Alkami Technology at JPMorgan Conference: Strategic Growth and Mantle Acquisition

On Thursday, 15 May 2025, Alkami Technology (NASDAQ:ALKT) presented at the 53rd Annual JPMorgan Global Technology, Media and Communications Conference. The discussion highlighted Alkami’s strategic growth initiatives, including its recent Mantle acquisition, while balancing optimism with the challenges of a competitive market. CEO Alex Schutman emphasized the company’s focus on empowering smaller banks and credit unions to compete with larger institutions.

Key Takeaways

• Alkami is targeting a billion-dollar revenue with a 65-70% gross margin in the next 4-5 years.
• The Mantle acquisition aims to enhance Alkami’s product offerings and market competitiveness.
• Alkami’s addressable market is 250 million seats, with 20.5 million currently served.
• Q1 financials showed a 64.3% gross margin, with expectations to hit 65% a year early.
• The company plans to split new ARR equally between new logos and existing customers.

Company Overview

Alkami’s primary business is providing white-label technology to smaller banks and credit unions, enabling them to compete with giants like Chase and Bank of America. With an addressable market of 250 million seats, Alkami currently serves approximately 20.5 million. The competition primarily comes from larger institutions rather than regional banks.

Financial Results

• Live ARR was just under $405 million at the end of Q1.
• The backlog includes $68 million of ARR for implementation, with $30 million from new logos.
• Q1 RPO grew 20% organically, totaling $1.6 billion.
• User growth is projected to add 300,000 to 400,000 users this year.
• Gross margin in Q1 was 64.3%, with a target of 65% expected to be met early.
• The adjusted EBITDA margin was 12% in Q1, with 27% organic growth.

Growth Strategy

• Alkami aims for a balanced contribution to new ARR from new logos and existing customers.
• The company focuses on expanding revenue per user (ARPU) and currently offers an average of 14 products per client, with plans to increase this number.
• The sales and marketing efficiency is strong, generating 1.2 to 1.5 of net new ARR for every dollar spent.

Mantle Acquisition

The acquisition of Mantle is a strategic move to offer a modern account opening product integrated with digital banking. Mantle has 170 customers, with 70% being banks. Alkami plans to integrate Mantle’s data platform while allowing its sales team to operate independently. The acquisition was financed through an amended credit facility and a convertible note offering.

Future Outlook

• Alkami targets a 65% gross margin and a 20% adjusted EBITDA margin by 2026.
• Long-term goals include becoming a billion-dollar revenue company with a 65-70% gross margin and a 30% or more adjusted EBITDA margin.
• The company expects free cash flow conversion of about 92% of adjusted EBITDA.

For a detailed account of Alkami Technology’s strategic plans and financial outlook, refer to the full transcript below.

Full transcript - 53rd Annual JPMorgan Global Technology, Media and Communications Conference:

Brian Hill, CFO, Alchemy: scoot over? Yeah.

Alexey Gogolev: Thank you everyone for joining. My name is Alexey Gogolev. And today, I’m delighted to welcome management team of Alchemy. We have CEO of Alchemy, Alex Schutman and CFO of the company, Brian Hill. Welcome both, and we appreciate you being with us on the heels of a rather important acquisition that you recently did.

But before we get into the exciting stuff of M and A discussion, do you mind giving us a quick overview of Alchemy? Obviously, you’ve been public for four years now, but for those that are new to the story, your key customers and the overreaching value of Alchemy offering.

Alex Schutman, CEO, Alchemy: First, thanks for having us here, Alexi. Appreciate The best way to think about Alchemy is that smaller banks and credit unions white label our technology so that they can compete effectively with large institutions. If you look at the overall market, the market splits into consumers and businesses that choose to do business with Chase and Bank of America, and consumers and businesses that choose to do business with regional banks and credit unions. We charge per seat, and the majority of the seats available in The United States are with the market that is regional and community financial institutions. Those institutions consider their competition not to be the bank down the street, but their competition to be Chase and Chime, and they don’t have the technology that they need to be able to compete with with those institutions and they don’t have the people that can build the technology so they buy our technology and they white label our technology.

That’s what we do for a living. The overall and the addressable space for us is about two fifty million seats. We just reported that we have about 20,500,000 seats live and registered right now. So still a lot of market space for us.

Alexey Gogolev: And Alex, you often talk about how in this space a lot of the opportunity new logos are displacements of some sort, either it’s in house solutions or some legacy vendors. What is the mix of your customer base that is coming from competitors versus in house?

