Alef Education revenue remains steady as EBITDA margin rises

Arabian Business

5 days ago

Alef Education Holding, the Abu Dhabi-based education provider, delivered steady results in the first half of 2025. Revenues reached AED 357.3 million (US$91.76 million), and it maintained a strong EBITDA margin of 75 per cent on the back of continued cost optimisation initiatives.
The company's performance was supported by the continued strength of its long-term partnership with the Abu Dhabi Department of Education and Knowledge (ADEK) and expanding traction across both UAE and international markets.
Alef Education reports strong H1 results
Revenue increased by 1 per cent YoY, driven by stable contributions from the core UAE portfolio and growth in other business and government contracts outside of ADEK. Disciplined cost management and operational optimisation led to a 3 per cent rise in EBITDA to AED 267.9 million (US$72.95 million), resulting in a market-leading 75 per cent margin, a 100 basis points expansion compared to the prior year.
Net profit for H1 2025 increased 3 per cent YoY to AED 232.3 million (US$63.25 million), reflecting a 100 basis point expansion in margin to 65 per cent.
Alef Education held AED 497.1 million (US$135.36 million) in cash with zero debt and effective working capital management, providing a platform to fund global expansion.
Geoffrey Alphonso, Chief Executive Officer of Alef Education, commented: 'The first half of 2025 balanced expansion and profitability for Alef Education. We advanced on growing our presence internationally while delivering a market-leading 75 per cent EBITDA margin.
'Recent milestones like the imminent Miqyas Al Dhad progress and high-level ministerial engagements in Indonesia and Senegal demonstrate how Alef Education is redefining K-12 learning. With a debt-free balance sheet and a transparent dividend commitment, we continue to invest in the next wave of digital education for students and shareholders alike.'
The company's financial outlook remains unchanged from what was disclosed in Q1 2025. It expects a 3-4 per cent growth in revenue for the FY2025. Consistent with its seasonal billing cycle, where the start of the academic year in September drives the bulk of annual revenue growth, H2 is typically expected to generate higher revenue. EBITDA for the year is expected to increase by 8-9 per cent, generating a higher margin of 70 per cent. Net Profit is expected to increase by 6-7 per cent.
Miqyas Al Dhad set for launch in Q4
Miqyas Al Dhad, the region's first Arabic reading scale aimed at advancing Arabic reading proficiency for Grades 1–12 Arabic speakers, is now 87 per cent complete and set to launch in Q4 2025.
Developed in collaboration with Arab countries' education ministries, the initiative supports Alef Education's growth strategy by creating new, sustainable revenue streams in Arabic language proficiency.
A successful Field Test Survey was conducted in the first half of 2025, involving 110,000 students from 204 schools in 70 cities across nine countries. Early results show a strong demand for Miqyas Al Dhad and findings have been shared with 12 government bodies. Alef has signed seven MOUs with major publishing and assessment firms.
Strategic alliances
During the first half, Alef Education strengthened its reputation as a trusted global leader in AI-powered K-12 learning through a series of high-profile collaborations, including a landmark alliance with Microsoft and Core42, the sovereign-cloud and AI-infrastructure arm of G42.
By combining Microsoft's global cloud platform with Core42's sovereign-cloud capabilities, Alef Education is positioned to accelerate growth, deliver cutting-edge AI-driven learning experiences, and unlock regional and international expansion opportunities.