Core Insights - Formula Systems reported a record high revenue of $754.7 million for the first quarter of 2025, marking an 8.1% increase year over year [1][7] - The net income for the same period reached $19.3 million, reflecting a 12.6% year-over-year growth [1][7] - The company’s operating income also saw a significant rise of 12.7%, totaling $70.5 million [7] Financial Performance - Revenues for Q1 2025 were $754.7 million, compared to $698.4 million in Q1 2024 [7] - Operating income increased to $70.5 million from $62.6 million year over year [7] - Net income attributable to shareholders rose to $19.3 million, or $1.23 per diluted share, up from $17.2 million, or $1.10 per diluted share in the previous year [7] Dividend Declaration - The board approved a cash dividend of NIS 1.57 per share, approximately $0.44 per share, totaling around NIS 24.1 million (approximately $6.8 million) [7] - The dividend is scheduled for payment on July 22, 2025, to shareholders of record as of July 7, 2025 [7] Financial Position - As of March 31, 2025, consolidated cash and cash equivalents totaled approximately $526.8 million, down from $563.2 million as of December 31, 2024 [7] - Total equity was reported at $1.38 billion, a slight decrease from $1.39 billion at the end of 2024 [7] Management Commentary - The CEO highlighted the company's strong performance across all key financial metrics, emphasizing growth in areas such as cloud, cyber, digital, data, DevOps, Insure-Tech, and AI [9] - The management reiterated their commitment to innovation and operational excellence, which they believe contributes to sustained growth and value creation for customers [9]

Exhibit 99.1 PRESS RELEASE Formula Systems Reports First Quarter 2025 Financial Results Revenues for the first quarter increased by 8.1% year over year, reaching a first quarter all-time high of $754.7 million. Net Income for the first quarter increased by 12.6% year over year, reaching a first quarter all-time high of $19.3 Million. OR YEHUDA, Israel, May 22, 2025 (GLOBE NEWSWIRE) -- Formula Systems (1985) Ltd. (Nasdaq and TASE: FORTY) ("Formula" or the "Company"), a global information technology group eng ...

Company Overview - Formula Systems (1985) Ltd. is a global information technology group that provides software consulting services and computer-based business solutions, as well as developing proprietary software products [3]. Financial Reporting - The company filed its annual report on Form 20-F for the fiscal year ended December 31, 2024, with the U.S. Securities and Exchange Commission (SEC) on May 14, 2025 [1]. - The annual report includes audited financial statements for 2024 and is accessible on the SEC's website and the company's investor relations website [1]. Shareholder Information - Formula will provide a hard copy of its 2024 annual report on Form 20-F, including complete audited financial statements, free of charge to shareholders upon request [2].

[Part I](index=12&type=section&id=PART%20I) This section details the company's key risks, business operations, financial performance, governance, and market risk exposures [Key Information](index=12&type=section&id=ITEM%203.%20KEY%20INFORMATION) This section outlines the principal risks of investing in the company, including business, intellectual property, international operations, and investment factors [Risks Related to Our Business, Our Industry and Our Financial Condition](index=12&type=section&id=Risks%20Related%20to%20Our%20Business%2C%20Our%20Industry%20and%20Our%20Financial%20Condition) The company faces risks from its M&A strategy, technology development, macroeconomic factors, talent retention, and customer concentration - The company's M&A growth strategy involves **significant integration risks** due to numerous acquisitions across its subsidiaries in 2024 and 2025[41](index=41&type=chunk)[42](index=42&type=chunk)[43](index=43&type=chunk) - Macroeconomic headwinds, including inflation and high interest rates, have **adversely affected customer capital budgets**, potentially impacting revenues, profitability, and cash flows[53](index=53&type=chunk)[54](index=54&type=chunk) - The company faces **intense competition for skilled technology professionals**, potentially leading to talent shortages and **increased wage expenses** affecting profitability[62](index=62&type=chunk)[63](index=63&type=chunk)[64](index=64&type=chunk) - A **significant portion of revenue** comes from a few large customers, with **13.2%** of Sapiens' and Magic Software's 2024 revenue from their largest clients, posing a risk if business is lost[79](index=79&type=chunk) - The company is pursuing a **potential merger** between Matrix and Magic Software, which involves **integration risks** and requires shareholder and regulatory approvals[120](index=120&type=chunk)[121](index=121&type=chunk)[122](index=122&type=chunk) [Risks Related to Intellectual Property](index=33&type=section&id=Risks%20Related%20to%20Intellectual%20Property) The company faces significant intellectual property risks, including potential infringement claims, insufficient protection of its own IP, and risks from open-source software use - The company may face **costly litigation** from third-party infringement claims on patents, copyrights, or trademarks, potentially resulting in significant damages or unfavorable royalty agreements[124](index=124&type=chunk)[125](index=125&type=chunk)[126](index=126&type=chunk) - Protection of the company's own intellectual property relies on contractual provisions and trade secret law, which may not be fully effective, potentially leading to **unauthorized use of its products**[127](index=127&type=chunk) - The use of open-source software poses a risk that the company might be required to **release the source code of its proprietary software**, potentially diminishing its value[130](index=130&type=chunk)[131](index=131&type=chunk) [Risks Relating to Our International Operations](index=35&type=section&id=Risks%20Relating%20to%20Our%20International%20Operations) The company's international operations expose it to foreign currency fluctuations, regulatory complexities, and geopolitical risks, particularly in Israel and India - Approximately **37% of revenues in 2024** were derived from outside Israel, exposing the company to risks from foreign currency fluctuations, varying regulatory requirements, and geopolitical instability[135](index=135&type=chunk) - Fluctuations in exchange rates between the USD, NIS, GBP, and Euro can significantly impact reported revenues and profitability, with NIS depreciation negatively affecting 2023 revenues[133](index=133&type=chunk) - The ongoing war between Israel and terrorist groups poses a **material risk to operations**, potentially affecting workforce availability, supply chains, and business continuity[152](index=152&type=chunk)[153](index=153&type=chunk)[154](index=154&type=chunk) - The company's significant presence in India (**48% of Sapiens' employees**) exposes it to challenges such as volatile economic conditions, poor IP protection, and compliance with anti-corruption laws[169](index=169&type=chunk)[170](index=170&type=chunk) [Risks Related to an Investment in Our Traded Securities and to Our Consolidated Holdings](index=37&type=section&id=Risks%20Related%20to%20an%20Investment%20in%20Our%20Traded%20Securities%20and%20to%20Our%20Consolidated%20Holdings) Investing in the company's securities involves risks such as limited trading volume, influence from the largest shareholder, and potential adverse tax consequences - There is **limited trading volume** for the company's ADSs on Nasdaq and ordinary shares on the TASE, which can reduce liquidity and increase price volatility for investors[140](index=140&type=chunk) - Asseco Poland S.A., the largest shareholder with approximately **25.82% ownership** as of May 1, 2025, can significantly influence shareholder votes and major corporate transactions[146](index=146&type=chunk) - A **material weakness in internal control over financial reporting** was identified at the subsidiary Magic Software as of December 31, 2024, related to revenue cycle documentation[148](index=148&type=chunk) - As a foreign private issuer, the company follows certain Israeli corporate governance practices instead of Nasdaq requirements, potentially resulting in **less information and protection for shareholders**[176](index=176&type=chunk)[177](index=177&type=chunk) [Information on the Company](index=48&type=section&id=ITEM%204.%20INFORMATION%20ON%20THE%20COMPANY) Formula Systems is a global IT company operating through its investees, detailing its history, M&A strategy, and subsidiary operations [A. History and Development of the Company](index=48&type=section&id=A.