Matrix IT (MTRX) Q2 2025 earnings summary

Executive summary

• Revenues for H1 2025 rose 7.6% year-over-year to NIS 2.99B, with organic and acquisition-driven growth.

• Net income for H1 2025 increased 8.5% to NIS 156.9M, with net margin stable at 5.2%.

• Operating income grew 13.9% to NIS 252.7M, margin improving to 8.4%.

• EBITDA for H1 2025 was NIS 351.7M, up 12.5%, representing 11.7% of revenues.

• Business remained resilient despite the ongoing war, with no material impact on results.

Financial highlights

• Q2 2025 revenues rose 8.9% to NIS 1.45B; adjusted growth 13.3% for net basis revenues.

• Gross profit for H1 2025 was NIS 449.8M (15% margin), up 10% year-over-year.

• Cash flows from operating activities grew 28% in Q2 and 46.2% in H1; H1 cash flow was NIS 137.1M.

• Two dividends totaling NIS 108.8M were distributed in H1 2025.

• Financial expenses increased due to FX differences and accounting for new acquisitions.

Outlook and guidance

• Expects continued organic and acquisition-driven growth, maintaining operating income margin at 8% or higher.

• US revenue run-rate returned to over $120M with a 15% profit margin.

• Merger with Magic progressing, expected to close by Q4 2025, anticipated to enhance margins, global reach, and sector revenues.

• Management expects continued growth in IT Solutions and Cloud segments, with ongoing integration of recent acquisitions.

• The company does not anticipate a direct impact from new US tariffs on Israeli imports.