Israel's Formula Systems Q3 revenue up 23.6%
Formula Systems reported a 23.6% increase in Q3 revenue to $696.6 million, despite a 26.4% decrease in net income from continued operations. The company announced a $0.50 per share dividend payable in January 2026. Magic Software revised its 2025 revenue guidance to $610-$620 million. The Sapiens acquisition by Advent is expected to close by Q1 2026, and a merger between Matrix IT and Magic Software is planned. Subsidiary performance and the Sapiens transaction were key drivers of results.
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Overview
- Formula Systems Q3 revenue grows 23.6% yr/yr to $696.6 mln
- Net income from continued operations decreases 26.4% yr/yr
- Company announces dividend of $0.50 per share, payable January 2026
Outlook
- Magic Software revises full-year 2025 revenue guidance to $610 mln-$620 mln
- Sapiens acquisition by Advent expected to close in Q4 2025 or Q1 2026
- Matrix IT and Magic Software merger to create large IT services entity
Result Drivers
- SUBSIDIARY PERFORMANCE - Matrix IT and Magic Software reported record-breaking Q3 results, driving overall revenue growth
- SAPPIENS TRANSACTION - Sapiens’ acquisition by Advent led to its classification as discontinued operations, impacting financial reporting
Key Details
Metric Beat/Mis Actual Consensu
s s
Estimate
Q3 $696.64
Revenue mln
Q3 EPS $0.76
Q3 Basic $1.13
EPS
Q3 Gross $135.71
Profit mln
Q3 $54.55
Operatin mln
g Income
Q3 $45.70
Pretax mln
Profit
Press Release: For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact . (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
