Alkami Technology, Inc.

Thank you for watching. © transcript Emily Beynon Thank you for watching. Good afternoon, ladies and gentlemen, and welcome to the Alchemy Technology Second Quarter 2026 Financial Results Conference Call. At this time, all lines are in the 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. I would now like to turn the call over to Steve Calk. Steve, you may begin.

Thank you, Chloe. With me on today's call are Alex Shootman, Chief Executive Officer, and Cassandra Hudson, 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 look at today's press release and the sections in our latest 10-K entitled Risk Factors and Forward-Looking Statements. Good afternoon, and thank you for joining us.

In the second quarter, Alchemy delivered revenue growth and profitability ahead of our expectations. On my first earnings call in 2022, we reported a little over $42 million in revenue, a negative adjusted EBITDA of more than $4 million. Prior to that call, we established an internal five-year goal. Become the industry-leading digital banking platform, generate $500 million in revenue, and produce $100 million of adjusted EBITDA. Despite economic and geopolitical uncertainty, goals that seemed extraordinary are now within reach. Our progress reflects three durable strengths, our people and culture, the digital transformation of community banking, and our belief that the customers are North Star. That principle guides every important decision we make, When faced with choices and trade-offs, the single most important thing we can do is create and keep customers. In Q2, we signed five new digital banking relationships, including three banks. We also added eight mantle clients and three data and marketing clients. Seven clients adopted our digital sales and service platform, or DSSP, through new logo or add-on sales, bringing the number of clients contracted for all three DSSP products to 55. We also brought eight digital banking clients and 18 mental clients live. Over the last 12 months, we added 2.7 million users, the most users added in any trailing 12-month period since mid-2024. In that same quarter back in 2022, we noted that we signed two banks. At the time, we had three live bank clients, and on that foundation, we stated that we would strategically pursue the bank market. Today we have 54 bank clients under contract and 42 live on the Alchemy digital banking platform. Success in the bank market required four things. First, banks needed to know Alchemy was a credible alternative. We consistently ranked first or second in awareness and consideration among credit unions, but historically lacked the same recognition among banks. Since entering the bank market, awareness has increased from 37% to 52%, while consideration has increased from 8% to 21%. Second, we needed to build the treasury management capabilities banks require. Once we had enough live customers to assess product market fit in mid-2024, we identified 28 required capabilities. We delivered 18, with six more expected to enter beta or become generally available in the second half of 2026. Third, we needed to integrate with bank cores and improve implementation execution. We now support multiple live implementations across seven bank cores and single implementations across two more, covering the majority of our target market. Bank implementation time improved from more than 13 months in 2023 and 2024 to less than 11 months in 2025. In 2026, banks represent nearly 30% of our digital launches. Fourth, we needed to have bank expertise throughout Alchemy. Half of our implementation personnel now have bank market expertise, supported by dedicated bank sales and presales teams, and increased banking expertise across product and engineering. Banks launch at higher RPU and purchase more commercial functionality. More than three-quarters of the bank market still uses legacy digital banking, leaving substantial room for displacement. The bank story is no longer, can Alchemy sell into banks? It's becoming, can Alchemy operationalize and scale what is working? Last quarter, I explained why expansion within our client base will drive a greater share of future growth. The evidence is visible in our customer cohorts. First, our five-year customer cohorts have grown to more than twice their original platform All our 10-year cohorts have grown to approximately four times their landing ARR. On my first earnings call with you, we had 18 clients with $2 million or more in ARR. Today, we have 50. Second, clients are adopting more products at launch. In 2021, clients launched with an average of 10 products. Today, their launch was 16. And the RPU of clients launching in 2026 is expected to be nearly twice the average of our install base. Third, RPU has grown from $13.68 in 2021 to over $21 today. Importantly, this growth did not result from a client-wide price increase. It occurred because clients purchased more product from Alchemy. These results demonstrate that expansion is not merely an assumption in our 2030 framework. It is established customer behavior. Alchemy is evolving from a vertical application into a vertical platform that lands with more products and compounds in value over time. DSSP accelerates this model by increasing the number of products clients adopt at launch and creating more opportunities to expand over time. Even as we've grown, We continue to have significant opportunities to deliver more value to our clients. Our clients spend meaningfully more on the technology surrounding the core than they spend with Alchemy today. That creates room to expand, but only if we earn it by delivering products that compete independently and create greater value together. Our objective is to become the technology partner of choice for regional and community financial institutions. In the near term, we are continuing to build treasury management capabilities to improve bank win rates. We're adding functionality for the specialty account opening needs of our largest banks to increase revenue for client. We're also building our lending platform and our point of sale capabilities that integrate with other loan origination systems to increase our addressable market. In addition, we're encouraged by demand for existing products that incorporate AI. Behavioral biometrics, unified messaging, and predictive marketing are growing nearly 30% year-over-year and contributing to Alchemy's growth. Those investments increase the value we deliver today. Over time, AI expands that opportunity even further. We believe Alchemy can provide the trusted data workflow and intelligence layer that allows community financial institutions to deploy AI in regulated environments. Our advantage is not access to a model. It's our understanding of regulated banking workflows, our integrations, our data, and the trust created through relationships across more than 1,000 financial institutions. Right now, more than 100 alchemists use an internal prototype every day, helping us learn where AI creates measurable value before we determine how to bring those capabilities to our clients. When we do, our advantage will come from the trust we've earned The data and integrations we've built and our regulated banking expertise. In closing, over the last five years, Alchemy has proven it could add customers, grow with them, and expand profitability. The next phase builds on that foundation. Scale what's working in banks, increase the value delivered to every client relationship, and use DSSP to become the technology partner of choice for regional and community financial institutions. I now hand the call to Cassandra to discuss our financial results.