April 29th, 2026

The call was largely positive: management reported strong Q1 revenue (+29%), robust adjusted EBITDA and margin expansion, healthy ARR and backlog growth, solid user growth and ARPU improvement, effective MANTL integration and early traction with the Digital Sales & Service Platform (DSSP), plus a $100M buyback signaling confidence. Headwinds are mostly temporary or execution-related—Q2 comparability impact from a prior termination fee, elevated database costs expected to normalize, shareholder-related defense expenses, and unresolved AI commercialization/pricing. Structural market limits mean new-logo acceleration is constrained, so future growth emphasis is on cross-sell and expansion within the installed base. Overall, positives materially outweigh the manageable and mostly temporary negatives.

Company Guidance

Alkami provided Q2 guidance of $128.0M–$129.0M in revenue (growth of 14.2%–15.1%, noting a ~3 ppt year‑over‑year headwind from a sizable Q2 2025 termination fee) and adjusted EBITDA of $17.9M–$18.7M (about a 14.3% margin at the midpoint); full‑year 2026 guidance is $527.1M–$530.9M revenue (18.8%–19.7% growth) and $94.9M–$97.9M adjusted EBITDA (18.2% margin at the midpoint), with an expected full‑year non‑GAAP gross margin of ~65% and adjusted EBITDA margin north of 19% in the back half (weighted to Q4); management expects ~500 basis points of margin expansion in 2026, high single‑digit ARPU growth, a meaningful decline in termination‑fee revenue (partially offset by MANTL), stock‑based compensation of ~14% of revenue for the year, and longer‑term targets including Rule of 45 by 2030, non‑GAAP gross margin approaching 70%, ~300 bps of annual adjusted EBITDA margin expansion, stock‑based comp declining to ~10% of revenue, and total dollar churn of ~2%–3% annually (about half from digital banking), while noting Q1 exits: ARR of $494M, $71M ARR backlog (40 clients, ~1.4M users), remaining performance obligations of ~$1.7B, and a $100M share repurchase authorization.