Alex Schutman, CEO, Alchemy: It’s actually pretty rare that a customer has built something in house. Some of the larger institutions might have had the ability to build something in house, but virtually 100% of the situations that we’re in, somebody has an existing digital banking application. So why is that good? That’s good because there’s budget. So we’re selling into known budget.

We’re selling a known technology. And they’ve may if they’re in market to buy something, they’ve made a decision that what they have, which is a legacy product, is not good enough for them to be successful. So pretty much when we’re in a sell cycle, like I said, somebody’s got a budget already, they have a need, they have an existing solution, and they’re deciding whether or not to displace a legacy solution with modern technology.

Alexey Gogolev: In the past, you also mentioned that probably fifty-fifty split in terms of your goals that you want to achieve banks versus credit unions in terms of the new additions. How is that progressing? What are the win rates that you’re currently seeing for both types of customers? And is there anything else that you need to add in order to better compete on the banking side?

Alex Schutman, CEO, Alchemy: When we think about the enterprise value that we want to create long term, and we think about the new ARR that we’re adding to the company, half of that we want to come from new logos and half of that we want to come from selling more product to our existing customers. Of the new logos, we’d like to have half of that coming from banks and half of that coming from credit unions. Our biggest competition is a customer deciding to do nothing. So still about probably half of the time that a customer might consider making a change, they decide to do nothing. That was one of the main reasons why we made the Mantle acquisition.

What the market was telling us is that they need to acquire new customers and they need to sell more product to existing customers. That’s what our credit union bank customers were telling us. And they said the number one thing that they need is a really great modern account opening product integrated with digital banking. So one of the reasons why we made the Mantle acquisition is to change the decision, if you will, from people who were deciding to stay with older technology and to move to newer technology. So that was one of things that we felt like we needed, Not necessarily to be more competitive against another party because we’re pretty competitive when a customer decides to do something, but to get those customers who aren’t moving off of their legacy technology, That’s why we wanted to acquire Mantle.

Alexey Gogolev: Looking forward to talking about Mantle in a second, but maybe just to switch gears and talk a little bit about macro. Are there any trends to call out across your addressable customer base? Has all this uncertainty, external environment prompted any caution with regards to software spend?

Alex Schutman, CEO, Alchemy: All of our customers are being cautious on their software spend, but if you think about the macro environment has not changed the demand for digital banking. And let me explain this a little bit. These contracts are seven year contracts, five to seven year contracts. It takes about nine months to a year to do a digital banking conversion, and people will be in a buying cycle for anywhere between six months to twelve months. So when a bank or credit union is thinking about making a change, they start with when does my contract end.

They go twelve months before that. Okay, that’s when I’m gonna have to make a decision. They go twelve months before that and say that’s when I’m going to start my buying cycle. So any kind of change that’s happening in a macro environment in terms of maybe my net interest income’s not that great or I need to maybe worry about some expenses, it doesn’t really change them making a decision because they’re in a pretty long decision cycle to go ahead and make that decision. So we have not seen any fall off in the demand environment for digital banking.

Alexey Gogolev: Another driver, I think, in the past used to be in market consolidation among regional banks. Are you seeing any increased activity in that dynamic? And how would that potentially affect alchemy?

Alex Schutman, CEO, Alchemy: Yeah, I’ll let you take that.

Brian Hill, CFO, Alchemy: Yeah. In terms of market consolidation, I mean, if you look back over the last several decades, it’s been about 3% a year, and we’re not seeing that changing. I mean, one trend that has occurred over the last twenty four months has been credit unions acquiring community banks and then becoming a bank themselves. So that’s an interesting trend. But when we look into our client portfolio and installed base of clients, we’re not seeing really any more consolidation occurring this year than what we’ve seen in past years.

But when consolidation does happen, given that we focus on the top 2,000 financial institutions or top 2,500 financial institutions, generally we’re benefiting from consolidation. So it’s normally the smaller, so the lower half that’s consolidating up into the larger financial institutions, which generally is a benefit for us.

Alex Schutman, CEO, Alchemy: Yeah, because if you think about it, when an institution like that consolidates, they’re consolidating to add customers, right? They’re not consolidating for operational reasons. So if consolidation happens for us, it’s good because we charge per seat, so if somebody buys somebody else or merges with somebody else, it adds seats, and we have the opportunity to grow.

