Felix Group (FLX) H2 2025 earnings summary

Executive summary

• Delivered FY2025 audited financials, achieving a significant turnaround to positive operating cash flow of AUD 418,000 from prior year outflows of AUD 3.3 million and AUD 5.4 million in FY2023.

• Completed the acquisition of Nexvia for AUD 12 million, funded by a AUD 16 million capital raise, with a mix of cash, shares, and performance rights.

• Brought on Briarwood, a New York-based B2B software investor, as a cornerstone investor, signaling strong institutional support.

Financial highlights

• Operating cash flow turned positive at AUD 418,000 for FY2025, compared to net outflows of AUD 3.3 million in FY2024 and AUD 5.4 million in FY2023.

• Adjusted EBITDA loss improved to AUD 2.9 million, a year-over-year improvement of AUD 1.4 million, with revenue up by AUD 1.4 million.

• Gross margin remained strong at 76%, with cost controls and increased customer numbers supporting margin stability.

• Average customer contract value grew to AUD 94,000 per annum, up from AUD 60,000 four years ago.

• Cash balance hovered around AUD 2 million, with recapitalization post-year-end expected to strengthen the balance sheet.

Outlook and guidance

• Focus remains on achieving further growth in FY2026, leveraging the Nexvia acquisition and expanded product suite.

• International expansion targeted, with active pipeline development in Canada and South Africa and expectations for new cornerstone customers.

• Vendor monetization expected to accelerate following the Nexvia acquisition.