%20History%20and%20Development%20of%20the%20Company) This section details the company's M&A-driven growth strategy and recent acquisition activities by Formula and its subsidiaries since 2022 - Formula's growth strategy is centered on **M&A** to expand its customer base, geographic footprint, and service offerings[191](index=191&type=chunk) Recent M&A Activity (2024-2025) | Acquiring Entity | Target Company | Date | Deal Value / Details | | :--- | :--- | :--- | :--- | | Sapiens | AdvantageGo | April 2025 (Announced) | GBP 43.0 million (approx. $55.9 million) enterprise value | | Sapiens | Candela Labs | April 2025 (Announced) | $22.0 million cash | | Matrix | Gav Systems Ltd. & Gav Expert Ltd. | Feb 2025 | Acquired 70% for approx. $12.5 million | | Matrix | Alacer Group | Nov 2024 | Acquired 51% for approx. $1.95 million cash + contingent consideration | | Matrix | Moshe Ort Holdings Ltd. (Ortec) | Dec 2024 | Approx. $5.4 million cash + contingent consideration | | Magic Software | Theoris Group Inc. | April 2024 | $13.1 million (including deferred payments) | | Magic Software | Executive Life Ltd. | Oct 2024 | $1.5 million (including deferred payment) | | Michpal | Formally Smart Form System Ltd. | March 2025 | Acquired remaining shares for approx. $7.7 million | | Michpal | Meida Computers Software Solutions | July 2024 | Acquired 60% for approx. $12.49 million + contingent consideration | | Michpal | Y-IT Ltd. | Oct 2024 | Acquired 60% for approx. $22.2 million + contingent consideration | | Michpal | Paperless Ltd. | Dec 2024 | Acquired 70% for approx. $2.3 million + contingent consideration | | Formula | Hashahar Telecom and Electricity Ltd. | Oct 2024 | Acquired 51% for $1.3 million | - A non-binding Memorandum of Understanding (MOU) was signed in March 2025 for a **potential merger** between subsidiaries Matrix and Magic Software[196](index=196&type=chunk) [B. Business Overview](index=56&type=section&id=B.%20Business%20Overview) Formula Systems is a global IT company providing software consulting, proprietary software solutions, and IT services through its group of investees - The company operates through a group of subsidiaries and affiliates, with the largest being Matrix, Sapiens, and Magic Software, where Formula directs overall strategy[233](index=233&type=chunk)[236](index=236&type=chunk)[237](index=237&type=chunk) - The business is divided into two main activities: **IT Services** (custom software development, implementation, outsourcing) and **Proprietary Software Solutions** (design, development, and marketing of niche software)[233](index=233&type=chunk)[235](index=235&type=chunk) Geographical Revenue Distribution (2023-2024) | Region | 2024 Revenue (in thousands) | 2023 Revenue (in thousands) | | :--- | :--- | :--- | | Israel | $1,745,132 | $1,600,763 | | United States | $612,196 | $644,918 | | Europe | $336,285 | $315,081 | | Africa | $26,935 | $26,035 | | Japan | $13,678 | $11,881 | | Other (mainly Asia pacific) | $23,285 | $22,225 | | **Total** | **$2,757,511** | **$2,620,903** | - The global economic environment in 2024 was marked by moderate growth, reduced inflation, and stabilized interest rates, with the Israeli economy growing by **1%** despite the ongoing war[238](index=238&type=chunk)[241](index=241&type=chunk) [C. Organizational Structure](index=124&type=section&id=C.%20Organizational%20Structure) Formula Systems operates as the parent company of the Formula Group, holding controlling or significant interests in several publicly traded and private companies Ownership of Directly Held Investments (as of April 30, 2025) | Subsidiary/Affiliate | Country of Incorporation | Percentage of Ownership | | :--- | :--- | :--- | | Matrix IT Ltd. | Israel | 48.14% | | Sapiens International Corporation N.V. | Cayman Islands | 43.50% | | Magic Software Enterprises Ltd. | Israel | 46.71% | | Michpal Micro Computers (1983) Ltd. | Israel | 100.0% | | TSG IT Advanced Systems Ltd. | Israel | 42.34% | | InSync Staffing Solutions, Inc. | Delaware | 90.09% | | Ofek Aerial Photography Ltd | Israel | 80% | | Zap Group Ltd. | Israel | 100% | | Shamrad Electronic (1997) Ltd | Israel | 100% | | Hashahar Telecom and Electricity Ltd | Israel | 51.0% | | Other associated company | Israel | 21.45% | [D. Property, Plants and Equipment](index=126&type=section&id=D.