Alfa Financial Software Holdings Plc · LSE:ALFA
Alfa Financial Software — FY2025 Earnings Presentation
39 slides from Alfa Financial Software's earnings presentation, Mar 12, 2026
Slide 1: 2025 Full Year Results
2025 Full Year Results 12 March 2026 Leading software | Smart people Unrivalled delivery | Exceptional IP
Slide 2: Disclaimer
Disclaimer The following presentation is being made only to, and is only directed at, persons to whom such presentation may lawfully be communicated (“relevant persons”). Any person who is not a relevant person should not act or rely on this presentation or any of its contents. Information in the fo
Slide 3: Agenda
Introduction and Key Highlights 1 4 Andrew Denton Financial Review 2 7 Duncan Magrath Agenda Setting a new standard with Alfa Systems 6 3 4 Operational Delivery Matthew White Business and Sales Update 19 25 Andrew Denton Summary 5 28 Andrew Denton 6 Q&A 30 7 Appendices 31 2025 has been a year of rea
Slide 4: Introduction and Key Highlights
Introduction and Key Highlights Andrew Denton, CEO 4
Slide 5: Overview
Overview Review of 2025 Sustained investment in people, product, planet Growing SaaS subscription • Average headcount up 6% with high staff retention (97%) • Subscription revenue stream up 16% • £37.7m investment in software, with investment into • 18% growth in subscription TCV market expansion in
Slide 6: Key financial highlights
Key financial highlights £126.7m +17% +16% 109% £227.5m +3% Subscription revenue Total Contract Revenue1 NRR2 growth Value3 2024: £109.9m 2024: 103% 2024: +18% 2024: £221.3m +17% £40.1m 32% 34% 97% Operating profit Operating profit margin EBITDA margin Cash conversion4 2024: £34.3m 2024: 31% 2024: 3
Slide 7: Financial Review
Financial Review Duncan Magrath, CFO 7
Slide 8: Income Statement
Income Statement Very strong financial performance Key Financial Metrics (£m) 2025 2024 Change % • Revenues up 15% at actual and 17% on constant currency basis Revenue 126.7 109.9 15% Cost of sales (46.0) (39.0) 18% • Gross profit margin percentage Gross profit margin (%) 63.7% 64.5% (80)bps down 80
Slide 9: Total Contract Value (TCV)
Total Contract Value (TCV) Further growth in TCV driven by growth in Subscription TCV £m £m • 3% growth in Total TCV to £228m (2024: £221m); Subscription up 18%, Delivery down 14%; Software Engineering down 42% • Next 12 months TCV up 2% to £98m (2024: £96m) with growth across Subscription being off
Slide 10: ARR and NRR
ARR and NRR Annual Recurring Revenue and Net Revenue Retention Net Revenue Retention (NRR) • Strong growth in ARR up 15% at 31 110% 109% Dec 25 to £43.9m (2024: £38.2m) 108% +15% • NRR of 109% demonstrating zero 106% churn and growth of revenues with 104% 103% new customers as Subscription +16% reve
Slide 11: Subscription revenues
Subscription revenues Subscription revenues increase as the number of assets on Alfa increases • Subscription revenue up 16% on 2024 to £43.6m: ➢ 73% from v5/AS6 live customers £m £m ➢ 14% from new customers 162 implementing AS6 +18% ➢ 6% from customers +16% 137 upgrading from v4 +14% ➢ 7% from v4 c
Slide 12: Software Engineering revenues
Software Engineering revenues Strong year driven by growth in enhancements for new customers • Software Engineering revenues up 13% from 2024 • Customised licence revenue 19.6 down as perpetual licence +13% One-Off Licence projects coming to an end 17.4 25 +12% 15.6 +38% • Chargeable development wor
Slide 13: Delivery revenues
Delivery revenues Strong Delivery revenues, working through TCV • Delivery revenues up 15% year on £m £m year 60 • 44% of Delivery revenues relates to +15% -14% new customers in definition or implementation stage (2024 : 30%) +1% 52 +114% • Partner days made up 8% of our After 12 total Delivery days
Slide 14: Net Operating Expenses
Net Operating Expenses Continuing to invest for growth • Cost of sales up 18% and SG&A up 12% £m 2025 2024 Change % • Combined CoS and SG&A salary costs up £7.4m (+13%) over last 47.3 41.2 15% year as a result of 6% growth in Salaries, pensions, on-costs and partner costs average headcount, salary L
Slide 15: Cash Flow
Cash Flow Cash conversion stronger than expected £m 2025 2024 • Cash conversion of 97% for the full Cash generated from operations 44.5 37.3 year, stronger than expected Adjusted for: Principal element of lease payment (0.1) (1.3) • Capital expenditure through Capital expenditure (5.4) (5.6) investm
Slide 16: Capital allocation
Capital allocation • We continue to generate excess cash, even after allowing for Strongly cash generative business with disciplined capital allocation investment in the business • Balance between Ordinary and Special dividends allows us to maintain optionality around Cumulative dividends paid Divid
Slide 17: Modelling guidance
Modelling guidance Outlook Currency • We expect continued strong growth in • 2025 average rate was $1.32. In Subscription revenues, good growth in addition USD hedges taken out at Delivery revenues but with a reduction in average of $1.27 (resulting in £1.5m Software Engineering revenues. hedge gain
Slide 18: Summary – a strong 2025 performance
Summary – a strong 2025 performance £126.7m +17% £40.1m +17% 97% £227.5m +3% Total Contract Revenue1 Operating profit Cash conversion2 Value3 2024: £109.9m 2024: £34.3m 2024: 89% 2024: £221.3m 32% 10.14p +18% £26.4m 4.6p +21% Operating profit margin Diluted EPS Cash Ordinary 2024: 31% 2024: 8.56p 20
