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DATE

Wednesday, April 29, 2026 at 5 p.m. ET

CALL PARTICIPANTS

  • Chief Executive Officer — Alex Shootman
  • Chief Financial Officer — Cassandra Hudson

TAKEAWAYS

  • Revenue -- $126.1 million, representing year-over-year growth of 29%.
  • Subscription Revenue -- Increased by 30%, comprising 90% of total revenue.
  • Annual Recurring Revenue (ARR) -- Ended the quarter at $494 million, up 22% year over year.
  • ARR Backlog -- $71 million tied to 40 new clients and 1.4 million digital users, most of which is expected to go live within 12 months.
  • Client Base -- 307 clients and 23 million registered users, with user count up 2.5 million (12%) year over year.
  • ARR Launch Dynamics -- 35 clients implemented over the past 12 months (1.2 million new digital users), while existing clients added 1.5 million users.
  • DSSP Adoption -- DSSP clients increased from 11 to 48 since the beginning of 2025; over half of all new logos since Q2 last year included DSSP.
  • ARR Uplift, DSSP -- DSSP new logos delivered a 30% increase in ARR over the historic online banking offering.
  • Revenue per User (ARPU) -- Rose to $21.40, a 9% increase year over year, aided by Mantle contributions, cross-sell, and user adoption.
  • Non-GAAP Gross Margin -- 64.4%, roughly flat due to temporary database technology cost increases.
  • Operating Expenses -- $59.4 million, or 47.1% of revenue, representing a 530 basis-point year-over-year improvement.
  • Adjusted EBITDA -- $22.3 million, margin 17.7%, a 540 basis-point expansion year over year.
  • Operating Cash Flow -- Improved 15% year over year.
  • Free Cash Flow -- Flat versus the prior year.
  • Cash and Securities -- Ended the quarter with $77.6 million.
  • Debt Repayment -- Repaid remaining $15 million revolving loan in the quarter.
  • Stock Repurchase Program -- Board approved first buyback, authorizing up to $100 million in share repurchases.
  • Client Churn -- Less than 1% of digital banking ARR annually over past three years; expect to churn four digital banking clients in 2026 (also less than 1% of ARR).
  • Remaining Performance Obligations (RPO) -- $1.7 billion, or 3.5x live ARR, supporting long-term revenue visibility.
  • Banks in Backlog -- 13 banks among new client backlog; remainder are credit unions.
  • Mantle New Logos -- 61 clients added since the start of 2025; 14 new Mantle clients in the quarter.
  • User Conference Attendance -- Over 600 customers attended CoLab, including 83 prospects.
  • Second Quarter Revenue Guidance -- $128 million to $129 million, or 14.2%-15.1% year-over-year growth, including a 3 percentage-point headwind from a prior-year termination fee.
  • Second Quarter Adjusted EBITDA Guidance -- $17.9 million to $18.7 million (margin 14.3% at midpoint), reflecting seasonal user conference expense.
  • Full-Year Revenue Guidance -- $527.1 million to $530.9 million, 18.8%-19.7% growth, including declines in termination fee revenue and Mantle offset.
  • Full-Year Adjusted EBITDA Guidance -- $94.9 million to $97.9 million (margin 18.2% at midpoint).
  • Full-Year Non-GAAP Gross Margin Guidance -- Approximately 65%.
  • Full-Year Stock-Based Compensation -- Expected at 14% of revenue.
  • Termination Fees Impact -- Revenue growth faces a multi-point headwind in 2026 due to a meaningful decline in termination fee income.
  • Long-Term Framework -- Rule of 45 targeted by 2030; 40% of ARR growth modeled from new logos, 60% from client expansion; non-GAAP gross margin approaching 70% longer term; adjusted EBITDA margin expanding ~300 basis points annually over time.
  • AI and Platform Integration -- Management reported active testing and commercialization of AI-powered tools leveraging over 23 million account holders' data across the platform.
  • Salesforce Segmentation -- Separate bank and credit union salesforces in place; pipeline is now evenly split.
  • Productivity Improvements -- Management deployed organizational AI/DevOps enhancements, accelerating prototype delivery and reducing support costs through advanced data access.
  • Shareholder-Related Expenses -- $2.2 million incurred in Q1 (part of $2.8 million over two quarters), with costs expected to moderate.

