Alkami Technology, Inc.

Hello, and welcome to the Alchemy's Third Quarter 2025 Financial Results Conference Call. My name is Andrew, and I will be your operator for today's call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Thursday, October 30, 2025. I would now like to turn the call over to Steve Cox. Steve, you may begin.

Thank you, Operator, and with me on today's call are Alex Schutman, Chief Executive Officer, and Brian Hill, Chief Financial Officer. During today's call, we may make forward-looking statements about guidance and other matters regarding our future performance. These statements are based on management's current views and expectations and are subject to various risks and uncertainties. Our actual results may be materially different. For a summary of risk factors associated with our forward-looking statements, please refer to today's press release and the sections in our latest 10-K entitled Risk Factors and Forward-Looking Statements. Statements made during the call are being made as of today, and we undertake no obligation to update or revise these statements. Also, unless otherwise stated, financial measures discussed on this call will be on a non-GAAP basis. We believe these measures are useful to investors in the understanding of our financial results. a reconciliation of the comparable gap. Financial measures can be found in our earnings press release and in our filings with the SEC. And now I'd like to turn the call over to Alex.

Good afternoon, and thank you all for joining us. I am pleased to report that Alchemy continued to deliver strong revenue and profit results in the third quarter of 2025, which I plan to discuss. But first, I'd like to announce that Alchemy has selected a new chief financial officer to succeed Brian Hill, who previously announced his intention to retire. Also, as discussed earlier this year, Alchemy entered into an agreement with Brian in which he will be available in a consulting role to the company for some time in the future. Alchemy's new CFO is Cassandra Hudson. Cassandra brings to Alchemy over 20 years of experience building, leading, and advising companies through rapid growth, capital market transactions, international expansion, and M&A activity. Most recently, she served as CFO of StackAdapt, a leading advertising and marketing technology company. Prior to that, she was CFO of EngageSmart, where she guided the company through a successful IPO and drove meaningful growth in both revenue and profitability. Earlier in her career, she spent 12 years at Carbonite, in a series of finance leadership roles, ultimately serving as Chief Accounting Officer and Vice President of Finance. Cassandra comes on board next week, and I'm looking forward to the investment community spending time with her in the coming quarters. I'm grateful that Cassandra said yes to Alchemy and excited to have her on our executive team. Turning to our business results. In the third quarter of 2025, Alchemy grew revenue over 31%, increased adjusted EBITDA to $16 million, and exited the quarter with 21.6 million registered users on the Alchemy platform, up 2.1 million from the prior year quarter. Q3 2025 was also a strong sales quarter, equal to our best Q3 ever. We added 10 new clients on our digital banking platform, six credit unions and four banks. And one of these clients is the largest new logo transaction in our history. Including this client, Alchemy now serves five of the top 20 credit unions in the United States. On a year-to-date basis, our new logo performance is consistent with the last four years. Our sales pipeline for Q4 in 2026 is also in line with recent years. And looking further into the future, out of the top 2,500 FIs, excluding megabanks and super regionals, There are still over 900 credit unions and nearly 1,000 banks that are not on a modern platform like Alchemy. For these reasons, we remain bullish about the growth opportunity ahead of us. Our mantle business also delivered a strong new logo sales quarter with 29 new mantle clients, 15 of which are new to Alchemy. Our cross-sell efforts are beginning to materialize. As year to date, Mantle has added 68 new logos, including 29 that are existing Alchemy clients. As I mentioned in a previous call, we now have two strategic platforms in which we can initiate a relationship with a financial institution. Year to date, the company has signed 23 new logos with our digital banking platform. And in the same period, 39 new logo relationships have been created with the onboarding platform in FIs that do not have Alchemy digital banking. Together, that is over 60 new platform client relationships with whom we can expand over time. From a qualitative perspective, we continue to see positive market reaction to the combination of Alchemy and Mantle. In a mid-year survey, 80% of bank and credit union leaders in our target market said the Mantle acquisition will have a positive impact on Alchemy. Our prospects appreciate that if you want to attract deposits, acquire new account holders, increase engagement, and improve operational efficiency, you need Alchemy's digital sales and service platform, which is the combination of our digital banking, onboarding and account opening, and data and marketing technologies. We had six renewals in the third quarter, and we had an amazing quarter in terms of online banking implementations. In Q3 2025, we brought 13 new clients onto our digital banking platform, the most in a single quarter in our history. Six of the 13 are banks, and year to date through October, we've implemented 14 banks, of which eight are integrated to the core system that represents our largest market opportunity. Mantle also had a strong implementation quarter bringing 15 clients onto our onboarding and account opening platform, which was as many as we implemented in the entire first half of 2025. If you combine institutions that are live on either our digital banking platform or our onboarding and account opening platform, we now serve 413 financial institutions, of which 124 are banks and 289 are credit unions. We also had an exciting quarter in terms of product progress. The design work of our digital sales and service platform, which once again is the integration of digital banking, onboarding and account opening, and data and marketing, is complete. We've assigned a dedicated engineering team to the build effort and expect to show product to our clients at our spring customer conference. This effort can impact future growth as we now have 17 clients under contract for all three technologies, and delivering the planned product integration can generate a 30% uplift to our new logo ARR. We also released our new money movement hub, have our one-click SDK deployment in beta, and we showed our client community a prototype of an agentic code creator that builds tailored products for an FI. We released two new features for treasury management, and last week added an additional six treasury management features to our beta client community. In onboarding and account opening, we are accelerating in-branch product adoption, have continued momentum on account maintenance, and our pioneer loan platform client originated over $4 million in loans in their first six months of product usage. From a partner perspective, we created a new development team dedicated to our partner ecosystem, which will double the number of partners we can onboard each year. This will create future growth potential and improve customer satisfaction by giving our clients more capabilities for their account holders. In closing, I am proud of the more than 1,000 alchemists who achieved another strong quarter of results for our clients and our investors. As we finish 2025, I'm excited about our continued innovation and execution, a resilient, growing market, and a business model with several growth levers. I'll now hand the call to Brian to discuss our financial results.