Alfa Financial Software Holdings Plc · LSE:ALFA
Alfa Financial Software — H1 2026 Earnings Presentation
43 slides from Alfa Financial Software's earnings presentation, 2026
Slide 1: 2026 Half Year Results
2026 Half Year Results 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 3 4 Operational Delivery Matthew White Business and Sales Update 20 29 Andrew Denton Summary 5 32 Andrew Denton 6 Q&A 34 7 Appendices 35 3
Slide 4: Introduction and Key Highlights
Introduction and Key Highlights Andrew Denton, CEO 4
Slide 5: Overview
Overview Growing SaaS Subscription Leading product and unrivalled delivery • Subscription revenue stream up 14% • £19.6m investment in software, with investment into market expansion in Originations, Fleet, Commercial • 22% growth in Subscription TCV Finance, and AI functionality • ARR up 17% • AI a
Slide 6: Key financial highlights
Key financial highlights +17% +14% 110% £247.0m +17% Subscription revenue Total Contract ARR1 NRR2 growth Value3 2025: +16% 2025: 112% 2025: +17% 2025: £210.7m (15)% £65.1m +5% £18.4m 28% 76% Revenue4 Operating profit Operating profit margin Cash conversion5 2025: £62.5m 2025: £21.6m 2025: 35% 2025:
Slide 7: Financial Review
Financial Review Duncan Magrath, CFO 7
Slide 8: Income Statement
Income Statement Very strong financial performance Key Financial Metrics (£m) 2026 H1 2025 H1 Change % • Revenues up 4% at actual and 5% Revenue 65.1 62.5 4% on constant currency basis Cost of sales (25.9) (22.4) 16% Gross profit margin (%) 60.2% 64.2% (400) bps • Gross profit margin percentage Sale
Slide 9: Net Operating Expenses
Net Operating Expenses • Cost of sales up 16% and SG&A Impacted by severance costs and impact of FX hedges up 12%, although impacted by severance costs and FX hedges £m 2026 H1 2025 H1 Change % Salaries, pensions, on-costs and partner costs 25.3 23.2 9% • £1.6m of severance costs Severance costs 1.2
Slide 10: Total Contract Value (TCV)
Total Contract Value (TCV) Further growth in TCV primarily driven by growth in Subscription TCV £m Total TCV £m Next 12 months TCV • 17% growth in Total TCV to 200 60 £247m (2025: £211m); Subscription up 22%, Delivery up 175 22%, Software Engineering down 176 50 53 29% 50 161 150 145 40 43 • Next 12
Slide 11: ARR and NRR
ARR and NRR Annual Recurring Revenue and Net Revenue Retention • Strong growth in ARR up 17% at £m Annual Recurring Revenue (ARR) Net Revenue Retention (NRR) 30 Jun 26 to £48.5m (2025: 50 115% £41.6m) 48 48 112% +10% 110% • NRR of 110% demonstrating zero 46 110% 109% churn and growth of revenues 44
Slide 12: Subscription revenues
Subscription revenues • Subscription revenue up 14% on 2025 to £24.1m: Subscription revenues increase as the number of assets on Alfa increases • 73% from v5/AS6 live customers • 20% from new customers implementing AS6 Subscription Revenue Subscription TCV • 4% from customers upgrading £m £m 28 from
Slide 13: V5/AS6 customer history
V5/AS6 customer history Zero competitive churn – 15 implementation customers will drive future growth in Subscription revenues 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 15 customers in implementation of which 2 are v4 upgrades. 13 new customers will drive f
Slide 14: Subscription revenues
Subscription revenues For these three cohorts, subscription revenues are expected to double from 2026 to 2028 £m Subscription revenue by half - customers working with since 2023 16 • Number of customers 14 in cohorts – 2023: five, 2024: six 12 2025: two • Excludes customers 10 upgrading from v4 and
Slide 15: Software Engineering revenues
Software Engineering revenues Software Engineering revenues • down 17% from a very strong H1 2025 Whilst down 17% on H1 2025, H1 2026 is 43% higher than H1 2024 • Customised licence revenue up £1.7m to £2.8m due to completion of accounting on last £m Software Engineering Revenue £m Software Engineer
Slide 16: Delivery revenues
Delivery revenues • Delivery revenues up 5% year on Steady growth in Delivery revenues, improvement in longer term visibility year • 54% of Delivery revenue relates to new customers in definition or £m Delivery Revenue £m Delivery TCV implementation stage (2025: 34 65 40%) +5% +11% 58 • Partner days
Slide 17: Cash Flow
Cash Flow Cash conversion impacted in H1 2026 by accelerated receipts in H2 2025 • Cash conversion of 76% for the half year, following very high £m 2026 H1 2025 H1 conversion of 108% in H2 2025 Cash generated from operations 17.6 22.0 due to £2.8m of accelerated Adjusted for: receipts in Dec 25 (see
Slide 18: Capital allocation
Capital allocation • We continue to generate excess Strongly cash generative business with disciplined capital allocation cash, even after allowing for investment in the business • Where we cannot see a use for Cumulative dividends paid Dividends paid in period the funds we have returned to 200 10.0
Slide 19: Modelling guidance
Modelling guidance Outlook Currency • We expect continued strong growth in • 2026 twelve month currency sensitivity Subscription revenues (no change) ignoring impact of hedges • In 2026 Delivery revenues will grow • Revenue slower than originally expected but offset • 1 US cent = c.£500k by improved
Slide 20: Operational Delivery
Operational Delivery Matthew White, COO 20
Slide 21: Strategy
