Highlights

  • Total Revenue rose 7.9% to €72.5 million in 1H26, led by 15.0% growth in subscription revenue.
  • EBITDA climbed 32.3% to €17.4 million, lifting the EBITDA Margin to 24.0% from 19.6% a year earlier.
  • The company posted net profit after tax of €1.9 million, reversing a €1.3 million net loss in 1H25.
  • Cash rose to €51.7 million at 30 September 2026 after operating cash inflow of €18.9 million in the quarter.

FINEOS Corporation Holdings (ASX:FCL) has followed a return to half-year profit with a cash-generative September quarter, lifting its cash balance to €51.7 million and reaffirming full-year revenue guidance of €147 million to €152 million. The insurance software provider had reported a small net profit for the first half of calendar 2026 as rising subscription income and lower operating costs widened margins.

The company builds core administration software for insurers. Its FINEOS AdminSuite covers quoting and underwriting, policy, billing and claims, and management has made North American employee benefits a key sales focus.

Subscription Mix Lifts Margins

For the six months to 30 June 2026, subscription revenue rose 15.0% to €41.9 million and made up 57.8% of total revenue. Services revenue slipped 0.7% to €30.2 million. Annual Recurring Revenue reached €87.8 million, up 14.9%, while revenue grew 7.2% on a constant currency basis.

Gross profit increased 6.3% to €54.6 million, a gross margin of 75.4%. Operating expenses fell 2.7% to €37.2 million, or 51.4% of revenue, supporting the sharp rise in EBITDA. Free Cash Flow for the half reached €10.9 million.

September Quarter Cash Flow Strengthens

In the September 2026 quarter, client receipts rose 47% to €46.3 million, including two invoices of about €8.0 million that had been expected in the June quarter. Net Operating Cash Flow was €18.9 million, and cash increased by €12.6 million, with a €2.0 million overdraft Facility undrawn.

No new sales were finalised during the quarter, although management described the pipeline as strong, driven by Demand for its AI-enabled platform. Headcount rose 5% to 1,054.

New Clients and Completed Migrations

FINEOS signed two new-name clients for AdminSuite for Claims during the half, including Australia's Motor Accident Insurance Board and a North American carrier. It also secured two AdminSuite cross-sales covering policy, billing and claims, including OneAmerica, which additionally licensed Quote and Underwrite and FINEOS Employer Connect.

On delivery, ACC New Zealand completed its migration to the FINEOS platform within two years, and several other implementations were running on time and on budget. FINEOS is progressively embedding AI across its product suite from quote to claim.

Outlook: Go-Lives and Margin Targets

FINEOS aims to grow profitability and cash generation in FY26 to 31 December 2026, and says guidance across key deliverables is unchanged. Priorities include preparing go-lives for OneAmerica and another 2026 AdminSuite client in early 2027, scaling work with Guardian Life, and lifting sales and Marketing investment. An investor roadshow is planned in Sydney from 9 November 2026.

Longer term, the company is targeting subscription revenue at 65% of the total and an EBITDA margin of 25% in FY27, rising to 75% and 40% respectively by FY29.

Shares were priced at A$2.07 on 2 November 2026, down 1.43% on the day, giving a Market Capitalisation of about A$714.24 million.