Matrix IT (MTRX) Q4 2025 earnings summary

Executive summary

• Achieved record growth in all key financial parameters for FY 2025, with double-digit increases in revenue, gross profit, operating profit, and net income year-over-year; revenue reached NIS 6.24 billion, up 11.8%, with organic growth of 7.1% and adjusted revenue growth of 15.4%.

• Completed the acquisition of Magic/Magic Software Enterprises in February 2026, making it a wholly owned subsidiary and significantly expanding international operations and technological capabilities.

• Maintained strong dividend policy, distributing up to 75% of net profit to shareholders, with total 2025 distributions of NIS 220.8 million.

• Issued NIS 297 million in convertible bonds (Series 2) in February 2026 to refinance higher-cost debt and strengthen the capital structure.

• EBITDA rose to NIS 721.2 million (11.6% of revenues), and operating income hit NIS 522.1 million (8.4% of revenues), both record highs.

Financial highlights

• FY 2025 revenue grew 11.8% to NIS 6.24 billion; adjusted for net basis revenue recognition, growth was 15.4%.

• Gross profit rose 12.8% to NIS 940 million, with margin improving to 15.1%.

• Operating profit increased 16% to NIS 522 million, margin up to 8.4%.

• Net income climbed 14.6% to NIS 330 million, margin at 5.3%; net income attributable to shareholders at NIS 307.3 million (up 12.8%).

• EBITDA up 13.2% to NIS 721 million; operating cash flow up 34.9% to NIS 835 million.

• Q4 2025 revenue up 16.4% year-over-year to NIS 1.6 billion; net income up 20.5% to NIS 89 million.

• Net cash position improved to NIS 149.9 million from net debt of NIS 116.6 million in 2024.

Outlook and guidance

• Targeting continued organic growth, especially in AI, cyber, cloud, and digital transformation sectors, with strategic focus on Israel and the US.

• Integration of Magic expected to generate synergies, broaden the technology portfolio, and strengthen global operations.

• Aims to maintain operating margin above 9% due to merger synergies and higher international profitability.

• Plans to accelerate acquisitions, particularly in the US and defense sectors.

• Management expects continued growth in backlog and profitability, supported by a strong pipeline and sectoral diversification.