Shares of Alkami Technology, Inc. (ALKT) plummeted 5.25% in pre-market trading on Friday, following the company's Q4 2024 earnings report and the announcement of its acquisition of Mantel, a leading SaaS solution for onboarding and account opening for financial institutions.
The fintech company reported strong Q4 2024 and full-year financial results, with revenue growth of 26% and adjusted EBITDA margin expansion. However, the acquisition of Mantel, valued at $400 million, is expected to weigh on Alkami's near-term profitability and EBITDA margins.
While the acquisition positions Alkami as the clear leader in digital banking, providing a powerful platform to help financial institutions onboard, engage and grow customer relationships, it is expected to contribute an adjusted EBITDA loss of $5 million in 2025. Additionally, Mantel is expected to be a drag of 1-2 points on Alkami's EBITDA margin for the next 2-3 years, despite being accretive to adjusted EBITDA starting in 2026.