FINEOS (FCL) H1 2026 earnings summary

Executive summary

• Revenue grew 7.9% year-over-year to €72.5m in 1H26, with subscription revenue up 15% to €41.9m, now 57.8% of total revenue.

• EBITDA increased 32.3% to €17.4m, with margin expanding to 24%; net profit after tax reached €1.9m, reversing a prior year loss.

• Cash balance rose to €39.0m, with positive free cash flow of €10.9m and no debt.

• Growth driven by new AdminSuite sales, cross-sell activity, long-term contracts, and successful cloud migrations.

• Total comprehensive income reached €4.5m, reflecting improved operational performance and favorable FX movements.

Financial highlights

• Subscription revenue grew 15.0% to €41.9m; ARR increased 14.9% to €87.8m; gross profit rose 6.3% to €54.6m, with gross margin at 75.4%.

• Services revenue declined 0.7% to €30.2m, while initial license fees saw a minor increase.

• Cost of sales increased 13.4% due to higher employee, contractor, and infrastructure costs.

• Operating expenses decreased 2.7% to €37.2m, mainly due to lower R&D and cloud operations costs.

• Deferred revenues and trade receivables increased, reflecting advance invoicing and revenue growth.

Outlook and guidance

• FY26 revenue guidance maintained at €147m–€152m, supported by a strong pipeline and locked-in revenues.

• Profitability and cash generation expected to grow for FY26; focus on expanding in North America, product lines, and AI integration.

• Subscription fees projected to reach 65% of revenue in FY27 and 75% in FY29; EBITDA margin targeted at 25% in FY27 and 40% in FY29.

• Guidance reiterates healthy year-end results, supported by long-term contracts and a strong sales pipeline.

• No material changes in principal risks and uncertainties since the last annual report.