FINEOS Corporation Holdings Plc Shs Chess Depositary Interests Repr 1 Sh (FCL) AI Stock Analysis

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FINEOS Corporation Holdings Plc Shs Chess Depositary Interests Repr 1 Sh

(Sydney:FCL)

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Neutral 55 (OpenAI - 5.2)

Rating:55Neutral

Price Target:

AU$2.50

▼(-5.66% Downside)

Action:ReiteratedDate:01/29/26

The score is primarily supported by strong balance-sheet quality and improved cash flow generation, but it is held back by still-negative profitability and weak technical momentum (below major moving averages with negative MACD). Valuation provides limited support due to negative earnings and no dividend yield data.

Positive Factors

Balance Sheet Strength

Very low leverage and a sizeable equity base provide durable financial flexibility: the company can fund product development, absorb execution setbacks, and pursue strategic investments or tuck-in M&A without immediate refinancing risk, supporting multi-quarter operational resilience.

Positive Free Cash Flow

Recent conversion to consistent positive operating and free cash flow strengthens the company’s ability to self-fund growth, reduce reliance on external capital, and invest in platform improvements and customer implementations, improving long-term sustainability if maintained.

Revenue Growth & Gross Margin

Re-accelerating revenue alongside high gross margins indicates scalable core platform economics: licensing and subscription economics are healthy, enabling focus on operating leverage and margin expansion over multiple quarters as sales scale and implementation efficiencies improve.

Negative Factors

Ongoing Losses

Persistent negative net income and EBIT mean the business has not yet achieved operating profitability; until structural costs are absorbed and EBIT turns sustainably positive, the firm may face pressure to cut costs or raise capital, limiting shareholder return potential.

Cash Flow Volatility

Historic swings between positive and negative cash flow increase execution risk: uneven cash conversion complicates multi-quarter planning for product investment and services delivery, and raises the chance of needing external financing during downturns or large implementation cycles.

Cost Structure Scaling

Management has yet to demonstrate that fixed and operating expenses scale down per unit of revenue; if R&D, implementation and professional services costs remain high relative to revenue growth, margin recovery will be slow and durable earnings harder to achieve.

FINEOS Corporation Holdings Plc Shs Chess Depositary Interests Repr 1 Sh (FCL) vs. iShares MSCI Australia ETF (EWA)

Market Cap

AU$754.91M

Dividend YieldN/A

Average Volume (3M)470.35K

Price to Earnings (P/E)―

Beta (1Y)0.88

Revenue GrowthN/A

EPS GrowthN/A

CountryAU

Employees893

SectorTechnology

Sector Strength88

IndustrySoftware - Application

Share Statistics

EPS (TTM)<0.01

Shares Outstanding344,831,760

10 Day Avg. Volume577,420

30 Day Avg. Volume470,353

Financial Highlights & Ratios

PEG Ratio1.09

Price to Book (P/B)2.26

Price to Sales (P/S)2.79

P/FCF Ratio18.50

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

AU$3.29

Price Target Upside24.15% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering5

EPS Forecast (FY)0.01

Revenue Forecast (FY)AU$146.59M

FINEOS Corporation Holdings Plc Shs Chess Depositary Interests Repr 1 Sh Business Overview & Revenue Model

Company DescriptionFINEOS Corporation Holdings plc engages in the development and sale of enterprise claims and policy management software for the life, accident, and health insurance industry worldwide. The company offers FINEOS Platform, a software-as-a-service core insurance platform. Its FINEOS Platform comprises FINEOS AdminSuite, a comprehensive core insurance suite; FINEOS Engage, makes connection across customers and partners to create frictionless engagement and agile business relationships; and FINEOS Insight that offers real-time analytics to influence business decisions and drive better outcomes. It also offers professional and customer support services, as well as employee benefit and insurance underwriting solutions. The company was founded in 1993 and is headquartered in Dublin, Ireland.

