Alfa Financial Software (ALFA) Q1 2026 TU earnings summary

Executive summary

• Trading for Q1 2026 was in line with expectations, with a robust sales pipeline and continued operational execution.

• Secured a new contract win for Canadian operations of a global OEM, expanding presence in North America.

• Successfully completed a complex multi-country migration for a long-standing customer onto Alfa Cloud.

Financial highlights

• Revenue for Q1 2026 was £31.9m, up 3% year-over-year.

• Constant currency revenue growth was 5% compared to Q1 2025.

• Subscription revenues grew 13% year-over-year; delivery revenues increased 8%.

• Software Engineering revenues declined 35% versus a strong prior-year quarter.

• Total Contract Value (TCV) at 31 March 2026 was £232.4m, up 2% in the quarter.

Outlook and guidance

• Management remains confident in meeting full-year expectations despite macroeconomic volatility.

• Strong late-stage and early-stage sales pipelines support growth outlook for 2026 and beyond.

• Board remains alert to potential impacts from global political and economic uncertainties, including FX and discretionary spending.