Formula Systems (1985) (FORTY) Q1 2025 earnings summary

Executive summary

• Achieved record first quarter revenues of $754.7 million, up 8.1% year-over-year, and record net income of $19.3 million, up 12.6% year-over-year.

• Operating income reached $70.5 million, a 12.7% increase year-over-year.

• Management highlighted strong performance across all key operational indices and ongoing focus on innovation and technology leadership.

Financial highlights

• Gross profit for Q1 2025 was $180.7 million, up from $164.2 million in Q1 2024.

• Earnings per diluted share rose to $1.23 from $1.10 year-over-year.

• Consolidated cash and short-term deposits totaled $526.8 million as of March 31, 2025, down from $563.2 million at year-end 2024.

• Total equity stood at $1.38 billion, representing 45.2% of total assets.

Capital allocation and financing

• Board approved a Q1 2025 cash dividend of NIS 1.57 ($0.44) per share, totaling approximately $6.8 million, payable July 22, 2025.

• Maintained compliance with all debenture covenants, with equity attributable to shareholders at $681.0 million and net financial indebtedness to EBITDA at (0.16).