ReutersReuters

Israel-based Formula Systems Q2 revenue rises 11.3%

RefinitivLess than 1 min read

Overview

  • IT firm Formula Systems Q2 revenue grows 11.3% yr/yr, reaching $743.4 mln

  • Net income for Q2 declines 20.1% due to increased financial expenses

  • Co announces dividend of NIS 1.69 per share, payable in October

Outlook

  • Magic Software raises 2025 revenue guidance to $600 mln-$610 mln

  • Michpal Technologies preparing for potential IPO, subject to conditions

  • Sapiens' Advent partnership expected to close in Q4 2025 or Q1 2026

Result Drivers

  • SUBSIDIARY PERFORMANCE - Revenue growth driven by increased contributions from subsidiary companies and affiliates

  • EXCHANGE RATE IMPACT - Net income decreased by 20.1% due to increased financial expenses from adverse NIS to USD exchange rate differences

  • ONE-TIME ITEM - Previous year's operating income included a one-time income from Israeli National Insurance, affecting year-over-year comparison

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Revenue

$743.37 mln

Q2 EPS

$0.95

Q2 Basic EPS

$0.98

Q2 Gross Profit

$185.50 mln

Q2 Operating Income

$67.89 mln

Q2 Pretax Profit

$57.66 mln

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