%20Property%2C%20Plants%20and%20Equipment) The company and its subsidiaries lease office spaces globally, with headquarters in Israel and significant operations in India, the US, and Europe 2024 Annual Rent Costs for Major Subsidiaries | Subsidiary | 2024 Rent Cost (USD) | | :--- | :--- | | Matrix | ~$20.1 million | | Sapiens | ~$8.4 million | | Magic Software (incl. Formula) | ~$4.2 million ($0.7 million + $3.5 million) | | Michpal | ~$1.4 million | | Zap Group | ~$1.0 million | - In 2024, Matrix relocated its headquarters to a new, large campus in Kfar Saba, Israel, under a lease expiring in 2032[582](index=582&type=chunk) [Operating and Financial Review and Prospects](index=127&type=section&id=ITEM%205.%20OPERATING%20AND%20FINANCIAL%20REVIEW%20AND%20PROSPECTS) This section analyzes the company's financial performance, liquidity, capital resources, market trends, and critical accounting policies [A. Operating Results](index=129&type=section&id=A.%20Operating%20Results) For 2024, total revenues increased by **5.2%** to **$2.76 billion**, driven by growth in both software services and proprietary software segments, leading to higher operating and net income Consolidated Statement of Profit or Loss (2023 vs. 2024) | (U.S. dollars, in thousands) | 2024 | 2023 | | :--- | :--- | :--- | | **Revenues** | **$2,757,511** | **$2,620,903** | | Gross profit | $684,683 | $643,711 | | Operating income | $270,521 | $239,368 | | Net income | $193,790 | $165,732 | | *Attributable to Equity holders* | *$79,670* | *$64,014* | | *Attributable to Non-controlling interests* | *$114,120* | *$101,718* | Revenue by Category (2023 vs. 2024) | Revenue Category | 2024 Revenue ($ in thousands) | 2023 Revenue ($ in thousands) | % Change | | :--- | :--- | :--- | :--- | | Proprietary software products and related services | 724,900 | 693,426 | +4.5% | | Software services and other | 2,032,611 | 1,927,477 | +5.5% | - The increase in software services revenue was primarily driven by Matrix, whose revenues in this stream grew by **6.4%** (in NIS) due to expansion in its Israeli IT solutions and services segment[610](index=610&type=chunk)[611](index=611&type=chunk) - The increase in proprietary software revenue was led by Sapiens, whose revenues grew by **5.4%** to **$542.4 million**, and Michpal, whose revenues grew by **19.8%** to **$34.2 million**[616](index=616&type=chunk)[617](index=617&type=chunk)[618](index=618&type=chunk) [B. Liquidity and Capital Resources](index=147&type=section&id=B.%20Liquidity%20and%20Capital%20Resources) The company finances operations through cash from operations, debt, and equity, with cash and short-term investments totaling **$563.2 million** and total debt at **$479.4 million** as of December 31, 2024 Liquidity Position (as of Dec 31) | (U.S. dollars, in millions) | 2024 | 2023 | | :--- | :--- | :--- | | Cash and cash equivalents & short-term investments | $563.2 | $528.2 | | Total Indebtedness (banks and debentures) | $479.4 | $541.3 | Cash Flow Summary (2023 vs. 2024) | (U.S. dollars, in millions) | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $324.5 | $295.0 | | Net cash used in investing activities | ($78.2) | ($139.2) | | Net cash used by financing activities | ($185.0) | ($243.2) | - In September 2024, Formula issued **NIS 150.0 million** (approx. **$39.8 million**) of Series D Secured Debentures to finance its operations[693](index=693&type=chunk) - Significant cash outflows for financing in 2024 included **$85.1 million** in dividends (**$66.3 million** to non-controlling interests, **$18.8 million** to Formula shareholders) and net repayment of debt[718](index=718&type=chunk) [D. Trend Information](index=158&type=section&id=D.%20Trend%20Information) The company's performance is influenced by global IT spending recovery, the Israeli high-tech sector slowdown, and increased demand for defense and cybersecurity solutions - Global IT spending is recovering, with Gartner forecasting **7.7% growth in 2024** and **9.8% in 2025**, driven by software, data centers, and cloud services[735](index=735&type=chunk)[737](index=737&type=chunk) - The Israeli high-tech sector faced a slowdown in 2024 due to geopolitical issues, leading to a decline in investments and demand for tech personnel[742](index=742&type=chunk)[743](index=743&type=chunk) - Heightened geopolitical tensions and the "Iron Swords" War are driving **strong demand for defense and cybersecurity solutions**, benefiting the company's subsidiaries[752](index=752&type=chunk)[758](index=758&type=chunk)[760](index=760&type=chunk) - Key trends in the insurance technology market include a focus on application modernization, integration technologies, Generative AI, and a shift to cloud-based SaaS models, aligning with Sapiens' offerings[766](index=766&type=chunk)[773](index=773&type=chunk)[774](index=774&type=chunk) [E. Critical Accounting Policies and Estimates](index=166&type=section&id=E.