Alkami Technology 2025 Q2 Earnings Misses Targets as Net Loss Widens 10.3%

Alkami Technology reported its fiscal 2025 Q2 earnings on July 31st, 2025. The company recorded a net loss of $13.59 million, widening by 10.3% compared to the previous year. Despite a robust 36.4% increase in revenue to $112.06 million, the results fell short of expectations, with EPS remaining at $-0.13, contrary to the anticipated figures. Looking ahead, the company provided a positive guidance for the third quarter, projecting GAAP total revenue between $112.5 million and $114.0 million, with adjusted EBITDA ranging from $13.0 million to $14.0 million.

Revenue

Alkami Technology's revenue for 2025 Q2 increased by 36.4% to $112.06 million, compared to $82.16 million in the previous year.

Earnings/Net Income

Despite stable EPS at $-0.13 in 2025 Q2, Alkami's net loss widened by 10.3% to $-13.59 million. The EPS performance underscores ongoing financial challenges for the company.

Post-Earnings Price Action Review

The strategy of purchasing Alkami Technology shares following a quarter with increased revenue and holding for 30 days yielded moderate returns, though it underperformed the market. The strategy delivered a compound annual growth rate (CAGR) of 6.18%, trailing the benchmark by 50.90%. Despite a maximum drawdown of 0.00% and a Sharpe ratio of 0.15, which suggests low risk, the returns were modest. This strategy is suitable for investors seeking stable, albeit limited, returns, highlighting its appeal to those prioritizing stability over high growth potential.

CEO Commentary

Alex Shootman, CEO, expressed satisfaction with the second quarter's financial performance, noting a 36% revenue growth and $12 million in adjusted EBITDA. He emphasized the rising demand for digital transformation among financial institutions and highlighted the strategic acquisition of MANTL, which brought in 23 new clients. Shootman expressed confidence in Alkami’s platform, asserting its industry-leading position with integrated banking solutions.

Guidance

For Q3 2025, Alkami anticipates GAAP revenue between $112.5 million and $114.0 million, with adjusted EBITDA expected to range from $13.0 million to $14.0 million. For the fiscal year ending December 31, 2025, the company projects GAAP revenue between $443.0 million and $447.0 million, alongside adjusted EBITDA of $51.5 million to $54.0 million.

Additional News

In the three weeks leading up to July 31, 2025, Alkami Technology was active in strategic initiatives. The company completed the acquisition of MANTL, a fintech firm, to enhance its digital banking offerings. This acquisition is expected to drive growth and expand the client base, particularly among regional banks. Additionally, Alkami announced a significant integration with HubSpot to enhance data-driven engagements for clients like Atomic Credit Union and PrimeWay Federal Credit Union. The integration aims to provide more personalized customer experiences. Furthermore, Alkami introduced new digital banking solutions for Towpath Credit Union, aiming to transform their digital banking experience and offer advanced features to customers. These strategic moves reflect Alkami's commitment to strengthening its market position and expanding its digital ecosystem.