• Total revenue up 4.2% to €67.1m
• Subscription revenue up 5.7% to €36.4m
• Gross profit margin improved to 76.6%

FINEOS Corporation Holdings PLC (ASX:FCL), a leading provider of core systems for life, accident and health insurance (LA&H) carriers globally, announced its financial results for the half year ended 30 June 2025 (1H25). Total revenue increased 4.2% to €67.1 million, driven by a 5.7% increase in subscription revenue to €36.4 million. This growth was attributable to successful client scaling, cloud upgrades, and new client wins. FINEOS held a healthy operating cash balance of €34.9 million as at 30 June 2025. The company continues to focus on improving margins, with operating expenses decreasing 4.7% to €38.3 million in 1H25. The loss after tax for the six-month period ended 30 June 2025 improved by 76.4% to €1.3 million. FINEOS is on track to return to positive free cashflow in FY25 in aggregate and is confident in its growth prospects, with a solid new business pipeline and ongoing client migrations to the FINEOS Platform. The company is focused on delivering key projects, increasing new and cross-sales, driving operational efficiencies, and embedding AI innovation across its product suite.

Revenue is now guided to be at the lower end of range provided (€138m - €143m) primarily driven by the weakening of trading currencies against FINEOS' operational currency of the Euro, and ongoing concerns about global economic conditions. FINEOS continues to expect positive free cash flow in FY25 in aggregate, and to be cash generative thereafter.

FINEOS expects 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.