Alkami Announces Third Quarter 2026 Financial Results

Annual recurring revenue rose 19% year over year, while GAAP and non-GAAP gross margins moved in opposite directions.

Rhea-AI Summary

Alkami Technology (ALKT) reported third-quarter 2026 revenue of $134.9 million, up from the year-ago quarter, alongside a narrower net loss. Revenue increased 19.4%; GAAP net loss narrowed to $6.7 million from $14.8 million, or $0.06 versus $0.14 per share. GAAP gross margin rose to 57.5% from 56.8%, while non-GAAP gross margin fell to 63.1% from 63.7%. Adjusted EBITDA, an adjusted earnings measure, increased to $26.3 million from $16.0 million.

Annual recurring revenue reached $533 million, up 19% year over year. Digital banking users totaled 24.4 million after 2.8 million additions over 12 months. Alkami implemented 10 additional clients during the quarter. The company forecasts fourth-quarter revenue of $139.7 million–$141.2 million and adjusted EBITDA of $30.0 million–$31.0 million; full-year guidance is $530.5 million–$532.0 million in revenue and $98.0 million–$99.0 million in adjusted EBITDA.

21 points · 0 major

PositiveiHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

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0 major · 12 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointThird-quarter revenue increased 19.4% year over year to $134.9 million.
• Moderate pointThird-quarter GAAP net loss narrowed to $6.7 million from $14.8 million a year earlier.
• Moderate pointThird-quarter adjusted EBITDA increased to $26.3 million from $16.0 million a year earlier.
• Moderate pointAnnual recurring revenue increased 19% year over year to $533 million.
• Moderate pointDigital banking users reached 24.4 million, with 2.8 million added over the last 12 months.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter guidance targets revenue of $139.7 million to $141.2 million.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter adjusted EBITDA guidance is $30.0 million to $31.0 million.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Full-year 2026 revenue guidance is $530.5 million to $532.0 million.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Full-year 2026 adjusted EBITDA guidance is $98.0 million to $99.0 million.

12 minor points

• Minor pointThird-quarter net loss per share narrowed to $0.06 from $0.14 a year earlier.
• Minor pointThird-quarter GAAP gross margin increased to 57.5% from 56.8% a year earlier.
• Minor pointThird-quarter adjusted EBITDA margin reached 19.5%, expanding more than 530 basis points year over year.
• Minor pointRevenue per registered user increased 5% year over year to $21.88.
• Minor pointClient implementations added 10 clients during the third quarter.
• Minor pointNine-month revenue rose to $390.893 million from $322.848 million in the prior-year period.
• Minor pointNine-month GAAP net loss narrowed to $25.608 million from $36.211 million in the prior-year period.
• Minor pointNine-month net loss per share narrowed to $0.24 from $0.35 in the prior-year period.
• Minor pointOperating losses narrowed year over year to $6.248 million quarterly and $19.658 million over nine months.
• Minor pointThird-quarter sales and marketing expense declined to $18.260 million from $19.337 million a year earlier.
• Minor pointInterest expense declined year over year to $2.092 million quarterly and $6.450 million over nine months.
• Minor pointRevolving loan balance fell to zero at September 30, 2026 from $15.000 million at December 31, 2025.

Negative

• Minor pointThird-quarter non-GAAP gross margin declined to 63.1% from 63.7% a year earlier.
• Minor pointCash and cash equivalents declined to $50.320 million from $63.457 million at December 31, 2025.
• Minor pointMarketable securities declined to $34.908 million from $35.635 million at December 31, 2025.
• Minor pointConvertible senior notes, net, increased to $337.725 million from $336.230 million at December 31, 2025.
• Minor pointThird-quarter research and development expense rose to $32.598 million from $30.091 million a year earlier.

7 minor points

• Minor pointThird-quarter general and administrative expense rose to $31.263 million from $25.889 million a year earlier.
• Minor pointNine-month research and development expense rose to $94.997 million from $87.207 million a year earlier.
• Minor pointNine-month sales and marketing expense rose to $61.036 million from $60.227 million a year earlier.
• Minor pointNine-month general and administrative expense rose to $83.766 million from $80.245 million a year earlier.
• Minor pointNine-month acquired-intangible amortization expense rose to $5.120 million from $3.981 million a year earlier.
• Minor pointInterest income declined year over year to $628 thousand quarterly and $2.074 million over nine months.
• Minor pointNine-month income taxes shifted to a $1.574 million provision from an $11.610 million benefit a year earlier.

