Alfa Financial Software (ALFA) Q3 2025 TU earnings summary

Executive summary

• Q3 revenue reached £31.7m, up 12% year-over-year, with strong trading across all regions.

• Full-year profit expectations raised by approximately £2m due to cost discipline and margin improvement.

• Continued investment in product and people to maintain market leadership.

Financial highlights

• Subscription revenues grew 16% year-over-year in Q3.

• Delivery revenues increased 26% compared to Q3 2024.

• Software Engineering revenues declined 30% year-over-year, reflecting a shift to investment.

• Total Contract Value (TCV) reached a record £222m, up from £211m at June 2025 and £205m in Q3 2024.

• Cost control led to lower than expected expenses, supporting higher margins.

Outlook and guidance

• Operating margin and profit expectations for the full year increased by about £2m.

• Revenue expectations for the year to December 2025 remain unchanged.

• Cost discipline expected to continue, with full-year costs projected to be £2m less than previously estimated.

• Confidence in the strength of the pipeline and future business prospects.