Key Highlights

  • Consensus EPS of 0.20 compares with second-quarter basic EPS of negative 0.08, against negative 0.13 a year earlier.
  • Consensus revenue of USD 133.54 million sits within third-quarter revenue guidance of USD 132.7 million to USD 134.2 million.
  • Management guided 2026 revenue of USD 528 million to USD 531 million, up 19% to 19.7%.
  • Annual recurring revenue was USD 511.7 million, up 21% year over year, with 23.6 million registered users.

Alkami Technology (NASDAQ:ALKT) reports third-quarter results on Wednesday, Oct. 28, after the market closes. Consensus stands at EPS of 0.20 on revenue of USD 133.54 million, and the company has a market capitalization of USD 1.68 billion.

Alkami Technology provides a cloud digital banking platform for banks and credit unions. Second-quarter revenue was USD 129,844 thousand against USD 112,059 thousand, and the net loss was USD 8,900 thousand against USD 13,591 thousand.

Estimates Against Third-Quarter Guidance

Management guided third-quarter revenue of USD 132.7 million to USD 134.2 million, and the revenue estimate of USD 133.54 million sits inside that range. The EPS estimate of 0.20 is above the second-quarter basic EPS of negative 0.08, and the estimates table does not state its EPS basis.

Revenue rose 15.9% in the quarter, and gross profit was USD 73,813 thousand against USD 65,618 thousand. The operating loss was USD 7,705 thousand against USD 15,863 thousand. Cost of goods sold was USD 56,031 thousand against USD 46,441 thousand, and operating expenses were USD 81,518 thousand against USD 81,481 thousand. Basic loss per share was 0.08 against 0.13.

What Management Guided and What It Left Open

Management guided 2026 revenue of USD 528 million to USD 531 million, up 19% to 19.7%, adjusted EBITDA of USD 96 million to USD 98 million and stock-based compensation below 14% of revenue. It guided approximately 500 basis points of full-year margin expansion.

Management left open termination fee revenue, which it called inherently variable from quarter to quarter and which lowered non-GAAP gross margin to 63.0% from 65.1%. It targets a Rule of 45 outcome by 2030.

ARR, Users and Bank Market Progress

Registered users rose 2.7 million, or 13%, and revenue per registered user was USD 21.69, up 7%. Remaining performance obligations were USD 1.7 billion, or 3.4 times live ARR, and backlog ARR was USD 61 million.

The company has 54 bank clients under contract, 42 of them live, and bank market awareness rose to 52% from 37%. Fifty clients exceed USD 2 million in ARR, against 18 at the end of 2021.

Profitability, Cash Flow and Buybacks

Adjusted EBITDA was USD 19.4 million, a 14.9% margin, up 430 basis points, and operating cash flow was USD 22 million against USD 1.2 million. Income before taxes showed a loss of USD 9,112 thousand against a loss of USD 17,887 thousand.

The company repurchased USD 15 million of stock in the second quarter and USD 10 million more in the third quarter to date. Cash and marketable securities were USD 81 million. The estimates table lists a market capitalization of USD 1.68 billion.

Figures to Follow in the Release

Reported EPS against 0.20 and revenue against USD 133.54 million are the headline comparisons. Other markers are ARR growth, termination fee revenue and the guidance ranges.