Alkami Technology Reports 36.4% Revenue Growth in Q2 2025, Despite Net Loss

Alkami Technology, Inc. reported significant financial results for the second quarter of 2025, with total revenues reaching $112.1 million, a 36.4% increase from $82.2 million in the same period last year. For the first half of 2025, revenues totaled $209.9 million, up 32.6% from $158.3 million in the first half of 2024. The company's gross profit for the quarter was $65.6 million, yielding a gross margin of 58.6%, slightly down from 59.4% in the prior year. Despite the revenue growth, Alkami recorded a net loss of $13.6 million for the quarter, compared to a loss of $12.3 million in Q2 2024, reflecting ongoing investments in sales, marketing, and product development.

The company experienced notable changes in its balance sheet, with total assets increasing to $840.4 million as of June 30, 2025, up from $437.3 million at the end of 2024. This growth was primarily driven by the acquisition of MANTL, which added approximately $375 million in goodwill and intangible assets. Alkami's cash and cash equivalents decreased to $52.4 million from $94.4 million, while accounts receivable rose to $47.7 million, indicating increased sales activity. The company also reported a significant increase in current liabilities, which rose to $66.4 million, largely due to deferred revenues and accrued liabilities.

Strategically, Alkami completed its merger with MANTL on March 17, 2025, enhancing its capabilities in onboarding and account opening solutions for financial institutions. The acquisition is expected to bolster Alkami's market position and expand its product offerings. The company also entered into a Third Amendment to its Amended and Restated Credit Agreement, which increased its revolving loan commitment and extended the maturity date, facilitating the financing of the MANTL acquisition. Additionally, Alkami issued $345 million in convertible senior notes due in 2030 to support its growth initiatives.

Operationally, Alkami served 280 financial institutions (FIs) as of June 30, 2025, with over 900 clients when including those using its other products. The company reported a strong focus on deepening client engagement, with SaaS subscription services accounting for 94.5% of total revenues in Q2 2025. The average contract life for its services is approximately 70 months, and the company anticipates recognizing about 49.5% of its remaining performance obligations, valued at approximately $1.6 billion, as revenue over the next 24 months.

Looking ahead, Alkami remains committed to expanding its client base and enhancing its product suite to drive revenue growth. The company plans to continue investing in research and development, with R&D expenses constituting 27.0% of revenues in Q2 2025. Alkami's management expressed optimism about its ability to leverage its recent acquisitions and ongoing innovations to capture a larger share of the digital banking market, despite the challenges posed by competitive pressures and market conditions.