Alef Education Expands AI Learning Ecosystem with Strong H1 2026

Alef Education Holding PLC (ADX: ALEFEDT) has delivered a steady and profitable first half of 2026, underscoring the strength of its AI-powered learning model and debt-free balance sheet. The Abu Dhabi-based company reported revenue of AED 361.6 million for the six months ended 30 June 2026, a 1.2% year-on-year increase. Growth came mainly from higher contributions in the B2B and B2G segments as previously secured contracts began generating revenue, while the core ADEK Grades 5–12 portfolio remained stable.

EBITDA rose 0.8% to AED 270.2 million, preserving a sector-leading margin of 74.7%. Net profit climbed 1.8% to AED 236.4 million, lifting the net profit margin by 40 basis points to 65.4%. Earnings per share reached 3.38 fils. Cash and cash equivalents stood at AED 644.9 million at the end of June, reinforcing the company’s debt-free position and providing flexibility for operations, product development, international expansion and shareholder returns.

Chief Executive Officer Geoffrey Alphonso highlighted the resilience of the business model. “Our first-half results demonstrate the resilience of Alef Education’s business model. Supported by our contracted, recurring revenue base and debt-free balance sheet, we delivered a consistent financial performance while continuing to invest in the long-term opportunities that will drive our next phase of development. 

During the period, we advanced our product roadmap ahead of the new academic year, expanded strategic partnerships and progressed opportunities across both the UAE and international markets. As we enter the second half, we remain focused on disciplined execution, scaling our AI-powered learning ecosystem, and creating sustainable long-term value for our students, partners and shareholders.”

Education Solutions revenue continued to benefit from the long-term ADEK contract. Support and Services revenue was broadly flat year-on-year, with stronger contributions expected in the second half as schools refresh IT devices at the start of the academic year. The platform-based operating model and ongoing cost discipline helped keep margins elevated despite modest top-line growth.

Shareholder returns remained a priority. The company paid its final FY 2025 dividend of AED 224.0 million during the period, consistent with its 90% payout policy. The Board has now approved an interim cash dividend of AED 212.8 million for H1 2026 equivalent to 3.04 fils per share and 90% of first-half net profit payable after the results release. These distributions reflect a deliberate balance between attractive returns and continued investment in growth.

Also Read: Alef Education Launches Advanced AI Tools to Empower Teachers

Operationally, Alef Education strengthened its partnership ecosystem. In collaboration with Microsoft it delivered a large-scale AI professional development programme to 25,000 UAE teachers. A new memorandum of understanding was signed with TMRW Edtech to explore AI-powered education solutions across the GCC. Engagement with the UAE Ministry of Education expanded through additional AI and assessment initiatives, while the core ADEK partnership continued to provide strong revenue visibility.

Internationally the company advanced its pipeline across Africa and other emerging markets. Funding arrangements and implementation discussions progressed, and engagement with multilateral organisations deepened. The AfricAI partnership supported further expansion efforts. At the platform level, Alef Education now reaches approximately 2.0 million learners, 85,000 teachers and 20,000 schools globally.

Innovation remained central. Miqyas Al Dhad completed large-scale field testing with roughly 112,000 students across nine countries. Ahead of the new academic year the company launched AI Literacy for students, expanded curriculum coverage through Pathways, and introduced Toki for Teachers an AI assistant designed to automate routine teaching tasks and improve classroom productivity. These developments build on the company’s existing suite, which includes the flagship Alef Platform, Alef Pathways for supplemental math, Abjadiyat for Arabic language learning from kindergarten to Grade 4, and Arabits for non-native Arabic speakers.

Founded in 2016, Alef Education has established a strong track record in the edtech sector. It maintains 100% penetration in ADEK Cycles 2 and 3 (Grades 5–12) and has demonstrated measurable impact, including an 8.5% improvement in Arabic and Maths test scores in Indonesia. The company supports educators with tools that enable high-impact interventions and personalised learning experiences that allow students to progress at their own pace.

Looking ahead, Alef Education is maintaining its full-year 2026 guidance. Management expects revenue to rise 7% year-on-year, EBITDA to grow 4% with a margin above 68%, and net profit to increase 4% with a margin above 60%. The outlook rests on continued visibility from the ADEK contract, momentum in B2B, B2G and private segments, and a growing international opportunity pipeline.

In an evolving macroeconomic environment the company remains confident in its ability to execute strategic priorities, protect the strength of its operating model and uphold its 90% dividend payout policy. With a robust cash position, recurring revenue base and ongoing investment in AI-driven solutions, Alef Education is positioned to deliver sustainable growth for students, partners and shareholders in the second half of 2026 and beyond.

The results reinforce Alef Education’s standing as a leading AI-powered K-12 learning solutions provider listed on the Abu Dhabi Securities Exchange, combining financial discipline with scalable educational impact across the UAE and international markets.