (which includes stock-based compensation of $3.3 million, of which $0.3 million was related to certain unvested equity awards settled in cash in conjunction with the acquisition of MANTL), resulting from headcount growth in our sales and marketing teams. In addition, we incurred $0.9 million in higher consulting costs, $0.8 million in higher costs related to industry conferences and trade shows, including enhanced client experiences at our in-person client conference, Co:lab, $0.5 million higher travel costs for the sales team, and $0.6 million in higher net other miscellaneous costs.
Previous report
General and administrative expenses increased by $3.5 million, or 15.8%, and $13.4 million, or 21.6%, for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024. For the three months ended September 30, 2025, the increase was primarily due to a $3.7 million increase in personnel-related costs (which includes stock-based compensation of $2.3 million), $0.3 million in higher audit and consulting costs and $0.3 million of higher software costs. These expenses were partially offset by a $0.8 million decrease in costs associated with secondary offerings, as no such offering occurred in the current period.
Previous report
For the nine months ended September 30, 2025, the increase was primarily due to a $11.6 million increase in personnel-related costs (which includes stock-based compensation of $6.8 million, of which $1.6 million was related to certain unvested equity awards settled in cash in conjunction with the acquisition of MANTL), $1.1 million in higher software costs, $0.9 million in higher audit and consulting costs and $0.3 million in higher net other miscellaneous costs. These expenses were partially offset by a decrease of $0.5 million in insurance costs.
Previous report
Acquisition-Related Expenses
Previous report
Acquisition-related expenses were $0.2 million and $3.1 million for the three and nine months ended September 30, 2025, respectively, primarily related to insurance, legal, consulting, and professional fees incurred for the acquisition of MANTL.
Previous report
Loss on impairment of intangible assets was $1.7 million for the nine months ended September 30, 2025, related to impairment of certain historical developed technology intangible assets, customer relationship intangible assets, and capitalized developed software assets (included in property and equipment, net on the condensed consolidated balance sheets) as a result of the acquisition of MANTL.
Previous report
(Benefit from) Provision for Income Taxes
Previous report
The acquisition of MANTL resulted in the recognition of a net deferred tax liability of $12.6 million. See Note 3 of the Notes to the Unaudited Condensed Consolidated Financial Statements for further information. Prior to the business combination, MANTL had a full valuation allowance on its net deferred tax assets. The net deferred tax liability generated from the business combination is considered an additional source of income to support the realizability of the Company’s pre-existing deferred tax assets. As a result, the Company released a portion of the pre-existing valuation allowance against the deferred tax assets and recorded a provisional deferred tax benefit of $12.0 million.
Previous report
Net Cash Provided by Operating Activities
Reworded paragraphs (58)
Previous wording
•the unpredictable and time-consuming nature of our sales cycles;
Current wording
•the unpredictable, time-consuming and costly nature of our sales cycles;
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•privacy and data security concerns, laws, regulations and standards and our processing and use of the PI of end users;
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•privacy and data security concerns, data collection and transfer restrictions, contractual obligations, laws, regulations and standards and our processing and use of the PI of end users;
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•regulations and laws applicable to us, our clients and our solutions, including the impact of tariff and trade policies on us and our clients;
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•regulations and laws applicable to us, our clients and our solutions, including the impact of tariffs and trade policies on us and our clients;
Previous wording
•our ability to raise sufficient capital and the resulting dilution and the terms of our Amended Credit Agreement (as defined below);
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•our ability to raise sufficient capital in a timely manner and the resulting dilution and the terms of our Amended Credit Agreement (as defined below);
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•our ability to raise necessary funds to repurchase the 2030 Convertible Notes (as defined below) or to pay any cash amounts due upon their maturity or conversion;
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•our ability to raise necessary funds to repurchase the 2030 Convertible Notes (as defined below) or to pay any cash amounts due upon their maturity or conversion of the 2030 Convertible Notes and dilution to our common stock upon the conversion of the 2030 Convertible Notes;
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•future sales of shares of our common stock, our lack of an intention to pay dividends and significant influence of our principal stockholders; and
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•future sales of shares of our common stock, our lack of an intention to pay dividends and significant influence of our principal stockholders;
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•anti-takeover and exclusive forum provisions in our governing documents.