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RISKS

  • Cassandra Hudson stated, "We expect a meaningful decline in termination fee revenue in 2026, which will reduce reported growth by a few percentage points."
  • Management noted, "We do expect to incur additional costs related to this," after $2.8 million recognized over two quarters.
  • Ongoing database technology costs continued to weigh on non-GAAP gross margin, though these are expected to decline by 2026.

SUMMARY

Alkami Technology (ALKT +0.92%) delivered 29% revenue growth and reached $22.3 million in adjusted EBITDA, both surpassing stated expectations. Management highlighted consistent ARR expansion, robust DSSP adoption, strong ARPU growth, and a significant increase in long-term revenue commitments, along with the company's inaugural $100 million buyback authorization. Growth headwinds from declining termination fees and temporary margin pressures were explicitly referenced, as well as anticipated cost moderation for recent shareholder-related expenses.

  • The second quarter revenue outlook cites a three percentage point headwind from last year's one-time termination fee, while the third quarter is expected to see a more favorable comparison driving acceleration.
  • Product innovation was demonstrated publicly, with Alkami Technology's DSSP completing key client workflows in under two minutes compared to an industry benchmark of five minutes.
  • Platform integration and AI feature development are reported as active and commercially focused, with management citing 39 client meetings since February, each expressing specific AI interests.
  • User growth was more heavily weighted to existing clients than new clients over the last 12 months, as 1.5 million adopters were from the base population.
  • Contract structure and high retention rates (digital banking ARR churn below 1% annually) provide multi-quarter predictability on attrition, supporting long-term growth confidence.
  • Pipeline segmentation between banks and credit unions is now balanced following a dedicated salesforce strategy, and management underscored a rising willingness among banks to migrate from legacy core providers.

INDUSTRY GLOSSARY

  • DSSP (Digital Sales and Service Platform): Alkami Technology's integrated suite delivering digital onboarding, account origination, and client engagement solutions to banking clients.
  • ARR (Annual Recurring Revenue): The contracted value of recurring subscription revenue expected over the next 12 months.
  • RPO (Remaining Performance Obligations): Total contracted revenue yet to be recognized, including off-balance sheet backlog and live contracts.
  • ARPU: Average revenue per registered end user on the platform.

Full Conference Call Transcript

Alex Shootman: Good afternoon, and thank you for joining us. We delivered a strong first quarter, achieving 29% revenue growth and over $22 million in adjusted EBITDA, both above expectations. We closed six new digital banking relationships, including two banks and three digital sales and service platform clients. In addition, we introduced our first integrated capabilities for the digital sales and service platform and a new product called Alkami Technology, Inc. Engage. Our first quarter performance continues to demonstrate Alkami Technology, Inc. has the potential for long-term durable growth and increased operating leverage. Alkami Technology, Inc. operates an attractive and predictable business model in a resilient, large, and growing market.

Our target market is over 2,000 regional banks and credit unions that rely on legacy infrastructure incapable of providing a modern digital experience. A portion of growth comes from displacing these systems. Given industry-standard five- to seven-year contracts, combined with stable win rates, we maintain good visibility into the long-term ARR growth that comes from new logo additions. Once on the Alkami Technology, Inc. platform, our investments in service and reliability, the mission-critical nature of our platform, and high switching costs drive gross retention rates 8 to 10 points above typical SaaS companies. High retention rates combined with clients adding users and adopting more of the platform result in reliable long-term client growth.

Every five years, our clients grow by more than 100% of their original platform investment, with our 2021 through 2023 cohorts spending above 2x their landing ARR and clients 2016 and older spending close to 4x their landing ARR. Additive to the land-and-grow algorithm for Alkami Technology, Inc. is our entry into the bank market. Four years ago, we launched an effort to use commercial banking capabilities built for large, complex credit unions to pursue market leadership serving community banks. At that time, banks represented 2% of our live online banking clients, and today, banks are 13%.

Over this four-year period, we tripled revenue, expanded gross margin by over 700 basis points, and improved operating leverage by more than 2,000 basis points. Through different macroeconomic distractions and volatility in the financial services sector, Alkami Technology, Inc. has continued to deliver by adding new clients, keeping our clients, expanding our product offering, and increasing margins. Client decision cycles create a unique characteristic for Alkami Technology, Inc. Our online banking platform is in a replacement market with prospects on legacy platforms under long-term contracts. There are usually fewer than 300 potential clients in our target market that renew contracts in any given year. Within this group, a portion choose not to convert given the effort and perceived risk.