Brian Hill, CFO, Alchemy: Yeah. I mean, we expect to add 300 to 400,000 users this year, and to put that into context, Alex mentioned we have 20,500,000 users live on our platform, but we’re gonna add 300,000 to 400,000 this year that’s through consolidation of our clients acquiring other financial institutions.

Alexey Gogolev: And this is a good segue to my next question about growth algorithm. Brian, when you think about mid term revenue outlook, would it be fair to anticipate this sort of trend that you highlighted about mid to high teens growth of customer additions and then mid single to high single digit growth of fees charged per user.

Brian Hill, CFO, Alchemy: Yeah. So this has been an evolving journey for us. Early in our life cycle, as you might imagine, we were the greatest contributor to our growth was just adding new users to our platform. And that happens in two ways. One is acquiring a new client, but then also our clients are growing.

So their digital banking user base is growing each year, and it’s been growing in the high single to low teen level of growth. And then what would augment our user growth is expansion of revenue per user. So in other words, we’re selling more product into our installed base, expanding the revenue per user that we’re actually able to realize. Today, on average, we have 14 products installed into each client. We have 32 products that we offer.

And new clients are onboarding with 20 or more products. So all of our products are relevant. We’re underpenetrated just based on when we innovated and developed those products and then offered them. So it’s been heavy user base with some ARPU expansion that then would lead us to a 20% plus growth rate. But as time evolves, what’s happening is we’re establishing a large user base, so the growth rate on users has been declining, but our ARPU expansion, because we have more opportunity now to sell into our base, is starting to expand.

So, Alexia, I think over time you’ll see those are going to be more equal contributors in the next three to four years. And then beyond four years, so five years plus, you’ll likely see more revenue growth being driven from ARPU expansion and selling into the base versus just adding market share.

Alexey Gogolev: And when it comes to customer growth, it sounds like a lot of this confidence that you have is likely supported by very high level of visibility into the backlog. Can you update us what the backlog is right now and what is the split between credit unions and banks?

Brian Hill, CFO, Alchemy: Sure. So we exited the first quarter with just under $4.00 $5,000,000 of live ARR. So use that as a backdrop for the next bit of information I’m going to provide. We have $68,000,000 of ARR in backlog for implementation. That’s split between new logos and then also the add on sales success that we’ve enjoyed, and there’s a contribution from the Mantle acquisition that we just completed.

If you just focus on the new logo component, it’s just under $30,000,000 of ARR, 1,100,000 users, and those users are split about 700,000,000 credit unions and about 400,000,000 banks. But what’s key is the banks are at a $37 RPU. Right? So very high RPU. The credit unions are close to $20 and it blends to $24 That compares to a backdrop of our live clients that are at $20 So that evidences that more products are needed in our installed base and there’s a higher RPU that we can extract out of our installed base.

Alexey Gogolev: And then another metric we obviously look at is RPO growth. I think you’ve highlighted that in Q1 it was 20% RPO growth on an organic basis. That’s right. How do you see that evolving for the rest of the year? And out of the eight contracts that you signed in Q1, how many were renewals?

Brian Hill, CFO, Alchemy: Yes. So in Q1, we had eight contract signings. So that includes new logo wins as well as renewals. Q1 is always a seasonally low year. You come out of Q4, which is a seasonally high quarter.

So Q1 is a seasonally low quarter Q4 is a seasonally high quarter. Our RPO was $1,600,000,000 which is about four times our live ARR. So we have a lot of visibility coming from our RPO, a lot of visibility that comes from our implementation backlog. We’ve got 96% subscription revenue. So the visibility that we have into future revenue, say twelve months out, is very, very high.

And what that does for Alex and I is it allows us to think about the investments that we need to make in our platform. So knowing when the revenue is going to happen, contrasting that with our financial commitments that we’ve made, that allows us to be very strategic in how we allocate internal capital to the projects that we would like to invest in.

Alexey Gogolev: Switching gears to profitability, maybe this is even a question for you, Alex. On the gross margin level, Alchemy has made a very strong effort to drive efficiencies. And I know you’ve been driving hosting costs down. Can you maybe talk about other initiatives that could support margin expansion?

Alex Schutman, CEO, Alchemy: Yes, there are really two things that we wanted to invest in to improve our gross margin position. One was the effectiveness of the implementation team. As you all may know, we amortized both the revenue and the cost of the implementation over the initial life of the contract. So to the extent that we had more efficiency in the implementation of a new logo, then that would help with our gross margin position. The second thing is, we’re running a pretty large scale platform, 20,500,000 users.