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•provisions in the Indenture (as defined below) delaying or preventing beneficial takeover and anti-takeover and exclusive forum provisions in our governing documents;
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Alkami is a cloud-based digital sales and service platform provider. We inspire and empower community, regional and super-regional financial institutions (“FIs”) to compete with large, technologically advanced and well-resourced banks in the United States. Our solution, the Alkami Digital Sales and Service Platform, allows FIs to onboard and engage new users, accelerate revenues and meaningfully improve operational efficiency, all with the support of a proprietary, true cloud-based, multi-tenant architecture. We cultivate deep relationships with our clients through long-term, subscription-based contractual arrangements, aligning our growth with our clients’ success and generating an attractive unit economic model.
Current wording
Alkami is a cloud-based digital sales and service platform provider. We inspire and empower community, regional and super-regional financial institutions (“FIs”) to compete with large, technologically advanced and well-resourced banks in the United States. Our solution, the Alkami Digital Sales & Service Platform, consisting of the Alkami Digital Banking Platform (“Platform”), Onboarding & Account Opening, and Data & Marketing, allows FIs to onboard, engage and grow new users, accelerate revenues and meaningfully improve operational efficiency, all with the support of a proprietary, true cloud-based, multi-tenant architecture. We cultivate deep relationships with our clients through long-term, subscription-based contractual arrangements, aligning our growth with our clients’ success and generating an attractive unit economic model.
Previous wording
Alkami was founded to help level the playing field for FIs. Since then, our vision has been to create a platform that combines premium technology and fintech solutions in one integrated ecosystem, delivered as a software-as-a-service (“SaaS”) solution and providing our clients’ customers with a single point of access to all things digital. We have invested significant resources to build a technology stack that prioritized innovation velocity and speed-to-market given the importance of product depth and functionality in winning and retaining clients. In October 2020, we acquired ACH Alert, LLC (“ACH Alert”) to pursue adjacent product opportunities, such as fraud prevention and to expand our addressable market. In September 2021, we acquired MK Decisioning Systems, LLC (“MK”), a technology platform for onboarding and account opening, credit card and loan origination solutions. In April 2022, we acquired Segmint, Inc. (“Segmint”), a leading cloud-based financial data analytics and transaction data cleansing provider. In March 2025, we acquired Fin Technologies, Inc., dba MANTL (“MANTL”), an onboarding and account opening solutions provider that allow financial institutions to acquire commercial, business and retail customers through a variety of channels for many deposit account types.
Current wording
Alkami was founded to help level the playing field for FIs. Since then, our vision has been to create a platform that combines premium technology and fintech solutions in one integrated ecosystem, delivered as a software-as-a-service (“SaaS”) solution and providing our clients’ account holders with a single point of access to all things digital. We have invested significant resources to build a technology stack that prioritized innovation velocity and speed-to-market given the importance of product depth and functionality in winning and retaining clients. In October 2020, we acquired ACH Alert, LLC (“ACH Alert”) to pursue adjacent product opportunities, such as fraud prevention and to expand our addressable market. In April 2022, we acquired Segmint, Inc. (“Segmint”), a leading cloud-based financial data analytics and transaction data cleansing provider. In March 2025, we acquired Fin Technologies, Inc., dba MANTL (“MANTL”), to provide onboarding, account opening, and loan origination solutions that allow FIs to acquire commercial, business and retail customers through a variety of channels for deposit account and loan types.
Previous wording
During 2024, we established a new subsidiary in India to support potential future operational needs. As of September 30, 2025, this entity had immaterial operations and did not have a significant impact on our consolidated financial results. We will continue to assess the impact of this entity as operations evolve.
Current wording
During 2024, we established a new subsidiary in India to support potential future operational needs. While our presence in India has grown since 2024, these operations remain immaterial to our Condensed Consolidated Financial Statements as of March 31, 2026.
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Our domain expertise in retail and business banking has enabled us to develop a suite of products tailored to address key challenges faced by FIs. Due to our architecture, adding products through our single code base is fast, simple and cost-effective. The key differentiators of the Alkami Digital Sales and Service Platform include:
Current wording
Our domain expertise in retail and business banking has enabled us to develop a suite of products tailored to address key challenges faced by FIs. Due to our architecture, adding products through our single code base is fast, simple and cost-effective. The key differentiators of the Alkami Digital Sales & Service Platform include:
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•User experience: Personalized and seamless digital experience across user interaction points, including desktop, mobile, chat and SMS, establishing durable connections between FIs and their customers.
