FINEOS (FCL) Q2 2025 TU earnings summary

Executive summary

• Revenue growth and operational efficiency gains support expectations of positive free cash flow for FY25.

• Two new North American clients signed for FINEOS IDAM and Claims products, with go-lives expected in 2026.

• Major migration project initiated for a top-10 US group insurance carrier, targeting late 2026 completion.

• Strong North American business pipeline with potential additional deal closures before fiscal year-end.

• FINEOS Customer Connect event in New York showcased platform advancements and ecosystem support.

Financial highlights

• Closing cash balance at 30 June 2025 was €34.9m, down from €35.4m at 31 March 2025.

• Customer cash receipts for 2Q25 were €35.1m, down 3% year-over-year and 32% sequentially due to seasonality.

• Net cash from operating activities for the quarter was €8.3m.

• Research and development costs capitalised for 2Q25 were €7.2m.

• Exchange rate movements negatively impacted cash by €1.5m during the quarter.

Outlook and guidance

• Management remains confident in delivering positive free cash flow for FY25 and ongoing profitable growth in 2026 and beyond.

• Anticipates further deal closures in North America before fiscal year-end.