Strategy Strengthen Sell Scale Simplify Grow our differentiation of Enable profitable growth by Increase our capacity for Enable more concurrent Alfa market-leading People, Product focusing on: developing and delivering Systems implementations, and Delivery by: Alfa Systems, and extend our more effi
Slide 22: Simplification - delivery acceleration supports Alfa's long-term growth model
Simplification - delivery acceleration supports Alfa's long-term growth model AI and other efficiency gains expand the market and accelerate recurring revenues 1 2 3 4 Lower Shorter time to Broader Subscription growth implementation effort value addressable market More implementations AI supports mi
Slide 23: Asset Finance Software Market Requirements
Asset Finance Software Market Requirements Revenue model matches customer success to Alfa income: Subscription revenue is per-asset-finance contract, not per-user Deep, domain-specific functionality Vast, structured, context-specific Extremely hard to replicate data frameworks Encoded institutional
Slide 24: Thea: AI Within Alfa Systems
Thea: AI Within Alfa Systems A coherent family of practical, enterprise-grade AI features Thea Core Foundation layer Quality of life feature Provider-agnostic LLM framework for safe, efficient AI capabilities Summarises notepad entries and supports enquiry across note within Alfa Systems history whi
Slide 25: Alfa Systems: Market Expansion
Alfa Systems: Market Expansion Extending our product differentiation and expanding our addressable market US Auto Fleet Commercial Originations Finance • Increasing SAM • Increasing SAM • Increasing TAM • Retail auto lending • Managing the entire • Moving into broader workflow auto fleet lifecycle c
Slide 26: Alfa's People
Alfa’s People Reshaping the team, targeted recruitment for growth, continuing to invest, deliberate scaling of our culture • Reshaping the team: • Reducing Product Engineering • Recruiting in Cloud Operations • Recruiting in Delivery • Refreshed induction material • Ongoing AI literacy support • Cul
Slide 27: Delivery – Layering of subscription customers
Delivery – Layering of subscription customers Zero competitive churn – 15 implementation customers will drive future growth in Subscription revenues 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1st Go-live v4 to Alfa Systems 6 upgrade US and UK equipment finan
Slide 28: Operational Delivery
Operational Delivery Huge opportunity, premium offering, expanding our market • Huge market • Differentiated offering: • People • Product • Delivery track record • Expanding our opportunity: • AI-enabled delivery simplification • Ongoing product investment 28
Slide 29: Business and Sales Update
Business and Sales Update Andrew Denton, CEO 29
Slide 30: Sales pipeline
Sales pipeline Nine prospects in late-stage pipeline 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 • During H1
Slide 31: Outlook
Outlook • Exciting opportunities continue to come to market, with early pipeline strength unaffected by macroeconomic uncertainty • AI is an important accelerator of our strategy, increasing delivery speed to bring more customers onto Alfa Systems and support high-quality recurring revenues • Late-s
Slide 32: Summary
Summary Andrew Denton, CEO 32
Slide 33: Overview
Overview Growing SaaS subscription Leading product and unrivalled delivery • Subscription revenue stream up 14% • £19.6m investment in software, with investment into market expansion in Originations, Fleet, Commercial • 22% growth in Subscription TCV Finance, and AI functionality • ARR up 17% • AI a
Slide 34: Q&A
Q&A 34
Slide 35: Appendices
Appendices 35
Slide 36: Late-stage pipeline update since FY25
Late-stage pipeline update since FY25 Two customers won with a further nine prospects in the late-stage pipeline Project Annual Status Status Key: Potential Client descriptor Territory Comment Revenues Subscription Mar-26 Aug-26 Won Retail Bank I ROW Working Lost Lost New in late stage* Moved
Slide 37: Balance sheet
Balance sheet • Trade receivables down slightly Robust balance sheet with £22.2m of cash from Dec 2025 to £7.8m • Prepayments, accrued income and £m 2026 H1 2025 FY other receivables up £2.6m Total non-current assets 46.3 45.0 Current assets • Corporate tax recoverable up Trade receivables 7.8 8.5 £
Slide 38: Phased Cash Flow
Phased Cash Flow Cash conversion in H1 2026 impacted by pre-billing at end of H2 2025. Cash flow conversion H2 2023 H1 2024 H2 2024 H1 2025 H2 2025 H1 2026 Cash generated from operations 13.0 18.8 18.5 22.0 22.5 17.6 • H2 2025 cash conversion of 108% was impacted by early Principal element of lease
Slide 39: Revenue profiles
Revenue profiles Strong base of revenue of a recurring nature • Subscription customers all recurring revenues; 37% of overall revenues Revenue from existing and new customers • 53% of Software Engineering revenues from existing customers; 2026 H1 By Stream 7% of overall revenues Software Subscriptio
Slide 40: 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 41: 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 42: TCV at 2x scale of revenue
Subscription growth Subscription is our fastest growing revenue stream, with growth coming Subscription revenues and TCV ramp up over time from: • Growth in existing customers portfolio volumes, migration of business onto Alfa and purchase Illustrative Customer Subscription Profile* of new software
Slide 43: 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
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