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•User experience: Personalized and seamless digital experience across user interaction points, including desktop, mobile, chat and SMS, establishing durable connections between FIs and their customers or members.
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•Integrations: Scalability and extensibility driven by more than 300 real-time integrations to back-office systems and third-party fintech solutions as of September 30, 2025, including core systems, payment cards, mortgages, bill pay, electronic documents, money movement, personal financial management and account opening.
Current wording
•Integrations: Scalability and extensibility driven by more than 350 real-time integrations to back-office systems and third-party fintech solutions as of March 31, 2026, including core systems, payment cards, mortgages, bill pay, electronic documents, money movement, personal financial management and account opening.
Previous wording
The Alkami Digital Sales and Service Platform offers an end-to-end set of digital banking products. Our typical relationship with an FI begins with a set of core functional components, which can extend over time to include a rounded suite of products across account opening, marketing, data insights, card experience, money movement, customer service, business banking, financial wellness, security and fraud protection and extensibility.
Current wording
The Platform allows us to offer an end-to-end set of software solutions. Our typical relationship with an FI begins with a set of core digital banking functional components, which can expand over time to include a rounded suite of products across onboarding and account opening, marketing, data insights, account management, payments and receivables, admin, risk and reporting, business and commercial banking, retail banking, financial analytics, and extensibility.
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We primarily go to market through an internal sales force. Given the long-term nature of our Alkami Digital Sales and Service Platform contracts, a typical sales cycle can range from approximately three to 12 months, with the subsequent implementation timeframe generally ranging from six to 12 months depending on the depth of integration.
Current wording
We primarily go to market through an internal sales force. Given the long-term nature of our Platform contracts, a typical sales cycle can range from approximately three to 12 months, with the subsequent implementation timeframe generally ranging from six to 12 months depending on the depth of integration.
Previous wording
We derive our Alkami Digital Sales and Service Platform revenues almost entirely from multi-year contracts that are based on an average contract life of approximately 70 months as of September 30, 2025. We predominantly employ a per-registered-user pricing model, with incremental fees above certain contractual client minimum commitments for each licensed solution. In these cases, our pricing is tiered, with per-registered-user discounts applied as clients achieve higher levels of customer penetration, incentivizing our clients to internally market and promote digital engagement.
Current wording
We derive our Platform revenues almost entirely from multi-year contracts that are based on an average contract life of approximately 70 months as of March 31, 2026. We predominantly employ a per-registered-user pricing model, with incremental fees above certain contractual client minimum commitments for each licensed solution. In these cases, our pricing is tiered, with per-registered-user discounts applied as clients achieve higher levels of customer or member penetration, incentivizing our clients to internally market and promote digital engagement.
Previous wording
For the three months ended September 30, 2025 and 2024, our total revenues were $113.0 million and $85.9 million, respectively, representing a 31.5% increase period-over-period. For the nine months ended September 30, 2025 and 2024, our total revenues were $322.8 million and $244.2 million, respectively, representing an increase of 32.2% period-over-period. SaaS subscription revenues, as further described below, represented 95.5% and 94.9% of total revenues for the three and nine months ended September 30, 2025, respectively, and 95.5% and 95.6% of total revenues for the three and nine months ended September 30, 2024, respectively. We incurred net losses of $14.8 million and $36.2 million for the three and nine months ended September 30, 2025, respectively, and net losses of $9.4 million and $33.2 million for the three and nine months ended September 30, 2024, respectively, largely on the basis of significant continued investment in sales, marketing, product development and post-sales client activities.
Current wording
For the three months ended March 31, 2026 and 2025, our total revenues were $126.1 million and $97.8 million, respectively, representing a 28.9% increase period-over-period. SaaS subscription revenues, as further described below, represented 95.8% and 94.9% of total revenues for the three months ended March 31, 2026 and 2025, respectively. We incurred net losses of $10.0 million and $7.8 million for the three months ended March 31, 2026 and 2025, respectively, largely on the basis of significant continued investment in sales, marketing, product development and post-sales client activities.
