FINEOS (FCL) Q1 2025 TU earnings summary

Executive summary

• Record quarter for growth, margin increase, and cash collections in 1Q25, with strong execution on client migration to FINEOS Platform and healthy sales pipeline.

• FINEOS AdminSuite fully operational at Guardian and New York Life; ongoing client engagement and platform upgrades in ANZ region.

Financial highlights

• Closing cash balance at 31 March 2025 was €35.4m, up from €19.8m at 31 December 2024.

• Customer cash receipts were €51.7m, up 40% year-over-year and 111% sequentially, benefiting from January subscription invoicing.

• Net cash from operating activities was €24.0m for the quarter.

• Product manufacturing and operating costs were €8.1m, down 14% year-over-year but up 10% sequentially.

• Staff costs were €13.2m, down 3% year-over-year and 14% sequentially.

Outlook and guidance

• Expected revenue growth and operational efficiency gains support positive free cash flow for FY25 and self-funding thereafter.

• Growth projections remain on track with a healthy pipeline of existing and new clients.