Among those who make a change, we consistently win 30 to 40 new clients per year. For example, the six new logos in Q1 are slightly above our historical Q1 average. New logo growth is consistent and will not spike unless customers choose to exit contracts early or see enough value to overcome conversion resistance. This consistency is a strength, but it also means the next phase of our growth will be driven by expanding the value we deliver within each financial institution. Increasing the value of the platform not only drives expansion, it also improves conversion. And this is why the Mantle acquisition was so strategic.

The Mantle acquisition adds platform functionality to encourage conversions and expands our install base. Standalone Mantle new logo creation has been outstanding, with 61 clients added since the beginning of 2025. These are now Alkami Technology, Inc. clients we can target to cross-sell online banking. In addition to the new logos, at a recent customer conference, we demonstrated differentiated capabilities that materially improve how financial institutions acquire and engage customers. Two weeks ago, we concluded CoLab, our annual client conference. The conference continues to set records with over 600 customer attendees, of which 83 were prospects.

Since the Mantle acquisition, we have been building deep technical connections between our online banking and origination platforms to deliver an integrated front end that enables our market to compete with mega banks and neobanks like Chase and Chime. We built this capability with seven clients as design partners, six of which have the code in production. We demonstrated live product with real results at CoLab. In a side-by-side comparison against two leading mega banks and a digital-first fintech, we showed a complete customer journey from account opening through digital engagement.

Using a live environment and real workflows, Alkami Technology, Inc.’s digital sales and service platform, or DSSP, completed that experience in under two minutes compared to an industry benchmark of five minutes and the three contestants in the three- to four-minute range. DSSP has continued to perform for Alkami Technology, Inc. Since the beginning of 2025, we have gone from 11 to 48 clients who have all three products that make up DSSP. Over half of all new logos since Q2 of last year have been DSSP. And DSSP new logos see a 30% uplift in ARR versus our historic online banking offering.

Our intent with DSSP is to increase the number of clients willing to convert, expanding our opportunity within the existing market constraints. We have not reflected this in our long-term model, and our outlook under current new-logo assumptions continues to support attractive long-term growth for Alkami Technology, Inc. Last quarter, we introduced a 2030 framework, and that model assumes 40% of ARR growth coming from new-logo additions at numbers consistent with our historical average, and 60% of ARR growth from expanding within our client base.

Alkami Technology, Inc. is evolving from a vertical application in a replacement market to a vertical platform provider that drives growth for banks and credit unions, and this transition is occurring because the market demands it. Historically, community banking technology was defined by core providers that controlled the system of record. Everything else—digital banking, onboarding, payments—was built around that core. For years, that architecture defined how financial institutions operated. That reality has changed. Digital has become the primary way customers experience their financial institutions. Our clients need technology not just to process transactions, but to sell and service financial products in a digital-first world.

This is the role of the digital sales and service platform—a platform that provides a long tail of growth opportunities for Alkami Technology, Inc. and positions us to become the new primary technology partner for community financial institutions. In this market, leadership will not be defined by the number of institutions served, but by generating the most economic value from each financial institution on the platform. The investments we have made to integrate our acquisitions create the functional capabilities of Alkami Technology, Inc.’s DSSP that are winning in the market. However, the platform investments we have made create compounding value for Alkami Technology, Inc. and our clients.

Alkami Technology, Inc. is a single-instance, multi-tenant, industry-specialized platform, and this gives us the opportunity to provide AI capabilities our clients are requesting. For details on Alkami Technology, Inc.’s AI perspective, please review my prepared comments from our last earnings call. In the February 2025 call, I spent over 50% of my time on AI and Alkami Technology, Inc. Since that earnings call, I have had 39 face-to-face customer meetings, and AI was discussed in every one of them. Not one client mentioned building their own digital banking or origination platform, but every client wanted to talk about AI as an enabler for personalization, underwriting, fraud management, customer service, analytics, offer management, and more.

