Formula Systems (1985) (FORTY) Q2 2025 earnings summary

Executive summary

• Achieved record second quarter and first half revenues, with Q2 revenue up 11.3% year-over-year to $743.4 million and H1 revenue up 9.7% to $1.5 billion.

• Operating income rose 4.4% year-over-year in Q2 to $67.9 million and 8.5% in H1 to $138.4 million.

• Net income attributable to shareholders declined 20.1% in Q2 and 4.5% in H1, mainly due to higher financial expenses from adverse currency movements.

Financial highlights

• Q2 2025 revenue: $743.4 million (up 11.3% YoY); H1 2025 revenue: $1.5 billion (up 9.7% YoY).

• Q2 2025 operating income: $67.9 million (up 4.4% YoY, or 9.3% excluding a one-time item in 2024).

• Q2 2025 net income attributable to shareholders: $15.1 million (down 20.1% YoY); H1 2025: $34.4 million (down 4.5% YoY).

• Q2 2025 EPS (diluted): $0.95; H1 2025 EPS (diluted): $2.20.

• Cash and cash equivalents plus short-term deposits: $406.2 million as of June 30, 2025.

• Total equity: $1.46 billion as of June 30, 2025.

Outlook and guidance

• Magic Software raised full-year 2025 revenue guidance to $600–610 million, reflecting 8.6–10.4% anticipated annual growth.

• Sapiens expects acquisitions to strengthen its position and drive growth in 2026.

• Michpal Technologies is preparing for an IPO, subject to market and regulatory conditions.