Alfa Financial H1 2026 slides: subscription growth accelerates to 14%

Alfa Financial Software Holdings released its first-half 2026 financial results on September 3, 2026, revealing mixed outcomes amid the company's transition to a subscription-based business model. Subscription revenues surged 14% to £24.1 million, marking a 22% increase in Total Contract Value to £176 million. Annual Recurring Revenue (ARR) climbed 17% to £48.5 million, with Net Revenue Retention (NRR) maintaining a healthy 110%.

These metrics indicate a strengthening recurring revenue base and expanding contract pipeline, attracting investor interest despite a 15% decline in operating profit to £18.4 million. Revenue grew modestly by 5% at constant currency and 4% at actual rates, totaling £65.1 million. The decline in profitability was mainly due to £1.6 million in severance costs and unfavorable foreign exchange hedge impacts.

Despite this, the core business showed relative stability in profitability once severance costs and FX hedge impacts were excluded. Subscription customers grew to 44 from 41, with subscription revenue driven by customers on v5/AS6 platforms (73%) and new customers implementing AS6 (20%). The strong performance in subscription revenues underscores Alfa's successful shift toward a subscription-based approach, positioning the company well in the asset finance software market.