Up 115% in a year, why Macquarie expects this ASX All Ords stock to keep charging higher

Macquarie forecasts more outperformance from this surging ASX All Ords stock. But why?

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Key points

  • FINEOS has soared by 114.7% over the past year, far surpassing the All Ordinaries Index's 9.3% gain.
  • The company's 3Q 2025 results highlighted strong North American market momentum and a positive shift towards SaaS solutions, with a promising sales pipeline and expected profitable growth.
  • Macquarie has an optimistic outlook for FINEOS, citing significant free cash flow improvements and maintaining an outperform rating.

The All Ordinaries Index (ASX: XAO) is up 9.3% over 12 months, but this ASX All Ords stock has left those gains in the dust.

The fast-rising company in question is FINEOS Corp Holdings PLC (ASX: FCL).

Shares in the insurance solutions-focused global software company are down 1.7% in late afternoon trade today, changing hands for $2.92 apiece.

But don't feel too bad for longer-term shareholders. Despite today's dip, the ASX All Ords stock remains up a whopping 114.7% since this time last year.

What's the latest from FINEOS?

FINEOS reported its September quarter (3Q 2025) results last Friday, 24 October.

"Our performance continues to highlight the strategic importance of the FINEOS Platform with another North American client committing to transitioning to our SaaS-based FINEOS Claims solution," CEO and founder Michael Kelly said on the day.

The ASX All Ords stock's September quarterly cash receipts of €31.5 million were down 10% from the June quarter but up 8.8% year on year.

Kelly noted this reflected the growing contribution of annual recurring revenue (ARR) to the company's overall revenue mix.

Looking ahead, he said, "The North American sales pipeline remained strong in 3Q25, and we are confident that the company will deliver positive free cash flow for fiscal year 2025 and ongoing profitable growth in 2026 and beyond."

The ASX All Ords stock is aiming to grow its footprint in Canada. In the September quarter, the company held a Customer Connect event in Toronto. Attendees participated in live demonstrations of FINEOS AdminSuite and FINEOS AI capabilities.

"Feedback was overwhelmingly positive, underscoring the company's commitment to the Canadian market, deepening client relationships, and providing a valuable forum for prospective customers," Kelly said.

Why Macquarie is bullish on the ASX All Ords stock

In a report released earlier this week, Macquarie Group Ltd (ASX: MQG) sounded a positive note on FINEOS' free cash flow momentum.

The broker noted, "+€4.9m FCF LTM to Sep-25, represents a +€14.6m improvement vs Sep-24, and +€26.1m improvement vs Sep-23."

And Macquarie said the company's cash was "slightly down due to seasonality", with the ASX All Ords stock maintaining an "attractive outlook, as the North American pipeline remains strong".

According to Macquarie:

In 3Q25, an existing North American client was contracted to migrate from FINEOS Claims on-premises to FINEOS Absence (and Claims) on the FINEOS platform. 'Go Live' is expected early 2H26. FCL noted "the North American business pipeline remains strong".

As for FINEOS' full-year 2025 guidance, Macquarie said:

Revenue outlook remains within €138m-143m guidance (cc basis, EUR:USD 1:1.0837). FCL continue to expect positive FCF in FY25 in aggregate and to be self-funded thereafter. FCL is 'cycling' €10.5m negative FCF in 4Q24.

Connecting the dots, Macquarie maintained its outperform rating on FINEOS with a $3.48 price target on the ASX All Ords stock.

That represents a potential upside of more than 19% from current levels.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended FINEOS Corporation and Macquarie Group. The Motley Fool Australia has positions in and has recommended FINEOS Corporation and Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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