%20Critical%20Accounting%20Policies%20and%20Estimates) The company's financial statements, prepared under IFRS, require significant judgments and estimates, particularly for 'effective control' over subsidiaries, long-term contract revenue recognition, and goodwill impairment - A key judgment is the determination of **'effective control'** over subsidiaries like Matrix, Sapiens, and Magic Software, where the company holds less than **50%** of voting rights, based on factors like holding size and board influence[793](index=793&type=chunk)[1241](index=1241&type=chunk) - Revenue from long-term, fixed-price contracts is recognized over time using a cost-based input method (percentage of completion), which requires **significant management estimates of total costs** to complete the project[794](index=794&type=chunk)[1272](index=1272&type=chunk) - Goodwill and intangible assets are tested for impairment annually, with recoverable amounts determined using discounted cash flow projections sensitive to assumptions about discount rates and future growth[863](index=863&type=chunk)[1304](index=1304&type=chunk) - Put options granted to non-controlling interests are classified as a financial liability and remeasured at fair value, with changes affecting equity or profit and loss depending on the option's nature[874](index=874&type=chunk)[1311](index=1311&type=chunk) [Directors, Senior Management, and Employees](index=186&type=section&id=ITEM%206.%20DIRECTORS%2C%20SENIOR%20MANAGEMENT%20AND%20EMPLOYEES) This section details the company's leadership, compensation, board practices, and employee information, including key management remuneration and workforce 2024 Compensation of Key Management | Name and Position | Salary ($, in thousands) | Benefits & Perquisites ($, in thousands) | Variable Compensation ($, in thousands) | Equity Based Compensation ($, in thousands) | | :--- | :--- | :--- | :--- | :--- | | Guy Bernstein – CEO | 578 | - | 3,641 | 6,438 | | Asaf Berenstin – CFO | - | - | - | 249 | | Tammy Ohana Koll – CTO | 315 | 75 | 108 | - | | Maya Solomon-Ella – COO | 175 | 39 | 68 | 343 | - Total remuneration for directors and executive officers in 2024 was approximately **$12.4 million**, including **$7.0 million** in share-based compensation expenses[922](index=922&type=chunk) Average Number of Employees by Subsidiary (2024) | Subsidiary | 2024 Average Employees | | :--- | :--- | | Matrix | 11,570 | | Sapiens | 4,850 | | Magic Software | 3,787 | | Insync | 949 | | TSG Systems | 784 | | Michpal | 321 | | Zap Group | 277 | | Ofek | 120 | | **Total (incl. others)** | **22,720** | [Major Shareholders and Related Party Transactions](index=206&type=section&id=ITEM%207.%20MAJOR%20SHAREHOLDERS%20AND%20RELATED%20PARTY%20TRANSACTIONS) This section details the company's major shareholders and outlines significant related party transactions, including the potential Matrix-Magic Software merger Major Shareholders (as of March 31, 2025) | Name | Percentage of Ownership | | :--- | :--- | | Asseco Poland S.A. | 25.82% | | Guy Bernstein | 11.73% | | Harel Insurance Investments & Financial Services Ltd. | 7.72% | | Menora Mivtachim Holdings Ltd. | 7.10% | | Phoenix Holdings Ltd. | 6.97% | | Yelin Lapidot Holdings Management Ltd. | 6.71% | | Clal Insurance Enterprises Holdings Ltd. | 5.38% | - A non-binding Memorandum of Understanding (MOU) was signed on March 11, 2025, for a **potential merger** between subsidiaries Matrix and Magic Software, where Magic Software would become a private, wholly-owned subsidiary of Matrix[1025](index=1025&type=chunk) - The company maintains a Directors & Officers (D&O) liability insurance policy with a total coverage of **$70 million** for February 2025 to February 2026, with an annual premium of **$1.2 million** for the group[1018](index=1018&type=chunk) [Financial Information](index=211&type=section&id=ITEM%208.