Alkami Technology — Third Quarter 2026 Earnings Summary

Financial Performance:

• GAAP total revenue for Q3 2026 was $134.9 million, a 19.4% increase year-over-year compared to $112.954 million in Q3 2025.
• GAAP net loss for Q3 2026 was $6.7 million, an improvement from a $14.8 million loss in Q3 2025.
• Adjusted EBITDA for Q3 2026 was $26.3 million, up from $16.0 million in Q3 2025.
• GAAP gross margin was 57.5% in Q3 2026, compared to 56.8% in Q3 2025.
• Non-GAAP gross margin was 63.1% in Q3 2026, down from 63.7% in Q3 2025.
• Adjusted EBITDA margin for Q3 2026 was 19.5%, representing an expansion of over 530 basis points compared to the prior year quarter.
• For the nine months ended September 30, 2026, GAAP total revenue was $390.9 million compared to $322.8 million in the prior year period.
• For the nine months ended September 30, 2026, Adjusted EBITDA was $68.0 million compared to $40.0 million in the prior year period.
• Net cash provided by operating activities for the nine months ended September 30, 2026, was $39.1 million, compared to $26.3 million in the prior year period.
• Free cash flow for the nine months ended September 30, 2026, was $32.4 million, compared to $19.9 million in the prior year period.
• Cash and cash equivalents were $50.3 million as of September 30, 2026, down from $63.5 million as of December 31, 2025.
• Convertible senior notes, net, were $337.7 million as of September 30, 2026, compared to $336.2 million as of December 31, 2025.
• The revolving loan balance was $0 as of September 30, 2026, compared to $15.0 million as of December 31, 2025.

Guidance and Future Outlook:

• Q4 2026 GAAP total revenue is guided to be between $139.7 million and $141.2 million.
• Q4 2026 Adjusted EBITDA is guided to be between $30.0 million and $31.0 million.
• Full-year 2026 GAAP total revenue is guided to be between $530.5 million and $532.0 million.
• Full-year 2026 Adjusted EBITDA is guided to be between $98.0 million and $99.0 million.

Business Segments and Product Lines:

• The company added 10 new clients in the third quarter.
• Registered users on the digital banking platform increased by 2.8 million over the last 12 months, ending the quarter at 24.4 million.
• Annual Recurring Revenue (ARR) ended the quarter at $533 million, a 19% increase year-over-year.
• Revenue per Registered User (RPU) was $21.88, up 5% compared to the year-ago quarter.
• Management highlighted continued adoption of AI products and operational improvements.

Market and Competitive Landscape:

• Management noted growing demand for modern digital solutions among financial institutions seeking to compete with megabanks and fintechs.
• The company operates in the digital sales and service platform market for U.S. banks and credit unions.

Risks and Challenges:

• Risks include limited operating history, history of operating losses, and the ability to manage future growth.
• Potential challenges involve unpredictable sales cycles, client retention and expansion, and reliance on third-party software and services.
• Market risks include downturns, consolidation, or decreased technology spend in the financial services industry, including impacts from recent financial institution closures and liquidity concerns.
• Cybersecurity risks include the potential for breaches, unauthorized access to client data, and resulting disruptions.
• Other risks include the ability to integrate acquired companies, comply with regulatory requirements, and attract and retain key employees.

Management Commentary and Tone:

• CEO Alex Shootman stated the company was pleased with strong third-quarter performance, noting revenue growth and Adjusted EBITDA were ahead of expectations.
• CFO Cassandra Hudson highlighted that the adjusted EBITDA margin was above expectations and reflected significant expansion compared to the prior year.
• Management expressed confidence in the demand for digital solutions and the ability to drive AI product adoption.

Other Key Points:

• The company repurchased $25.0 million of common stock during the nine months ended September 30, 2026.
• The company paid $11.2 million in taxes related to the net settlement of equity awards during the nine months ended September 30, 2026.
• No acquisitions were made in the nine months ended September 30, 2026, whereas the prior year period included an acquisition of business net of cash acquired totaling $375.5 million.
• The company issued convertible senior notes in the prior year period (nine months ended September 30, 2025) generating $335.5 million in proceeds.
• The company paid $15.0 million on its revolving loan during the nine months ended September 30, 2026.