Q1 2026 Alkami Technology Inc Earnings Call Transcript
Key Points
- Alkami Technology Inc (ALKT) achieved a strong first quarter with 29% revenue growth and over $22 million in adjusted EBITDA, both exceeding expectations.
- The company secured six new Digital Banking relationships and introduced new products, including Alkami Engage, demonstrating potential for long-term growth.
- Alkami's business model is attractive and predictable, operating in a large and growing market with over 2,000 regional banks and credit unions as potential clients.
- High retention rates and clients expanding their use of the platform contribute to reliable long-term client growth, with clients significantly increasing their platform investment over time.
- The MANTL acquisition has been strategic, adding platform functionality and expanding Alkami's client base, with 61 new clients added since the beginning of 2025.
- Alkami faces challenges in converting clients from legacy platforms due to long-term contracts and perceived conversion risks, limiting new logo growth spikes.
- The company anticipates a meaningful decline in termination fee revenue in 2026, which will impact reported growth.
- First-quarter non-GAAP gross margin was flat year over year due to higher database technology costs, which are expected to decline by the end of 2026.
- Alkami incurred $2.8 million in shareholder matters-related expenses over the prior two quarters, with expectations of additional costs.
- The integration of bank cores, which operate differently from credit union cores, presents technical challenges that require specific skills and product capabilities.
Hello and welcome to Alkami's first-quarter 2026 financial results conference call.
My name is [John]. I will be your operator for today's call.
(Operator Instructions)
I would now like to turn the conference call over to Steve Calk. Steve, you may begin.
Thank you, John. With me on today's call are Alex Shootman, Chief Executive Officer; and Cassandra Hudson, Chief Financial Officer.
During today's call, we may make forward-looking statements about guidance and other matters regarding our future performance. These statements are based on management's current views and expectations; and are subject to various risks and uncertainties. Our actual results may be materially different.
For a summary of risk factors associated with our forward-looking statements, please refer to today's press release and the sections in our latest 10-K entitled Risk Factors and Forward-Looking statements.
Statements made during the call are being made as of today.
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