How the Company Makes Money

FINEOS Corporation Holdings Plc Shs Chess Depositary Interests Repr 1 Sh Earnings Call Summary

Earnings Call Date:Feb 25, 2026

(Q4-2025)

% Change Since: |

Next Earnings Date:Aug 25, 2026

Earnings Call Sentiment Positive

The call presented a strong operational and financial rebound: ARR and subscription revenue growth, improved gross margins, a material uplift in EBITDA and a return to positive free cash flow and net profit. Management articulated clear multi‑year KPIs (subscription mix, R&D intensity, margin targets), showcased product momentum (new customers, major upgrades), AI differentiation and SI partnerships. Risks disclosed include an AWS provision (~EUR 2.4–2.7m) that depressed reported profit, flat services revenue and regional concentration (80% North America), plus timing uncertainty around migrations and conservative customer buying behavior which underpin execution risk against ambitious subscription‑mix and margin targets. Overall, the positives — demonstrated revenue/ARR growth, cash generation and margin improvement — materially outweigh the manageable operational and timing risks highlighted by management.

Q4-2025 Updates

Positive Updates

Subscription Revenue Growth and Mix

Subscription revenues grew to EUR 75.6m, up 8.2% year‑on‑year and representing 54.6% of total revenues. Management reported ARR of EUR 78.3m at 31 Dec, up 10% from EUR 71.2m (ARR growth cited as a key KPI).

Total Revenue and Constant Currency Performance

Total revenues were EUR 138.4m, up 3.9% on FY'24; on a constant currency basis revenue was up 6.3% (would have been EUR 141.7m).

Improved Profitability and EBITDA

EBITDA rose to EUR 30.4m with an EBITDA margin of 21.9% (vs ~15.2% prior year), a multi‑year margin improvement and management target to reach 25% in FY'27.

Gross Profit and Margin Strength

Gross profit was EUR 105m with a gross margin of 76.2% (up from 75.4%), supporting healthy unit economics and management targets for further margin expansion.

Cash Generation and Net Cash Position

Net cash generated from operations improved to EUR 38.6m (vs EUR 18.8m prior year). Cash on hand rose to EUR 27.8m (increase of over EUR 8m) and free cash flow was positive at EUR 6.4m (plus EUR 1.6m from exercised share options). The company is debt‑free.

Return to Net Profit

The company reported a net profit after tax of approximately EUR 1m in FY'25, a turnaround from a EUR 5.8m loss in FY'24.

New Business and Product Momentum

Won 4 new North American carriers and completed 2 significant upgrades from on‑premise to the FINEOS AdminSuite (including one top‑10 group carrier). Management highlighted long‑term 5‑year contracts, upsell/cross‑sell opportunities and pipeline strength.

AI Leadership, Partnerships and Recognition

Awarded for embedded AI by the Irish Technology Association. Management highlighted embedded, compliant AI, SI partnerships (PwC, EY, Capgemini, Deloitte) and early traction with agentic features that are being adopted by carriers and SIs.

Operational Efficiency and R&D Discipline

Operating expenses fell by ~EUR 5m (a 6.3% reduction year‑on‑year). R&D (people costs) improved as a percentage of revenue to ~34.7% and management targets R&D at ~30% in FY'27 and ~25% by 2029 while continuing investment in AI and product.

Ambitious, Visible Guidance and KPIs

Guidance for FY'26 revenues set at EUR 147–152m; management reiterated multi‑year targets including 65% subscription revenue by FY'27 and 75% by 2029, gross margin ~80% and EBITDA margin ~40% by 2029 — providing clear KPIs.

Negative Updates

Provision for AWS Contract

A provision related to the AWS committed spend (disclosed between EUR 2.4m and EUR 2.7m in commentary) was taken to reflect lower expected consumption versus prior commitments; c. EUR 1.0m of the provision was allocated to cost of sales and additional charges (~EUR 0.8m) impacted R&D—this reduced reported NPAT and margins in the period.

Flat Services Revenue and Declining Initial License Fees

Services revenue remained flat at EUR 62.2m (no growth year‑on‑year). Initial license fees, tied to on‑premise customers, declined and are expected to continue to fall as the company shifts to cloud subscription models.

Concentration in North America

Approximately 80% of revenues come from North America, exposing the business to regional concentration risk and any localized market slowdowns.

