Q3 2026 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 third quarter ended 30 September 2026 (“Q3”).

Further strong growth in Subscription revenues

Revenue of £32.7m for Q3 was up 3% on the third quarter of last year, with continued strong growth in higher-margin Subscription revenues.

Q3 financial highlights:

• Strong sales momentum with a net increase in the late-stage pipeline from 9 to 10 prospects.
• TCV ended the quarter at £250.8m, up from £247.0m at 30 June 2026 and versus £221.7m at the end of Q3 last year, providing a strong underpin for Q4 and into 2027.
• Subscription revenues of £13.1m: continued strong growth as expected, up 18% on Q3 2025 and 6% on Q2 2026.
• Delivery revenues of £16.1m: up 2% against Q2 2026 but down 4% against Q3 2025, which was a particularly strong comparator.
• Software Engineering revenues of £3.5m: down 7% on Q3 2025 reflecting a reduction in client-led development work. We are expecting a strong final quarter for Software Engineering revenues, which includes work being performed to convert a private cloud customer to Alfa Cloud.

Our focus on tight cost control resulted in lower costs in the period than originally expected due to a carefully managed expansion in headcount, along with some underspend on travel, professional fees and IT.

Continued growth in TCV

The increase in TCV of 13% versus September 2025 was driven by strong growth in Subscription of 16%, with Software Engineering up 11% and Delivery up 5%. The continued growth in TCV and the strength of the late-stage pipeline provide good visibility over future revenue growth.

At the time of this release, our late-stage pipeline strengthened with a net increase in the number of prospects from 9 to 10. Alfa is the preferred supplier for six of these and we are already working under letters of engagement for five of these prospects. We have also added four new prospects: an EMEA retail bank, a North American bank, a major customer migrating to Alfa Cloud and an APAC Auto independent. These more than offset the impact of one loss from the late-stage pipeline and two smaller prospects that have moved back to the medium-term pipeline during the quarter.

Continued investment and operational progress

We have completed the planned recruitment for our Gdańsk SaaS hosting operations centre, providing additional capacity to support future growth in customer demand.

We have continued to strengthen our product leadership, with Alfa Recon, our AI-enabled reconciliation module, winning AI Solution of the Year at the GlobalData Automotive Finance Europe Awards. The award recognises Alfa Recon’s ability to improve the speed, accuracy and efficiency of complex reconciliation processes.

Since the period end we have also completed the successful upgrade of a longstanding Alfa v3 customer to Alfa Systems 6. The implementation provides end-to-end functionality, including quoting and pricing, and represents further progress in our longstanding relationship with the customer.

Outlook

We remain confident for the full year. Full year revenue is now anticipated to be close to expectations and full year profit is anticipated to be slightly ahead, owing to our disciplined cost control. Our strong late-stage pipeline positions us well for continued growth beyond the current financial year.

Andrew Denton, Chief Executive Officer

“We continue to invest in the product and our people to enhance our leading position in the market. We were delighted that Alfa Recon, our AI-enabled reconciliation module, recently won AI Solution of the Year at the GlobalData Automotive Finance Europe awards. Our delivery teams have continued to execute successfully and we remain confident in our go-to-market with another record TCV and a stronger late-stage pipeline which in turn underpins our confidence in the future prospects for the business.”