Alkami Technology, Inc. (ALKT) Q2 2026 Earnings: Revenue $130M (+15.9%)
ALKT — Q2 2026 Financial Report Analysis
Q2 · Fiscal year 2026 · Published by Pham Hop
Alkami's Q2 2026 revenue rose 15.9% to $129.8M while operating expenses stayed flat, halving the GAAP operating loss to $7.7M even as resold third-party products pushed gross margin down to 56.8%.
Revenue
$130M
+15.9% YoY
Net income
-$8.9M
Diluted EPS
$-0.08
Operating margin
-5.9%
This period vs a year ago
Same period last year
This period
Revenue▲+15.9%
≈$112M
$130M
Year-ago figures (≈) are worked out from the growth rate the company reported. Each row has its own scale.
Overview
Alkami Technology sells the online and mobile banking software that about 300 US credit unions and community banks put in front of their own customers. In the second quarter of 2026 (three months to June 30), revenue rose 15.9% to $129.8 million while total operating expenses stayed flat at $81.5 million, so the company's GAAP operating loss roughly halved, from $15.9 million to $7.7 million. The catch is on the cost-of-revenue line: gross margin slipped by almost two percentage points because Alkami is reselling more third-party products inside its platform, and those carry their own costs. Revenue beat the company's own forecast ($128.0–$129.0 million), and full-year guidance was nudged up.
At a glance
Revenue $129.8M, +15.9% — the first quarter in which the year-ago period also contained a full three months of MANTL (the account-opening business bought in March 2025), so this is close to a like-for-like growth rate, well below the 28.9% reported for Q1.
Operating loss $7.7M vs $15.9M — operating margin improved from -14.2% to -5.9% because revenue grew while operating expenses did not; this is the clearest evidence of progress toward GAAP profitability.
Annual recurring revenue (ARR) $511.7M, +21% — the contracted run-rate is still growing faster than reported revenue, which points to revenue growth holding up into the second half.
Results at a glance
Metric
Q2 2026
Q2 2025
YoY Change
Revenue
$129.8M
$112.1M
+15.9%
Gross margin (GAAP)
56.8%
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58.6%
-1.8 pts
Gross margin (non-GAAP)
63.0%
65.1%
-2.1 pts
Operating loss (GAAP)
$(7.7)M
$(15.9)M
Loss narrowed 51%
Operating margin (GAAP)
-5.9%
-14.2%
+8.3 pts
Net loss
$(8.9)M
$(13.6)M
Loss narrowed 35%
Diluted EPS
$(0.08)
$(0.13)
Loss narrowed $0.05
Adjusted EBITDA
$19.4M
$11.9M
+62%
Adjusted EBITDA margin
14.9%
10.6%
+4.3 pts
ARR (June 30)
$511.7M
$423.8M
+20.7%
Registered users
23.6M
20.9M
+12.9%
Revenue per registered user (RPU)
$21.69
$20.28
+7.0%
Source: Alkami Form 10-Q for the quarter ended June 30, 2026 and the Q2 2026 earnings release (Exhibit 99.1, filed July 29, 2026). Adjusted EBITDA is the company's non-GAAP measure.
Takeaway: Alkami's path to GAAP profitability is running almost entirely through cost discipline above the gross-profit line — operating expenses were flat year over year on 16% more revenue — while gross margin is moving the wrong way as resold third-party products grow. The loss can keep shrinking only as long as opex stays flat; a structural improvement needs gross margin to stop falling.
How the business makes money
Alkami charges banks and credit unions mostly per registered user — each of a client institution's customers or members who has access to its digital banking. Contracts are long (average life about 70 months, per the 10-Q) and 94.7% of Q2 revenue came from software subscriptions, so revenue is highly predictable. Growth comes from three levers, all of which the filing tracks:
More users: 2.7 million added in the past year to 23.6 million (+12.9%), from existing clients' customers signing up and from new clients going live.
More products per user: revenue per registered user rose 7.0% to $21.69, as clients add modules such as account opening, marketing and data tools. Note this was slower than the 9% RPU growth reported for Q1.
More clients: 313 institutions on the full platform (over 1,000 including clients of the stand-alone ACH Alert, Segmint or MANTL products), with 37 new digital-banking clients signed over the last 12 months, 15 of them banks rather than credit unions.
ARR — annual recurring revenue, the yearly value of the subscriptions running in June plus the next 12 months of expected setup fees — reached $511.7 million, up 20.7%. The 10-Q attributes the revenue increase to "user growth on our Platform, from both existing client digital user growth and new client implementations, and higher RPU from selling additional solutions." The company does not disclose a net revenue retention rate (how much existing clients spend this year versus last), so the users-times-RPU split above is the best available read on how much growth comes from existing clients.
Why gross margin fell
Cost of revenue grew 20.7%, faster than revenue's 15.9%. The 10-Q puts the $9.6 million increase down "primarily" to $7.6 million in higher costs of third-party partners whose solutions Alkami resells as part of its platform, plus $1.5 million in higher hosting (cloud computing) costs. Reselling partners' products adds revenue but at a thinner margin than Alkami's own software, so the mix shift drags the percentage down even as gross profit in dollars rose 12.5% to $73.8 million.