With over 23 million account holders on our platform, we have a unique foundation to apply AI capabilities at scale. At our customer conference, we demonstrated working AI prototypes built on this platform. These included capabilities that allow clients to tailor Alkami Technology, Inc. to their needs through prop-driven development, use natural language to query platform data and better understand their account holders and operations, and deploy copilots that support both banker workflows and account holder experiences. These capabilities are powered by our platform, including our data infrastructure and telemetry from Alkami Technology, Inc. Engage, a new product which captures real-time user interaction data across the customer journey. Importantly, these are not conceptual demonstrations.

We are actively working with a small group of clients to test these capabilities and determine the appropriate commercial models. Given our platform foundation, bringing these capabilities to market is less a technical challenge and more a question of how to package and price them effectively for our clients. In closing, we are pleased with the integrated product capabilities we built into Alkami Technology, Inc.’s digital sales and service platform. The market reaction has been positive, and DSSP provides a foundation we can continue to build upon to differentiate Alkami Technology, Inc.

We are evolving Alkami Technology, Inc. from a system of record to a system of action, delivering measurable outcomes for our clients and increasing the value we create within each financial institution relationship. I am proud of our business results this quarter, and grateful to more than 1,200 Alkamists who continue to get it done and do it right. I will now hand the call to Cassandra to discuss our financial results.

Cassandra Hudson: Thank you, Alex. Our first quarter results exceeded our expectations, highlighted by strong adjusted EBITDA performance that underscores the durability of our model and the progress we are making in driving operating leverage. We continue to execute with discipline, delivering consistent growth while expanding profitability and investing strategically to support long-term value creation. Let me start with our updated outlook. For the second quarter, we expect revenue of $128 million to $129 million, representing growth of 14.2% to 15.1%. As a reminder, our second quarter revenue outlook includes the impact of a sizable termination fee recognized in 2025, which represents an approximate three percentage point headwind to year-over-year growth in the quarter.

In the second quarter, we also expect adjusted EBITDA of $17.9 million to $18.7 million, or a 14.3% margin at the midpoint. This outlook incorporates the impact of our annual user conference, which is reflected in our normal seasonal expense pattern. For the full year, we expect revenue of $527.1 million to $530.9 million, representing growth of 18.8% to 19.7%, and adjusted EBITDA of $94.9 million to $97.9 million, or an 18.2% margin at the midpoint, reflecting continued operating leverage as we scale the business. Our revenue outlook reflects several underlying assumptions consistent with what we shared last quarter. We expect continued cross-sell momentum across the platform, along with a steady cadence of ARR launches throughout the year.

We also expect high single-digit ARPU growth, reflecting strong expansion within the base, partially offset by a modest moderation in user growth among existing clients. We expect a meaningful decline in termination fee revenue in 2026, which will reduce reported growth by a few percentage points. This headwind is partially offset by the contribution from Mantle. Finally, we expect growth to moderately accelerate in the third quarter due to a more favorable year-over-year comparison. Turning to profitability, we expect a full-year non-GAAP gross margin of approximately 65%. In 2026, we expect adjusted EBITDA margin to be north of 19%, weighted toward the fourth quarter and in line with our typical seasonal pattern.

Overall, we expect approximately 500 basis points of margin expansion for the year, driven by operating leverage in the model, efficiencies from our offshore operations, and continued cost discipline while also funding targeted investments in AI that we believe will drive product innovation and long-term efficiency. Lastly, we expect stock-based compensation to be approximately 14% of revenue for the year. As we discussed last quarter, our long-term model framework reflects what we believe are achievable targets based on the strength of our business today and the visibility provided by our long-term contracts. We continue to expect to achieve Rule of 45 by 2030.

From a growth perspective, we expect a gradual increase in banks’ new wins, supported by our digital sales and service platform alongside continued leadership in credit unions, reflecting the replacement-driven nature of our market. We also expect consistent execution in our add-on sales efforts and volume growth from existing customers, together driving ARPU expansion and contributing significantly to our long-term growth, as well as total dollar churn of approximately 2% to 3% annually, with about half associated with our digital banking clients. Importantly, our long-term outlook does not assume incremental M&A.

From a profitability standpoint, we expect non-GAAP gross margin approaching 70% over time as we improve execution on implementations and drive support efficiencies, approximately 300 basis points of annual adjusted EBITDA margin expansion driven by scale and continued operational improvements particularly across R&D and G&A, and stock-based compensation declining to approximately 10% of revenue. Turning to first quarter performance, revenue was $126.1 million, up 29% year over year. Subscription revenue grew 30% and represented 90% of our total revenue. As a reminder, we closed the Mantle acquisition on 03/17/2025. This timing contributed approximately 14 percentage points of year-over-year growth to Q1 2026. Growth rates will become fully comparable beginning in the second quarter.

