Alkami Technology Inc. (NASDAQ: ALKT) ended the third quarter of 2026 with live annual recurring revenue of $533.2 million, up 19% from a year earlier, as new client implementations, user growth and higher revenue per user expanded its cloud-based banking platform. Registered users increased 13% to 24.4 million, while the number of digital banking platform clients rose 11% to 323.
The company said quarterly revenue growth was driven by new clients, growth in existing clients’ user bases and higher average revenue per user. RPU increased 5% year over year to $21.88. Subscription revenue accounted for 96% of revenue as of September 30, underscoring the recurring nature of Alkami’s business.
Profitability trends were mixed. Non-GAAP gross margin declined because of higher third-party expenses and temporary database costs. Adjusted EBITDA expanded, however, as Alkami continued to gain scale and improve efficiency across research and development, sales and marketing, and general and administrative functions.
Client and product expansion
Alkami signed five new digital banking platform clients during the quarter and 14 clients for MANTL, the account-opening technology business it acquired in the first quarter of 2025. Five of the MANTL signings were digital sales and service platform clients.
The company implemented 10 clients in the quarter, bringing its digital platform client count to 323 after accounting for attrition. Another 31 clients were in the implementation backlog, representing about 1 million digital users.
Remaining performance obligations reached $1.731 billion, up 8% year over year and equal to about 3.2 times live ARR. Alkami expects digital banking ARR churn of less than 1% for 2026. Its net dollar retention rate was 115% as of December 31, 2025.
Management identified long-term contracts, escalating minimum commitments, client retention, greater digital-user adoption and product cross-selling as the main drivers of ARR expansion. Alkami’s platform includes digital banking, account opening, data and marketing, payments, fraud prevention, financial analytics, and business and commercial banking products.
Outlook and operating priorities
Alkami is targeting community, regional and super-regional financial institutions as it expands beyond its historical credit-union base and increases its presence among banks. The company said continued sales and marketing investment in 2026 would support that bank-market expansion and its broader digital sales and service platform.
Under its long-term financial framework, management expects adjusted EBITDA margin to expand by approximately 300 basis points annually from 2026 through 2030. The framework also calls for the company to reach the “Rule of 45” in 2030, a combined measure of growth and profitability.
Alkami said its addressable market includes more than 250 million digital users at U.S. financial institutions with assets ranging from $100 million to $450 billion. The company estimates that this user base is growing 4% to 6% annually, while its current platform serves 24.4 million registered users.
The outlook remains subject to risks including Alkami’s history of operating losses, its ability to manage growth, win and retain clients, expand product adoption and integrate acquired businesses. The company also cited lengthy sales cycles, reliance on third-party software and services, cybersecurity threats, intense competition, financial-industry consolidation or weaker technology spending, regulatory requirements and the need to keep pace with changing technology.
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