- Strong Revenue Growth: Q4 revenue reached $120.8 million (+35% YoY), with full-year revenue hitting $443.6 million (+33% YoY).
- EBITDA Surge: Full-year adjusted EBITDA more than doubled to $59.1 million, up from $22.8 million in 2024.
- Client Expansion Momentum: Acquired 16 new digital banking clients and 33 MANTL clients in Q4, with 58% of new digital banking deals tied to DSSP.
- 2026 Guidance: Revenue projected at $525.5–530.5 million (+18.5–19.6% growth), and adjusted EBITDA of $93.5–97.5 million (500 bps margin expansion to 19%).
- 2030 Strategic Targets: Aiming for 70% non-GAAP gross margin, 300 bps annual adjusted EBITDA margin expansion, and 90% free cash flow conversion.
Guidance and Outlook
The company expects 2026 revenue of $525.5-530.5 million, representing 18.5-19.6% growth, and adjusted EBITDA of $93.5-97.5 million. The outlook assumes continued cross-sell momentum, high single-digit ARPU growth, and a 75% decline in termination fee revenue. Alkami aims to achieve a Rule of 45 by 2030, driven by revenue growth, RPU expansion, and dollar churn of 2-3% per year. Analysts estimate next year's revenue growth at 17.3%, aligning with the company's guidance.
Valuation and Metrics
Alkami's current valuation metrics show a P/S Ratio of 3.92 and an EV/EBITDA of -74.68. The company's ROE is -13.71%, and ROIC is -5.71%. With a significant runway for growth, Alkami targets 90% free cash flow conversion by 2030. The 2030 financial framework implies mid- to high-teen revenue growth, driven by a durable business model with long-term contracts, a sticky product, and expanding margins.
Business Fundamentals and Growth Drivers
Underlying demand trends remain strong, driven by a robust pipeline, particularly in the bank market, where Alkami sees a 50-50 credit union and bank split. The company expects high-digit growth in revenue per user (RPU) in 2026, which should translate to ARR growth. Alkami's growth in the credit union space is driven by its modern platform and track record of successful conversions, which helps build confidence in the conversion process.
MANTL Acquisition and Cross-Selling
The MANTL acquisition has contributed to growth, and the company expects a 30% uplift in ARR when clients buy DSSP. Alkami has seen progress in cross-selling activity between MANTL and its digital banking client base, with the MANTL loan origination system (LOS) currently targeting retail and HELOC loan origination.
Capital Allocation Priorities
The company focuses on paying down debt and opportunistically assessing M&A opportunities and share buybacks. With a strong financial performance and a clear growth strategy, Alkami is well-positioned to achieve its long-term goals.