Loss of a Legacy EMEA Customer

The company lost a legacy (albeit small‑by‑US‑standards) U.K. customer in EMEA, which reduced UK revenues for the year and highlights risk of attrition in non‑core regions.

Deal Timing and Market Conservatism

Management noted slower deal cycles and conservative buyer behavior over the past 12 months; several new‑name deals closed later than expected, introducing timing risk to revenue recognition and ARR conversion.

FX Headwinds

Reported growth (3.9%) was lower than constant currency growth (6.3%), indicating that foreign exchange movements negatively affected reported revenue growth and could continue to create volatility.

Restructuring and Workforce Transition Costs

Restructuring related to relocating R&D roles to lower‑cost regions generated one‑off charges and restructuring costs that impacted operating expense lines; contracted workforce makes up ~16.9% of the 1,009 headcount, introducing variability.

Regulatory and Customer Caution on AI Adoption

Although AI is a strategic advantage, carriers are cautious due to regulatory constraints and concerns about automating decisions that should remain human‑led; this could slow adoption of higher‑value AI features and monetization timing.

Guidance and Execution Risk

FY'26 revenue guidance is provided as a range (EUR 147–152m) and achieving FY'27 subscription‑mix targets (65%) relies heavily on existing customer migrations and upsells; slippage in timelines or onboarding could delay target achievement.

Company Guidance

FINEOS guided FY26 revenue of EUR 147–152m and reiterated its strategic targets to grow subscription (recurring) revenue to 65% of total by FY27 (≈75% by 2029), lift EBITDA margin to 25% by FY27 (with a longer‑term target near 40%), and push gross margin toward ~80% while reducing R&D spend as a percentage of revenue from ~34.7% in FY25 to 30% in FY27 and 25% by 2029; for context FY25 ARR was EUR 78.3m (+10% YoY), subscription revenue EUR 75.6m (+8.2%, 54.6% of revenues), total revenue EUR 138.4m (+3.9% / +6.3% cc), gross profit EUR 105m (76.2% margin), EBITDA EUR 30.4m (21.9% margin), NPAT EUR 1m, cash EUR 27.8m and free cash flow EUR 6.4m (plus EUR 1.6m from option exercises), management noted an AWS provision of ~EUR 2.4–2.7m and expects modest FY26 OpEx growth (~3–4%) while driving further operational efficiencies and AI‑enabled upsell/migrations.

FINEOS Corporation Holdings Plc Shs Chess Depositary Interests Repr 1 Sh Financial Statement Overview

Summary

Balance sheet strength (very low debt versus equity) and a sharp rebound to positive operating/free cash flow support the score, but overall profitability remains weak with negative net income and negative EBIT despite narrowing losses.

Income Statement

Neutral

Revenue growth re-accelerated in the latest annual period (+6.9%) after a softer prior year, and gross profit remains strong (about three-quarters of revenue based on the latest revenue and gross profit). However, profitability is still a clear weak point: net income remains negative in the latest year (loss narrowed versus 2023), and EBIT is still negative, indicating the core cost structure has not yet consistently scaled to profitability.

Balance Sheet

Positive

The balance sheet is a key strength. Leverage is very low with modest total debt (~4.1m) versus a large equity base (~164.5m), and total assets are stable around ~198m. The main weakness is returns: with recent net losses, shareholder returns remain negative, so the company is not yet translating its balance-sheet strength into sustainable profitability.

Cash Flow

Positive

Cash generation improved meaningfully in the latest annual period, with operating cash flow (~20.6m) and free cash flow (~20.1m) turning solidly positive after a negative 2023. Free cash flow growth is exceptionally strong off that trough. The key risk is volatility: prior periods show uneven cash conversion (including negative operating and free cash flow in 2023 and negative free cash flow in multiple earlier years), so consistency still needs to be proven.