News Explained

At September 30, 2026, Alkami reported more shares outstanding than at December 31, 2025, reducing fixed holdings’ ownership fractions, all else equal.

Alkami has reported third-quarter 2026 results; its balance sheet lists 107,042,319 common shares issued and outstanding at September 30, 2026, versus 106,101,875 at December 31, 2025. That higher reported count means a fixed shareholding represents a smaller fraction of total shares, all else equal.

At September 30, 2026, the balance sheet listed $50,320 thousand in cash and cash equivalents, $34,908 thousand in marketable securities, $337,725 thousand in convertible senior notes, net, and no revolving loan balance.

In the nine months ended September 30, 2026, operating activities provided $39,131 thousand, while Alkami repurchased $25,000 thousand of common stock and repaid $15,000 thousand on its revolving loan.

Key Figures

GAAP revenue: $134.9 million; +19.4% year over year GAAP net loss: $(6.7) million, compared to $(14.8) million Adjusted EBITDA: $26.3 million, compared to $16.0 million +5 more

GAAP revenue

$134.9 million; +19.4% year over year

Third quarter 2026

GAAP net loss

$(6.7) million, compared to $(14.8) million

Third quarter 2026 vs. year-ago quarter

Adjusted EBITDA

$26.3 million, compared to $16.0 million

Third quarter 2026 vs. year-ago quarter

Annual recurring revenue

$533 million; up 19%

Exited third quarter 2026; year-over-year comparison

Q4 revenue guidance

$139.7 million to $141.2 million

Fourth quarter ending December 31, 2026

Q4 Adjusted EBITDA guidance

$30.0 million to $31.0 million

Fourth quarter ending December 31, 2026

FY2026 revenue guidance

$530.5 million to $532.0 million

Fiscal year ending December 31, 2026

FY2026 Adjusted EBITDA guidance

$98.0 million to $99.0 million

Fiscal year ending December 31, 2026

Previous Earnings Reports

2 past events · Latest: Jul 29

Same Type 2 events

1. Jul 29

   Q2 2026 earnings

   24h Move

   -2.8%

   Set Q3 revenue and Adjusted EBITDA guidance before reporting Q3 results.

2. Oct 30

   Q3 2025 earnings

   24h Move

   -7.7%

   Reported Q3 2025 revenue, margins, net loss and Adjusted EBITDA as year-ago comparison metrics.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

gaap, annual recurring revenue, convertible senior notes, stock-based compensation

4 terms

gaap financial

"GAAP total revenue of $134.9 million"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

View in glossary

annual recurring revenue financial

"annual recurring revenue of $533 million"

Annual recurring revenue is the predictable amount of money a company expects to earn each year from ongoing customer subscriptions or contracts. It helps businesses understand how much steady income they can count on, much like a subscription service that charges customers every month or year. This figure is important because it shows the company's stability and growth potential.

convertible senior notes financial

"Convertible senior notes, net"

Convertible senior notes are a type of loan that a company issues to investors, which can be turned into company shares later on. They are called "senior" because they are paid back before other debts if the company runs into trouble. This allows investors to earn interest like a loan but also have the chance to own part of the company if its value rises.

stock-based compensation financial

"stock-based compensation expense"

Stock-based compensation is when a company pays employees, directors or consultants with shares or the right to buy shares instead of or in addition to cash. It matters to investors because issuing stock or options spreads ownership thinner (like cutting a pie into more slices), which can reduce each existing share’s claim on profits and can also change reported earnings; investors watch it to assess true cost of running the business and how management is incentivized.

View in glossary

AI-generated analysis. How Rhea-AI works. Not financial advice.

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PLANO, Texas, Oct. 28, 2026 /PRNewswire/ -- Alkami Technology, Inc. (Nasdaq: ALKT) ("Alkami" or "the Company"), a digital sales and service platform provider for financial institutions in the U.S., today announced results for its third quarter ending September 30, 2026.

Third Quarter 2026 Financial Highlights

• GAAP total revenue of $134.9 million, an increase of 19.4% compared to the year-ago quarter;
• GAAP gross margin of 57.5%, compared to 56.8% in the year-ago quarter;
• Non-GAAP gross margin of 63.1%, compared to 63.7% in the year-ago quarter;
• GAAP net loss of $(6.7) million, compared to $(14.8) million in the year-ago quarter; and
• Adjusted EBITDA of $26.3 million, compared to $16.0 million in the year-ago quarter.

