Novolog (NVLG) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue was ₪483.6m and net income was ₪4.3m, down year over year; 9M revenue was ₪1,432.1m and net income rose to ₪41.0m from ₪38.3m.

• Logistics, healthcare and digital health were profitable; logistics was pressured by SAP rollout disruption, one-off expenses and higher ongoing costs.

Financial highlights

• Q3 revenue was ₪483.6m versus ₪550.9m YoY; gross profit was ₪37.1m versus ₪44.4m, and operating profit was ₪10.2m versus ₪16.9m.

• 9M revenue was ₪1,432.1m versus ₪1,482.7m; gross profit fell 23.5% to ₪104.3m, while net income increased to ₪41.0m from ₪38.3m.

• 9M operating cash flow was ₪158.5m versus ₪118.1m; investing cash outflow was ₪50.5m, including ₪48.5m invested in fixed and intangible assets.

• Cash and cash equivalents were ₪247.6m at September 30, 2025, versus ₪239.9m a year earlier; total assets were ₪3,037.1m.

Outlook and guidance

• 2025 Adjusted EBITDA guidance was ₪96–102m, excluding extraordinary events.

• Estimated 2025 financial impact from SAP implementation was ₪18m–₪22m; ₪14.9m was recognized as one-off expenses in 9M, with most remaining impact tied to lower ongoing revenue.

• Most SAP stabilization work was complete; mitigation included customer negotiations, retention measures and a logistics efficiency plan.

• Plans included expanding health-services projects and offerings, and upgrading the digital appointment-booking system.