Previous wording
Growing our FI Client Base. A key part of our strategy is to grow our FI client base. As of September 30, 2025, we served 291 FIs through the Alkami Digital Sales and Service Platform and more than 1,000 clients when including unique clients only subscribing to one or a combination of ACH Alert, Segmint, or MANTL products. Each of our digital sales and service platform client wins is a competitive takeaway, and as such, our historical ability to grow our client base has been a function of product depth, technological excellence and a sales and marketing function able to match our solutions with the strategic objectives of our clients. Our future success will significantly depend on our ability to continue to grow our FI client base through competitive wins.
Current wording
Growing our FI Client Base. A key part of our strategy is to grow our FI client base. As of March 31, 2026, we served 307 FIs through the Platform and 1000 clients when including unique clients only subscribing to one or a combination of ACH Alert, Segmint, or MANTL products. Each of our digital banking client wins is a competitive takeaway, and as such, our historical ability to grow our client base has been a function of product depth, technological excellence and a sales and marketing function able to match our solutions with the strategic objectives of our clients. Our future success will significantly depend on our ability to continue to grow our FI client base through competitive wins.
Previous wording
Deepening Client Customer Penetration. We primarily generate revenues through a per-registered-user pricing model. Once we onboard a client, our ability to help drive incremental client customer digital adoption translates to additional revenues with very limited additional spend. Our FI clients are incentivized to market and encourage digital account sign-up based on identifiable improvement in customer engagement, as well as discounts received based on certain levels of customer penetration. We expect to continue to support digital adoption by client customers through continued investments in new products and platform enhancements. Our future success will depend on our ability to continue to deepen client customer penetration.
Current wording
Deepening Client Customer or Member Penetration. We primarily generate revenues through a per-registered-user pricing model. Once we onboard a client, our ability to help drive incremental client customer or member digital adoption translates to additional revenues with very limited additional spend. Our FI clients are incentivized to market and encourage digital account sign-up based on identifiable improvement in customer engagement, as well as discounts received based on certain levels of customer or member penetration. We expect to continue to support digital adoption by client customers or members through continued investments in new products and platform enhancements. Our future success will depend on our ability to continue to deepen client customer or member penetration.
Previous wording
Expanding our Product Suite. Product depth is a key determinant in winning new clients. In a replacement market, we win based on our ability to bring a product suite to market that is superior to the incumbent, as well as to our broader competition. Of equal importance is the ability to cohesively deliver a deep product suite with as little friction as possible to the client customer. The depth of our product suite is a function of technology and platform partnerships. Our platform model with more than 300 integrations as of September 30, 2025 enables us to deliver thousands of configurations aligned with the digital platform strategies adopted by our clients. We expect our future success in winning new clients to be partially driven by our ability to continue to develop and deliver new, innovative products to FI clients in a timely manner. Furthermore, expanding our product suite expands our Revenue per Registered User (“RPU”) potential. For additional information regarding RPU, see “Key Business Metrics.”
Current wording
Expanding our Product Suite. Product depth is a key determinant in winning new clients. In a replacement market, we win based on our ability to bring a product suite to market that is superior to the incumbent, as well as to our broader competition. Of equal importance is the ability to cohesively deliver a deep product suite with as little friction as possible to the client customer or member. The depth of our product suite is a function of technology and platform partnerships. Our platform model with more than 350 integrations as of March 31, 2026 enables us to deliver thousands of configurations aligned with the digital platform strategies adopted by our clients. We expect our future success in winning new clients to be partially driven by our ability to continue to develop and deliver new, innovative products to FI clients in a timely manner. Furthermore, expanding our product suite expands our Revenue per Registered User (“RPU”) potential. For additional information regarding RPU, see “Key Business Metrics.”
Previous wording
Client Renewals. Our model and the stability of our revenue base is, in part, driven by our ability to renew our clients. In addition to extending existing relationships, renewals provide an opportunity to grow minimum contract value, as over the course of a contract term our clients often grow, or their needs evolve. Client renewals are also an important lever in driving our long-term gross margin targets, as we generally achieve approximately 70% gross margin upon renewal. We had 6 and 16 client renewals for the three and nine months ended September 30, 2025, respectively. We expect client renewals to continue to play a key role in our future success.
Current wording
Client Renewals. Our model and the stability of our revenue base is, in part, driven by our ability to renew our clients. In addition to extending existing relationships, renewals provide an opportunity to grow minimum contract value, as over the course of a contract term our clients often grow, or their needs evolve. Client renewals are also an important lever in driving our long-term gross margin targets, as we generally achieve approximately 70% gross margin upon renewal. We had 4 client renewals in the three months ended March 31, 2026. We expect client renewals to continue to play a key role in our future success.