We increased ARR by 22% and exited the quarter at $494 million. Importantly, we have approximately $71 million of ARR in backlog pending implementation, representing 40 new clients and roughly 1.4 million digital users. We expect the majority of this backlog to go live over the next 12 months. As Alex highlighted, we continue to see strong momentum with our digital sales and service platform. From a financial perspective, DSSP is important because it is driving higher-quality revenue across several dimensions. Clients adopting multiple components of the platform tend to have higher initial contract values, longer contract durations, and stronger retention profiles over time. This is already contributing to ARPU expansion and ARR we are seeing across the business.

Additionally, as we integrate Mantle and expand our platform capabilities, we are increasing our ability to land with a broader set of products and expand within the client over time. This reinforces our land-and-expand model and supports the long-term durability of our revenue. We exited the quarter with 307 clients and 23 million registered users, an increase of 2.5 million users, or 12% year over year. Over the past 12 months, we implemented 35 clients supporting 1.2 million digital users, and existing clients increased their digital adoption by 1.5 million users. Our contracts provide strong visibility into attrition, typically several quarters in advance. Over the past three years, we have churned less than 1% of our digital banking ARR annually.

For 2026, we currently expect to churn four digital banking clients, which again represents less than 1% of ARR. This speaks to the mission-critical nature of our platform and the strength of our long-term client relationships. Revenue per user increased to $21.40, up 9% year over year, driven primarily by Mantle’s contribution, strong cross-sell execution, and increased user adoption among existing clients. Remaining performance obligations were approximately $1.7 billion, or 3.5x live ARR, providing strong visibility into long-term revenue. First quarter non-GAAP gross margin was 64.4%, roughly flat year over year, driven by the higher database technology costs we discussed last quarter. We view these costs as temporary and expect them to decline by 2026.

First quarter operating expenses were $59.4 million, or 47.1% of revenue, representing approximately 530 basis points of year-over-year improvement realized across all areas of operating expense. Adjusted EBITDA was $22.3 million, above the high end of our expectations, with an adjusted EBITDA margin of 17.7%, an expansion of approximately 540 basis points year over year. We ended the quarter with $77.6 million in cash and marketable securities. In the first quarter, our operating cash flow improved 15% year over year, free cash flow was consistent with the prior year, and we repaid the remaining $15 million of our revolving loan.

Finally, today we announced that the Board of Directors has approved our inaugural stock repurchase program of up to $100 million. This is an important milestone that reflects our confidence in both our long-term growth and our robust cash flow generation capabilities. We continue to believe in a disciplined and balanced approach to capital allocation that enables us to grow through additional acquisitions, delever the balance sheet through debt reduction, and opportunistically repurchase shares to deliver increased value to our shareholders. In closing, our results this quarter reflect continued execution against our strategic priorities and the strength of our platform.

We are scaling with discipline, balancing growth and profitability while investing in the capabilities that we believe will further differentiate Alkami Technology, Inc. over time. The visibility in our model and continued momentum across the business position us to drive sustained long-term value. With that, we will now open the call for questions.

Operator: Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. Should you have a question, please press star followed by the number one on your touchtone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press star followed by the number two. If you are using a speakerphone, please lift the handset before pressing any keys. Your first question comes from the line of Christopher Kennedy from William Blair.

Christopher Kennedy: Yeah, good afternoon. Thanks for taking the question. Cassandra, you have the growth headwind in the second quarter, but you also talked about accelerating growth in the third quarter and fourth quarter. Can you just provide a little bit more clarity as to the confidence in accelerating growth?

Cassandra Hudson: Sure. Just to clarify, Chris, that growth acceleration will be in the third quarter in particular, and it is really driven by a more favorable year-over-year comparison due to some timing dynamics that we experienced in 2025. As it relates to the headwind in the second quarter, that is really timing of termination fee revenue. We do have that headwind in every quarter this year, but it is a little bit more pronounced in the second quarter in particular, which is why I called it out on the call.

