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Introduction & Market Context
Alkami Technology Inc (NASDAQ:ALKT) delivered impressive second-quarter results for 2025, according to the company’s latest presentation slides. The cloud-based digital banking platform provider reported substantial revenue growth, margin expansion, and continued client acquisition as it strengthens its position in the financial technology sector.
The company’s performance builds on momentum from Q1 2025, when it reported revenue of $97.8 million and completed the strategic acquisition of MANTL. Alkami continues to focus on serving community, regional, and super-regional financial institutions across the United States, enabling them to compete with larger, technologically advanced competitors.
Quarterly Performance Highlights
Alkami’s Q2 2025 financial results demonstrated strong growth across key metrics. Revenue reached $112.1 million, representing a 36% increase compared to $82.2 million in Q2 2024. This growth was driven by the MANTL acquisition, new client additions, existing client user growth, and increased average revenue per user (ARPU).
As shown in the following chart detailing Q2 2025 financial performance, gross margin expanded to 65.1%, up from 63.2% in the same period last year, while adjusted EBITDA more than doubled to $11.9 million from $4.6 million:
The company’s operational metrics were equally impressive. Alkami ended the quarter with 280 digital banking clients, up from 254 in Q2 2024. Registered users grew to 20.9 million, representing a 12% increase year-over-year. Annual recurring revenue (ARR) reached $424 million, a 32% increase, while the company’s remaining performance obligation (RPO) stood at $1.6 billion, representing 3.7 times live ARR.
The following chart illustrates these operating and financial highlights:
Strategic Initiatives
A key strategic development for Alkami has been the acquisition of MANTL, completed in Q1 2025. This acquisition has significantly expanded Alkami’s product capabilities and market position, particularly in digital account opening and loan origination services.
The company’s presentation highlighted how the MANTL acquisition positions Alkami as a premier digital banking provider by expanding its market position, stimulating go-to-market strategy, creating significant cross-sell opportunities, and offering an attractive financial profile:
The integration of MANTL extends Alkami’s product and customer footprint across both sales and service channels, enhancing capabilities in areas such as retail and business account opening, loan origination, and customer service:
Detailed Financial Analysis
Alkami’s financial trajectory shows consistent growth over multiple years. The company’s annual revenue has increased steadily from $152 million in 2021 to a projected $445 million for 2025, representing a compound annual growth rate of approximately 31%.
The following chart illustrates this strong historical revenue growth on both an annual and quarterly basis:
Gross margin has also shown consistent improvement, driven by revenue scale, client renewals, operational efficiency, and pricing leverage. As shown in the chart below, gross profit has increased from $87 million in 2021 to $246 million for the last twelve months ending Q2 2025:
Competitive Industry Position
Alkami operates in a large and growing addressable market estimated at approximately $14 billion. This total addressable market (TAM) is broken down into several components, including Core Platform ($8.8 billion), MANTL (DAO/LOS) ($3.2 billion), Segmint ($1.3 billion), and ACH Alert ($1.1 billion).
The following chart illustrates this market opportunity:
The company’s target market consists of financial institutions with assets ranging from $100 million to $450 billion, representing over 250 million digital users. Alkami currently serves approximately 21 million of these users, while legacy providers hold the majority with over 210 million users.
This market positioning is illustrated in the following chart:
Growth Strategy
A key aspect of Alkami’s growth strategy is its "land and expand" approach with clients. The company initially secures clients with a core set of products and then expands the relationship over time through additional product offerings and user growth.
The effectiveness of this strategy is demonstrated through several client case studies, as shown in the following chart:
For example, a credit union client with $20 billion in assets that launched with Alkami in September 2018 has grown from 6 products and $3.4 million in ARR to 20 products and $11.2 million in ARR, representing 232% growth. Similar expansion patterns are evident across other client examples.
This growth is further supported by cohort analysis showing how ARR expands over time:
Forward-Looking Statements
For the remainder of 2025, Alkami provided guidance indicating continued strong performance. The company expects full-year 2025 revenue of $443-447 million, representing 33% growth compared to 2024, and adjusted EBITDA of $51.5-54.0 million.
For the third quarter of 2025, Alkami projects revenue of $112.5-114.0 million and adjusted EBITDA of $13.0-14.0 million. This guidance includes the impact of the company’s Global Capability Center (GCC) investment.
The following chart summarizes the 2025 financial guidance:
Looking further ahead, Alkami has outlined a path to continued margin improvement through scale, product mix, and operational efficiency. By 2026, the company targets a gross margin of 70%, with adjusted EBITDA margin reaching 20%.
Conclusion
Alkami’s Q2 2025 presentation slides reveal a company experiencing robust growth across key financial and operational metrics. The 36% year-over-year revenue increase, expanding margins, and growing client base demonstrate the effectiveness of the company’s strategy in the digital banking space.
The MANTL acquisition appears to be paying dividends already, contributing to revenue growth and expanding Alkami’s product capabilities. With a large addressable market, proven "land and expand" strategy, and clear path to increased profitability, Alkami is well-positioned for continued success in the financial technology sector.
As of July 30, 2025, Alkami’s stock (NASDAQ:ALKT) closed at $26.62, down 1.73% for the day. The stock has a 52-week range of $21.70 to $42.29, suggesting potential upside if the company continues to execute on its growth strategy and financial targets.
Full presentation:
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