Felix Faces Integration Risks After Nexvia Acquisition Despite Cash Flow Gains
Felix Group Holdings reported a 21% revenue increase in FY25, driven by strong enterprise platform sales and positive cash flow, while strategically acquiring Nexvia to expand its SaaS footprint in construction.
- 21% revenue growth to $8.6 million in FY25
- Enterprise revenue up 31% with stable 76% gross margin
- Adjusted EBITDA loss narrowed by 32% to $2.9 million
- Vendor Marketplace expanded to approximately 113,000 vendors
- Strategic acquisition of Nexvia to enhance vendor monetisation
Robust Revenue Growth Amidst Strategic Expansion
Felix Group Holdings Ltd (ASX – FLX) has delivered a solid financial performance for FY25, posting a 21% increase in total group revenue to $8.6 million. This growth was primarily driven by strong sales momentum in its enterprise procurement platform, which saw revenue climb 31% to $6.4 million while maintaining a healthy gross margin of 76%. The company’s ability to secure 23 expansion deals and 13 new customers, including notable names such as Karara Mining Ltd and Bellevue Gold, underscores its growing footprint in the enterprise sector.
Improved Profitability and Cash Flow Dynamics
Despite still operating at a loss, Felix’s adjusted EBITDA improved by 32% year-on-year, narrowing the loss to $2.9 million. This reflects disciplined cost management, with operating expenses as a percentage of revenue falling from 144% to 116%. Notably, the company turned a corner on cash flow, reporting positive net operating cash flows of $418,000 in FY25 compared to a $3.3 million outflow the previous year. This improvement signals growing operational leverage and a more sustainable financial footing.
Vendor Marketplace Expansion and Strategic Acquisition
The Vendor Marketplace, a key component of Felix’s ecosystem, expanded by 11% to approximately 113,000 vendors, enhancing the network’s value and monetisation potential. Post-year-end, Felix announced the acquisition of Nexvia, a Brisbane-based SaaS platform focused on project and business management for construction SMEs. This move is strategically aligned to complement Felix’s procurement platform, enabling integrated vendor monetisation through enhanced project management, budgeting, and compliance tools.
Outlook and Growth Priorities for FY26
Looking ahead, Felix plans to leverage the Nexvia acquisition to accelerate enterprise annual recurring revenue (ARR) growth and expand internationally with a capital-light approach. The company intends to invest deliberately in product development, customer acquisition, and integration efforts throughout FY26. Maintaining strong gross margins remains a priority as automation and infrastructure efficiencies scale. Successful integration of Nexvia is expected to be a pivotal catalyst for top-line growth in FY27 and beyond.
Bottom Line?
Felix’s FY25 results and Nexvia acquisition set the stage for accelerated growth, but execution risks remain as integration and international expansion unfold.
Questions in the middle?
- How smoothly will Felix integrate Nexvia’s platform and realise vendor monetisation at scale?
- What impact will international expansion have on margins and cash flow in FY26 and beyond?
- Can Felix sustain enterprise ARR growth amid increased investment and competitive SaaS market pressures?