Comments on the News

Alex Shootman, Chief Executive Officer, said, "We are pleased to report strong third-quarter financial performance, with revenue growth of 19% and Adjusted EBITDA of $26 million, both ahead of expectations. We continue to see growing demand for modern digital solutions among financial institutions seeking to remain competitive with megabanks and fintechs. We also continued to drive AI product adoption and operational improvements while implementing an additional 10 clients in the third quarter."

Cassandra Hudson, Chief Financial Officer, said, "In the last 12 months, we added 2.8 million registered users to our digital banking platform, ending the quarter with 24.4 million digital banking users. We exited the third quarter with annual recurring revenue of $533 million, up 19% compared to the year-ago quarter and revenue per registered user of $21.88, up 5% compared to the year-ago quarter. Our third quarter adjusted EBITDA margin of 19.5% was above expectations, and reflected more than 530 basis points of expansion compared to the year-ago quarter."

2026 Financial Outlook

The following statements are forward-looking, and actual results could differ materially depending on market conditions and the factors set forth under "Cautionary Statement Regarding Forward-Looking Statements."

Alkami is providing guidance for its fourth quarter ending December 31, 2026 of:

• GAAP total revenue in the range of $139.7 million to $141.2 million;
• Adjusted EBITDA in the range of $30.0 million to $31.0 million.

Alkami is providing guidance for its fiscal year ending December 31, 2026 of:

• GAAP total revenue in the range of $530.5 million to $532.0 million;
• Adjusted EBITDA in the range of $98.0 million to $99.0 million.

Conference Call Information
The Company will host a conference call at 5:00 p.m. ET today to discuss its financial results with investors. A live webcast of the event will be available on the Alkami investor relations website at investors.alkami.com. In addition, a live dial-in will be available domestically at 1-800-836-8184 and internationally at 1-646-357-8785, using passcode 07467. The webcast replay will be available on the Alkami investor relations website.

About Alkami
Alkami provides a digital sales and service platform for U.S. banks and credit unions. Our unified Platform integrates onboarding, digital banking, and data and marketing—each solution can stand alone, but together they deliver more—to help institutions onboard, engage, and grow relationships. As the future shifts toward Anticipatory Banking, we help data-informed bankers meet the moment with technology that drives action.

Cautionary Statement Regarding Forward-Looking Statements
This press release contains "forward-looking" statements relating to Alkami Technology, Inc.'s strategy, goals, future focus areas, and expected, possible or assumed future results, including its future cash flows and its financial outlook. These forward-looking statements are based on management's beliefs and assumptions and on information currently available to management. Forward-looking statements include all statements that are not historical facts and may be identified by terms such as "expects," "believes," "plans," or similar expressions and the negatives of those terms. These forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements, expressed or implied by the forward-looking statements. Factors that may materially affect such forward-looking statements include: Our limited operating history and history of operating losses; our ability to manage future growth; our ability to attract new clients and retain and expand existing clients' use of our solutions; the unpredictable and time-consuming nature of our sales cycles; our ability to maintain, protect and enhance our brand; our ability to accurately predict the long-term rate of client subscription renewals or adoption of our solutions; our reliance on third-party software, content and services; our ability to effectively integrate our solutions with other systems used by our clients; intense competition in our industry; any downturn, consolidation or decrease in technology spend in the financial services industry, including as a result of recent closures of certain financial institutions and liquidity concerns at other financial institutions; our ability and the ability of third parties on which we rely to prevent and identify breaches of security measures (including cybersecurity) and resulting disruptions of our systems or operations and unauthorized access to client customer and other data; our ability to successfully integrate acquired companies or businesses; our ability to comply with regulatory and legal requirements and developments; our ability to attract and retain key employees; the political, economic and competitive conditions in the markets and jurisdictions where we operate; our ability to maintain, develop and protect our intellectual property; our ability to respond to evolving technological requirements to develop or acquire new and enhanced products that achieve market acceptance in a timely manner; our ability to estimate our expenses, future revenues, capital requirements, our needs for additional financing and our ability to obtain additional capital and other factors described in the Company's filings with the Securities and Exchange Commission. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

