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FINEOS Corporation Holdings Plc Shs Chess Depositary Interests Repr 1 Sh
(Sydney:FCL)
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Rating:64Neutral
Price Target:
AU$2.00
▲(11.11% Upside)
Action:Reiterated
Date:06/29/26
The score is primarily supported by strengthening financial performance (improving profitability, strong balance sheet, better cash generation) and a constructive earnings call with clear guidance and margin/subscription-mix targets. This is meaningfully offset by weak technicals (price below key moving averages and negative MACD) and limited/negative standard valuation signals (deeply negative P/E and no dividend yield provided).
Positive Factors
Low‑leverage balance sheet
Very low debt and a sizable equity base give durable financial flexibility: supports continued product investment, absorbs AWS provisioning or restructuring charges, and reduces refinancing risk. This conservatism underpins ability to fund migrations, partnerships and multi‑year strategic targets without pressing liquidity strain.
Negative Factors
High regional revenue concentration
Dependence on one region concentrates macro, regulatory and competitive risk: North American slowdowns, carrier buying cycles, or local regulation changes could disproportionately reduce ARR, new business and migrations. Limited geographic diversification weakens resilience against regional shocks over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Low‑leverage balance sheet
Very low debt and a sizable equity base give durable financial flexibility: supports continued product investment, absorbs AWS provisioning or restructuring charges, and reduces refinancing risk. This conservatism underpins ability to fund migrations, partnerships and multi‑year strategic targets without pressing liquidity strain.
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$674.15M
Dividend YieldN/A
Average Volume (3M)470.35K
Price to Earnings (P/E)―
Beta (1Y)0.65
Revenue Growth10.99%
EPS GrowthN/A
CountryAU
Employees847
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$3.27Price Target Upside81.48% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.01
Revenue Forecast (FY)AU$148.04M
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:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 13, 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.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).
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.
Read all updates
Q4-2025 Updates
Positive
Negative
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).
Read all positive updates
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
Income Statement
62
Positive
Balance Sheet
86
Very Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | AU$1.14B | 29.16 | 42.94% | 3.65% | -12.00% | -45.47% | |
69 Neutral | AU$862.33M | 13.22 | 17.13% | 1.85% | 11.63% | 1754.91% | |
66 Neutral | AU$53.27M | 7.20 | 7.40% | 6.78% | -4.94% | -64.96% | |
65 Neutral | AU$669.29M | 23.62 | 25.65% | 3.85% | 6.51% | 15.45% | |
64 Neutral | AU$674.15M | -699.94 | -0.29% | ― | 10.99% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | AU$1.26B | 16.10 | 19.57% | 2.47% | -7.41% | -11.47% |
* Technology Sector Average
AU:FCL
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FINEOS Corporation Holdings Plc Shs Chess Depositary Interests Repr 1 Sh Corporate Events
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...
FINEOS Corrects Director Shareholding Disclosure After On-Market CDI Purchase
May 12, 2026
FINEOS Corporation Holdings Plc has issued a correction to a previously lodged director’s interest notice for board member Stephen Devine, clarifying that he held no securities prior to a recent on-market purchase. The company confirmed that...
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.