Alfa delivers strong Q1 2025 results, TCV reaches new high

Alfa Financial Software(Alfa), a leading developer of mission-critical software for the asset finance industry, has today reported strong trading for the first quarter ended 31 March 2025, with revenue growth, record total contract value (TCV), and solid operational progress.

Revenue for the quarter rose to £31 million, up 20% year-on-year and 21% at constant currency, in line with management’s expectations. Subscription revenues grew 6% on the previous quarter and 21% versus the same period last year. Software engineering revenues increased by 79% year-on-year, while delivery revenues rose by 8%, reflecting broad-based demand across Alfa’s services.

TCV reached a record £227 million, surpassing the previous high of £221 million at the end of 2024 and £190 million a year ago. Strong customer interest in the newly launched Alfa Systems 6 platform continued, with incremental module sales progressing across 17 existing clients and five customers already live on the upgraded system.

Alfa’s sales pipeline remains healthy, with one new European Equipment prospect added during the quarter and continued late-stage activity, where Alfa is the preferred supplier for seven out of eight prospects. Recruitment across key markets is ongoing to support future growth.

Despite wider macroeconomic uncertainty from the imposition of tariffs, Alfa has seen no changes in customer buying behaviour and remains confident in delivering its full-year expectations.

Andrew Denton, Chief Executive Officer at Alfa, said: “We’ve had a strong start to the year across all revenue streams as we deliver for new customers, upgrade existing customers to Alfa Systems 6 and work with late-stage prospects through the sales process.

“We continue to see fantastic sequential growth in our Subscription revenues, up 6% on last quarter and 21% on the same quarter last year. We continue to invest in the product and our people to further enhance our leading position in the market and our excellent delivery track record. We have seen no change in customer buying behaviour as a result of current macro-economic uncertainty and we are well positioned to achieve our expectations for the year.”