Alchemy (ALKT) Q3 2025: Mantle Cross-Sell Drives 50% of New Sales, Reinforcing Platform Leverage

October 30, 2025 | By EarningsIQ Research

Alchemy’s third quarter underscored the power of its integrated platform, as Mantle, onboarding and account opening software, accelerated cross-sell traction and deepened client expansion. Implementation throughput reached record highs, with operational discipline and product innovation supporting margin expansion. Raised full-year guidance and a robust backlog signal durable demand, while the CFO transition brings a new phase of financial leadership.

Summary

• Cross-Sell Momentum: Mantle integration fueled a near 50% cross-sell rate, exceeding internal targets.
• Operational Scale: Record implementations and improved methodology unlocked step-function productivity gains.
• Visibility Strength: Backlog and ARR growth support confidence in multi-year expansion runway.

Performance Analysis

Alchemy delivered 31% year-over-year revenue growth, with organic growth above 20%, as the company continued to expand its presence among banks and credit unions seeking digital modernization. Subscription revenue, which comprised 96% of total revenue, rose in lockstep with overall growth, evidencing the stickiness and predictability of the SaaS, software as a service, model. Adjusted EBITDA doubled year-over-year, and gross margin expanded by 100 basis points, reflecting both scale benefits and improved hosting cost efficiency.

Implementation activity was a standout, with 13 new digital banking clients brought live in a single quarter—a company record—alongside 15 Mantle implementations. The company’s backlog now includes 1.7 million digital users, providing robust forward visibility. Alchemy’s RPU, revenue per user, increased 19% year-over-year, highlighting the contribution of Mantle and add-on sales. Operating leverage was evident as R&D and G&A costs scaled efficiently, and sales and marketing productivity remained among the highest in SaaS.

• Mantle Cross-Sell Acceleration: Add-on sales, excluding Mantle direct, accounted for nearly half of new sales, ahead of the 2026 goal.
• Backlog Visibility: $67 million in ARR backlog and a 1.6 billion RPO, remaining performance obligation, provide over three years of revenue visibility.
• Client Retention and Churn: Client attrition remains low, with churn below 1% of ARR and most departures due to mergers.

Alchemy’s financial and operational discipline continues to support margin expansion and investment in innovation, setting the stage for durable, profitable growth as the company scales its platform across a large, underpenetrated market.

Executive Commentary

Strategic Positioning

1. Mantle Integration and Platform Synergy

The Mantle acquisition has proven a key catalyst, driving both new client wins and cross-sell into the existing base. Mantle’s onboarding and account opening solutions are now contracted with 44 clients who also use Alchemy’s digital banking platform, up from just 15 at acquisition. This integration enables a unified digital sales and service experience, which management estimates can uplift new logo ARR by 30% when all three core technologies—digital banking, onboarding/account opening, and data/marketing—are sold together.

2. Implementation Productivity and Operational Scale

Alchemy’s services and engineering teams have rebuilt implementation methodologies based on best practices, resulting in the highest-ever number of client go-lives in a single quarter. These improvements include more efficient configuration, proactive management of third-party integrations, and better customer testing support. With over 20 million digital users now on the platform, Alchemy’s ability to implement at scale is a clear differentiator, particularly as the company expands its reach in the bank segment.

3. Expanding TAM and Market Penetration

The addressable market remains large and underpenetrated, with over 900 credit unions and nearly 1,000 banks among the top 2,500 FIs still not on a modern platform. Alchemy’s multi-year contracts provide recurring revenue and predictable client conversion opportunities as institutions cycle through technology decisions. The shift in community bank buying behavior—moving from bundled core suites to best-of-breed digital platforms—favors Alchemy’s modular, extensible offering.

4. Product Innovation and AI Enablement

Product development is a strategic priority, with AI and agentic technologies being embedded into the platform to enable smarter marketing, improved customer service, and prompt-based code creation for client customization. The company is piloting agent-based banker tools and expects to showcase integrated digital sales and service capabilities at its upcoming customer conference, targeting a 30% uplift in ARR for new logos adopting the full stack.

