Formula Systems (1985) (FORTY) investor relations material

Executive summary

• Full-year 2025 revenues rose 18.4% year-over-year to $2.63 billion, driven by strong core activity and strategic transactions.

• Net income attributable to shareholders reached $606.5 million, boosted by the Sapiens acquisition by Advent and related capital gain.

• Sapiens transaction completed in December 2025; results now presented as discontinued operations.

• Board expects to distribute up to $200 million in dividends, pending audited financials.

Financial highlights

• Q4 2025 revenues increased 26.9% year-over-year to $708.4 million.

• Q4 operating income decreased 13.5% year-over-year to $41.6 million due to higher amortization expenses; adjusted operating income up 25.5% to $60.3 million.

• Q4 net income from continued operations attributable to shareholders fell 62.7% year-over-year to $4.3 million; adjusted net income from continued operations up 60.9% to $18.7 million.

• Q4 net income attributable to shareholders reached $554.8 million, mainly from the Sapiens transaction.

• Full-year operating income increased 7.1% to $196.4 million; adjusted operating income up 17.3% to $215.1 million.

• Full-year net income from continued operations attributable to shareholders decreased 24.8% to $36.5 million; adjusted net income from continued operations up 4.9% to $50.9 million.

• Consolidated cash and equivalents and short-term deposits totaled $1.3 billion at year-end, up from $563.2 million.

Outlook and guidance

• Management expects continued long-term growth, citing strong demand for advanced technology solutions and successful execution of strategic transactions.

• Further details on dividend distribution to be provided after annual report filing.