Excluding amortization of acquired technology and stock-based pay, gross margin fell from 65.1% to 63.0% — and from 64.4% in Q1 2026, so the slide accelerated in the quarter. Management's offsetting lever is renewals: the filing says the company "generally achieve[s] approximately 70% gross margin upon renewal," and it completed 7 renewals in Q2 (11 in the first half). With contracts lasting about six years, that lever works slowly.
Where the operating improvement came from
Total operating expenses were $81.5 million in both Q2 2026 and Q2 2025 — 62.8% of revenue, down from 72.7%.
Research and development rose 3.9% to $31.4 million (24.2% of revenue), mainly $0.8 million more engineering and product staff cost.
Sales and marketing fell 0.7% to $22.8 million: $2.1 million lower personnel cost, partly offset by $1.7 million from the timing of industry conferences.
General and administrative fell 3.6% to $25.6 million despite $1.1 million of new "stockholder matters" costs (legal and advisory fees the company describes as outside the ordinary course of business).
Stock-based compensation — pay in shares, which costs shareholders through dilution rather than cash — fell to $17.5 million from $19.5 million, or from 17.4% to 13.5% of revenue. That decline accounts for about $2.0 million of the $8.2 million improvement in operating loss.
What the headline numbers hide
The net loss improved less than the business did, because of tax. The pre-tax loss halved, from $17.9 million to $9.1 million. But Q2 2025 carried a $4.3 million tax benefit, which the 10-Q ties to a one-time partial release of a tax valuation allowance connected with the MANTL acquisition. This year's benefit was only $0.2 million. Strip that out and the improvement in net loss (35%) understates the operating progress.
Adjusted EBITDA and GAAP results are $27 million apart. Adjusted EBITDA of $19.4 million adds back $17.5 million of stock-based pay, $8.3 million of depreciation and amortization (much of it from acquisitions), $1.1 million of stockholder-matters costs and $0.2 million of acquisition costs. Stock-based pay is the large, recurring item; treating it as "not a real cost" is the main way a $7.7 million operating loss becomes a $19.4 million profit.
Cash flow is better than the income statement. For the first half, operating cash flow was +$17.2 million against a net loss of $18.9 million, and free cash flow (operating cash flow minus capital spending and capitalized software) was +$12.4 million versus -$8.6 million a year earlier. The gap is mostly the $34.8 million of non-cash stock pay and $16.4 million of depreciation and amortization, partly offset by $16.5 million of working-capital outflows (including a $12.2 million drop in accrued liabilities since December).
Buybacks are not yet shrinking the share count. Alkami bought back $15.0 million of stock in the first half and another $10.0 million (531,620 shares) in July, under a $100 million program authorized in April. Yet shares outstanding rose to 106.9 million from 106.1 million at year-end, and the weighted share count was 3.4% higher than a year ago, because new employee share grants outweigh the repurchases. The improvement in loss per share is from the smaller loss, not from fewer shares.
Receivables grew faster than the business. Accounts receivable rose 10.1% in six months to $56.7 million, while deferred revenue (bills sent before the service is delivered) edged down to $59.6 million from $60.6 million. Neither is alarming on its own, but both are worth watching as signs of billing timing.
Balance sheet: $81.0 million of cash and marketable securities against $345 million of 1.50% convertible notes due 2030 (issued to fund MANTL). The company repaid the remaining $15 million on its revolving credit line in March 2026, which is why net interest expense fell to $1.4 million from $2.0 million.
Guidance and outlook
Q2 came in above the company's own forecast on both lines (revenue $129.8 million vs $128.0–$129.0 million guided; adjusted EBITDA $19.4 million vs $17.9–$18.7 million). Full-year guidance moved up modestly:
2026 guidance
After Q1 (Apr 29)
After Q2 (Jul 29)
Revenue
$527.1M–$530.9M
$528.0M–$531.0M
Adjusted EBITDA
$94.9M–$97.9M
$96.0M–$98.0M
For Q3, management guides to revenue of $132.7–$134.2 million and adjusted EBITDA of $23.5–$24.3 million (roughly an 18% margin at the midpoints).
The guidance asks a lot of the second half on profitability. With $41.7 million of adjusted EBITDA in the first half, the full-year midpoint of $97.0 million implies about $55 million in the second half on about $273.5 million of revenue — a margin near 20%, up from 16.3% in the first half. Q2's adjusted EBITDA margin (14.9%) was actually lower than Q1's (17.7%), so that step-up depends on opex staying near flat while revenue grows about 3% a quarter.
Our read: the subscription base (ARR +21%, users +13%) supports mid-to-high-teens revenue growth for the rest of 2026, and flat operating expenses are already doing the heavy lifting on profitability — at this pace GAAP operating breakeven is a 2027 question, not a 2026 one. The two things to watch in the Q3 report: whether non-GAAP gross margin stabilizes around 63% or keeps sliding as third-party resale grows, and whether RPU growth (7% in Q2, down from 9% in Q1) keeps slowing, since that is the main measure of whether clients are buying more of Alkami's own products.