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FINEOS Corporation Holdings Plc Shs Chess Depositary Interests Repr 1 Sh
(Sydney:FCL)
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Rating:73Outperform
Price Target:
AU$3.00
â–²(66.67% Upside)
Action:Upgraded
Date:08/19/26
The score is driven primarily by strengthening financial performance (improving profitability trajectory, strong cash generation, and a conservative balance sheet) and a constructive earnings-call outlook (ARR/NRR momentum and margin targets with continued cash generation). Technicals support the uptrend but are near-term overbought, while valuation is the key detractor due to a negative P/E and no dividend yield data.
Positive Factors
Recurring revenue and retention strength
Strong ARR growth and 115% net revenue retention indicate a sticky insurer customer base with meaningful upsell and cross-sell potential. This recurring-revenue profile can improve visibility and support durable expansion as customers adopt more platform modules.
Negative Factors
Operating profitability remains unproven
The return to positive net income is encouraging, but negative EBIT shows that core operating profitability has not fully normalized after depreciation and amortization. Earlier losses also indicate execution risk if growth slows or investments remain elevated.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue and retention strength
Strong ARR growth and 115% net revenue retention indicate a sticky insurer customer base with meaningful upsell and cross-sell potential. This recurring-revenue profile can improve visibility and support durable expansion as customers adopt more platform modules.
Read all positive factors
FINEOS Corporation Holdings Plc Shs Chess Depositary Interests Repr 1 Sh (FCL) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$800.50M
Dividend YieldN/A
Average Volume (3M)470.35K
Price to Earnings (P/E)―
Beta (1Y)0.62
Revenue Growth8.33%
EPS GrowthN/A
CountryAU
Employees852
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding345,041,560
10 Day Avg. Volume577,420
30 Day Avg. Volume470,353
Financial Highlights & Ratios
PEG Ratio-5.23
Price to Book (P/B)3.67
Price to Sales (P/S)4.20
P/FCF Ratio17.03
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$3.25Price Target Upside80.56% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.02
Revenue Forecast (FY)AU$147.22M
FINEOS Corporation Holdings Plc Shs Chess Depositary Interests Repr 1 Sh Business Overview & Revenue Model
Company Description
FINEOS Corporation Holdings plc, together with its subsidiaries, engages in the development and sale of enterprise claims and policy management software for life, accident and health insurers, and employee benefits providers in North America, the ...
How the Company Makes Money
FINEOS makes money by selling and supporting enterprise software for insurers. Its revenue model is generally a mix of (1) software licensing or subscription fees for use of its platform modules (e.g., claims, policy administration, billing, and r...
FINEOS Corporation Holdings Plc Shs Chess Depositary Interests Repr 1 Sh Earnings Call Summary
Earnings Call Date:Aug 12, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Mar 03, 2027
Earnings Call Sentiment Positive
The call communicated strong top-line recurring revenue momentum (ARR +14.9%, subscription revenue +15%), substantial margin and EBITDA expansion (EBITDA +32.3%, margin to 24%), improved cash generation and important long-term customer wins (including multi‑year 10‑year deals). Operationally there are near-term headwinds — temporary gross margin pressure from onboarding/doubling of resources, an AWS contract provision and H1 cash timing effects from delayed invoices — but management provided explanations and expects many of these to normalize in H2. The strategic story (North America expansion, AdminSuite upsell runway, embedded AI) is intact and reinforced by customer wins and go‑lives, leading to a positive forward outlook.Positive Updates
Strong ARR and Retention
ARR of EUR 87.8M, up 14.9% from EUR 76.4M a year ago; Net Revenue Retention (NRR) 115% (NRR up 15.3% year-on-year), indicating sticky customers and upsell/cross-sell momentum.
Negative Updates
Temporary Gross Margin Pressure from Resourcing
Cost of sales increased by ~EUR 2.2M vs 1H'25 caused by higher employee and contractor costs and a period of doubling-up resources during onboarding; gross margin dipped slightly (management expects normalization in H2).
Read all updates
Q2-2026 Updates
Positive
Negative
Strong ARR and Retention
ARR of EUR 87.8M, up 14.9% from EUR 76.4M a year ago; Net Revenue Retention (NRR) 115% (NRR up 15.3% year-on-year), indicating sticky customers and upsell/cross-sell momentum.
