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Earnings Report

Alef Education Holding

Q1 26 NEUTRAL LOW Impact

1. Company Overview & Earnings Context

Alef Education Holding PLC reported a resilient Q1 2026 performance, supported by its long-term ADEK partnership, strong recurring revenue model, and expanding engagement across private schools, B2B, and international markets.

2. Financial Performance Snapshot

  • Revenue: AED 180.8M (+0.6% YoY)

  • EBITDA: AED 134.6M (+1.4% YoY)

  • EBITDA margin: 74.5%

  • Profit before tax: AED 129.8M (+2.5% YoY)

  • Net profit: AED 118.1M (+2.5% YoY)

  • Net profit margin: 65.4%

  • Earnings per share (EPS): 1.69 fils

3. Operational Highlights & Key Metrics

  • Cash & liquidity:

    • Cash & equivalents: AED 675.6M

    • Debt: None (debt-free balance sheet)

  • ADEK partnership:

    • Contracted through 2033

    • Revenue backlog of ~AED 5.7B

    • Q1 revenue contribution: AED 174.4M

  • Private schools segment:

    • Serving 188 private schools

    • ~223,000 active students

    • UAE market share: 37%

  • B2B & B2G:

    • 7 active contracts

    • Revenue backlog: ~AED 42.9M

  • Operational engagement:

    • Teacher engagement increased 44% during distance learning activation

    • Student engagement increased 19%

4. Key Performance Drivers

  • Stable recurring revenue model, anchored by the ADEK contract

  • Strong cost discipline and operational leverage, supporting margin expansion

  • Growth in private schools and B2B/B2G engagement

  • Expansion of AI-powered learning products and marketplace offerings

  • Strong balance sheet and treasury income, supporting profitability

5. Outlook & Forward Guidance

  • FY 2026 guidance maintained:

    • Revenue growth: ~7% YoY

    • EBITDA growth: ~4% YoY

    • EBITDA margin: Above 68%

    • Net profit margin: Above 60%

  • Continued focus on:

    • Expanding UAE and international partnerships

    • Scaling Alef Marketplace and Alef AI products

    • Commercial rollout of Miqyas Al Dhad

    • Maintaining attractive dividend payouts

6. ???? Investor Takeaway

Alef Education delivered a resilient Q1 2026 with sector-leading margins, strong profitability, and a debt-free balance sheet, supported by its recurring revenue model, long-term government partnerships, and expanding AI-powered education ecosystem.