Alkami Technology, Inc.

Q2 revenue was $129.8 million, up 15.9% year over year. Subscription revenue grew 16.2% and represented 95% of total revenue. ARR increased 21% to $512 million, and revenue per user rose to $21.69, up 7% year over year. Second-quarter non-GAAP gross margin was 63%, operating expenses were $62.8 million, adjusted EBITDA was $19.4 million, and adjusted EBITDA margin was 14.9%, up about 430 basis points year over year. Operating cash flow improved to $22 million from $1.2 million in the prior-year quarter, and cash and marketable securities were $81 million. For Q3 2026, management guided to revenue of $132.7 million to $134.2 million and adjusted EBITDA of $23.5 million to $24.3 million. For full-year 2026, it guided to revenue of $528 million to $531 million and adjusted EBITDA of $96 million to $98 million. Management also said stock-based compensation should be less than 14% of revenue and gross margin should exit 2026 nearing 65%.

Alex Shootman framed the quarter as evidence that Alkami’s model is scaling: customer growth, expansion, and profitability are all compounding together. He highlighted stronger bank-market traction, with awareness and consideration improving, implementation capabilities expanding across multiple cores, and bank launches now representing nearly 30% of digital launches. His tone was confident and strategic, emphasizing that expansion within the installed base, DSSP, AI-enabled workflow improvements, and new lending capabilities are the next growth drivers.

Cassandra Hudson emphasized that the company again beat expectations on revenue and adjusted EBITDA and that ARR growth outpaced revenue, which she called a leading indicator of momentum. She gave specific guidance for Q3 and full-year 2026, pointed to roughly 500 basis points of margin expansion for the year, and said the company expects non-GAAP gross margin to approach 70% over time while exiting 2026 nearing 65%. She also highlighted improved cash generation, with operating cash flow at $22 million versus $1.2 million a year ago, $81 million of cash and marketable securities, and $15 million of stock repurchased in Q2 plus $10 million more in Q3-to-date.

Analysts focused on DSSP economics, AI’s role in shortening implementation cycles, bank-market acceleration, gross margin cadence, ARPU guidance, and capital allocation. Management said DSSP should not create difficult comps in the back half because many customers are still in backlog, while one full DSSP customer went live in about 9 months, ahead of earlier expectations. On banks, management said win rate improved in the first half, but they are not modeling a dramatic quarterly acceleration; instead, they expect gradual mix shift over time. On capital allocation, CFO said excess cash will be used for debt reduction, share repurchases, and selective acquisitions, while Alex said a database-expense project was pushed into 2027 so those dollars could be redirected to lending and treasury investments.