Formula Systems (1985) (FORTY) Q3 2025 earnings summary

Executive summary

• Revenues for Q3 2025 rose 23.6% year-over-year to $696.6 million, and for the nine months ended September 30, 2025, increased 15.6% to $1.92 billion.

• Operating income for Q3 2025 grew 10.8% year-over-year to $54.6 million; excluding a prior-year capital gain, Q3 operating income rose 27.7%.

• Net income attributable to shareholders for Q3 2025 fell 26.6% year-over-year to $17.3 million ($1.08 per diluted share); excluding the capital gain, net income increased 1.2%.

• Sapiens International is being acquired by Advent; Formula will retain an 18% stake, and Sapiens results are now reported as discontinued operations.

Financial highlights

• Q3 2025 net income from continued operations attributable to shareholders was $11.6 million ($0.73 per diluted share), down 26.4% year-over-year; excluding the capital gain, it increased 25.2%.

• Nine-month net income attributable to shareholders was $51.7 million ($3.24 per diluted share), down 13.3% year-over-year; excluding the capital gain, it decreased 2.7%.

• Cash and cash equivalents plus short-term deposits totaled $432.1 million as of September 30, 2025, down from $563.2 million at year-end 2024.

• Total equity as of September 30, 2025, was $1.58 billion, representing 47.4% of total assets.

Outlook and guidance

• Magic Software raised its full-year 2025 revenue guidance to $610–$620 million, anticipating annual growth of 10.4%–12.2%.