• Revenue up 4.2% to €67.1 million
• Subscription revenue up 5.7% to €36.4 million
• Loss after tax improved by 76.4% to €1.3 million

Fineos Corporation Holdings Plc, a global software vendor providing modern cloud-based software products for core system administration functions within Life, Accident and Health insurers and employee benefits providers, has reported its 2025 half-year results. The key performance indicators show an overall increase of 4.2% in revenue to €67.1 million, with subscription revenue up 5.7% to €36.4 million and services revenue up 2.6% to €30.4 million. Cost of sales decreased by 7.6% due to a reduction in contractor and employee costs, while product development and delivery costs increased by 0.2% due to restructuring costs. Sales and marketing expenses decreased by 30.2%, and general and administrative expenses decreased by 16.7%. The loss after tax for the six-month period ended 30 June 2025 is €1.3 million, a €4.0 million (76.4%) improvement on the loss after tax of €5.3 million for the same period in 2024. The Group generated net positive cash flows of €15.1 million during the period, leading to closing cash reserves of €34.9 million as at 30 June 2025. The Group is on track to achieve its growth expectations for FY25 and beyond, with a focus on increasing recurring revenues, gross margin, and EBITDA, while decreasing R&D investment as a percentage of total revenue.

The business continues to be on a solid footing, with several larger clients in the process of migrating books of business to the FINEOS Platform. The Group expects to achieve positive free cash flow in FY25 in aggregate, and to increase recurring revenues to 65% or better in FY27 and to 75% or better in FY29, increase Gross Margin to 75% in FY27 and 80% in FY29, and increase EBITDA to 25% in FY27 and 40% in FY29. R&D investment as a percentage of total revenue is anticipated to decrease to 30% in FY27 and 25% in FY29.

The Group is confident of continuing to win new business and growing its revenues. While business performance is solid and the Group is within its forecast on a constant currency basis, it is experiencing FX losses, so as a cautionary step, it is forecasting to come in at the lower end of its FY25 Revenue Forecast in Euro. However, the Group remains confident that FY25 will be positive free cash flow in aggregate.