Formula Systems (1985) (FORTY) Q4 2024 earnings summary

Executive summary

• 2024 full-year revenues rose 5.2% year-over-year to a record $2.76 billion; net income grew 24.5% to $79.7 million, both all-time highs.

• Q4 2024 revenues increased 8.0% year-over-year to $691.5 million, with organic growth contributing 68% of the increase.

• Q4 net income attributable to shareholders rose 27.6% year-over-year to $20.1 million ($1.28 per diluted share).

• CEO highlighted strong performance, operational excellence, and a proposed merger between Matrix and Magic Software.

Financial highlights

• Full-year operating income up 13.0% year-over-year to $270.5 million; Q4 operating income up 19.1% to $71.9 million.

• Cash and cash equivalents plus short-term deposits totaled $563.2 million at year-end, up from $528.2 million a year earlier.

• Total equity reached $1.39 billion (46.1% of total assets) at year-end, up from $1.31 billion (46.7%).

• Q4 gross profit was $180.5 million (up from $161.2 million); full-year gross profit was $684.0 million (up from $643.7 million).

• Q4 EPS (diluted) was $1.28 (up from $1.01); full-year EPS (diluted) was $5.09 (up from $4.12).

Outlook and guidance

• Magic Software issued 2025 revenue guidance of $593–603 million, representing 7.3%–9.1% annual growth.

• Management expressed confidence in sustaining growth and long-term profitability.