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FINEOS Corporation Holdings Plc Shs Chess Depositary Interests Repr 1 Sh
(Sydney:FCL)
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Rating:72Outperform
Price Target:
AU$2.00
▼(-7.41% Downside)
Action:Reiterated
Date:09/23/26
The score is driven primarily by improving financial performance supported by a very strong, low-leverage balance sheet and positive cash generation, alongside a constructive earnings call with reiterated guidance and strong recurring-revenue/retention metrics. Offsetting these strengths are a stretched valuation (high P/E) and mixed technicals, including overbought signals and the price still below the 200-day moving average.
Positive Factors
Sticky recurring revenue and expansion
Strong ARR growth and 115% net revenue retention indicate that FINEOS is retaining customers while expanding usage through upselling and cross-selling. This recurring base improves revenue visibility and supports durable growth as insurers deepen their reliance on the platform.
Negative Factors
Profitability remains thin and historically volatile
Although FINEOS has reached positive operating profit, its net margin remains modest for a software company and the recent record includes losses. This history limits confidence that the profitability improvement is fully durable until higher margins are sustained across multiple periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Sticky recurring revenue and expansion
Strong ARR growth and 115% net revenue retention indicate that FINEOS is retaining customers while expanding usage through upselling and cross-selling. This recurring base improves revenue visibility and supports durable growth as insurers deepen their reliance on the platform.
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$650.40M
Dividend YieldN/A
Average Volume (3M)157.98K
Price to Earnings (P/E)76.4
Beta (1Y)0.66
Revenue Growth8.33%
EPS GrowthN/A
CountryAU
Employees852
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.02
Shares Outstanding345,041,560
10 Day Avg. Volume120,082
30 Day Avg. Volume157,977
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 Upside50.58% 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 generates revenue primarily by licensing and servicing its insurance software platforms. Key revenue streams typically include (1) software license or subscription fees for the use of its platforms, (2) professional services income from imp...
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
68
Positive
Balance Sheet
88
Very Positive
Cash Flow
74
Positive
| Breakdown | Dec 2026 | Dec 2025 | Dec 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 137.62M | 133.22M | 122.24M | 125.04M | 127.25M |
| Gross Profit | 75.64M | 100.43M | 87.44M | 85.70M | 83.03M |
| EBITDA | 27.96M | 20.63M | 9.90M | -2.17M | 5.63M |
| Net Income | 936.04K | -5.80M | -13.79M | -21.42M | -26.00M |
Balance Sheet | |||||
| Total Assets | 195.09M | 197.79M | 196.31M | 201.17M | 223.41M |
| Cash, Cash Equivalents and Short-Term Investments | 27.85M | 19.83M | 28.14M | 25.52M | 44.31M |
| Total Debt | 3.13M | 4.07M | 5.14M | 4.59M | 4.56M |
| Total Liabilities | 37.50M | 33.29M | 33.02M | 54.03M | 54.12M |
| Stockholders Equity | 157.59M | 164.50M | 163.28M | 147.14M | 169.29M |
Cash Flow | |||||
| Free Cash Flow | 33.99M | 20.10M | -15.14M | -9.54M | -8.73M |
| Operating Cash Flow | 34.71M | 20.64M | -14.90M | 17.89M | 18.09M |
| Investing Cash Flow | -28.35M | -30.18M | -27.05M | -29.80M | -26.82M |
| Financing Cash Flow | 1.61M | 27.17K | 47.19M | 88.13K | 45.21M |
FINEOS Corporation Holdings Plc Shs Chess Depositary Interests Repr 1 Sh Technical Analysis
Negative
2.16
Price Trends
2.15
Negative
2.14
Negative
2.35
Negative
Market Momentum
-0.06
Positive
33.30
Neutral
28.27
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:FCL, the sentiment is Negative. The current price of 2.16 is above the 20-day moving average (MA) of 2.11, above the 50-day MA of 2.15, and below the 200-day MA of 2.35, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 33.30 is Neutral, neither overbought nor oversold. The STOCH value of 28.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:FCL.
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 |
|---|---|---|---|---|---|---|---|
73 Outperform | AU$1.42B | 12.78 | 107.14% | 4.44% | -9.72% | 51.09% | |
72 Outperform | AU$650.40M | 76.36 | 3.28% | ― | 8.33% | ― | |
71 Outperform | AU$690.79M | 14.08 | 12.46% | 2.96% | -1.53% | 10.09% | |
71 Outperform | AU$545.95M | 14.64 | 33.67% | 4.55% | 6.59% | 4.49% | |
62 Neutral | AU$51.07M | 41.79 | 1.25% | 10.71% | -15.56% | -91.14% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | AU$1.03B | 11.24 | 22.13% | 4.80% | -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 Issues New Unquoted Options Under Employee Incentive Scheme
Sep 30, 2026
FINEOS Corporation Holdings Plc operates in the financial technology sector, focusing on software solutions for insurance and employee benefits providers. The company is listed on the ASX under the ticker FCL and uses equity-based remuneration sch...
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...
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.