Explanation of Non-GAAP Financial Measures and Key Business Metrics
The company reports its financial results in accordance with accounting principles generally accepted in the United States of America, or GAAP. However, the company believes that, in order to properly 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 used as a supplement to financial performance measures in accordance with GAAP. These items result from facts and circumstances that vary in both frequency and impact on continuing operations. The company also uses results of operations excluding such items to evaluate the operating performance of Alkami and compare it against prior periods, make operating decisions, determine executive compensation, and serve as a basis for long-term strategic planning. These non-GAAP financial measures provide the company with additional means to understand and evaluate the operating results and trends in its ongoing business by eliminating certain non-cash expenses and other items that Alkami believes might otherwise make comparisons of its ongoing business with prior periods more difficult, obscure trends in ongoing operations, reduce management's ability to make useful forecasts, or obscure the ability to evaluate the effectiveness of certain business strategies and management incentive structures. In addition, the company also believes that investors and financial analysts find this information to be helpful in analyzing the company's financial and operational performance and comparing this performance to the company's peers and competitors.

The company defines "Non-GAAP Cost of Revenues" as cost of revenues, excluding (1) amortization and (2) stock-based compensation expense. The company believes that investors and financial analysts find this non-GAAP financial measure to be useful in analyzing the company's financial and operational performance, comparing this performance to the company's peers and competitors, and understanding the company's ability to generate income from ongoing business operations.

The company defines "Non-GAAP Gross Margin" as gross profit, plus (1) amortization and (2) stock-based compensation expense, all divided by revenue. The company believes that investors and financial analysts find this non-GAAP financial measure to be useful in analyzing the company's financial and operational performance, comparing this performance to the company's peers and competitors, and understanding the company's ability to generate income from ongoing business operations.

The company defines "Non-GAAP Research and Development Expense" as research and development expense, excluding stock-based compensation expense. The company believes that investors and financial analysts find this non-GAAP financial measure to be useful in analyzing the company's financial and operational performance, comparing this performance to the company's peers and competitors, and understanding the company's ongoing expenditures related to product innovation.

The company defines "Non-GAAP Sales and Marketing Expense" as sales and marketing expense, excluding stock-based compensation expense. The company believes that investors and financial analysts find this non-GAAP financial measure to be useful in analyzing the company's financial and operational performance, comparing this performance to the company's peers and competitors, and understanding the company's ongoing expenditures related to its sales and marketing strategies.

The company defines "Non-GAAP General and Administrative Expense" as general and administrative expense, excluding (1) stock-based compensation expense (2) acquisition-related expenses (3) loss on impairment of intangible assets, (4) stockholder matters related expenses, and (5) lease assignment related expenses. The company believes that investors and financial analysts find this non-GAAP financial measure to be useful in analyzing the company's financial and operational performance, comparing this performance to the company's peers and competitors, and understanding the company's underlying expense structure to support corporate activities and processes.

The company defines "Non-GAAP Income Before Income Taxes" as loss before income taxes, plus (1) amortization, (2) stock-based compensation expense, (3) acquisition-related expenses, (4) loss on impairment of intangible assets, (5) stockholder matters related expenses, and (6) lease assignment related expenses. The company believes that investors and financial analysts find this non-GAAP financial measure to be useful in analyzing the company's financial and operational performance, comparing this performance to the company's peers and competitors, and understanding the company's ability to generate income from ongoing business operations.

The company defines "Adjusted EBITDA" as net loss plus (1) (benefit from) provision for income taxes, (2) interest expense, net, (3) depreciation and amortization (4) stock-based compensation expense, (5) acquisition-related expenses, (6) loss on impairment of intangible assets, (7) stockholder matters related expenses, and (8) lease assignment related expenses. The company believes adjusted EBITDA provides investors and other users of our financial information consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations.

The company defines "Free Cash Flow" as net cash provided by operating activities less (1) purchases of property and equipment and (2) capitalized software development costs. The company believes free cash flow provided investors and other users useful information in evaluating the Company's liquidity and it provides an indication of the long-term cash generating ability of the business.

In addition, the Company also uses the following important operating metrics to evaluate its business:

The company defines "Annual Recurring Revenue (ARR)" by aggregating annualized recurring revenue related to SaaS subscription services recognized in the last month of the reporting period as well as the next 12 months of expected implementation services revenues in the last month of the reporting period. We believe ARR provides important information about our future revenue potential, our ability to acquire new clients, and our ability to maintain and expand our relationship with existing clients.