Previous wording
Continued Leadership in Innovation. Our ability to maintain a differentiated platform and offering is dependent upon our pace of innovation. Our single code base, built on a multi-tenant infrastructure and combined with continuous software delivery enables us to bring new, innovative products to market quickly and positions us with what we believe is market-leading breadth in terms of product offerings and feature sets. We remain committed to investing in our platform, notably through our research and development spend, which was 26.6% and 27.0% of our revenues for the three and nine months ended September 30, 2025, respectively. Our future success will depend on our continued leadership in innovation.
Current wording
Continued Leadership in Innovation. Our ability to maintain a differentiated platform and offering is dependent upon our pace of innovation. Our single code base, built on a multi-tenant infrastructure and combined with continuous software delivery enables us to bring new, innovative products to market quickly and positions us with what we believe is market-leading breadth in terms of product offerings and feature sets. We remain committed to investing in our platform, notably through our research and development spend, which was 24.6% and 27.5% of our revenues for the three months ended March 31, 2026 and 2025, respectively. Our future success will depend on our continued leadership in innovation.
Previous wording
Our client relationships are predominantly based on multi-year contracts for the Alkami Digital Sales and Service Platform that have had an average contract life of approximately 70 months as of September 30, 2025. We derive the majority of our revenues from SaaS subscription services charged for the use of our digital sales and service platform. Subscription services are recognized over time on a ratable basis over the client agreement term beginning on the date our solution is made available to our client. The promised consideration may include fixed or variable amounts and termination fees for clients leaving our digital sales and service platform. For our clients with enterprise license contracts, they are invoiced on an agreed upon monthly rate throughout the contract term, which may include fixed monthly or annual rate escalations. Fixed dollar or percentage escalations that are not based on registered users are considered part of the fixed transaction price and recognized on a straight-line basis over the SaaS subscription period evenly. The majority of our client contracts are based on registered users, which we invoice monthly a contractual minimum fee for each licensed solution. In addition, we invoice monthly an additional subscription fee for the number of registered users using each solution and the number of bill-pay and certain other transactions those registered users conduct through our digital banking platform in excess of their contractual client minimum commitments. Our pricing is tiered, with per-registered-user discounts applied as clients achieve higher levels of customer penetration, incentivizing our clients to internally market our products and promote digital engagement. Variable consideration earned for subscription fees in excess of contractual minimums is recognized as revenues in the month of actual usage. SaaS subscription services also include annual and monthly charges for maintenance and support services, which are recognized on a straight-line basis over the contract term.
Current wording
We derive substantially all of our revenues from SaaS subscription services charged for the use of our digital sales and service solution. Our client relationships are predominantly based on multi-year contracts for the Platform that have had an average contract life of approximately 70 months as of March 31, 2026. Subscription services are recognized over time on a ratable basis over the client agreement term beginning on the date our solution is made available to our client. The promised consideration may include fixed or variable amounts. Our clients with enterprise license contracts are invoiced on an agreed upon monthly rate throughout the contract term, which may include fixed monthly or annual rate escalations. Fixed dollar or percentage escalations that are not based on registered users are considered part of the fixed transaction price and recognized on a straight-line basis over the SaaS subscription period evenly. The majority of our client contracts are based on registered users, for which clients are invoiced a monthly contractual minimum fee for each licensed solution. In addition, to the extent clients exceed their contractual minimum commitments, we invoice a monthly subscription fee based on (i) the number of registered users on each licensed solution and (ii) the number of bill-pay and certain other transactions conducted through our Platform. Our pricing is tiered, with per-registered-user discounts applied as clients achieve higher levels of customer or member penetration, incentivizing our clients to internally market our products and promote digital engagement. Variable consideration earned for subscription fees in excess of contractual minimums is recognized as revenues in the month of actual usage. SaaS subscription services also include annual and monthly charges for maintenance and support services, which are recognized on a straight-line basis over the contract term.
Previous wording
We receive implementation and other upfront fees for the implementation, configuration and integration of our digital sales and service platform. We typically invoice these services as a fixed price per contract. These fees are not distinct from the underlying licensed SaaS subscription services. As a result, we recognize the resulting revenues on a straight-line basis over the client’s initial agreement term for our licensed SaaS solutions, commencing upon launch.
