Plano, Texas, USA, October 28th / PRNewswire / -- Alkami Technology, Inc. (Nasdaq ticker: ALKT) ("Alkami" or "the Company") today announced its third-quarter results for the period ending September 30, 2026. Alkami is a company that provides digital sales and service platforms for financial institutions in the United States.

Financial Highlights of the Third Quarter of 2026

• GAAP reported total revenue of $134.9 million, an increase of 19.4% compared to the same period last year;
• GAAP The gross profit margin is 57.5%, compared to 56.8% in the same period last year;
• The gross profit margin for non-GAAP items is 63.1%, compared to 63.7% in the same period last year;
• GAAP reported a net loss of $6.7 million, compared to $14.8 million in the same period last year;
• After adjustment, EBITDA is set at $26.3 million, compared to $16 million in the same period last year.

News Commentary

CEO Alex Shootman stated: "We are delighted to report strong financial performance in the third quarter, with revenue growing by 19% and adjusted EBITDA reaching $26 million, both of which exceeded expectations. We continue to see a growing demand from financial institutions that wish to remain competitive in the face of competition from large banks and fintech companies for modern digital solutions. We are also continuing to drive the adoption of AI products and operational improvements, and we added 10 new customers in the third quarter."

Chief Financial Officer Cassandra Hudson stated: "In the past 12 months, our digital banking platform has gained 2.8 million new registered users, bringing the total number of digital banking users to 24.4 million at the end of the quarter. At the end of the third quarter, our annual recurring revenue was $533 million, a 19% increase from the same period last year; revenue per registered user was $21.88, a 5% increase from the same period last year. Our adjusted EBITDA profit margin for the third quarter was 19.5%, which exceeded expectations and represented an expansion of over 530 basis points compared to the same period last year."

2026 Financial Outlook

The following statements are forward-looking statements, and actual results may differ significantly from these due to market conditions and factors listed in the "Cautionary Notes Regarding Forward-Looking Statements."

The fourth-quarter guidance provided by Alkami as of December 31, 2026, is as follows:

• GAAP Total revenue is expected to be between $139.7 million and $141.2 million;
• After adjustment, EBITDA is expected to be between 30 million US dollars and 31 million US dollars.

The guidance provided by Alkami for the fiscal year ending December 31, 2026, is as follows:

• GAAP Total revenue is expected to be between $530.5 million and $532.0 million;
• After adjustment, EBITDA is expected to be between 98 million US dollars and 99 million US dollars.

Teleconference Information

The company will hold a conference call at 5:00 PM Eastern Time today to discuss financial results with investors. The live webcast of the event can be watched on the Alkami investor relations website investors.alkami.com. Additionally, domestic callers can dial 1-800-836-8184, and international callers can dial 1-646-357-8785; the conference password is 07467. A replay of the live broadcast will also be available on the Alkami investor relations website.

About Alkami

Alkami provides digital sales and service platforms for banks and credit cooperatives in the United States. Its unified platform integrates account opening and registration, digital banking, as well as data and marketing functions – each solution can be used independently, but when combined, they offer enhanced capabilities – helping institutions to open accounts, improve interactions, and expand customer relationships. As we move towards becoming "forward-thinking banks" (Anticipatory Banking) in the future, Alkami helps data-driven bankers to seize the present with technologies that drive action.

Warning Regarding Forward-Looking Statements

This press release contains “forward-looking” statements related to the strategies, objectives, future key areas of Alkami Technology, Inc, as well as expected, possible, or assumed future results, including their future cash flows and financial prospects. These forward-looking statements are based on the beliefs and assumptions of management, as well as information currently available. Forward-looking statements include all statements that are not historical facts and can be identified by words such as “expected,” “believed,” “planned,” and their negative counterparts. These forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause actual results, performance, or achievements to differ significantly from the future results, performance, or achievements stated or implied in the forward-looking statements.Factors that may have a significant impact on the aforementioned forward-looking statements include: the company's limited operating history and history of losses; the company's ability to manage future growth; the company's ability to attract new customers and retain and expand the use of its solutions by existing customers; the unpredictable and time-consuming sales cycle; the company's ability to maintain, protect, and enhance its brand; the company's ability to accurately predict the long-term renewal rate of customer subscriptions or the adoption rate of its solutions; the company's dependence on third-party software, content, and services; the company's ability to effectively integrate its solutions with other systems used by customers; intense industry competition; any situation of decreased, integrated, or reduced technological spending in the financial services industry, including the impact of recent closures of certain financial institutions and liquidity concerns of other financial institutions; the company's and its third-party partners' ability to prevent and identify breaches in security measures (including network security), as well as resulting system or operational disruptions and unauthorized access to customers' and other data; the company's ability to successfully integrate acquired companies or businesses; the company's ability to comply with regulatory and legal requirements and their changes; the ability to attract and retain key employees; the political, economic, and competitive conditions of the markets and jurisdictions in which the company operates; the ability to maintain, develop, and protect intellectual property; the company's ability to promptly respond to changing technological requirements and to develop or obtain new and enhanced products that are recognized by the market; the company's ability to estimate costs, future revenue, capital needs, additional financing requirements, and the ability to obtain additional capital; as well as other factors described in the company's filings with the U.S. Securities and Exchange Commission. Except as required by applicable laws, the company assumes no obligation to update or revise any forward-looking statements due to new information, future events, or other reasons.