Christopher Kennedy: Okay, got it. Understood. And then, Alex, you mentioned it, but any additional takeaways or observations from CoLab when you were talking to your customers and how they are viewing the current environment in AI? Thanks for taking my questions.

Alex Shootman: First of all, CoLab was an amazing event. Again, we set a record in terms of number of attendees. It was great to see 83 prospects—a good balance between credit union prospects and bank prospects. A couple of comments. There is no let-up in digital transformation. This is a pretty big market—as I mentioned, over 2,000 credit union and bank customers—that all have legacy technology. They are all smart. They all understand what they need to do. They are a little bit captive to these long-term contract dynamics that we talked about, but we see continued demand for digital transformation.

What was really exciting to see for our market—and for those of you that do not bank with a regional bank or credit union, you may not fully appreciate this—is what has been critical for them to compete with large money-center banks and fintechs is what we would call an integrated front end, a digital front door. It is the integration of digital banking and a deposit origination platform and a loan origination platform, to be able to attract a customer, convert them into a customer, have them in digital banking, have them with additional products, and all of that seamless so that the customer or prospect does not even know that they are in multiple different products.

That has been the benchmark these institutions have looked for. And that is what we showed from stage. I was most pleased with the audience reaction to real technology that we showed that will make a real difference for this market.

Christopher Kennedy: Understood. Thanks for taking the questions.

Operator: Your next question comes from the line of Analyst from Citizens. Please go ahead.

Analyst: Great, thanks for the questions. Alex, you spoke again today in your prepared remarks about more banks being open to separating online banking from their core provider. Can you talk about what is driving that willingness—whether it is increased acceptance that standalone digital providers like Alkami Technology, Inc. have the superior solution for online banking, the maturity of your solution with Mantle, or changes in the ease of integrating a standalone digital provider solution into the core—maybe something else I am missing? Thanks.

Alex Shootman: Thanks. Once again, let us talk about the difference between the bank market and the credit union market. In the credit union market, it is probably in the mid-40%—around 45% of customers—that have an online banking application supplied to them from their core provider. In the bank market, it has been north of 75%. That is the part that we are beginning to see unwind. I actually talked to a prospect at CoLab who is going to pay off four years of their remaining digital banking contract to move to a different digital banking platform from their core. I asked them—this is one of the first times I have heard this—why are you doing this?

And they said, in our market we have to compete with Wells Fargo and KeyBank, and we are at the point where our digital capabilities are insufficient. If we do not make this change, it is going to impact the business of the bank. You are starting to see that demand push create these conversions. The flip side is the more customers that see somebody come onto a platform like Alkami Technology, Inc., successfully go through the conversion, successfully bring their customers on board, then they are willing to make the change. It is ultimately a decision of value versus risk.

That is why the integration of the data and marketing platform and the onboarding platform and digital banking is so critical—because when banks see the outcome of speed to bringing on a new customer, reduced cost to bring on a new customer, and increased speed to cross-sell, they start to have the conviction to make the change.

Analyst: That is really helpful. Thank you. And then to be a little bit more direct, you have incurred $2.8 million in shareholder matters-related expense over the prior two quarters, with $2.2 million in 1Q. Can you provide any color on the nature of these expenses, and if you anticipate them to be ongoing or settled for the near term after you added two new Board members on March 31? Thanks.

Cassandra Hudson: Sure. Thanks for the question. Those costs are really defense-related in nature. We do expect to incur additional costs related to this item. Obviously, it is difficult for us to predict how much they will be, though I do not think that we are going to be scaling at $2.8 million every quarter from here on out. We saw a little bit of a higher cost in Q1, and I would expect those to moderate from here on out.

Analyst: Awesome. Thanks, Cassandra.

Alex Shootman: No problem.

Operator: Your next question comes from the line of Jacob Stephan from Lake Street Capital Markets. Your line is now open.

Jacob Stephan: Hey, guys. Appreciate you taking the questions. Maybe just first, kind of a housekeeping one here. Can you give a deeper dive into the banks versus credit unions in the backlog?

Cassandra Hudson: Banks versus credit unions—It is pretty evenly split in terms of size. Right now, we have 13 banks in the backlog, and the rest would be credit unions.

Jacob Stephan: Okay. And second one for me. I know you have given some in-depth detail on user adds in the past. I am wondering if you could help us think through the adds in the last quarter and maybe over the last several quarters—in terms of existing clients, how many of those were newly implemented customers—and that trend.