Read all positive updates
Company Guidance
Management reiterated they remain on track to meet FY‑27 guidance, targeting subscription revenues of 65% of total revenue by end‑FY27 (H1: EUR41.9m, 57.8%), while growing ARR from EUR87.8m (up 14.9% YoY) toward a modeled EUR107–108m next year with no expected churn in H2 and NRR ~115% (up ~15.3% YoY); profitability and margin targets include an FY‑27 EBITDA margin target of 25% (H1: EUR17.4m, 24%), gross margin ~75% (H1: 75.4%), and an EBIT margin of 25% in FY‑27 rising to 40% by FY‑29; they expect R&D spend to fall into the ~30% of revenue range over the medium term, services to be broadly flat (±5%), and continued cash generation (H1 cash EUR39m, positive free cash flow EUR10.9m, no debt), while noting an AWS provision of ~EUR0.5m in COGS (+EUR0.3m in OpEx) and a potential ~EUR1m FX tailwind if EUR/USD holds at ~1.15 vs their 1.175 assumption.FINEOS Corporation Holdings Plc Shs Chess Depositary Interests Repr 1 Sh Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
86
Very Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2026 | Dec 2025 | Dec 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 139.21M | 137.62M | 133.22M | 122.24M | 125.04M | 127.25M |
| Gross Profit | 128.88M | 75.64M | 100.43M | 87.44M | 85.70M | 83.03M |
| EBITDA | 16.58M | 27.96M | 32.78M | -12.84M | 1.70M | 6.28M |
| Net Income | -568.04K | 936.04K | -5.80M | -13.79M | -21.42M | -26.00M |
Balance Sheet | ||||||
| Total Assets | 195.09M | 195.09M | 197.79M | 196.31M | 201.17M | 223.41M |
| Cash, Cash Equivalents and Short-Term Investments | 27.85M | 27.85M | 19.83M | 28.14M | 25.52M | 44.31M |
| Total Debt | 5.28M | 3.13M | 4.07M | 5.14M | 4.59M | 4.56M |
| Total Liabilities | 37.50M | 37.50M | 33.29M | 33.02M | 54.03M | 54.12M |
| Stockholders Equity | 157.59M | 157.59M | 164.50M | 163.28M | 147.14M | 169.29M |
Cash Flow | ||||||
| Free Cash Flow | 71.63M | 33.99M | 20.10M | -15.14M | -9.54M | -8.73M |
| Operating Cash Flow | 72.91M | 34.71M | 20.64M | -14.90M | 17.89M | 18.09M |
| Investing Cash Flow | -47.74M | -28.35M | -28.92M | -27.05M | -29.80M | -26.82M |
| Financing Cash Flow | 1.64M | 1.61M | -24.14K | 47.19M | 88.13K | 45.21M |
FINEOS Corporation Holdings Plc Shs Chess Depositary Interests Repr 1 Sh Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | AU$742.92M | 21.12 | 25.65% | 3.85% | 6.51% | 15.45% | |
73 Outperform | AU$800.50M | -840.50 | -0.29% | ― | 8.33% | ― | |
73 Outperform | AU$1.40B | 12.29 | 107.14% | 3.65% | -9.72% | 51.09% | |
71 Outperform | AU$701.28M | 14.52 | 12.46% | 1.85% | -1.53% | 10.09% | |
65 Neutral | AU$52.37M | 7.68 | 7.40% | 6.78% | -4.94% | -64.96% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | AU$1.15B | 12.30 | 22.13% | 2.47% | -14.44% | 5.34% |
* Technology Sector Average
AU:FCL
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FINEOS Corporation Holdings Plc Shs Chess Depositary Interests Repr 1 Sh Corporate Events
FINEOS Delivers Strong 1H26 Growth and Profitability With Rising Recurring Revenue
Aug 13, 2026
FINEOS reported strong operating momentum for the first half of fiscal 2026, with total revenue rising to €72.5 million and subscription revenue up 15% to €41.9 million, representing 57.8% of total revenue. Annual recurring revenue inc...
FINEOS turns to profit as subscription growth, margins and cash flow strengthen in 1H26
Aug 13, 2026
FINEOS reported solid first-half 2026 results, with total revenue up 7.9% to €72.5 million and subscription revenue rising 15% to €41.9 million, now nearly 58% of sales. Annual recurring revenue climbed 14.9% to €87.8 million, wh...
FINEOS Swings Back to Profit as Revenue and Asset Backing Improve
Aug 13, 2026
FINEOS Corporation Holdings plc reported a solid first-half performance for the six months to 30 June 2026, with revenue from ordinary activities rising 7.9% year on year to €72.5 million. Profit after tax attributable to members surged to &...
FINEOS Sets 1H26 Result Release and Investor Call for August
Jul 27, 2026
FINEOS Corporation Holdings Plc has announced that it will release its financial results for the six‑month period ended 30 June 2026 on 13 August 2026, underscoring an important disclosure point for investors tracking the insurer technology ...
FINEOS boosts cash position as new long-term platform deals deepen global reach
Jul 22, 2026
FINEOS reported a strong closing cash balance of €39.0 million for the June quarter, up year-on-year despite seasonal collection effects that saw client receipts fall versus both the prior quarter and prior corresponding period. Operating co...
FINEOS Options Lapse, Trimming Future Equity Dilution
Jul 8, 2026
FINEOS Corporation Holdings Plc has reported the lapse of several series of options over its CHESS Depositary Interests, following the failure or impossibility of satisfying the conditions attached to these rights. The expired instruments include ...
FINEOS Issues New Unquoted Employee Incentive Options
Jul 6, 2026
FINEOS Corporation Holdings Plc has issued 20,000 unquoted options under its employee incentive scheme, with varying expiry dates and exercise prices, that will not be quoted on the ASX. The move underscores the company’s continued use of eq...
FINEOS Director Michael Kelly Increases Indirect Stake via On-Market Purchase
Jun 24, 2026
FINEOS has disclosed a change in the interests of director Michael Kelly, who increased his indirect holding in the company through Jacquel Investments Limited. Kelly acquired 300,000 additional Chess Depositary Interests in an on-market trade, li...
S&P Dow Jones Indices Sets June 2026 Rebalance for Key S&P/ASX Benchmarks
Jun 5, 2026
SP Dow Jones Indices has announced the results of its June 2026 quarterly rebalance of the SP/ASX index family, which will take effect before the market opens on June 22. The reshuffle includes selective additions and removals across the SP/ASX 50...
FINEOS Seeks ASX Quotation for 196,000 New CHESS Depositary Interests
Jun 3, 2026
FINEOS Corporation Holdings Plc has applied for quotation on the ASX of 196,000 additional CHESS Depositary Interests, each representing one ordinary share, with an issue date of June 1, 2026. The new securities arise from the exercise or conversi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.