• Third consecutive quarter of positive operating cash flows
• Seven contract expansions and one new customer signed in Q3 FY25
• Contractor ARR increased 27% year-on-year to $6.7m

Felix Group Holdings Ltd (ASX:FLX) reported a third consecutive quarter of positive operating cash flows in Q3 FY25, with a $153k inflow recorded during the quarter. This was a significant improvement from the $1.3m outflow in Q3 FY24, driven by a 3-year contract renewal with CIMIC Group, Australia's largest construction company. The company signed seven expansion deals and one new customer in Q3 FY25, delivering $352k in new Contractor ARR. Notable deals included the CIMIC Group renewal, which will generate $2.02m in revenue over its 3-year term, and a 3-year agreement with PCL Construction's Solar Division, extending Felix's platform to PCL's operations in Canada and the United States. Felix also signed its first international renewal and expansion contract with DRA Projects, a multi-disciplinary engineering and project delivery group. Contractor ARR reached $6.7m in Q3 FY25, a 27% increase year-on-year, while total Group ARR grew 21% to $8.6m. The Vendor Marketplace continued to scale, reaching 117,100 vendors, a 24% increase from the prior year. Felix remains focused on maximizing Contractor ARR growth while maintaining a positive operating cash flow position.

Felix is progressing its capital-light international growth strategy, which involves expanding into new geographies, leveraging existing customer relationships with local subsidiaries of global organisations, and then seeking to extend into additional business units and regions. The company has recently deployed a sales resource to Canada to support activity in North America, where interest in the company's platform has been increasing.