Matrix IT (MTRX) Q2 2025 earnings summary

Executive summary

• Q2 revenue rose 8.9% YoY to NIS 1,451.4M; operating income reached a record NIS 126.7M, up 13.9%.

• H1 revenue rose 7.6% to NIS 2,997.6M and operating income reached a record NIS 252.7M, up 13.9%.

Financial highlights

• Q2 gross profit increased 10.4% to NIS 222.7M; H1 gross profit rose 10.0% to NIS 449.8M.

• Q2 net income rose 4.4% to NIS 76.3M and shareholder-attributable net income rose 4.9% to NIS 72.9M; H1 figures were up 8.5% to NIS 156.9M and 7.5% to NIS 148.5M, respectively.

• Net-basis-adjusted revenue increased 13.3% to NIS 1,510.0M in Q2 and 12.2% to NIS 3,127.2M in H1.

• Operating cash flow rose 28% to NIS 122.5M in Q2 and 46.2% to NIS 137.1M in H1; LTM cash flow was NIS 662.5M.

• Higher financial expenses, including FX differences and M&A liability and put-option revaluations, partly offset operating growth; H1 expenses were NIS 44.8M vs. NIS 31.4M.

Outlook and guidance

• Continued organic and acquisition-led growth is targeted while maintaining operating income margin of at least 8%, supported by efficiency and stable SG&A.

• Annual revenue run rate exceeded NIS 6B; the US revenue run rate returned above $120M, with new engagements and contract expansions expected to support growth.

• The Magic merger was progressing through approvals, with general-meeting approval expected in Q4 2025; anticipated benefits include stronger cloud, cybersecurity, data and AI capabilities and expanded global coverage.

• AI adoption is expected to create opportunities in software products, developer productivity, GPU and high-performance communications sales, and A1D²C³ business lines.