Highlights

  • Group annual Recurring Revenue reached A$13.5 million at 30 September 2026, up 10.6% over twelve months.
  • Customer receipts rose to A$4.0 million in the Sep-2026 quarter, while net operating cash outflows totalled A$1.4 million.
  • A two-tranche institutional Placement worth A$5.54 million will fund AI development, vendor network activation and working capital.
  • FY26 sales revenue climbed 38% to A$11.5 million, lifted by the Nexvia Business acquired in October 2025.

Felix Group Holdings Ltd (ASX:FLX) has moved to restore its funding runway after cash at the procurement software provider fell to A$1.5 million at the end of the Sep-2026 quarter. The company received the first A$2.6 million Tranche of a A$5.54 million institutional placement after the quarter closed, while the remaining A$2.9 million awaits Shareholder approval on 9 November 2026.

The raising arrives as recurring revenue keeps edging higher. Felix runs a cloud-based procurement platform for contractors and vendors and, since October 2025, has owned Nexvia.

Nexvia Leads Recurring Revenue Growth in Q1 FY27

Group ARR stood at A$13.5 million at 30 September 2026, compared with A$13.0 million three months earlier. Nexvia was the fastest-growing segment, with ARR up 21.9% on the prior corresponding period to A$4.1 million. Enterprise ARR rose 9.1% to A$7.6 million, while Vendor Marketplace ARR was flat at A$1.8 million.

Enterprise net revenue retention over the prior 12 months improved one percentage point to 94%. Felix added two new enterprise customers, won contract expansions and executed four key enterprise renewals. Enterprise requests for Quotation rose 46% and enterprise user accounts 43% on the prior corresponding quarter.

Cash Falls Before a Two-Tranche Raising Restores Funding

Receipts from customers reached A$4.0 million for the quarter, but Operating Activities still consumed A$1.4 million and the company spent A$0.36 million on intellectual property. Cash declined from A$3.4 million at 30 June 2026 to A$1.5 million at 30 September 2026, equal to about 1.12 quarters of funding before the new capital.

Felix entered a Trading halt on 24 September 2026 and announced the placement on 28 September. A share purchase plan priced at A$0.038 per share raised about A$0.1 million. Including Tranche 2, total gross proceeds are expected to be about A$5.65 million, earmarked for AI product development, vendor network activation, platform development and working capital.

FY26 Results Reflect Acquisition-Led Expansion

For FY26 to 30 June 2026, sales revenue rose 38% to A$11.5 million from A$8.3 million. The net loss after tax widened to A$6.0 million from A$4.7 million. Nexvia contributed A$2.8 million in revenue and other income from its Acquisition on 8 October 2025. No final Dividend was paid for the year.

Outlook Centres on AI Tools and Board Renewal

Management expects net operating cash outflows to reduce and believes the placement provides the capital to pursue its strategic objectives, subject to Tranche 2 completing. Tranche 2 shares are scheduled for issue on 16 November 2026 if approved. Product work centres on the Bid Insights tool, bid comparison, cross-network matching and vendor compliance automation, while a new Nexvia mobile app is in final testing.

Board changes are also planned. Non-executive director Joycelyn Morton will retire at the November 2026 meeting, and a nominee director for largest shareholder Briarwood Chase Management is due to join afterwards. Shares were unchanged at A$0.036 on 2 November 2026, giving a Market Capitalisation of about A$13.4 million, and were down 83.64% over 12 months.