Matrix IT (MTRX) Q3 2025 earnings summary

Executive summary

• Achieved record revenue, gross profit, operating profit, EBITDA, and net profit for Q3 and the nine months ending September 30, 2025, with double-digit growth across most segments and geographies.

• Completed a major merger agreement with Magic, positioning the combined entity among the world's largest public IT services firms by market cap.

• Continued operational resilience and growth despite macroeconomic and geopolitical challenges, including ongoing regional conflicts.

• Significant M&A activity, including the acquisition of GAV Systems.

• Strong international expansion, with 22% of FY24 revenues from international markets and 17% from the US.

Financial highlights

• Q3 2025 revenue: ₪1.64 billion, up 20.7% year-over-year (adjusted growth 15.7%); nine-month revenue: ₪4.64 billion, up 15.1%.

• Gross profit up 17.8% to ₪241.5 million; gross margin improved to 14.7%.

• Q3 net profit up 21% to ₪84.3 million; nine-month net profit up 12.6% to ₪241.2 million.

• Q3 EBITDA: ₪182.8 million (11.1% margin); nine-month EBITDA: ₪534.4 million (11.5% margin).

• Operating cash flow for Jan–Sep 2025: ₪268.7 million.

Outlook and guidance

• Merger with Magic expected to accelerate growth, expand international sales, and enhance profitability and balance sheet structure.

• Management expects continued organic growth alongside acquisitions, maintaining operating margin above 8% through improved efficiency.

• Geopolitical and macroeconomic uncertainties remain, but the company maintains a positive outlook due to diversified operations and strong financial position.

• Anticipates potential inclusion in the TA-35 index and increased attractiveness to international investors.