The company defines "Registered Users" as an individual or business related to an account holder of an FI client on our digital banking platform and has access as of the last day of the reporting period presented. We exclude individuals or businesses that solely use the products and services of our acquisitions. We price our digital banking platform based on the number of registered users, so as the number of registered users of our digital banking platform increases, our ARR grows. We believe growth in the number of registered users provides important information about our ability to expand market adoption of our digital banking platform and its associated software products, and therefore to grow revenues over time.

The company defines "Revenue per Registered User (RPU)" by dividing ARR for the reporting period by the number of registered users as of the last day of the reporting period. We believe RPU provides important information about our ability to grow the number of software products adopted by new clients over time, as well as our ability to expand the number of software products that our existing clients add to their contracts with us over time.

The company does not provide a reconciliation of our adjusted EBITDA outlook to GAAP net loss because certain significant information required for such reconciliation is not available without unreasonable efforts, including (benefit from) provision for income taxes, stock-based compensation expense, acquisition-related expenses, and stockholder matters related expenses, all of which may be significant.

ALKAMI TECHNOLOGY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
(UNAUDITED)
	September 30,		December 31,
	2026		2025
Assets
Current assets
Cash and cash equivalents	$           50,320		$           63,457
Marketable securities	34,908		35,635
Accounts receivable, net	61,510		51,494
Deferred costs, current	18,683		15,894
Prepaid expenses and other current assets	20,363		20,736
Total current assets	185,784		187,216
Property and equipment, net	28,750		26,652
Right-of-use assets	16,662		13,462
Deferred costs, net of current portion	50,667		47,430
Intangibles, net	139,084		158,943
Goodwill	403,404		403,404
Other assets	10,834		10,120
Total assets	$         835,185		$         847,227
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable	$           11,368		$            5,842
Accrued liabilities	42,095		47,359
Deferred revenues, current portion	35,590		34,770
Lease liabilities, current portion	2,183		1,576
Total current liabilities	91,236		89,547
Deferred revenues, net of current portion	25,386		25,800
Deferred income taxes	2,853		2,625
Convertible senior notes, net	337,725		336,230
Revolving loan	—		15,000
Lease liabilities, net of current portion	18,181		15,739
Other non-current liabilities	251		237
Total liabilities	475,632		485,178
Stockholders' Equity
Preferred stock, $0.001 par value, 10,000,000 shares authorized and 0 shares issued and outstanding as of September 30, 2026 and December 31, 2025	—		—
Common stock, $0.001 par value, 500,000,000 shares authorized; and 107,042,319 and 106,101,875 shares issued and outstanding as of September 30, 2026 and December 31, 2025, respectively	107		106
Additional paid-in capital	908,907		885,796
Accumulated deficit	(549,461)		(523,853)
Total stockholders' equity	359,553		362,049
Total liabilities and stockholders' equity	$         835,185		$         847,227

 

ALKAMI TECHNOLOGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(UNAUDITED)
	Three months ended September 30,				Nine months ended September 30,
	2026		2025		2026		2025
Revenues	$      134,911		$      112,954		$     390,893		$     322,848
Cost of revenues(1)	57,332		48,812		165,632		135,328
Gross profit	77,579		64,142		225,261		187,520
Operating expenses:
Research and development	32,598		30,091		94,997		87,207
Sales and marketing	18,260		19,337		61,036		60,227
General and administrative	31,263		25,889		83,766		80,245
Amortization of acquired intangibles	1,706		1,706		5,120		3,981
Total operating expenses	83,827		77,023		244,919		231,660
Loss from operations	(6,248)		(12,881)		(19,658)		(44,140)
Non-operating income (expense):
Interest income	628		1,026		2,074		3,286
Interest expense	(2,092)		(2,978)		(6,450)		(6,967)
Loss before income taxes	(7,712)		(14,833)		(24,034)		(47,821)
(Benefit from) provision for income taxes	(967)		(29)		1,574		(11,610)
Net loss	$        (6,745)		$      (14,804)		$     (25,608)		$      (36,211)
Net loss per share attributable to common stockholders:
Basic and diluted	$         (0.06)		$         (0.14)		$        (0.24)		$         (0.35)
Weighted-average number of shares of common stock outstanding:
Basic and diluted	106,627,818		104,345,319		106,626,666		103,395,497

(1)

Includes amortization of acquired technology of $4.9 million for both the three months ended September 30, 2026 and 2025, and $14.7 million and $11.7 million for the nine months ended September 30, 2026 and 2025, respectively.