%20FINANCIAL%20INFORMATION) This section covers other financial information, including ongoing legal proceedings and the company's dividend policy - A derivative action challenging the CEO's RSU grant was dismissed in December 2023, but the plaintiff filed an appeal in January 2024, with a hearing scheduled for March 2026[1035](index=1035&type=chunk)[1036](index=1036&type=chunk) - Subsidiary Zap Group is involved in a class action lawsuit regarding its price comparison website and another claim alleging monopolistic practices, both covered by indemnification from former shareholders[1039](index=1039&type=chunk)[1040](index=1040&type=chunk) - Formula and its publicly traded subsidiaries (Matrix, Sapiens, Magic Software) have active dividend policies and all declared and paid dividends during 2024 and early 2025[1043](index=1043&type=chunk)[1048](index=1048&type=chunk)[1052](index=1052&type=chunk)[1059](index=1059&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=227&type=section&id=ITEM%2011.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company is exposed to market risks primarily from foreign currency exchange rate fluctuations, interest rate changes, and subsidiary security price volatility - The company is significantly exposed to foreign currency exchange risk; a hypothetical **10%** devaluation or appreciation of foreign currencies against the US dollar would have impacted 2024 sales revenues by approximately **$197 million** or **$232 million**, respectively[1120](index=1120&type=chunk) - The company is exposed to interest rate risk on its variable-rate loans; a **1%** increase in interest rates would have increased the combined financial expenses of Matrix, Magic Software, Zap Group, and Michpal by approximately **$1.6 million** in 2024[1124](index=1124&type=chunk) - The company holds securities of its publicly traded subsidiaries (Magic Software, Sapiens, Matrix, TSG Systems) and is exposed to fluctuations in their market prices, but typically does not hedge this exposure[1125](index=1125&type=chunk) [Part II](index=230&type=section&id=PART%20II) This section details the company's internal controls, disclosure procedures, and other governance information, including audit committee expertise and cybersecurity [Controls and Procedures](index=230&type=section&id=ITEM%2015.%20CONTROLS%20AND%20PROCEDURES) Management concluded that the company's disclosure controls and internal control over financial reporting were effective as of December 31, 2024 - Management concluded that the company's **disclosure controls and procedures were effective** as of December 31, 2024[1136](index=1136&type=chunk) - Based on an evaluation against the COSO 2013 framework, management concluded that the company's **internal control over financial reporting was effective** as of December 31, 2024[1137](index=1137&type=chunk)[1138](index=1138&type=chunk) [Other Information](index=231&type=section&id=ITEM%2016.%20OTHER%20INFORMATION) This section covers governance and compliance, including audit committee expertise, auditor fees, and cybersecurity risk management - The company's board of directors has determined that Mr. Tomer Jacob qualifies as the "**audit committee financial expert**"[1142](index=1142&type=chunk) Principal Accountant Fees (in thousands USD) | Auditor | Year | Audit Fees | Tax and Other Fees | Total | | :--- | :--- | :--- | :--- | :--- | | EY Israel | 2023 | $2,556 | $494 | $3,050 | | EY Israel | 2024 | $835 | $517 | $1,352 | | BDO Israel | 2024 | $1,736 | $182 | $1,918 | - The company follows Israeli home country practice in lieu of certain Nasdaq corporate governance rules, including those related to majority board independence, director nominations, and shareholder approval for certain dilutive events[1159](index=1159&type=chunk)[1163](index=1163&type=chunk) - The company has a cybersecurity risk management program overseen by the board of directors and managed by the CFO, designed to identify and manage material risks from cybersecurity threats[1164](index=1164&type=chunk)[1167](index=1167&type=chunk)[1168](index=1168&type=chunk) [Part III](index=237&type=section&id=PART%20III) This section presents the company's audited consolidated financial statements for 2024, prepared under IFRS, including key financial statements and notes [Financial Statements](index=237&type=section&id=ITEM%2018.