Business
Q4 25 Trading update
Alfa Financial Software Holdings PLC reported a strong fourth quarter and full-year 2025 performance, with revenue reaching £126.5 million, exceeding market expectations by approximately £2 million and growing 15% year-on-year. Operating profit increased by 17% to £40.0 million, also surpassing market forecasts by around £3 million. Total Contract Value (TCV) rose 3% to £227 million, driven by subscription revenue growth of 18% compared to the prior year. The company also noted a robust late-stage pipeline with ten prospects, eight of which have achieved preferred supplier status, and highlighted progress in expanding its offerings into Originations, Fleet, and Commercial Finance markets. Disclaimer*
About this update from Alfa Financial Software Holdings Plc
[{"type":"text","content":"\n\n29 January 2026\n\nAlfa Financial Software Holdings PLC\nQ4 25 Trading update\nStrong Q4 performance - FY25 revenue and profit outperformance\nAlfa Financial Software Holdings PLC (\"Alfa\" or the \"Company\"), a leading developer of mission-critical software for the asset finance industry provides a scheduled update on trading for the quarter ended 31 December 2025 in advance of the announcement of full year audited results, for the twelve months ended 31 December 2025, on Thursday 12 March 2026.\n \n \nFY 2025 highlights (unaudited)\n \n· Revenue of £126.5m, c.£2m ahead of market expectations and up 15% on the prior year (17% on a constant currency basis).\n· Operating profit growth for FY25 of 17% to £40.0m, c.£3m ahead of market expectations.\n· TCV of £227m up 3% on FY24.\n· Strong late-stage pipeline comprising ten prospects (Q4 24: eight prospects), eight of which have achieved preferred supplier status\n \n \nStrong Q4 trading\n \nRevenue continued to grow strongly to £32.5m for the quarter, up 11% (12% at constant currency) on last year.\n \nKey financial highlights for Q4:\n· Continued strong growth in Subscription revenues, up 15% versus Q4 last year.\n· Delivery revenues in Q4 grew strongly, up 16% versus Q4 last year, with better project chargeability than forecast.\n· As expected, Software Engineering revenues were down versus last year but a c.7% reduction was smaller than anticipated as some customers pulled forward chargeable development work originally planned for FY2026.\n \n \nContinued strong operational execution\n \nIn Q4 we completed nine deliveries. In APAC we had Alfa Systems 6 go-live for an Australian customer that opened a brand-new operation in New Zealand, with the time between definition and go-live being less than 10 months, a great achievement.\n \nUpgrades to Alfa Systems 6 have continued both effectively and at pace. We now have twenty customers live on Alfa Systems 6.\n \n \nRobust pipeline & TCV\n \nWe saw further progress in our late-stage pipeline in the quarter with another two prospects added since the Q3...