 

ALKAMI TECHNOLOGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(UNAUDITED)
	Nine months ended September 30,
	2026		2025
Cash flows from operating activities:
Net loss	$          (25,608)		$          (36,211)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization expense	24,725		19,055
Accrued interest on marketable securities, net	(93)		(667)
Stock-based compensation expense	54,029		56,336
Amortization of discount and debt issuance costs	1,711		1,367
Loss on impairment of intangible assets	—		1,655
Deferred taxes	228		(11,971)
Changes in operating assets and liabilities:
Accounts receivable	(10,016)		(10,457)
Prepaid expenses and other assets	(987)		(5,882)
Accounts payable and accrued liabilities	125		14,424
Deferred costs	(5,389)		(6,538)
Deferred revenues	406		5,189
Net cash provided by operating activities	39,131		26,300
Cash flows from investing activities:
Purchase of marketable securities	(29,178)		(35,854)
Proceeds from sales, maturities, and redemptions of marketable securities	29,998		24,300
Purchases of property and equipment	(1,276)		(1,156)
Capitalized software development costs	(5,432)		(5,255)
Acquisition of business, net of cash acquired	—		(375,499)
Net cash used in investing activities	(5,888)		(393,464)
Cash flows from financing activities:
Payments on revolving loan	(15,000)		(35,000)
Debt issuance costs paid	—		(1,898)
Proceeds from Employee Stock Purchase Plan issuances	3,094		2,943
Proceeds from issuance of convertible senior notes	—		335,513
Proceeds from borrowing under revolving loan	—		60,000
Purchase of capped calls	—		(33,879)
Payments for taxes related to net settlement of equity awards	(11,236)		—
Proceeds from stock option exercises	1,762		2,442
Repurchases of common stock	(25,000)		—
Net cash (used in) provided by financing activities	(46,380)		330,121
Net decrease in cash and cash equivalents	(13,137)		(37,043)
Cash and cash equivalents, beginning of period	63,457		94,359
Cash and cash equivalents, end of period	$           50,320		$           57,316

 