%20FINANCIAL%20STATEMENTS) This section contains the company's audited consolidated financial statements for 2024, prepared under IFRS, including auditor reports and detailed financial statements Consolidated Statement of Financial Position (Assets) | (U.S. dollars, in thousands) | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | **Total current assets** | **$1,487,045** | **$1,375,856** | | Cash and cash equivalents | $507,799 | $451,946 | | Trade receivables, net | $803,235 | $721,008 | | **Total non-current assets** | **$1,527,851** | **$1,436,745** | | Goodwill | $975,080 | $936,581 | | Intangible assets, net | $217,076 | $206,928 | | **Total assets** | **$3,014,896** | **$2,812,601** | Consolidated Statement of Financial Position (Liabilities and Equity) | (U.S. dollars, in thousands) | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | **Total current liabilities** | **$1,138,476** | **$985,663** | | **Total long-term liabilities** | **$487,075** | **$518,753** | | **Total liabilities** | **$1,625,551** | **$1,504,416** | | **Total equity** | **$1,389,345** | **$1,308,185** | | *Equity attributable to Formula shareholders* | *$679,338* | *$625,762* | | *Non-controlling interests* | *$710,007* | *$682,423* | | **Total liabilities and equity** | **$3,014,896** | **$2,812,601** |

Core Insights - Formula Systems (1985) Ltd. reported a record-breaking revenue of $2.76 billion for the full year 2024, reflecting a year-over-year increase of 5.2%, while net income grew by 24.5% to $79.7 million [1][4][3] Financial Highlights for Q4 2024 - Revenues for Q4 2024 increased by 8.0% year over year, reaching a record-breaking $691.5 million compared to $640.3 million in Q4 2023, with organic growth accounting for approximately 68% of the increase [4] - Operating income for Q4 2024 rose by 19.1% year over year to $71.9 million, with organic growth contributing approximately 61% [4] - Net income attributable to Formula's shareholders for Q4 2024 increased by 27.6% year over year to $20.1 million, or $1.28 per fully diluted share, compared to $15.7 million, or $1.01 per fully diluted share, in the same period last year [4] Financial Highlights for Full Year 2024 - Full year revenues for 2024 reached $2.76 billion, a 5.2% increase from $2.62 billion in 2023, with organic growth accounting for approximately 75% of the increase [4] - Operating income for the full year increased by 13.0% to $270.5 million, compared to $239.4 million in 2023, with organic growth contributing approximately 74% [4] - Net income attributable to Formula's shareholders for the full year was $79.7 million, or $5.09 per fully diluted share, compared to $64.0 million, or $4.12 per fully diluted share, in the previous year [4] Cash and Equity Position - As of December 31, 2024, Formula's consolidated cash and cash equivalents totaled approximately $563.2 million, up from $528.2 million as of December 31, 2023 [4] - Total equity as of December 31, 2024 was $1.39 billion, representing 46.1% of the total consolidated statements of financial position, compared to $1.31 billion (46.7%) as of December 31, 2023 [5] Dividend Declaration - The board of directors approved a cash dividend of NIS 3.45 per share (approximately $0.94 per share), totaling approximately NIS 52.9 million (approximately $14.4 million), payable on May 14, 2025 [11] Strategic Developments - Matrix IT and Magic Software announced a non-binding memorandum of understanding for a merger transaction, which is expected to create a combined entity with a market capitalization of approximately NIS 7.7 billion (approximately $2.1 billion) [13] - Matrix reported record-breaking results for Q4 2024, with revenues growing by 4.1% year over year to NIS 1.37 billion (approximately $371.8 million) [13] - Magic Software achieved a 13.6% year-over-year revenue increase, reaching $142.6 million, reflecting its focus on digital and cloud transformation solutions [14]

OR YEHUDA, Israel, Nov. 21, 2024 (GLOBE NEWSWIRE) -- Formula Systems (1985) Ltd. (Nasdaq and TASE: FORTY) (“Formula” or the “Company”), a global information technology group engaged, through its subsidiaries and affiliates, in providing software consulting services and computer-based business solutions and developing proprietary software products, today announced its results for the third quarter and first nine months period ended September 30, 2024. Financial Highlights for the Third Quarter Ended Septembe ...