And this something that has to be up 20 fourseven. It has to have three, four second response time. And there are ways that you can use cloud technology that can drive efficiency in that type of system. And so those are the two investments that we’ve made that as you can see, when Brian and I came to this community and said, hey, in a couple of years, we’ll be 65% gross margin. And then if you look at the rest of our income statement, if we’re at 65% gross margin, given our sales and marketing efficiency, we can still spend a lot on R and D and still be a highly profitable company.

We were probably at 55% gross margin when we made that And that’s probably one of the things that he and I are proud of is our ability to grow the business while at the same time we’re meaningfully expanding gross margin, which for an investor now if you look at the shape of our income statement, you could look at a company that can spend a lot of money on R and D to create a great future for itself and be pretty predictable from a profitability perspective.

Brian Hill, CFO, Alchemy: Yes. And what allows us to do that in large part is just how efficient we are from a go to market perspective. We create 1.2 to 1.5 depending on the quarter of net new ARR, so that’s net of any attrition, for every dollar of sales and marketing that we spend. That puts us in the top five in terms of go to market efficiency when you’re looking at SaaS companies. So that allows us to then invest in the platform that just keeps the flywheel going, right, that allows us to have more product.

Now we can cross sell in our base very efficiently and still drop a nice profit. When we provided our 2026 guide, to Alex’s point at the time, we said, okay, 65% gross margin, 20% adjusted EBITDA margin. We were losing money from an adjusted EBITDA perspective and we were kind of in the low to mid 50s for gross margin. We put up 64.3% gross margin in Q1. We’ll likely be just under our 65% this year because Mantle provides about a 50 to 70 basis points gross margin lift.

So we’re going to achieve our gross margin objective, for all practical purposes, a year early. Now we’ve had seven straight quarters of being adjusted EBITDA positive. We were 12% adjusted EBITDA margin in Q1, ’20 ’7 percent organic growth. We were a rule of 39, which was nice. But what will happen in 2026 is the acquisition of Mantle, that business, has not yet scaled to our adjusted EBITDA margin.

So it would be about a point or so dilutive in EBITDA margin, but positive EBITDA. But what we like to talk to investors about in terms of where can we take the business, Right? Mean, because that’s what’s really important is where is Alchemy going to be in the next four to five years? Mantle should allow us at a pretty significant scale to stay at or slightly above 20% organic revenue growth. So if you believe that, then what you would be buying into is Alchemy over the next four to five years will be a billion dollar revenue company.

And at that scale, Alchemy will achieve a 65% to 70% gross margin, so call it high sixties, an adjusted EBITDA margin of 30% or slightly more, with a free cash flow conversion adjusted EBITDA of about 92%. So four to four and a half years from now, Alchemy crosses $1,000,000,000 and is generating $270,000,000 or so of free cash flow. That’s the real investment opportunity from a financial model perspective.

Alexey Gogolev: Thank you for that, Brian. And this is probably a good way to double click on the Mantle acquisition. So you completed the first large scale M and A in a while. And can you talk a little bit more about what Mantle does in terms of the digital account openings and also expand on what Mantle acquisition enables Alchemy to offer in terms of product perspective?

Alex Schutman, CEO, Alchemy: Yeah, let me describe the journey that we went through in terms of coming together with Manta. We’ve known them for a while. We’ve known them since 2019. If you think about what happened in our market in when the pandemic hit in 2020, if you’re serving a market that has not really gone through digital transformation yet, all of those institutions started saying to themselves, oh my gosh, I have to open an account digitally. What that created for us was an initial acquisition in 2021 of some nascent digital account opening technology that could open one type of account because that’s what was happening in 2020, that’s what our customers were focused on.

So we made an acquisition and we then had a product that we were selling that could open a basic checking account. That’s what it could do. And for about 10% of our customers, their business model, that was sufficient. But as we got into that market, a couple of things happened. One, we realized that, oh my gosh, there’s a whole bunch of different types of deposit accounts that need to be opened that our customers need to open and we’re not able to open those types of accounts.

And then for about half of our customers they said, it’s not just digital only for us. We’ve got a big branch presence and we need to be able to start something online and finish it in the branch. Now that’s happening, and we’re learning that. And then guess what else happened at the same time? We went into a different type of interest rate environment.

