Formula Systems (1985) (FORTY) investor relations material

Executive summary

• Revenues for Q3 2025 rose 23.6% year-over-year to $696.6 million, and for the nine months ended September 30, 2025, increased 15.6% to $1.92 billion.

• Operating income for Q3 2025 grew 10.8% year-over-year to $54.6 million; excluding a prior-year capital gain, operating income would have increased 27.7%.

• Net income attributable to shareholders for Q3 2025 decreased 26.6% year-over-year to $17.3 million ($1.08 per diluted share); excluding the capital gain, net income would have increased 1.2%.

• Sapiens International is being acquired by Advent; Formula will retain an 18% stake, and Sapiens' results are now reported as discontinued operations.

Financial highlights

• Q3 2025 operating income: $54.6 million (up 10.8% year-over-year); nine months: $154.8 million (up 14.4%).

• Q3 2025 net income from continued operations: $11.6 million (down 26.4% year-over-year); nine months: $32.2 million (down 12.8%).

• Cash and cash equivalents plus short-term deposits as of September 30, 2025: $432.1 million.

• Total equity as of September 30, 2025: $1.58 billion (47.4% of total assets).

Outlook and guidance

• Magic Software raised its full-year 2025 revenue guidance to $610–$620 million, anticipating annual growth of 10.4%–12.2%.