Slide 19: Operational Delivery
Operational Delivery Matthew White, COO 19
Slide 20: Strategy
Strategy Strengthen Grow our differentiation of market- leading People, Product and Delivery by: + Investing in our smart, diverse team; + Investing in our product; and * Investing in our delivery methodology and tooling. | | | IN J IA) & Sell Scale Simplify Enable profitable growth by Increase our
Slide 21: Alfa and AI
Alfa and AI Maximising opportunities in an exciting area Organisation-wide Internal Efficiency AI Literacy Product Delivery Acceleration Enhancement 21
Slide 22: Asset Finance Software Market Requirements
Asset Finance Software Market Requirements Huge barriers to entry in complex market Deep, domain-specific functionality Vast, structured, context-specific Extremely hard to replicate data frameworks Encoded institutional knowledge in core system of record Deterministic workflow and ledger Extremely
Slide 23: Alfa Systems
Alfa Systems Extending our product differentiation and expanding addressable market US Auto Fleet Commercial Originations Finance • Increasing SAM • Increasing SAM • Increasing TAM 23
Slide 24: Delivery, People and Culture
Delivery, People and Culture Strengthening delivery and our fantastic team Delivery People Culture • 35 Deliveries in 2025 • 516 average • Updated talent • 20 Customers live on headcount management Alfa Systems 6 • 97% retention processes • 83% engagement • 2025 Sustainability • New Smart Hub in Pro
Slide 25: Business and Sales Update
Business and Sales Update Andrew Denton, CEO 25
Slide 26: Sales pipeline
Sales pipeline Late-stage pipeline increased to ten prospects Demos, RFPs & Early-stage pipeline • Gathering industry knowledge and contacts in Commercial Finance • Strong interest in Originations and Fleet with multiple demos • Activity in early-stage pipeline remains robust Late-stage pipeline • D
Slide 27: Outlook
Outlook • Demand for asset and automotive finance software remains robust, as our pipeline demonstrates • Our people and delivery record are key differentiators now and in the future • We have been simplifying our implementations, including use of AI, and growing our capability to do more implementa
Slide 28: Summary
Summary Andrew Denton, CEO 28
Slide 29: Overview
Overview Review of 2025 Sustained investment in people, product, planet Growing SaaS subscription • Average headcount up 6% with high staff retention (97%) • Subscription revenue stream up 16% • £37.7m investment in software, with investment into • 18% growth in subscription TCV market expansion in
Slide 30: Q&A
Q&A
Slide 31: Appendices
Appendices _
Slide 32: Late stage pipeline update since HY25
Late stage pipeline update since HY25 Increase in prospects from eight to ten Key: Project Annual Status Status Potential Client Descriptor Revenues Subscription Territory Sep-25 Jan-26 Comment Won New in late stage* Retail Bank I ROW Working Working Talks Moved back Lost Auto OEM J Ame
Slide 33: Customer retention & acquisition
Customer retention & acquisition Acceleration of customer acquisition 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 • Strong customer retention: • Of our v5 customers that have gone live, only two have left Alfa, where the customers exited the asset finance market •
Slide 34: Balance sheet
Balance sheet Robust balance sheet with £26.4m of cash £m 2025 2024 • Trade receivables down slightly from Total non-current assets 45.0 42.9 Dec 2024 to £8.5m Current assets Trade receivables 8.5 8.6 • Prepayments, accrued income and Prepayments, accrued income and other receivables 10.1 9.9 other
Slide 35: Revenue profiles
Revenue profiles Strong base of revenue of a recurring nature Revenue from existing and new customers • Subscription customers all recurring revenues; 34% of overall revenues 2025 By Stream • 49% of Software Engineering revenues Sub Soft Del Total from existing customers; 15% of overall revenues Exi
Slide 36: Revenue streams
Revenue streams Better reflecting our business model • Subscription revenues arise from SaaS and other recurring services; subscription is our Software fastest growing revenue stream Engineering Product investment • Delivery revenues arise from work for existing customers delivering new modules, New
Slide 37: Customer life cycle
Customer life cycle Illustrative customer journey • Definition work may commence before final contracts are signed • Subscription fees build up with volume of contracts and environments utilised • Delivery team ramps up and enhancement development completed and tested • Typically there are multiple
Slide 38: TCV at 2x scale of revenue
Subscription growth Subscription is our fastest growing Subscription revenues and TCV ramp up over time revenue stream, with growth coming from: • Growth in existing customers portfolio volumes, migration of Illustrative Customer Subscription Profile* business onto Alfa and purchase of new software
Slide 39: Definitions
Definitions Measures not specifically defined by IFRS Constant Currency Total Contract Value (TCV) When the Company believes it would be helpful for understanding trends in TCV is calculated by analysing future contract revenue based on the following its business, the Company provides percentage inc
Alfa Financial Software Holdings — FY2025 Earnings Presentation on 6ix