I talked to one of our customers. So for our customers, what happened when the interest rates rose, then all of a sudden their customers could move deposits pretty quickly. And so they got into a space where they had to be able to attract deposits. And if you think about it, for twenty years they didn’t have to attract deposits because people weren’t moving deposits over because there wasn’t an interest rate difference in accounts. I talked to one CEO and she told me, Alex, nobody in my institution was working here the last time that we had to attract deposits.

So you have this situation where we’re realizing there’s a whole bunch of different types of deposits that have to get opened, that have to be able to open online and in branch. And our customers are starting to say, Oh my gosh, I have to attract deposits. I’ve never attracted deposits before. That’s now become a Brian talked earlier about some of our credit union customers being in the commercial banking business. Why are they doing that?

Because those are sticky deposits. So all of that is what came together plus we knew the Mantle folks from 2019. We said this is going be a really good strategic fit for us. That’s what caused us to make the acquisition. I was at an industry show the week after we announced it.

I had 20 customer meetings in two days. All they wanted to talk about when they sat down was tell me about Mantle. Tell me is this really going to happen? If it’s really going to happen, we really want to buy this. So it’s been exciting early on for us in terms of this acquisition.

Alexey Gogolev: Alex, it sounds like in terms of customer education about the product, it doesn’t seem like there needs to be much of it when it comes to Mantle compared to some of the other acquisitions that you’ve done. I guess Segment probably required a bit more of education. How do you think this is going to progress?

Alex Schutman, CEO, Alchemy: Yes. What’s exciting for us is we’ve had really good success with the ACH Alert acquisition. We’ve had really good success with the Segment acquisition. And that’s in the face of the buyers for those technologies were not the buyer that we were used to selling to. With digital account opening, the buyer we’re selling to is the same buyer.

So it gives us some confidence that the attach rates that we’ve been able to achieve in our new logos, is kind of 70% attach rate with segment with our new logos, that you know we ought to be able to achieve the same attach rate over time with mantles, particularly since it’s the same buyer.

Brian Hill, CFO, Alchemy: And the other challenge that we had was segment, given we were really introducing a new product to the market and it was a different buyer in the organization and the financial institution. We were able to solve the problem in a new logo transaction when you had CEOs and CFOs and CTOs involved in the decision. A lot of the challenge was when we were cross selling into our installed base and a client sales rep’s entry point into a financial institution is generally at a lower level. And so then that lower level has to be an advocate in the financial institution in order to get the product adopted. Back to Alex’s point, given that we’re selling to a similar buyer, given that this is not a new concept and every one of our clients has some form of digital account openings, the cross selling should come at a much higher velocity than what we’ve been able to accomplish with Segment and ACH Alert.

Alex Schutman, CEO, Alchemy: And

Alexey Gogolev: Alex, I think on the earnings call you mentioned that Mantle already had five transactions that were sold into Alchemy’s customer base. How quickly should we expect the acquisition to scale within Alchemy?

Alex Schutman, CEO, Alchemy: One of the things that was exciting for us about Mantle is today they’ve got 170 customers under contract. About 20 of those are Alchemy customers. In addition, about 70% of their customers are banks and if for those of you that have followed the Alchemy story, know that we started more on the retail credit union side and we’ve been making a lot of progress in the bank market. So it was exciting for us just kind of the lack of overlap, if you will. And those five transactions happened before we even introduced the sales teams to each other.

So if you think about our go to market, Mantle sales team will continue to sell Mantle independently and they’ll have success selling Mantle independently. Our new logo team doesn’t really have to learn Mantle. They just have to know that there’s an opportunity and the Mantle team can come in as sales specialists. Really the one team that we have to educate on and we’re in the middle of it right now is the new logo team. And why is that important?

We believe that Mantle is going to increase our win rate. Our customers told us the number one priority that they have is to deliver an integrated account opening and onboarding solution with digital banking. So right now what we’re in the middle of doing is teaching our new logo sales team what’s the value proposition of these two technologies coming together. But from a go to market perspective, we don’t have to teach the Mantle team how to sell Mantle, and we don’t have to teach the Alchemy account team how to sell Mantle. They just have to notice the opportunity.

So all of those things give us a lot of confidence that this is going to turn out to be a really great acquisition.

Alexey Gogolev: And you mentioned customer count for Mantle. Can you maybe give us some insight into their market share in the digital account opening space?

