Page 15 - ALEF EDUCATION PR RPEORT MAY 2025

Q1 2025 Financial Results
Market Announcement

education solutions. In Q1 2025, the Company reported Revenues of AED 179.7 million, marking a
2% year-on-year (‘YoY’) increase. This was primarily based on the stable contributions from the core
UAE portfolio, Abu Dhabi Department of Education and Knowledge (‘ADEK’) contract, and further
driven by robust growth in other business and government contracts outside of ADEK, locally and
internationally. Alef Education continued to execute on its growth strategy during Q1 2025, with a
strong focus on revenue diversification.

EBITDA rose 2% to AED 132.8 million in Q1 2025, with a market-leading margin of 74%. Net profit
reached AED 115.3 million, reflecting a 2% YoY increase, supported by consistent revenue growth
and a strong 64% margin, underscoring Alef Education’s ongoing commitment to cost discipline and
operational optimization.

Alef Education’s strong, unlevered balance sheet, solid financial foundation, and robust cash flow
generation continue to support its growth strategy. With AED 402.6 million in cash, no debt and a low
liabilities-to-assets ratio of 18%, the Company is well-positioned to fund growth ambitions, while
sustaining consistent dividend distributions.

A Core Foundation Further Enhanced by Strategic Growth & Strategic Alliances

The Company’s recent contract extension with ADEK provides significant revenue visibility until
2033, provisioning for a minimum of 80,000 students with a fixed fee per student. While the ADEK
contract constitutes the core of Alef Education’s business, the Company is actively pursuing an
opportunistic global growth strategy, particularly considering high-margin and value accretive
opportunities. To support its goals of geographic expansion, revenue diversification, and customer
and product portfolio growth, Alef Education secured a substantial pipeline of high-value leads
across both public and private sectors in the MENA region and internationally during Q1 2025.

Supporting its focus on deepening public sector partnerships, Alef Education marks expansion into
Morocco in support of the Education Reform Plan 2022–2026, and progress on the MOU with Nahdet
Misr to collaborate across the GCC, Levant, and North Africa. Alef Education strengthened its
footprint in Indonesia in Q1 2025, aligning with national digital education goals through high-level
ministerial talks aimed at long-term collaboration. Strategic partnerships were also forged to
advance human capital development and equip students with future-ready skills. Additionally, the
Company engaged in ongoing strategic dialogue with the Senegalese government about a potential
long-term collaboration, following the visit of Senegal’s President to Alef Education in November
2024.

Continuous Innovation Transforming Learning Outcomes

To meet rising demand for its expanding product portfolio, Alef Education is developing new variants
of Alef Pathways and enhancing its Arabic learning offerings with additional content and resources.

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