Alfa Financial Software (LON:ALFA) Posts Quarterly Earnings Results
by Tristan Rich · The Markets DailyAlfa Financial Software (LON:ALFA – Get Free Report) posted its earnings results 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 Stock Down 0.2%
ALFA stock opened at GBX 173.40 on Friday. The stock has a fifty day moving average of GBX 199.01 and a 200-day moving average of GBX 216.70. Alfa Financial Software has a fifty-two week low of GBX 169.40 and a fifty-two week high of GBX 252. The company has a market capitalization of £513.45 million, a price-to-earnings ratio of 17.50, a PEG ratio of 4.19 and a beta of 0.08. The company has a debt-to-equity ratio of 18.59, a quick ratio of 1.37 and a current ratio of 1.60.
Analysts Set New Price Targets
A number of equities research analysts have issued reports on the stock. Canaccord Genuity Group reaffirmed a “buy” rating and issued a GBX 282 price objective on shares of Alfa Financial Software in a research report on Monday, February 2nd. Shore Capital Group reissued a “buy” rating and set a GBX 270 target price on shares of Alfa Financial Software in a research report on Thursday, January 29th. Three analysts have rated the stock with a Buy rating, According to data from MarketBeat, Alfa Financial Software presently has a consensus rating of “Buy” and an average price target of GBX 275.67.
Alfa Financial Software Company Profile
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.