Q1 26 Trading update

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 first quarter ended 31 March 2026 (the "quarter" or "Q1").

Robust pipeline & TCV

We converted one prospect into a win during the quarter and now have nine prospects in our late-stage pipeline. Alfa is the preferred supplier with seven of these prospects and is conducting paid work for four of them.

The win was for the Canadian operations for a global OEM. This is a new implementation and includes the retail auto and commercial fleet lease and loan book. We currently have live operations for this global automotive OEM in three other countries and are doing paid work on a new multi-country program in another region.

Total Contract Value ("TCV") at 31 March 2026 was £232.4m, up 2% in the quarter. TCV benefitted from the win noted above which offset work executed in the quarter. Delivery TCV grew 7%, Subscription TCV grew 1% with Software Engineering TCV down 5%.

In line trading

Key financial highlights for Q1:

• Revenue of £31.9m in the quarter, up 3% versus a very strong quarter last year.
• Constant currency revenue growth of 5% in line with management's expectations.
• Continued strong growth in Subscription revenues, up 13% versus Q1 last year.
• Delivery revenues grew 8% versus Q1 last year.
• Software Engineering revenues as expected were down 35% versus a very strong quarter last year.

Continued strong operational execution

In the quarter we had a successful go-live for a long-standing customer who upgraded from v4 onto AS6. The go-live involved migrating portfolios in two different countries onto a single segregated instance on Alfa Cloud, allowing them to simplify their own internal systems infrastructure along with the product benefits of moving onto AS6. This further reinforces Alfa's ability to deliver complex, multi-country migrations at scale on Alfa Cloud.

We also continue to strengthen our product leadership, including additional AI product features and use cases, such as agentic integration.

Outlook

We are pleased with the combination of the late-stage pipeline and TCV and continue to see good activity in the early-stage pipeline. We are conscious of the uncertainties in the global political and economic environment, and whilst there is no direct impact on our business we remain alert to potential changes in discretionary spending and the impact of FX. Notwithstanding the macroeconomic backdrop the Board is confident of meeting expectations for the year.

Andrew Denton, Chief Executive Officer

"I am pleased that we have made a good start to 2026. We are operating against a volatile macroeconomic backdrop but our focus remains on delivering exceptional performance to our customers and continuing to develop our products further to retain our advantage over the competition.

The modern architecture and the integral position of Alfa Systems at the heart of our customers businesses means that we are well placed to benefit from developments in AI and we are confident in our growth expectations for 2026 and beyond."