Current wording
We receive implementation and other upfront fees for the implementation, configuration and integration of our Platform. We typically invoice these services as a fixed price per contract. These fees are not distinct from the underlying licensed SaaS subscription services. As a result, we recognize the resulting revenues on a straight-line basis over the client’s initial agreement term for our licensed SaaS solutions, commencing upon launch.
Previous wording
The following table disaggregates our revenues for the three and nine months ended September 30, 2025 and 2024 by major source:
Current wording
The following table disaggregates our revenues for the three months ended March 31, 2026 and 2025 by major source:
Previous wording
Cost of revenues is comprised primarily of salaries and other personnel-related costs, including employee benefits, bonuses, stock-based compensation, travel and related costs for employees supporting our SaaS subscription, implementation and other services. This includes the costs of our implementation, client support and development personnel responsible for maintaining and releasing updates to our platform, as well as third-party cloud-based hosting services. Cost of revenues also includes the direct costs of bill-pay services and other third-party intellectual property included in our solutions, depreciation, and the amortization of acquired technology.
Current wording
Cost of revenues is comprised primarily of salaries and other personnel-related costs, including employee benefits, bonuses, stock-based compensation, travel, and related costs for employees supporting SaaS subscription, implementation and other services. This includes the costs of our implementation, client support, development personnel responsible for maintaining and releasing updates to our Platform, as well as third-party cloud-based hosting services. Cost of revenues also includes the direct costs of bill-pay services and other third-party intellectual property included in our solutions, the amortization of acquired technology, the amortization of capitalized internal use software, and depreciation.
Previous wording
We capitalize certain personnel costs directly related to the implementation of our solutions to the extent those costs are recoverable from future revenues. These costs are deferred and amortization begins when our solution is made available to our client. The amortization period is typically five to seven years, which represents the expected period of client benefit. Other costs not directly recoverable from future revenues are expensed in the period incurred.
Current wording
We capitalize certain personnel costs directly related to the implementation of our solutions to the extent those costs are recoverable from future revenues. We amortize the costs for an implementation once revenue recognition commences. The amortization period is typically five to seven years, which represents the expected period of client benefit. Other costs not directly recoverable from future revenues are expensed in the period incurred.
Previous wording
We intend to continue to increase our investments in our implementation, client support teams and technology infrastructure to serve our clients and support our growth. We expect cost of revenues to continue to grow in absolute dollars as we grow our business, but to vary as a percentage of revenues from period to period as a function of the utilization of implementation and support personnel and the extent to which we recognize fees from bill-pay services and other third-party functionality integrated into our solutions. Our gross margin for the three and nine months ended September 30, 2025 was 56.8% and 58.1%, respectively, and 58.9% and 58.7% for the three and nine months ended September 30, 2024, respectively.
Current wording
We intend to continue to increase our investments in our implementation, client support teams and technology infrastructure to serve our clients and support our growth. We expect cost of revenues to continue to grow in absolute dollars as we grow our business, but to vary as a percentage of revenues from period to period as a function of the efficiency and utilization of implementation and support personnel and the extent to which we recognize fees from bill-pay services and other third-party functionality integrated into our solutions. Our gross margin for the three months ended March 31, 2026 and 2025 was 58.6% and 59.0%, respectively.
Previous wording
The major components of cost of revenues are represented in the following table as percentages of revenues for the three and nine months ended September 30, 2025 and 2024, respectively:
Current wording
The major components of cost of revenues are represented in the following table as percentages of revenues for the three months ended March 31, 2026 and 2025, respectively:
Previous wording
Research and Development. Research and development costs consist primarily of personnel-related costs for our engineering, information technology and product employees, including salaries, bonuses, other incentive-related compensation, employee benefits and stock-based compensation. In addition, we also include third-party contractor expenses, software development and testing tools, allocated corporate expenses and other expenses related to developing new solutions and upgrading and enhancing existing solutions. We expect research and development costs to increase as we expand our platform with new features and functionality, as well as enhance the existing Alkami Digital Sales and Service Platform.
Current wording
Research and Development. Research and development costs consist primarily of personnel-related costs for our engineering, information technology and product employees, including salaries, bonuses, other incentive-related compensation, employee benefits and stock-based compensation. In addition, we also include third-party contractor expenses, software development and testing tools, allocated corporate expenses and other expenses related to developing new solutions and upgrading and enhancing existing solutions. We expect research and development costs to increase as we expand our platform with new features and functionality, as well as enhance the existing Alkami Digital Sales & Service Platform.