GUADALAJARA, Mexico, Sept. 05, 2024 (GLOBE NEWSWIRE) -- Grupo Aeroportuario del Pacífico, S.A.B. de C.V., (NYSE:PAC; BMV: GAP) ("the Company" or "GAP") informs that today successfully completed the issuance of 56,481,343 (FIFTY-SIX MILLION FOUR HUNDRED EIGHTY ONE THOUSAND THREE HUNDRED FORTY-THREE) long-term bond certificates in Mexico (Certificados Bursátiles) at a nominal value of Ps. 100 each (ONE HUNDRED PESOS 00/100), for a total value of Ps. 5,648,134,300 (FIVE BILLION SIX HUNDRED FORTY-EIGHT MILLION ...

OR YEHUDA, Israel, Aug. 20, 2024 (GLOBE NEWSWIRE) -- Formula Systems (1985) Ltd. (Nasdaq and TASE: FORTY) ("Formula" or the "Company"), a global information technology group engaged, through its subsidiaries and affiliates, in providing software consulting services and computer-based business solutions and developing proprietary software products, today announced its results for the second quarter and first half period ended June 30, 2024. Financial Highlights for the Second Quarter Ended June 30, 2024 Reve ...

Core Viewpoint - Formula Systems (1985) Ltd. reported a 4.2% increase in revenues for Q1 2024, reaching $698.4 million, despite challenges in the macroeconomic environment and the impact of military service on its workforce [4][6]. Financial Performance - Revenues for Q1 2024 increased by 4.2% to $698.4 million compared to $670.4 million in Q1 2023. On a constant-currency basis, revenues would have increased by 6.6% to $714.8 million [4]. - Operating income rose by 2.9% to $62.6 million, with a constant-currency increase of approximately 2.1% to $62.1 million [4]. - Net income attributable to shareholders increased by 9.4% to $17.2 million, or $1.10 per fully diluted share, compared to $15.7 million, or $1.01 per share, in the same period last year [4]. Compliance and Financial Health - As of March 31, 2024, Formula was in compliance with all financial covenants under its debenture series, with a net financial indebtedness to net capitalization ratio of 1.0% and a net financial indebtedness to EBITDA ratio of 0.04 [5]. - Consolidated cash and cash equivalents totaled approximately $516.1 million, down from $528.2 million as of December 31, 2023 [4]. Subsidiary Performance - Matrix IT Ltd. reported a 12.6% year-over-year revenue growth, reaching NIS 1.45 billion (approximately $396.9 million) [6]. - Sapiens International Corporation N.V. saw a 7.6% increase in revenues to $134.2 million, with an annual recurring revenue (ARR) growth of 12.7% [6]. - Magic Software's revenues increased by 4.1% to $130.7 million, while operating income rose by 11% to $14.4 million compared to Q4 2023 [6]. Employee Impact - Approximately 1,100 of the 22,000 employees were drafted into military service due to the ongoing conflict, affecting profitability in certain operational areas [6].

Annual Report Filing - Formula Systems filed its Annual Report on Form 20-F for the year ended December 31, 2023, on May 15, 2024[4] - The filing includes financial statements that provide detailed information to shareholders, including holders of American Depository Shares[4] - A press release was issued on the same day to announce the filing and guide shareholders on obtaining the 2023 Form 20-F[4]