Alkami Technology Reports 28.5% Revenue Growth to $97.8 Million in Q1 2025

Alkami Technology, Inc. reported significant financial results for the first quarter of 2025, with revenues reaching $97.8 million, a 28.5% increase from $76.1 million in the same period last year. The growth was primarily driven by an increase in registered users, which rose by 13% to 20,461, and a corresponding increase in revenue per registered user (RPU), which grew by 18.1% to $19.74. Despite the revenue growth, the company recorded a net loss of $7.8 million, an improvement from the $11.4 million loss reported in the prior year, attributed to ongoing investments in sales, marketing, and product development.

The company’s balance sheet showed total assets of $837.2 million as of March 31, 2025, a substantial increase from $437.3 million at the end of 2024. This growth was largely due to the acquisition of MANTL, completed on March 17, 2025, for approximately $375 million. The acquisition is expected to enhance Alkami's capabilities in onboarding and account opening solutions, further expanding its market presence. The company also reported a significant increase in goodwill, which rose to $400.2 million from $148.1 million, reflecting the value attributed to the MANTL acquisition.

Operationally, Alkami's total liabilities increased to $503.1 million, up from $80.2 million at the end of 2024, primarily due to the issuance of $345 million in convertible senior notes and $60 million in borrowings under a revolving credit facility to finance the MANTL acquisition. The company’s cash and cash equivalents decreased to $61.7 million from $94.4 million, reflecting cash outflows related to the acquisition and operational expenses. The company’s employee headcount also increased, supporting its growth strategy and operational needs.

Looking ahead, Alkami anticipates continued growth driven by its expanding client base and product offerings. The company served 278 financial institutions as of March 31, 2025, and expects to deepen client relationships through enhanced digital banking solutions. The management remains focused on innovation and product development, with research and development expenses accounting for 27.5% of revenues in the first quarter. The company projects that its remaining performance obligations total approximately $1.6 billion, indicating a strong revenue pipeline for the upcoming periods.

In summary, Alkami Technology, Inc. is positioned for growth following its recent acquisition and ongoing investments in technology and client engagement. The company’s financial performance reflects a strategic focus on expanding its market share and enhancing its digital banking platform, with expectations for continued revenue growth and improved operational efficiency in the future.