Alfa Financial Software (ALFA) Q4 2025 TU earnings summary

Executive summary

• Achieved strong Q4 and FY25 performance, with revenue and profit exceeding market expectations.

• Expanded product capabilities in Originations, Fleet, and Commercial Finance, broadening addressable markets.

• Maintained robust late-stage sales pipeline and increased total contract value (TCV).

Financial highlights

• FY25 revenue reached £126.5m, up 15% year-over-year and about £2m above expectations.

• Operating profit grew 17% to £40.0m, approximately £3m ahead of market forecasts.

• Q4 revenue was £32.5m, up 11% year-over-year.

• Subscription revenues rose 15% and delivery revenues increased 16% in Q4 compared to last year.

• Software Engineering revenues declined by about 7% in Q4, less than anticipated.

Outlook and guidance

• Strong pipeline and TCV expected to drive further growth in subscription and delivery revenues in 2026.

• Anticipates reduced Software Engineering revenues as focus shifts to product investment.

• Confident in market strength and well-positioned for overall growth despite currency headwinds.