Alkami Technology, a cloud software provider that sells digital banking and account-opening tools to smaller banks and credit unions, posted a second quarter in which revenue growth held in the mid-teens while profitability improved far faster than the top line, confirming that the longtime-recurring-revenue story is now starting to convert into cash earnings. For the three months ended June 30, 2026, total revenue reached $129.8 million, up 15.9% from $112.1 million a year earlier, while adjusted EBITDA, a non-GAAP measure that adds back stock compensation, depreciation, interest, and certain one-time items, climbed to $19.4 million from $11.9 million, a jump that pushed the adjusted EBITDA margin up roughly 430 basis points (hundredths of a percent) to 14.9%. The company also guided to a stronger back half, raising the implied pace of both revenue and adjusted EBITDA for the rest of the year.
The one-sentence thesis is that Alkami sits in a durable replacement market, where community and regional banks face pressure to modernize their consumer-facing digital banking in order to compete with national money-center banks, and that the company is moving from heavy investment into a period of operating leverage that translates revenue growth into disproportionately faster profit growth. The mechanism is visible in the quarter: recurring subscription revenue is roughly 95% of the total, annual recurring revenue reached $511.7 million, up 21% year over year, and revenue per registered user rose 7% to $21.69, all while the company kept research and development spending at about 24% of revenue, so the margin expansion is coming from efficiency rather than from cutting product investment.
The single load-bearing risk is that Alkami still runs a GAAP net loss and carries $345 million of convertible debt, a structure in which a flat or falling stock price limits the value of the conversion option and leaves the equity more dependent on continued operational execution. The falsifiable clock is the third quarter: management guided to adjusted EBITDA of $23.5 million to $24.3 million on revenue of $132.7 million to $134.2 million, and the equity story hinges on whether the company can continue to convert the strong second-half pipeline of 37 new digital banking logos added over the trailing twelve months into contracted revenue at the guided pace.