**Summary**
Alfa Financial Software Holdings PLC released a Q4 2025 trading update on January 29, 2026, highlighting strong financial and operational performance. Key points include
1. **Financial Performance**
FY 2025 revenue reached £126.5 million, exceeding market expectations by £2 million and growing 15% year-on-year (17% on a constant currency basis).
Operating profit grew 17% to £40.0 million, £3 million ahead of expectations.
Q4 2025 revenue increased 11% to £32.5 million, driven by strong subscription (up 15%) and delivery revenues (up 16%).
2. **Pipeline and TCV**
Late-stage pipeline expanded to ten prospects (up from eight in Q3), with eight achieving preferred supplier status.
Total Contract Value (TCV) rose 3% to £227 million, with subscription TCV up 18% year-on-year.
3. **Operational Highlights**
Completed nine deliveries in Q4, including a successful Alfa Systems 6 go-live for an Australian customer expanding into New Zealand.
Twenty customers are now live on Alfa Systems 6, with upgrades progressing effectively.
4. **Market Expansion**
Progress in developing Originations, Fleet, and Commercial Finance capabilities, expanding both Serviceable and Total Addressable Markets.
Active discussions with customers for new modules, driving future investment and growth.
5. **Outlook**
CEO Andrew Denton expressed confidence in continued growth in 2026, supported by a robust pipeline and TCV, despite currency headwinds.
Focus on further product investment to drive long-term revenue growth.
Alfa remains well-positioned in the asset finance industry, with strong customer satisfaction and global presence. Full audited results for FY 2025 will be announced on March 12, 2026.