Q4 25 Trading update

29 January 2026

Alfa Financial Software Holdings PLC

Q4 25 Trading update

Strong Q4 performance - FY25 revenue and profit outperformance

Alfa 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.

FY 2025 highlights (unaudited)

· Revenue of £126.5m, c.£2m ahead of market expectations and up 15% on the prior year (17% on a constant currency basis).

· Operating profit growth for FY25 of 17% to £40.0m, c.£3m ahead of market expectations.

· TCV of £227m up 3% on FY24.

· Strong late-stage pipeline comprising ten prospects (Q4 24: eight prospects), eight of which have achieved preferred supplier status

Strong Q4 trading

Revenue continued to grow strongly to £32.5m for the quarter, up 11% (12% at constant currency) on last year.

Key financial highlights for Q4:

· Continued strong growth in Subscription revenues, up 15% versus Q4 last year.

· Delivery revenues in Q4 grew strongly, up 16% versus Q4 last year, with better project chargeability than forecast.

· 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.

Continued strong operational execution

In 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.

Upgrades to Alfa Systems 6 have continued both effectively and at pace. We now have twenty customers live on Alfa Systems 6.

Robust pipeline & TCV

We saw further progress in our late-stage pipeline in the quarter with another two prospects added since the Q3 trading update, so that there are now ten prospects in the late-stage pipeline.

One prospect is for a country expansion for a European OEM. The implementation project is expected to be relatively small for both implementation and development work as it is an additional country for an existing customer. However, given the size of the customer when fully live, it would generate significant additional subscription revenues. The other prospect is a large project for a new customer in European Equipment Finance, and we are one of the remaining two bidders in the process. Overall, we are preferred supplier for eight out of the ten prospects and are already working with five of them.

TCV increased 3% in the quarter to £227m. Subscription TCV continued to grow and is now 18% higher than this time last year. Delivery TCV also grew slightly in the quarter but is down versus last year as we have been working through some large implementations, which would be offset as we convert prospects from the late-stage pipeline. Software Engineering TCV as previously highlighted is down as a result of having completed required customer development and is 42% below the level at last year end.

Overall, we are pleased with the combination of the late-stage pipeline and TCV. They point to continued growth in Subscription and Delivery revenues across all regions in 2026, with an expected reduction in Software Engineering revenues as our focus moves to further investment in our product.

Progress on expanding markets

We have made good progress in developing our Originations and Fleet capabilities, which expands our Serviceable Addressable Market, and also with Commercial Finance which expands our Total Addressable Market. We now have sellable software solutions for all three end-markets.

Originations was sold to and developed in conjunction with a key customer and it is planned to be implemented after Servicing capability has gone live. We are in active discussions with a number of other customers who are interested in purchasing this new module and this will drive further investment into extending the product capabilities.

Our Fleet development has generated a lot of interest with a number of demonstrations having been delivered and scheduled and we are confident that this will drive future sales.

Our development work in Commercial Finance is building long-term capability, however some of the developed functionality already has use cases with existing customers. In particular, we are having discussions with a number of customers who wish to utilise the new syndications functionality.

Andrew Denton, Chief Executive Officer

"I am delighted that we have delivered a really strong performance in the quarter and have finished 2025 so strongly. We remain 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. 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."

Enquiries

Notes to Editors

Alfa has been delivering leading-edge technology to the global asset finance and leasing industry since 1990. Our specialised expertise enables us to deliver the most challenging systems transformation projects successfully.

Alfa Systems, our class-leading SaaS platform, is at the heart of the world's largest and most progressive asset finance operations. Supporting all types of automotive, equipment and wholesale finance, Alfa Systems is proven at volume and across borders, and trusted by leading brands to manage complex portfolios, drive efficiency and sustainability, and enhance the customer experience.

With full functionality for originations, servicing and collections, Alfa Systems is live in 37 countries, representing an integrated point solution, a rapid off-the-shelf implementation, or an end-to-end platform for the complex global enterprise.

Alfa maintains exceptional customer satisfaction through an impeccable track record, with our experience and performance unrivalled in the industry. Our customers stick with us for the long term, because we deliver value that lasts for decades.

Alfa has offices in Europe, Australasia and North America. For more information, visit us at www.alfasystems.com.