5. Financial Model Resilience and Leadership Transition

Alchemy’s SaaS model, with 96% recurring revenue and high gross margins, provides both growth and downside protection. The announced CFO transition to Cassandra Hudson, a proven operator with IPO and M&A experience, signals continued focus on disciplined growth and capital allocation. The company’s balance sheet, with $91 million in cash and reduced revolver debt, supports ongoing investment in engineering and go-to-market initiatives.

Key Considerations

This quarter’s results reinforce Alchemy’s positioning as a scaled, high-visibility SaaS provider serving a still-early digital transformation cycle in banking. Execution on cross-sell, implementation velocity, and product integration are proving to be levers for both revenue and margin expansion.

Key Considerations:

• Cross-Sell Velocity: Mantle and data analytics attachment rates are rising, with 75% attach rate for segment, further boosting ARR per client.
• Implementation Seasonality: Client preferences for implementation timing create quarter-to-quarter revenue variability but do not impact annual ARR targets.
• Backlog and RPO Strength: $67 million ARR backlog and $1.6 billion RPO provide multi-year revenue visibility and underpin confidence in guidance.
• Margin Expansion Levers: Hosting cost efficiency and operational scale are driving gross margin above long-term targets ahead of schedule.
• Leadership Transition: Incoming CFO Cassandra Hudson’s background in scaling SaaS businesses and capital markets is expected to support Alchemy’s next phase of growth.

Risks

Quarterly revenue can be affected by client-driven implementation timing, creating potential for short-term volatility even as ARR trends remain on track. Gross margin is sensitive to third-party pass-through costs and product mix, and competitive dynamics may intensify as more FIs seek digital solutions. Execution risk around integration of acquisitions and delivery of new product modules remains a watchpoint, especially as the company ramps AI-powered features and expands internationally.

Forward Outlook

For Q4 2025, Alchemy guided to:

• Revenue of $119.6 million to $121.1 million, with organic growth at 22%—a 200 basis point acceleration from Q3.
• Adjusted EBITDA in the range of $16.1 million to $17.1 million.

For full-year 2025, management raised guidance:

• Revenue of $442.5 million to $444 million.
• Adjusted EBITDA of $56 million to $57 million, up nearly $4 million from prior midpoint.

Management emphasized several factors supporting the outlook:

• Backlog conversion and implementation pipeline remain robust, with Q4 expected to be the largest implementation quarter of the year.
• Cross-sell and add-on sales are tracking ahead of plan, with Mantle and segment driving incremental ARR per client.

Takeaways

Alchemy’s Q3 results highlight the emergence of a true platform model, where cross-sell, integration, and operational scale drive both top-line growth and expanding margins.

• Platform Leverage: Mantle and data analytics attachment rates are accelerating, increasing ARR per client and deepening competitive moat.
• Execution Maturity: Record implementation throughput and operational discipline are supporting margin expansion and backlog conversion.
• Durable Demand: Robust backlog and a large underpenetrated market support multi-year growth, with visibility into both revenue and profitability.

Conclusion

Alchemy’s Q3 demonstrated the strategic value of its platform approach, with Mantle cross-sell and operational execution driving both growth and profitability. Raised guidance, a strong backlog, and a seasoned incoming CFO position the company well for continued outperformance as digital transformation in banking accelerates.

Industry Read-Through

Alchemy’s results signal that the shift to best-of-breed digital platforms among community banks and credit unions is accelerating, opening new TAM for SaaS providers able to deliver modular, integrated solutions. Cross-sell and product attachment are emerging as key levers for ARR growth in vertical SaaS, while operational scale and implementation velocity are becoming critical points of differentiation. AI and agentic workflows are gaining traction as value drivers, but institutions remain focused on vendor-delivered innovation rather than DIY solutions. Expect continued consolidation and platform integration across the fintech landscape, with product breadth and implementation track record as key success factors.

ALKT Technology Software SaaS Digital Banking Cross-sell Platform AI