Previous wording
General and Administrative. General and administrative expenses consist primarily of personnel-related costs for our executive, finance, legal, human resources, information technology, security and compliance and other administrative employees, including salaries, bonuses, commissions, other incentive-related compensation, employee benefits and stock-based compensation. General and administrative expenses also include accounting, auditing and legal professional services fees, secondary offering costs, travel and other unallocated corporate-related expenses, such as the cost of our facilities, employee relations, corporate telecommunication and software. We expect that general and administrative expenses will continue to increase as we scale our business and as we incur costs associated with being a publicly traded company, including legal, audit, business insurance and consulting fees.
Current wording
General and Administrative. General and administrative expenses consist primarily of personnel-related costs for our executive, finance, legal, human resources, information technology, security and compliance and other administrative employees, including salaries, bonuses, commissions, other incentive-related compensation, employee benefits and stock-based compensation. General and administrative expenses also include accounting, auditing and legal professional services fees, acquisition-related expenses, loss on impairment of intangible assets, secondary offering related expenses, stockholder matters related expenses, travel and other unallocated corporate-related expenses, such as the cost of our facilities, employee relations, corporate telecommunication and software. We expect that general and administrative expenses will continue to increase as we scale our business and as we incur costs associated with being a publicly traded company, including legal, audit, business insurance and consulting fees. However, we expect that general and administrative expenses will decrease as a percentage of revenue over the long term.
Previous wording
Non-operating income (expense) consists primarily of interest income from our cash balances, interest expense from borrowings under our Revolving Facility (as defined below) and 2030 Convertible Notes, amortization of debt discount and deferred debt costs, unrealized gains or losses on marketable securities and realized gains on sales of marketable securities.
Current wording
Non-operating income (expense) consists primarily of interest income from our cash balances, interest expense from borrowings under our Revolving Facility and 2030 Convertible Notes, amortization of debt discount and deferred debt costs, unrealized gains or losses on marketable securities and realized gains on sales of marketable securities.
Previous wording
Our effective tax rate differs from the statutory tax rate primarily due to the impact of the valuation allowance against our deferred tax assets and state tax expense. As a result of our valuation allowance, (benefit from) provision for income taxes consists primarily of state income taxes and deferred taxes related to the tax amortization of acquired goodwill, offset by a deferred tax benefit attributable to the partial release of the Company’s pre-existing valuation allowance related to the MANTL business combination. See Notes 3 and 10 of the Notes to the Unaudited Condensed Consolidated Financial Statements for further information.
Current wording
As a result of our valuation allowance, provision for (benefit from) income taxes consists primarily of current state income taxes, current foreign income taxes, and deferred taxes related to the tax amortization of acquired goodwill, offset by a deferred tax benefit attributable to the partial release of the Company’s pre-existing valuation allowance related to the MANTL business combination. See Notes 3 and 10 of the Notes to the Unaudited Condensed Consolidated Financial Statements for further information.
Previous wording
The results of operations presented below should be reviewed in conjunction with the condensed consolidated financial statements and notes included elsewhere in this filing. The financial results of MANTL, for the period of March 18, 2025 through September 30, 2025, are included in the Company’s condensed consolidated financial statements and notes. The following table presents our selected condensed consolidated statements of operations data for the three and nine months ended September 30, 2025 and 2024.
Current wording
The results of operations presented below should be reviewed in conjunction with the Condensed Consolidated Financial Statements and notes included elsewhere in this filing. The following table presents our selected Condensed Consolidated Statements of Operations data for the three months ended March 31, 2026 and 2025.
Previous wording
(1) Includes amortization of acquired technology of $4.9 million and $1.3 million for the three months ended September 30, 2025 and 2024, respectively, and $11.7 million and $4.0 million for the nine months ended September 30, 2025 and 2024, respectively.
Current wording
(1) Includes amortization of acquired technology of $4.9 million and $1.9 million for the three months ended March 31, 2026 and 2025, respectively.
