ALKAMI TECHNOLOGY, INC.ALKT

ALKAMI TECHNOLOGY, INC. Leases Disclosure

10-KFiled Feb 26, 20262 min read
Leases
On September 5, 2023, the Company entered into an amendment to its office lease, which, among other things, reduces the leased space in Plano, Texas from approximately 125,468 square feet to 83,939 square feet, effective December 31, 2023, and also extends the term for the remaining reduced leased space to August 31, 2033.

Operating lease expense consisted of:

Year ended December 31,
(in thousands)
202520242023
Operating lease expense
$2,687 $2,687 $2,984 
Short term lease expense and other(1)
1,105 1,026 960 
Total lease expense
$3,792 $3,713 $3,944 
(1) Other lease expense includes variable lease expense, sublease income, and gain on lease modification.
Supplemental lease information
Year ended December 31,
Cash flow information (in thousands)
202520242023
Cash paid for operating lease liabilities
$2,897 $2,665 $3,907 
Non-cash adjustment to operating lease right-of-use assets from lease modification(1)
$— $— $3,108 
(1)For the year ended December 31, 2023, includes increase of $8.0 million related to the extension of lease to 2033 for the remaining leased space, net of a $4.9 million decrease related to the reduction of the leased space effective December 31, 2023.

Operating lease information
Year ended December 31, 2025
Weighted-average remaining lease term
6.4 years
Weighted-average discount rate
7.7 %

The future maturities of operating lease liabilities are as follows:

(in thousands)December 31, 2025
2026$2,843 
20272,636 
20282,777 
20293,067 
20303,144 
Thereafter8,767 
Total minimum lease payments23,234 
Less: present value discount(5,919)
Total lease liability balance$17,315 

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

Other Available Disclosures

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