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Alkami's Q2 2025 Earnings Call: Unraveling Key Contradictions in Revenue, Growth, and MANTL's Impact
Generated by AI AgentEarnings Decrypt
Thursday, Jul 31, 2025 12:32 am ET1min read
Aime SummaryMANTL's contribution to revenue and backlog, sales and revenue growth expectations, ARPU and revenue growth expectations, sales pipeline and MANTL's impact, termination fees' impact on revenue are the key contradictions discussed in Alkami's latest 2025Q2 earnings call.
Revenue Growth and Profitability:
- reported revenue of $112.1 million for Q2 2025, up 36% year-over-year and 28% organically.
- The growth was driven by sustained top-line execution and exceeding profit commitments, with adjusted EBITDA reaching $11.9 million.
- This was attributed to strong demand for digital transformation in regional and community financial institutions.
cross-selling Success with MANTL Acquisition:
- MANTL added 39 new clients in the first half of 2025, with 14 being existing digital banking clients.
- This resulted in over 70% year-to-date new logo ACV growth, driven by the integration and cross-selling opportunities with the Alkami platform.
- The success was due to the strategic combination of MANTL's onboarding and account opening capabilities with Alkami's digital banking platform.
User Growth and Churn Management:
- Alkami ended Q2 2025 with 20.9 million registered users on the Alkami Platform, up 2.3 million from the prior quarter.
- The company managed churn with only 4 clients leaving in 2025, representing less than 1% of ARR.
- User growth was supported by digital transformation demand, and churn was managed effectively through strategic client retention and beneficial M&A activity.
Operating Leverage and Margin Expansion:
- Alkami achieved a non-GAAP gross margin of 65.1%, representing nearly 200 basis points of expansion compared to the prior year.
- Operating leverage was driven by improvements in R&D and G&A, contributing to a 340 basis points reduction in operating expenses as a percentage of revenue.
- This was due to platform investments and operational scale realization across post-sale operations.
Revenue Growth and Profitability:
- reported revenue of $112.1 million for Q2 2025, up 36% year-over-year and 28% organically.
- The growth was driven by sustained top-line execution and exceeding profit commitments, with adjusted EBITDA reaching $11.9 million.
- This was attributed to strong demand for digital transformation in regional and community financial institutions.
cross-selling Success with MANTL Acquisition:
- MANTL added 39 new clients in the first half of 2025, with 14 being existing digital banking clients.
- This resulted in over 70% year-to-date new logo ACV growth, driven by the integration and cross-selling opportunities with the Alkami platform.
- The success was due to the strategic combination of MANTL's onboarding and account opening capabilities with Alkami's digital banking platform.
User Growth and Churn Management:
- Alkami ended Q2 2025 with 20.9 million registered users on the Alkami Platform, up 2.3 million from the prior quarter.
- The company managed churn with only 4 clients leaving in 2025, representing less than 1% of ARR.
- User growth was supported by digital transformation demand, and churn was managed effectively through strategic client retention and beneficial M&A activity.
Operating Leverage and Margin Expansion:
- Alkami achieved a non-GAAP gross margin of 65.1%, representing nearly 200 basis points of expansion compared to the prior year.
- Operating leverage was driven by improvements in R&D and G&A, contributing to a 340 basis points reduction in operating expenses as a percentage of revenue.
- This was due to platform investments and operational scale realization across post-sale operations.
Earnings Decrypt
Discover what executives don't want to reveal in conference calls
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