Matrix IT (MTRX) investor relations material

Executive summary

• Achieved record growth in revenue, gross profit, operating profit, EBITDA, and net profit for Q3 2025 and the nine-month period ending September 30, 2025, with double-digit organic growth, especially in Israel.

• Completed a major merger agreement with Magic, positioning the combined entity among the world's largest public IT services firms by market cap.

• Continued robust performance despite ongoing war and geopolitical changes, reflecting strong market positioning and resilience.

• Strong international expansion, with 22% of FY24 revenues from international markets and 17% from the US.

Financial highlights

• Q3 2025 revenue grew 20.7% year-over-year to ₪1.64 billion; organic growth was 15.6%.

• Gross profit up 17.8% to ₪241.5 million; gross margin improved to 14.7%.

• Operating profit up 21.5% to ₪131.5 million; margin at 8%.

• Net profit up 21% to ₪84.3 million; net margin at 5.1%.

• EBITDA up 17.6% to ₪182.8 million; EBITDA margin at 11.1%.

• Dividend of ₪57.9 million (₪0.91 per share) declared for Q3 2025.

• For Jan–Sep 2025, revenue up 15.1% to ₪4.6 billion; gross profit up 12.6% to ₪691.3 million; operating profit up 16.4% to ₪384.2 million; net profit up 12.6% to ₪241.2 million.

Outlook and guidance

• Merger with Magic expected to accelerate growth, expand international sales, and enhance profitability and balance sheet structure.

• Targeting continued organic growth alongside acquisitions, maintaining operating margin above 8% through improved efficiency.

• Anticipates potential inclusion in the TA-35 index and increased attractiveness to international investors.

• Expects continued growth from strong demand in security, cyber, AI, and cloud services, as well as US market expansion.