Alfa Financial Software (LON:ALFA) Posts Quarterly Earnings Results

Alfa Financial Software (LON:ALFA) announced its quarterly earnings data on Thursday. The company reported GBX 10.19 earnings per share (EPS) for the quarter, Digital Look Earnings reports. Alfa Financial Software had a net margin of 24.65% and a return on equity of 60.84%.

Here are the key takeaways from Alfa Financial Software’s conference call:

• Strong FY2025 financial performance — revenue £126.7m (+17% constant currency), operating profit £40.1m (32% margin), cash conversion 97% and diluted EPS up 18%.
• Subscription momentum and recurring metrics — subscription revenue +16%, subscription TCV +18%, ARR £43.9m (+15%) and NRR 109%, with the business aiming to grow subscription mix toward ~40% in 2026.
• Strong sales and delivery pipeline — 10 late-stage prospects (8 preferred supplier), paid work underway with 5 of them, 11 projects in delivery not yet live and 20 customers now on Alfa Systems 6 supporting near-term conversion to subscription revenue.
• Product expansion and AI strategy — £37.7m invested in product (originations, Fleet, Commercial Finance), rollout of AI tools like AskThea and intelligent document processing to speed delivery and add functionality for customers.
• Near-term headwinds from FX and lower software engineering demand — FX hedging and rate moves imply a ~£2.4m year‑on‑year profit swing, and the company expects software engineering TCV/revenues to fall (software engineering TCV down materially), which could pressure 2026 growth and margins.

Alfa Financial Software Price Performance

ALFA stock opened at GBX 177 on Friday. The stock has a 50-day moving average price of GBX 199.72 and a two-hundred day moving average price of GBX 217.06. The company has a market cap of £524.11 million, a PE ratio of 17.86, a price-to-earnings-growth ratio of 4.19 and a beta of 0.08. Alfa Financial Software has a 12-month low of GBX 169.40 and a 12-month high of GBX 252. The company has a current ratio of 1.60, a quick ratio of 1.37 and a debt-to-equity ratio of 18.59.

Wall Street Analysts Forecast Growth

Several research analysts have commented on the company. Peel Hunt reissued an “add” rating and issued a GBX 275 price objective on shares of Alfa Financial Software in a research report on Thursday, November 13th. Shore Capital Group reiterated a “buy” rating and set a GBX 270 price objective on shares of Alfa Financial Software in a research note on Thursday, January 29th. Finally, Canaccord Genuity Group reaffirmed a “buy” rating and set a GBX 282 target price on shares of Alfa Financial Software in a research note on Monday, February 2nd. Three equities research analysts have rated the stock with a Buy rating, According to MarketBeat.com, the stock currently has an average rating of “Buy” and a consensus target price of GBX 275.67.

About Alfa Financial Software

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.