Formula Systems (1985) (FORTY) investor relations material

Executive summary

• Achieved record first quarter revenues of $738.3 million, up 19.2% year over year.

• Net income attributable to shareholders rose 84.5% year over year to $35.6 million, a first quarter all-time high.

• Completed the merger of Matrix IT Ltd. and Magic Software, making Magic Software a wholly owned subsidiary of Matrix.

• Announced a special cash dividend of $13.045 per share, totaling approximately $200 million, to be paid in June 2026.

Financial highlights

• Operating income increased 65.6% year over year to $82.0 million, including a $16.8 million capital gain from TSG transactions.

• Excluding the capital gain, operating income rose 31.7% year over year to $65.2 million.

• Net income from continued operations attributable to shareholders surged 203.4% year over year to $35.6 million; excluding the capital gain, it increased 60.5% to $18.9 million.

• Consolidated cash and equivalents stood at $1.18 billion as of March 31, 2026.

• Total equity reached $1.82 billion, representing 50.1% of total assets.

Outlook and guidance

• Management expressed confidence in sustaining profitable growth throughout 2026, citing strong execution and demand across all business segments.