Cassandra Hudson: In the past, you can think of the trend as roughly half and half new versus existing. In Q1 in particular, over the past 12 months, we implemented 1.2 million digital users, and then 1.5 million were related to existing clients—so a little bit more weighted to existing clients over the past year.

Jacob Stephan: Okay. Very helpful. Thank you.

Operator: Your next question comes from the line of Daniel Hibshman from Craig-Hallum Capital Group, on for Jeffrey Van Rhee. Please go ahead.

Daniel Hibshman: Thanks. Just on Mantle and the pace of logo adds there—the 14 this quarter—maybe compare that to previous quarters or expectations of how Mantle is tracking relative to expectations?

Cassandra Hudson: I think they continue to track very well. With all of our products, there is a bit of a cyclical nature to the sales cycle. For us, Q1 tends to be a bit of a lighter quarter and Q4 tends to be our strongest quarter. We continued to see really good performance in Q1 for Mantle coming off of a record 2025.

Alex Shootman: I would just point back to why we are pleased. If you go back to 2025 and look at our DSSP clients—those are clients that have acquired Mantle—we have gone from 11 to 48 in that period. At the same time, we have been integrating the technologies together into one experience that unites the front end of digital banking and origination. I am frankly just super proud of the team for what they have done.

Operator: Your next question comes from the line of Andrew Schmidt from KeyBanc Capital Markets.

Andrew Schmidt: Hey, Alex. Hey, Cassandra. Thanks for taking the question. Apologies, I hopped on a little bit late here. The Salesforce—the shift to separate bank and credit union sales forces—how has that evolved? Has that been effective in terms of building the pipeline, particularly on the bank side? I hear you on the backlog; I am just curious how that has progressed.

Alex Shootman: Thanks for the question. Our pipeline remains balanced. It is pretty evenly split between banks and credit unions. The transition has been effective. It allows us more specialization in the bank market, and we remain happy that we did it.

Andrew Schmidt: Got it. That is helpful. And then, everyone is thinking through more efficient organizational structures as we think about AI development, etc. I know you are heavy users of this internally. Are there any structural changes or process changes that need to be made as a result of increases in model productivity to consider, or is it more just product velocity output increasing?

Alex Shootman: You can imagine that we are using every single model provider in all parts of the organization right now. We are not yet at the point where we are ready to come to our investors and say, this is the benchmark productivity we are going to run after. The biggest change we are seeing is the front end of the software development life cycle. If you think about DevOps, it did a lot for us in the back end of the software development life cycle—how we test code, release code, support code.

A lot of the transformation we are seeing now is the speed in the front end of the software development life cycle—how quickly we go from what used to be in a PRD that is no longer in a document at all and is now a fully functional prototype that we are reviewing with a client, instead of having conversations through PowerPoint or documents. That is where I see a lot of promise for the organization. Within support organizations, we have fully wired the company from a data perspective for access for all support teams to speed up time to respond to customers and ultimately reduce the cost to respond.

Like every other software executive, we are watching our companies transform in months what we used to see happen in years. It is a pretty fun and amazing time to be a software company.

Andrew Schmidt: Makes sense. A lot of progress in a short period of time—great to hear. If I could squeeze one more modeling question in: I think I heard the acceleration in the back half from a revenue perspective as we move past the term fees. Is it possible to have a 3Q/4Q breakout of the cadence to expect for revenue and EBITDA, just so we are not caught off guard?

Cassandra Hudson: No worries. A couple of points, and I will talk about top line and EBITDA separately. On revenue, the acceleration is very specific to Q3, due to a more favorable year-over-year comparison—there are some timing elements in the prior year driving that acceleration. Given the nature of our model, it is very predictable. We have a steady amount of ARR launches happening this year and very consistent dynamics from existing customers and ARPU growth. That should help you calculate the implied revenue cadence for our model. On EBITDA, we expect the typical seasonality—with margins lower in Q2 given the user conference and then stepping up into Q3 and being weighted toward Q4 as usual.

Alex Shootman: Hey, Andrew, because you have followed us for a while, I would just encourage you to go back and look at the post-Q2 commentary from last year. We were very specific and said we took down Q3 last year because we had a termination fee that accelerated into Q2. That is exactly what Cassandra is talking about.