Alex Schutman, CEO, Alchemy: Yeah. The way that maybe beyond just basic market share, there’s a lot of white space for us. Kind of come back to the alchemy target market, which is the mantle target market, right? 9,000 regional and community financial institutions, half our banks, half our credit unions. Alchemy targets the top 2,500, if you will.

Alchemy, we have maybe two eighty live customers. That’s right. So two eighty live customers. Mantle has maybe 120 live customers with very little overlap between the two. And you can see that we’ve got a lot of room to expand both businesses in our target market.

And

Alexey Gogolev: obviously, Mantle Product already services, some of your competitors, including Q2, will they continue to do that going forward?

Alex Schutman, CEO, Alchemy: Yeah. Our strategy is that Mantle should continue to be able to sell independently. So if there’s a Q2 customer and they want to buy Mantle, that’s fantastic. What we intend to do is integrate the data platform, the digital banking platform, and Mantle in such a way that it creates some pretty unique capabilities for our customers. For those of you that do business with a large institution today that can spend billions of dollars on technology, what I’m going to describe next, you would say, can’t anybody do this?

But what a regional bank cannot do today, which they will be able to do when we bring these three technologies together, is they ought to be able to notice that a consumer is executing a lot of business transactions. And when they know that, they ought to be able to serve up an offer for a business account in the digital channel. When I’m using my mobile app, I should get an offer for a business account in the mobile app. When I click on that offer, I should be able to open an account relatively quickly and then be brought right back into my digital environment that now includes my new business banking application. That is rocket surgery for a community bank.

And with these three technologies, we’ll bring them together so that they can accomplish that. When we do that, then we’ll be in market presenting a compelling offer for somebody to select alchemy. So in summary, if a customer has got Q2 and they want to buy Mantle, that’s fantastic. We’re not going to keep that from happening. We want that to happen.

We want that to be an excellent experience. But what we’re gonna do is create such a compelling differentiation that people are gonna want the Alchemy platform.

Alexey Gogolev: This is a good time to maybe see if there are any questions in the room. Please raise your hand if you have any. I also have another question about financing of this deal. How did you come about deciding on whether to use converts, credit facility, or stock to fund the deal?

Brian Hill, CFO, Alchemy: Well, capital allocation and our capital stack is important to us and having the right cost of capital. It’s pretty remarkable what changed from December of twenty twenty four when we started to engage with Mantle and then when we finally closed the acquisition in March. Everyone knows what happened in the market. We went into it not thinking we were smart, but if you look back, you’re going go, Wow, they were pretty smart in how they handled this. We started early on with saying, you know what, let’s amend our credit facility.

It’s a 125,000,000 facility. We expanded it to $225,000,000 and then we have an accordion feature that allows us to borrow another $100,000,000 We brought in JPMorgan to be a partner along with Citibank and CIBC and SVB or First Citizens. But we didn’t even think we were going to need to use it. Right? It’s like, know, just as a precaution, let’s amend our credit facility.

And then we started thinking really about dilution. So it’s a large acquisition, 10% of our enterprise value. We want to manage dilution along the way. But at the right stock price, we were willing to issue straight equity just to have a simple transaction. Well, what was the right stock price quickly started to change over that four month period, so we really landed in a position of a convertible note offering would be a great cost of capital and afford a much lower dilution to our shareholders.

And wanted all the cash upfront, right? I didn’t want to do a bond hedge or anything like that because our stock was still at a reasonable price and up 37.5 percent, effectively selling equity at $46 right? So $45 So that was a great place to land. Then the market continued to deteriorate and there was more volatility in the market. And so then we made the decision, well, we need to enter into a bond hedge.

We can take up the upper strike to a %, still be issuing equity effectively at $45. And then we needed to tap into our credits facility, but then still have enough cash on balance sheet and credit facility capacity to have dry powder to do another acquisition in the next twelve months or so without doing anything else to our capital structure. So it was an evolving journey that we went through. It was a pretty volatile market. I think the VIX was up to almost 40 at the time that we issued.

We priced at the wide end on our convertible note offering. It was multi times oversubscribed. It was a great transaction led by your employer, which we really appreciate. And so, great transaction. But the thought process is really putting into place the fundamentals of the right capital stack at the right cost of capital.

Alexey Gogolev: Amazing. Brian, Alex, thank you very much for joining us today. Appreciate your time.

Brian Hill, CFO, Alchemy: Thank you.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.