Alfa reports £126.5m FY25 revenue after strong Q4 finish

Alfa Financial Software Holdings PLC has reported a strong finish to FY25, with fourth-quarter trading driving revenue and profit ahead of market expectations, according to a trading update released ahead of its full-year results in March.

The asset finance software specialist said revenue for the year ended 31 December 2025 reached £126.5m, around £2m ahead of consensus forecasts and representing 15% growth year-on-year, or 17% on a constant currency basis. Operating profit rose 17% to £40.0m, exceeding expectations by approximately £3m.

Total Contract Value (TCV) increased 3% year-on-year to £227m, supported by a strengthening late-stage pipeline, which now includes ten prospects compared with eight at the same point last year. Eight of these opportunities have achieved preferred supplier status.

Momentum accelerated in the final quarter, with Q4 revenue rising 11% year-on-year to £32.5m, or 12% at constant currency.

Subscription revenues continued to be a key driver, increasing 15% compared with Q4 FY24, while delivery revenues grew 16%, benefiting from stronger-than-expected project chargeability. Software Engineering revenues declined as anticipated, but the fall of around 7% was smaller than forecast after some customers brought forward development work originally planned for FY26.

Operational performance remained strong, with nine deliveries completed during the quarter. Highlights included a rapid go-live of Alfa Systems 6 for an Australian customer launching a new operation in New Zealand, achieved in under 10 months from definition to implementation.

The group said progress on customer upgrades also continued at pace, with 20 customers now live on Alfa Systems 6.

Alfa reported further progress across its late-stage pipeline, including two new additions during Q4. One opportunity relates to a country expansion for an existing European OEM customer, expected to be relatively modest in implementation scope but significant in long-term subscription value. The second is a large European equipment finance deal, where Alfa is one of the final two bidders.

Subscription TCV is now 18% higher than a year ago, while delivery TCV edged up in the quarter but remains lower year-on-year as the company works through large implementations. Software Engineering TCV fell 42% versus last year, reflecting the completion of customer-specific development work.

Alfa also highlighted progress in expanding its addressable markets through the development of Originations, Fleet and Commercial Finance capabilities. The company now has sellable solutions across all three end-markets, with early customer interest driving further investment.

Originations has been developed in partnership with a key customer and is expected to be implemented following the go-live of servicing capability, while Fleet has attracted strong interest through customer demonstrations. In Commercial Finance, newly developed functionality, including syndications, is already generating discussions with existing clients.

Commenting on the update, Andrew Denton, Chief Executive Officer, said the group had “finished 2025 so strongly” and “remains confident in the strength of our markets and our position within those markets and despite obvious currency headwinds we are well positioned to drive overall growth in 2026.”

He also noted that: “Our pipeline and TCV will support further growth in our subscription and delivery revenues and we will continue to make further investment into our product to continue to drive revenue growth in future years.”

Alfa is scheduled to announce its full-year audited results for FY25 on 12 March 2026.