Core Insights - Formula Systems reported a revenue increase of approximately 23.6% year over year for Q3 2025, reaching approximately $696.6 million compared to $563.6 million in Q3 2024 [4][23] - The company experienced a decrease in net income from continued operations attributable to shareholders by approximately 26.4% year over year, amounting to approximately $11.6 million or $0.73 per fully diluted share [4][5] - The company declared a cash dividend of NIS 1.64 per share (approximately $0.50 per share), totaling approximately NIS 25.2 million (approximately $7.7 million), payable on January 13, 2026 [9][11] Financial Highlights for Q3 2025 - Operating income for Q3 2025 increased by approximately 10.8% year over year to approximately $54.6 million, compared to $49.2 million in Q3 2024 [4][23] - Excluding a capital gain from the IPO of TSG IT Advanced Systems, operating income would have increased by approximately 27.7% year over year [4] - Net income attributable to Formula Systems' shareholders for Q3 2025 decreased by approximately 26.6% year over year to approximately $17.3 million, or $1.08 per fully diluted share [4][5] Financial Highlights for Nine-Months Period Ended September 30, 2025 - Revenues for the nine-month period increased by approximately 15.6% to approximately $1.92 billion compared to $1.66 billion in the same period last year [4][5] - Operating income for the nine-month period increased by approximately 14.4% to approximately $154.8 million compared to $135.3 million in the same period last year [4][5] - Net income attributable to Formula Systems' shareholders for the nine-month period decreased by approximately 13.3% year over year to approximately $51.7 million, or $3.24 per fully diluted share [5][9] Management Comments - The CEO of Formula Systems expressed satisfaction with the company's strong momentum and commitment to growth and operational excellence across its business lines [11] - Matrix IT reported record-breaking results for Q3 2025, with revenues growing by approximately 15.7% year over year, reaching an all-time high of NIS 1.64 billion (approximately $488.0 million) [11] - Magic Software also reported strong growth, revising its full-year 2025 revenue guidance to a range of $610 million to $620 million, reflecting an anticipated annual growth rate of approximately 10.4% to 12.2% [11] Other Notable Developments - The merger between Matrix IT and Magic Software is in its final phase, expected to create one of the largest publicly traded IT services companies globally, with a projected valuation exceeding NIS 11 billion (approximately $3.4 billion) [11] - As of September 30, 2025, Formula Systems held significant stakes in various companies, including 48.12% in Matrix IT and 43.42% in Sapiens International Corporation [9][10]

Core Insights - Formula Systems reported a revenue increase of 11.3% year over year for Q2 2025, reaching an all-time high of approximately $743.4 million, driven by growth across its subsidiaries and affiliates [6][7] - Despite revenue growth, net income attributable to shareholders decreased by approximately 20.1% year over year to $15.1 million due to increased financial expenses related to currency exchange rate fluctuations [3][6] - The company declared a cash dividend of NIS 1.69 per share, amounting to approximately NIS 25.9 million, payable on October 28, 2025 [11][12] Financial Performance for Q2 2025 - Revenues for Q2 2025 were approximately $743.4 million, compared to $667.7 million in Q2 2024, marking an 11.3% increase [6] - Operating income for Q2 2025 increased by 4.4% year over year to approximately $67.9 million, with a notable one-time income item in Q2 2024 affecting year-over-year comparisons [6] - Net income attributable to shareholders for Q2 2025 was approximately $15.1 million, or $0.95 per diluted share, down from $18.8 million, or $1.20 per diluted share in Q2 2024 [6] Financial Performance for First Half of 2025 - Revenues for the first half of 2025 reached approximately $1.5 billion, a 9.7% increase from approximately $1.37 billion in the same period last year [7] - Operating income for the first half of 2025 was approximately $138.4 million, up 8.5% from approximately $127.6 million in the first half of 2024 [7] - Net income attributable to shareholders for the first half of 2025 decreased by 4.5% to approximately $34.4 million, or $2.20 per diluted share, compared to $36.0 million, or $2.31 per diluted share in the same period last year [7] Currency Impact - The New Israeli Shekel appreciated by 9.3% against the U.S. dollar during Q2 2025, adversely affecting the U.S. dollar value of the company's monetary assets and contributing to increased financial expenses [4][3] Subsidiary Performance Highlights - Matrix IT Ltd. reported a revenue increase of 8.9% year over year for Q2 2025, reaching an all-time high of NIS 1.45 billion (approximately $405.3 million) [13] - Magic Software achieved a revenue growth of 11.3% year over year, reaching $151.6 million, marking its first quarter crossing $150 million [13] - Sapiens completed acquisitions of AdvantageGo and Candella, enhancing its position in the insurance technology sector [13] Dividend Declaration - The board of directors approved a cash dividend of NIS 1.69 per share, approximately $0.50 per share, totaling around NIS 25.9 million [11][12] Compliance and Financial Health - As of June 30, 2025, Formula Systems was in compliance with all financial covenants under its debenture series, with actual equity attributable to shareholders at $722.9 million, significantly above the required target of $325 million [12][10]

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]