Felix Group Faces Leadership Shakeup and Growing Losses Despite Strategic Acquisition
Felix Group Holdings reports a 35% increase in half-year losses to $3.3 million, driven by strategic acquisition and enterprise growth. The company’s revenue rose 33%, supported by the Nexvia acquisition and expanding vendor marketplace.
- Half-year loss after tax increased 35% to $3.3 million
- Revenue grew 33% to $5.47 million, boosted by Nexvia acquisition
- Enterprise Annual Recurring Revenue (ARR) up 11%, Vendor Marketplace expands 9%
- Completed $16.49 million capital raising to fund acquisition and growth
- Leadership changes with CEO stepping down and new Non-Executive Chairman appointed
Financial Performance and Growth
Felix Group Holdings Limited has reported a mixed half-year result for the period ending 31 December 2025, with a 35% increase in losses after tax to $3.308 million, up from $2.447 million in the prior corresponding period. Despite the widening loss, the company’s revenue climbed 33% to $5.471 million, reflecting strong underlying growth and the impact of its recent acquisition.
The company’s core business, a cloud-based SaaS platform serving contractors and vendors in the construction sector, saw enterprise Annual Recurring Revenue (ARR) increase by 11%. This growth was driven by new enterprise customer wins, including notable contracts with Grange Resources and Pacific Energy, as well as expansion deals with existing clients such as Service Stream and Martinus.
Strategic Acquisition of Nexvia
In October 2025, Felix completed the acquisition of Nexvia Pty Ltd, a SaaS platform focused on project and business management for small and medium enterprises (SMEs) in project-led industries. This acquisition is a cornerstone of Felix’s vendor monetisation strategy, enabling the company to offer subscription-based tools directly to its Vendor Marketplace, which grew 9% to 126,000 vendors during the half-year.
Nexvia contributed $3.4 million in ARR during the period and has begun early cross-selling initiatives, integrating its platform with Felix’s enterprise procurement workflows. The acquisition consideration was $11.2 million, funded in part by a fully underwritten institutional placement and Share Purchase Plan that raised approximately $16.49 million in gross proceeds.
Platform Development and Market Expansion
Felix continued to invest in platform enhancements, including usability improvements, automation, and the introduction of AI-enabled features aimed at streamlining the Request for Quotation (RFQ) process. These developments are designed to deepen customer engagement and support scalable growth across both enterprise and vendor segments.
The company’s operational metrics showed robust engagement, with active projects up 23%, RFQs sent by contractors increasing 41%, and active vendor compliance documents rising 43% compared to the prior year.
Leadership and Corporate Changes
Leadership transitions marked the period, with Co-Founder and CEO Michael Peter Davis stepping down in November 2025. Chief Financial Officer James Frayne was appointed Interim CEO while a search for a permanent replacement is underway. Additionally, the Board appointed Dominic John O’Hanlon as Non-Executive Chairman in February 2026, bringing over 30 years of experience in technology and governance to guide the company through its next growth phase.
The company did not declare any dividends for the half-year, reflecting its focus on reinvestment and growth.
Bottom Line?
Felix Group’s strategic acquisition and platform investments position it for growth, but rising losses and leadership changes warrant close investor attention.
Questions in the middle?
- How will the integration of Nexvia impact Felix’s profitability and ARR growth in the coming quarters?
- Who will be appointed as the permanent CEO, and what strategic direction will they set?
- What are the expected timelines and milestones for monetising the Vendor Marketplace through Nexvia’s platform?