ALKAMI TECHNOLOGY, INC.
RECONCILIATION  OF GAAP TO NON-GAAP MEASURES
(In thousands, except per share data)
(UNAUDITED)
	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2026		2025		2026		2025
GAAP total revenues	$  134,911		$  112,954		$  390,893		$  322,848
	September 30,
	2026		2025
Annual Recurring Revenue (ARR)	$  533,154		$  449,034
Registered Users	24,363		21,552
Revenue per Registered User (RPU)	$      21.88		$      20.83
Non-GAAP Cost of Revenues
Set forth below is a presentation of the company's "Non-GAAP Cost of Revenues." Please reference the "Explanation of Non-GAAP Measures" section.
	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2026		2025		2026		2025
GAAP cost of revenues	$    57,332		$    48,812		$  165,632		$  135,328
Amortization	(6,033)		(5,722)		(18,106)		(13,856)
Stock-based compensation expense	(1,454)		(2,103)		(4,682)		(6,445)
Non-GAAP cost of revenues	$    49,845		$    40,987		$  142,844		$  115,027
Non-GAAP Gross Margin
Set forth below is a presentation of the company's "Non-GAAP Gross Margin." Please reference the "Explanation of Non- GAAP Measures" section.
	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2026		2025		2026		2025
GAAP gross margin	57.5 %		56.8 %		57.6 %		58.1 %
Amortization	4.5 %		5.0 %		4.7 %		4.4 %
Stock-based compensation expense	1.1 %		1.9 %		1.2 %		1.9 %
Non-GAAP gross margin	63.1 %		63.7 %		63.5 %		64.4 %
Non-GAAP Research and Development Expense
Set forth below is a presentation of the company's "Non-GAAP Research and Development Expense." Please reference the "Explanation of Non-GAAP Measures" section.
	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2026		2025		2026		2025
GAAP research and development expense	$    32,598		$    30,091		$    94,997		$    87,207
Stock-based compensation expense	(5,820)		(5,726)		(16,204)		(16,584)
Non-GAAP research and development expense	$    26,778		$    24,365		$    78,793		$    70,623
Non-GAAP Sales and Marketing Expense
Set forth below is a presentation of the company's "Non-GAAP Sales and Marketing Expense." Please reference the "Explanation of Non-GAAP Measures" section.
	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2026		2025		2026		2025
GAAP sales and marketing expense	$    18,260		$    19,337		$    61,036		$    60,227
Stock-based compensation expense	(2,095)		(3,572)		(7,403)		(9,969)
Non-GAAP sales and marketing expense	$    16,165		$    15,765		$    53,633		$    50,258
Non-GAAP General and Administrative Expense
Set forth below is a presentation of the company's "Non-GAAP General and Administrative Expense." Please reference the "Explanation of Non-GAAP Measures" section.
	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2026		2025		2026		2025
GAAP general and administrative expense	$    31,263		$    25,889		$    83,766		$    80,245
Stock-based compensation expense	(9,858)		(9,328)		(25,740)		(27,248)
Acquisition-related expenses	(758)		(247)		(1,306)		(3,138)
Loss on impairment of intangible assets	—		—		—		(1,655)
Stockholder matters related expenses	(2,104)		—		(5,443)		—
Lease assignment related expenses	(2,131)		—		(2,131)		—
Non-GAAP general and administrative expense	$    16,412		$    16,314		$    49,146		$    48,204
Non-GAAP Income Before Income Taxes
Set forth below is a presentation of the company's "Non-GAAP Income Before Income Taxes." Please reference the "Explanation of Non-GAAP Measures" section.
	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2026		2025		2026		2025
GAAP loss before income taxes	$    (7,712)		$   (14,833)		$   (24,034)		$   (47,821)
Amortization	7,843		7,468		23,381		17,904
Stock-based compensation expense	19,227		20,729		54,029		60,246
Acquisition-related expenses	758		247		1,306		3,138
Loss on impairment of intangible assets	—		—		—		1,655
Stockholder matters related expenses	2,104		—		5,443		—
Lease assignment related expenses	2,131		—		2,131		—
Non-GAAP income before income taxes	$    24,351		$    13,611		$    62,256		$    35,122
Adjusted EBITDA
Set forth below is a presentation of the company's "Adjusted EBITDA." Please reference the "Explanation of Non-GAAP Measures" section.
	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2026		2025		2026		2025
GAAP net loss	$    (6,745)		$   (14,804)		$   (25,608)		$   (36,211)
(Benefit from) provision for income taxes	(967)		(29)		1,574		(11,610)
Interest expense, net	1,464		1,952		4,376		3,681
Depreciation and amortization	8,310		7,869		24,725		19,055
Stock-based compensation expense	19,227		20,729		54,029		60,246
Acquisition-related expenses	758		247		1,306		3,138
Loss on impairment of intangible assets	—		—		—		1,655
Stockholder matters related expenses	2,104		—		5,443		—
Lease assignment related expenses	2,131		—		2,131		—
Adjusted EBITDA	$    26,282		$    15,964		$    67,976		$    39,954

 

Free Cash Flow
Set forth below is a presentation of the company's "Free Cash Flow." Please reference the "Explanation of Non-GAAP Measures" section.
	Nine Months Ended
	September 30,
	2026		2025
Net cash provided by operating activities	$       39,131		$       26,300
Purchases of property and equipment	(1,276)		(1,156)
Capitalized software development costs	(5,432)		(5,255)
Free cash flow	$       32,423		$       19,889

Investor Relations Contact
Steve Calk
ir@alkami.com

Media Relations Contacts
Marla Pieton
marla.pieton@alkami.com

Vested
alkami@fullyvested.com

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SOURCE Alkami Technology, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Alkami's third-quarter 2026 earnings results?

Alkami reported $134.9 million in revenue and a $6.7 million GAAP net loss for the quarter ended September 30, 2026. Revenue increased 19.4% year over year, while net loss narrowed from $14.8 million. Adjusted EBITDA increased to $26.3 million from $16.0 million.

What is Alkami's full-year 2026 financial guidance?

Alkami forecasts full-year 2026 revenue of $530.5 million to $532.0 million and adjusted EBITDA of $98.0 million to $99.0 million. These ranges apply to the fiscal year ending December 31, 2026.

How does Alkami calculate annual recurring revenue and revenue per registered user?

Alkami calculates annual recurring revenue using annualized recurring software subscription revenue recognized in the reporting period's last month, plus the next 12 months of expected implementation services revenue measured in that month. Revenue per registered user divides annual recurring revenue by registered users at period-end.

Which users does Alkami include in its registered-user metric?

Alkami counts individuals or businesses related to a financial-institution client's account holder that have access to its digital banking platform at period-end. The registered-user metric excludes individuals or businesses that solely use products and services of its acquisitions.