Fineos Holdings Stock Earnings Reports

FINEOS delivered a strong FY25 with revenue of EUR 138.4m (constant currency ~EUR 141.7m), subscription revenues of EUR 75.6m (up 8.2%), ARR of EUR 78.3m (up 10%), gross margin ~76.2% and EBITDA of EUR 30.4m (21.9% margin). The business returned to positive free cash flow (EUR 6.4m) and net profit (EUR 1m). North America remains ~80% of revenue; product/subscription mix is a strategic priority, supported by four new North American carrier wins, two major cloud migrations, and stronger SI partnerships (PwC, EY, Capgemini, Deloitte). Management is embedding AI across the AdminSuite (award-winning), positioning it as a competitive advantage for automation, customer outcomes and migration velocity while remaining cautious on regulatory and ethical constraints. Cost efficiencies (including shifting work to lower-cost regions) reduced OpEx (~6.3% y/y) and improved operating leverage. FY26 revenue guidance: EUR 147m–152m. Medium-term targets reiterated: subscription fees ~65% of revenue by FY27, R&D spend ~30% of revenue in FY26 (25% by 2029 target), gross margin ~80% and EBITDA margin ~40% by long-term target years; nearer-term commitment to reach 25% EBITDA by FY27. Key risks noted: deal timing variability, FX exposure, and the regulated, conservative nature of carrier procurement cycles.