Page 101 - ALEF EDUCATION PR REPORT - FEBRUARY 2026

2/19/26, 10:44 AM Alef Education Grew Profit Even As Revenue Slipped In 4Q25 - Finimize
Alef Education Grew Profit Even As Revenue Slipped In 4Q25

FAB kept its buy rating and AED 1.45 target, pointing to cost discipline, big margin gains, and the long-term ADEK contract supporting visibility.

Finimize Newsroom
about 19 hours ago • 1 min

What’s going on here?

Alef Education grew profit in 4Q25 even as revenue dipped, and FAB Securities maintained its buy rating with a AED 1.45 price target.

What does this mean?

Revenue fell 5.2% year over year to AED 197 million, which FAB Securities linked mainly to a softer Support & Services contribution. Yet net
profit rose 13.9% to AED 116 million, roughly in line with FAB’s estimate, as costs grew much more slowly than sales. That
operating leverage showed up in margins: EBITDA margin widened by 1,043 basis points and net profit margin by 992 basis points. In other
words, this quarter’s story was less about demand acceleration and more about the company getting leaner and converting a bigger share of
each dirham of revenue into earnings.

Why should I care?

For markets: Margins are doing the heavy lifting.

When sales fall but profit rises, the big question is whether the margin boost can stick. Alef’s sharp expansion in both EBITDA and net profit
margins suggests efficiency gains, not just a lucky quarter. FAB also highlighted a strong balance sheet, which can give companies room to
keep investing in product and delivery through slower revenue patches.

Zooming out: Long contracts can steady lumpy demand.

FAB’s thesis leans on Alef’s long-term contract with Abu Dhabi’s Department of Education and Knowledge (ADEK), which can add revenue
visibility even if individual segments wobble. That matters in education tech, where budgets can be cyclical and sales cycles slow. The longer-
term test is whether Alef can keep scaling – including internationally – without giving those hard-won margins back.

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