Breakdown	TTM	Dec 2025	Dec 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	139.21M	133.22M	122.24M	125.04M	127.25M	108.34M
Gross Profit	128.88M	100.43M	87.44M	85.70M	83.03M	72.05M
EBITDA	16.58M	32.78M	-12.84M	1.70M	6.28M	4.69M
Net Income	-568.04K	-5.80M	-13.79M	-21.42M	-26.00M	-12.49M
Balance Sheet
Total Assets	195.09M	197.79M	196.31M	201.17M	223.41M	184.47M
Cash, Cash Equivalents and Short-Term Investments	27.85M	19.83M	28.14M	25.52M	44.31M	14.00M
Total Debt	5.28M	4.07M	0.00	4.59M	4.56M	5.26M
Total Liabilities	37.50M	33.29M	33.02M	54.03M	54.12M	48.13M
Stockholders Equity	157.59M	164.50M	163.28M	147.14M	169.29M	136.34M
Cash Flow
Free Cash Flow	71.63M	20.10M	-15.14M	-9.54M	-8.73M	-20.69M
Operating Cash Flow	72.91M	20.64M	-14.90M	17.89M	18.09M	5.55M
Investing Cash Flow	-47.74M	-28.92M	-27.05M	-29.80M	-26.82M	-85.49M
Financing Cash Flow	1.64M	-24.14K	47.19M	88.13K	45.21M	56.14M

FINEOS Corporation Holdings Plc Shs Chess Depositary Interests Repr 1 Sh Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BVS	73 Outperform	AU$829.35M	21.22	65.33%	10.16%	25.67%	744.90%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
RDY	56 Neutral	AU$195.54M	-12.82	-11.03%	―	7.06%	-389.48%
NXL	56 Neutral	AU$579.13M	49.46	-3.19%	―	0.40%	-280.65%
FCL	55 Neutral	AU$754.91M	-289.77	-1.11%	―	―	―
RUL	55 Neutral	AU$1.11B	389.84	<0.01%	―	-29.99%	-66.84%

* Technology Sector Average

Performance Comparison

AU:FCL

FINEOS Corporation Holdings Plc Shs Chess Depositary Interests Repr 1 Sh

2.58

0.88

51.76%

DE:E8R

Energy One Limited

9.20

3.18

52.72%

AU:RDY

ReadyTech Holdings Ltd.

1.26

-1.59

-55.79%

AU:BVS

Bravura Solutions Limited

2.08

-0.18

-7.80%

AU:NXL

Nuix Ltd.

1.92

-1.77

-47.96%

AU:RUL

RPMGlobal Holdings Ltd

4.99

2.26

82.78%

FINEOS Corporation Holdings Plc Shs Chess Depositary Interests Repr 1 Sh Corporate Events

FINEOS Maintains Cash Flow Guidance as Efficiency Drive Offsets FX Drag

Jan 28, 2026

FINEOS reported an unaudited quarterly update for the three months to 31 December 2025 showing continued revenue growth and efficiency gains that support its guidance for positive free cash flow for the full FY25. The Dublin-based insurtech ended the quarter with a strong cash balance of €27.8 million, up €8.0 million on the prior corresponding period but €4.8 million lower than the previous quarter due to normal seasonality in customer collections, which saw receipts fall to €24.2 million. FY25 revenue guidance remains at €138 million to €143 million on a constant currency basis, though management now expects the outcome to be at the lower end of the range after unfavourable foreign exchange movements. Operationally, FINEOS continues to rebalance headcount towards lower-cost regions and drive cloud and operational efficiencies, cutting staff costs 15% versus a year earlier and trimming administration and corporate expenses, while maintaining investment in R&D. The company signed two new smaller North American clients for its AdminSuite for Claims, keeps reporting a strong regional pipeline, and lifted product consulting utilisation to 88%, underscoring management’s confidence in the platform’s strategic role in employee benefits and its ambition for profitable growth in 2026 and beyond.

The most recent analyst rating on (AU:FCL) stock is a Hold with a A$3.00 price target. To see the full list of analyst forecasts on FINEOS Corporation Holdings Plc Shs Chess Depositary Interests Repr 1 Sh stock, see the AU:FCL Stock Forecast page.