Previous wording
Adjusted EBITDA. Adjusted EBITDA is a non-GAAP financial measure and should not be considered an alternative to GAAP net loss as a measure of operating performance or as a measure of liquidity. We define adjusted EBITDA as net loss before (benefit from) provision for income taxes; interest expense (income), net; depreciation and amortization; stock-based compensation expense; secondary offering costs; acquisition-related expenses; and loss on impairment of intangible assets. We believe adjusted EBITDA provides investors and other users of our financial information consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations.
Current wording
Adjusted EBITDA. Adjusted EBITDA is a non-GAAP financial measure and should not be considered an alternative to GAAP net loss as a measure of operating performance or as a measure of liquidity. We define adjusted EBITDA as net loss before provision for (benefit from) income taxes; interest expense (income), net; depreciation and amortization; stock-based compensation expense; acquisition-related expenses; loss on impairment of intangible assets; and stockholder matters related expenses. We believe adjusted EBITDA provides investors and other users of our financial information consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations.
Previous wording
Comparison of Three and Nine Months ended September 30, 2025 and 2024
Current wording
Comparison of Three Months Ended March 31, 2026 and 2025
Previous wording
The increase of $27.0 million in revenues for the three months ended September 30, 2025 was primarily due to user growth on our digital banking platform from both existing client digital user growth and new client implementations, selling additional solutions to existing clients resulting in increased RPU, and higher termination fees from customers leaving our digital banking platform due to mergers and acquisitions. The revenue contribution from the MANTL acquisition was $11.0 million for the three months ended September 30, 2025.
Current wording
The increase of $28.3 million in revenues for the three months ended March 31, 2026 was primarily due to user growth on our Platform from both existing client digital user growth and new client implementations and selling additional solutions to existing clients resulting in increased RPU. The revenue contribution from the MANTL acquisition was $14.9 million for the three months ended March 31, 2026.
Previous wording
Cost of revenues increased $13.5 million, or 38.3%, and $34.6 million, or 34.3%, for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024. Our gross margin for the three and nine months ended September 30, 2025 was 56.8% and 58.1%, respectively, and 58.9% and 58.7% for the three and nine months ended September 30, 2024, respectively. The driver for the decrease in gross margin for the three and nine months ended September 30, 2025 compared to the same periods in 2024 is primarily related to the increased amortization of intangible assets included in cost of revenues due to the acquisition of MANTL.
Current wording
Cost of revenues increased by $12.2 million, or 30.4%, for the three months ended March 31, 2026 compared to the same period in 2025. Our gross margin for the three months ended March 31, 2026 was 58.6%, and was 59.0% for the three months ended March 31, 2025. The driver for the decrease in gross margin for the three months ended March 31, 2026 compared to the same period in 2025 is primarily related to the increased amortization of intangible assets included in cost of revenues due to the acquisition of MANTL.
Previous wording
The increase in cost of revenues for the three months ended September 30, 2025, was primarily driven by $5.9 million in higher costs of our third-party partners where we resell their solutions as part of the digital platform, a $3.6 million increase in amortization of intangible assets, primarily related to the acquisition of MANTL, a $3.1 million increase in personnel-related costs (which includes stock-based compensation of $0.7 million), $0.6 million in higher hosting costs, and higher net other miscellaneous costs of $0.3 million.
Current wording
The increase in cost of revenues for the three months ended March 31, 2026 was primarily driven by $6.6 million in higher costs of our third-party partners where we resell their solutions as part of the digital platform, a $3.1 million increase in amortization of intangible assets, primarily related to the acquisition of MANTL, and $1.8 million in higher hosting costs.
Showing the first 40 of 58 pairs. Open the source sections for the rest.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Our effective tax rate differs from the statutory tax rate primarily due to unfavorable permanent differences and changes in the valuation allowance recorded against the Company’s deferred tax assets.
Current report — wording carried from elsewhere
Net Cash Used in Investing Activities
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
Loss on Impairment of Intangible Assets
Previous report — wording carried elsewhere
During the nine months ended September 30, 2025, net cash provided by operating activities was $26.3 million, which consisted of a net loss of $36.2 million, adjusted by non-cash charges of $65.8 million and net cash outflows from the change in net operating assets and liabilities of $3.3 million. The non-cash charges were primarily comprised of depreciation and amortization expense of $19.1 million, stock-based compensation expense of $56.3 million (exclusive of $3.9 million of stock-based compensation expense for unvested equity awards settled in cash related to
Previous report — wording carried elsewhere
Net Cash Provided by Financing Activities