Alfa Financial Software (ALFA) Q2 2026 TU earnings summary

Executive summary

• Revenue for H1 2026 reached £65.1m, up 4% year-over-year, with Q2 revenue at £33.2m, a 6% increase year-over-year.

• Strong growth in total contract value (TCV), up 17% year-over-year to £247.0m, driven by new customer wins, including a major European automotive manufacturer.

• Operational execution remained strong, with two go-lives in H1, including a significant Alfa Cloud implementation for a US Auto Finance customer.

Financial highlights

• Subscription revenues rose 14% year-over-year to £24.1m.

• Delivery revenues increased 5% to £32.4m, while Software Engineering revenues declined 17% to £8.6m due to reduced client-led enhancement work.

• One-off costs of £1.6m were incurred in H1 due to 31 non-voluntary departures, mainly from Product Engineering.

Outlook and guidance

• On track to meet full-year expectations, with strong TCV growth and a robust late-stage pipeline of nine prospects.

• Cost savings from H1 restructuring expected to have a favorable impact on operating profit for 2026 and a more significant benefit in 2027.