FINEOS Revises CEO Michael Kelly’s Remuneration Package After Benchmark Review

Jan 19, 2026

FINEOS Corporation Holdings PLC has updated the remuneration terms for its CEO and Chairman, Michael Kelly, marking the first major change to his executive compensation since 2021 after a benchmarking review against comparable companies. Effective 1 January 2026, Kelly’s total fixed remuneration is set at €468,710, with short-term incentives and share allocations to be determined by the board in March 2026, a 12‑month notice and termination entitlement, and chair remuneration that includes a 5% bonus tied to key performance indicators, with all other contract terms described as standard for such an agreement.

FINEOS Seeks ASX Quotation for 639,000 New CDIs

Jan 12, 2026

FINEOS Corporation Holdings plc has applied for the quotation of 639,000 additional CHESS Depositary Interests (CDIs) on the ASX, each representing a one-to-one interest in an underlying share, with an issue date of 31 December 2025. The new securities, arising from the exercise or conversion of existing options or other convertible instruments, will modestly increase the company’s freely tradable capital and may enhance liquidity for investors in its ASX-listed CDIs.

FINEOS Options Lapse After Unmet Conditions

Jan 8, 2026

FINEOS Corporation Holdings plc has announced the lapse of 277,080 FCLAA options, which were conditional rights to securities that ceased on 31 December 2025 after the specified conditions were not met or became incapable of being satisfied. The expiry of these options modestly reduces the company’s potential future share capital but does not directly affect its existing issued capital, suggesting a limited immediate impact on current shareholders while slightly simplifying the company’s capital structure.

Fineos Files Final Director’s Interest Notice for Departing Board Member

Jan 5, 2026

Fineos Corporation Holdings PLC has announced that director Anne O’Driscoll, who held interests in a total of 124,000 CHESS Depositary Interests (CDIs) both directly and via the AJEC Family Trust, has lodged a final director’s interest notice with the ASX. The filing indicates that O’Driscoll ceased to be a director effective 31 December 2025, formally documenting her direct and indirect CDI holdings and confirming there are no related contractual interests, providing governance transparency for investors and regulators regarding changes in the company’s board composition and associated securities interests.

FINEOS Appoints New Director with No Initial Securities Interest

Dec 9, 2025

FINEOS Corporation Holdings PLC has announced the appointment of Stephen Devine as a director, effective December 3, 2025. The initial director’s interest notice indicates that Stephen Devine currently holds no relevant interests in securities or contracts with the company, suggesting a neutral impact on the company’s operations and stakeholder interests.

The most recent analyst rating on (AU:FCL) stock is a Buy with a A$3.48 price target. To see the full list of analyst forecasts on FINEOS Corporation Holdings Plc Shs Chess Depositary Interests Repr 1 Sh stock, see the AU:FCL Stock Forecast page.

FINEOS Corporation Expands Market Presence with New ASX Quotation

Dec 3, 2025

FINEOS Corporation Holdings Plc has announced the quotation of 2,783,500 CHESS Depositary Interests on the Australian Securities Exchange (ASX), effective November 28, 2025. This move is part of the company’s strategy to enhance its market presence and provide liquidity options for its stakeholders, potentially impacting its operational capabilities and industry positioning.

The most recent analyst rating on (AU:FCL) stock is a Buy with a A$3.45 price target. To see the full list of analyst forecasts on FINEOS Corporation Holdings Plc Shs Chess Depositary Interests Repr 1 Sh stock, see the AU:FCL Stock Forecast page.

AMP Limited Ceases Substantial Holding in Fineos Corp

Nov 18, 2025

AMP Limited has announced that it is no longer a substantial holder in Fineos Corp Ltd, a company known for its software solutions in the insurance sector. This change in holding may impact Fineos Corp’s market perception and stakeholder interests, as AMP Limited’s divestment could signal a shift in investment strategy or confidence in the company’s future performance.

FINEOS Announces New Securities Quotation on ASX

Nov 3, 2025

FINEOS Corporation Holdings Plc has announced a new application for the quotation of securities on the Australian Securities Exchange (ASX). The announcement details the issuance of CHESS Depositary Interests, with a total of 1,325,000 securities to be quoted across various dates in October 2025. This move is likely aimed at enhancing the company’s liquidity and market presence, potentially impacting its stakeholders by increasing the availability of its securities for trading.

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.Date of analysis: Jan 29, 2026