Core Insights - Magic Software Enterprises Ltd. reported record-breaking financial results for the third quarter and the first nine months of 2025, with significant year-over-year growth in revenues, operating income, and net income [1][7][13]. Financial Performance for Q3 2025 - Revenues increased by 13.1% year-over-year to $161.7 million, up from $143.0 million in Q3 2024 [2][7]. - Gross profit rose by 11.4% to $44.2 million, with a gross margin of 27.3%, slightly down from 27.8% in the previous year [2][7]. - Operating income reached $17.1 million, a 13.6% increase from $15.1 million in Q3 2024, with a non-GAAP operating income of $19.9 million, up 8.1% from $18.5 million [2][7]. - Net income attributable to shareholders increased by 17.0% to $9.9 million, or $0.20 per diluted share, compared to $8.4 million, or $0.17 per diluted share, in the same period last year [2][7]. Financial Performance for Nine Months Ended September 30, 2025 - Revenues for the nine-month period increased by 12.4% to $460.6 million, compared to $409.9 million in the same period of 2024 [11]. - Gross profit for the nine months rose by 10.4% to $127.2 million, with a gross margin of 27.6% [8][11]. - Operating income for the nine months increased by 8.9% to $48.5 million, while non-GAAP operating income rose by 4.0% to $57.0 million [8][11]. - Net income attributable to shareholders for the nine months increased by 11.4% to $29.3 million, or $0.60 per diluted share, compared to $26.3 million, or $0.53 per diluted share, in the same period last year [11]. Cash Flow and Financial Position - Cash flow from operating activities for the nine-month period was $40.6 million, down from $49.1 million in the same period last year [11]. - As of September 30, 2025, the company had cash, cash equivalents, and short-term bank deposits totaling $103.3 million [11]. Dividend Declaration - The board of directors declared a quarterly cash dividend of 15.1 cents per share, totaling approximately $7.4 million, reflecting about 75% of distributable profits for the period [10][12]. Strategic Outlook - The company revised its full-year 2025 revenue guidance from $600 million to a range of $610 million to $620 million, indicating sustained operational momentum and a favorable outlook for Q4 2025 [11].