Explanation of Non-GAAP Financial Indicators and Key Business Indicators

The company reports its financial results in accordance with Generally Accepted Accounting Principles (GAAP) in the United States ( GAAP ). However, the company believes that in order to better understand its short-term and long-term financial, operational, and strategic trends, it may be helpful for investors to exclude certain non-cash or non-recurring items when considering GAAP financial indicators. These items arise from various facts and circumstances that differ in frequency of occurrence and impact on ongoing operations. The company also uses the operating results after excluding these items to evaluate Alkami's performance, to make comparative analyses with prior periods, to determine executive compensation, and as a basis for long-term strategic planning. These non-GAAP financial indicators provide an additional means for the company to understand and assess the operating results and trends of its ongoing business by eliminating certain non-cash expenses and other items. The company believes that such items may make it more difficult to compare the ongoing business with prior periods, obscure the trends of ongoing operations, reduce the ability of management to make useful forecasts, or obscure the ability to assess the effectiveness of certain business strategies and management incentive mechanisms. Furthermore, the company believes that investors and financial analysts will find this information useful for analyzing the company's financial and operational performance and for comparing it with that of its peers and competitors.

The company defines "non-GAAP revenue costs" as revenue costs, which do not include (1) amortization and (2) equity incentive expenses. The company believes that investors and financial analysts will find this non-GAAP financial indicator helpful in analyzing the company's financial and operational performance, comparing it with peers and competitors, and understanding the company's ability to generate revenue from ongoing operations.

The company defines "non-GAAP gross margin" as gross profit plus (1) amortization and (2) equity incentive expenses, divided by revenue. The company believes that investors and financial analysts will find this non-GAAP financial indicator useful for analyzing the company's financial and operational performance, comparing it with peers and competitors, and understanding the company's ability to generate revenue from ongoing operations.

The company defines "non-GAAP R&D expenses" as R&D expenses, which do not include equity incentive costs. The company believes that investors and financial analysts will find this non-GAAP financial indicator useful for analyzing the company's financial and operational performance, comparing it with peers and competitors, and understanding the company's ongoing expenditures related to product innovation.

The company defines "non-GAAP sales and marketing expenses" as sales and marketing expenses, which do not include equity incentive costs. The company believes that investors and financial analysts will find this non-GAAP financial indicator helpful for analyzing the company's financial and operational performance, comparing it with peers and competitors, and understanding the company's ongoing expenditures related to sales and marketing strategies.

The company defines "non-GAAP general and administrative expenses" as general and administrative expenses, which do not include: (1) equity incentive expenses, (2) merger and acquisition-related expenses, (3) impairment losses on intangible assets, (4) expenses related to shareholder matters, and (5) expenses related to leasing and transfers. The company believes that investors and financial analysts will find this non-GAAP financial indicator useful for analyzing the company's financial and operational performance, comparing it with peers and competitors, and understanding the underlying cost structure that supports the company's activities and processes.

The company defines "pre-tax non-GAAP profit" as pre-tax loss plus (1) amortization, (2) equity incentive expenses, (3) merger and acquisition-related expenses, (4) impairment losses on intangible assets, (5) expenses related to shareholder matters, and (6) expenses related to leasing transfers. The company believes that investors and financial analysts will find this non-GAAP financial indicator useful for analyzing the company's financial and operational performance, comparing it with peers and competitors, and understanding the company's ability to generate revenue from ongoing operations.

The company defines "adjusted EBITDA" as net loss plus (1) income tax (income)/provisions, (2) net interest expense, (3) depreciation and amortization, (4) equity incentive expenses, (5) merger and acquisition-related expenses, (6) impairment losses on intangible assets, (7) expenses related to shareholders' matters, and (8) expenses related to lease transfers. The company believes that the adjusted EBITDA provides investors and other users of financial information with a metric that is consistent with and comparable to the company's past financial performance, and it facilitates period-to-period comparisons.

The company defines "free cash flow" as the net cash generated from operating activities minus (1) expenditures on the acquisition of property and equipment, and (2) capitalized software development costs. The company believes that free cash flow provides investors and other users with useful information regarding the company's liquidity and indicates the business's long-term ability to generate cash.

In addition, the company also uses the following key performance indicators to evaluate its business:

The company defines "annual recurring revenue ( ARR )" as the annualized recurring revenue from SaaS subscription services confirmed in the last month of the reporting period, as well as the expected service revenue for the next 12 months in the last month of the reporting period. The company believes that ARR provides important information regarding the company's future revenue potential, its ability to acquire new customers, and its ability to maintain and expand relationships with existing customers.

The company defines "registered users" as individuals or enterprises that are account holders on the financial institution's digital banking platform as of the last day of the reporting period in question and have access to its services. We do not include individuals or enterprises that only use the company's acquired products and services. The company prices its digital banking platform based on the number of registered users; therefore, as the number of registered users increases, ARR also increases. The company believes that the growth in the number of registered users provides important information regarding the company's ability to expand the adoption of its digital banking platform and related software products, and thus also contributes to the growth of revenue over time.

The company defines "revenue per registered user ( RPU )" as the ARR during the reporting period divided by the number of registered users as of the last day of the reporting period. The company believes that RPU provides important information regarding the company's ability to increase the number of software products adopted by new customers over time, as well as the number of software products added by existing customers to their contracts.

The company stated that since it was not possible to obtain certain significant required information without making unreasonable efforts, including provisions for income tax (on earnings), equity incentive expenses, merger and acquisition-related expenses, and expenses related to shareholder matters, it did not provide a reconciliation table between the adjusted EBITDA guidance and the net loss of GAAP. These items could all have a material impact.

Investor Relations Contact Person

Steve Calk

Media Relations Contact

Marla Pieton

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