TSG IT Advanced Systems (TSG) Q3 2025 earnings summary

Executive summary

• Record Q3 results, with revenue, gross profit and operating income rising year over year; 9M revenue and net income also increased.

• Security operations drove growth; acquired businesses contributed to 9M performance.

• Expansion includes international partnerships and acquisitions, alongside investment in AI-driven solutions and modular systems.

Financial highlights

• Q3 revenue was NIS 109.8m vs NIS 84.2m; gross profit was NIS 27.0m vs NIS 19.1m; operating income was NIS 10.1m vs NIS 6.7m.

• 9M revenue was NIS 315.4m vs NIS 236.5m; gross profit was NIS 73.4m vs NIS 53.7m; operating income was NIS 26.8m vs NIS 19.1m.

• 9M net income was NIS 11.3m vs NIS 8.7m; Q3 net income was NIS 4.7m vs NIS 5.0m.

• Q3 adjusted net income was NIS 6.6m vs NIS 7.5m; the prior-year quarter included a NIS 2.7m one-time tax benefit.

• Operating cash flow, as defined by management, was NIS 43.8m for 9M and NIS 14.2m for Q3, vs NIS 34.1m and NIS 11.4m.

Segment performance

• Q3 security revenue was NIS 87.2m vs NIS 62.1m and segment operating profit was NIS 9.5m vs NIS 7.8m.

• Q3 civilian revenue was NIS 22.6m vs NIS 22.1m and segment operating profit was NIS 2.9m vs NIS 1.6m.

• 9M security revenue rose to NIS 248.9m from NIS 168.7m; civilian revenue was NIS 66.5m vs NIS 67.8m, with prior-year revenue including non-recurring call-center activity.