Formula Systems Financials
This page shows Formula Systems (FORTY) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 12 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
FY2025 shows a cash-rich, lightly levered balance sheet but earnings that convert to cash less cleanly.
With net income of$669M but operating cash flow of only$382M , and free cash flow still$366M because capex was just$16M , cash conversion was materially lower than reported profit. That combination points to an asset-light operating model whose accounting earnings include a sizable non-cash element in FY2025.
Cash of
Some figures from recent filings were inconsistent and were omitted from this summary.
Financial Health Signals
Based on FY2025 annual data, averaged across the last 3 years for performance metrics (most-recent year weighted highest). How this score is calculated →
Health score ≠ stock price. This rates the quality of Formula Systems's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Formula Systems carries a low D/E ratio of 0.06, meaning only $0.06 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 100/100, indicating a strong balance sheet with room for future borrowing.
Formula Systems's current ratio of 1.63 is below the typical benchmark, resulting in a score of 28/100. However, the company holds substantial cash reserves (96% of current liabilities), which buffers actual liquidity risk. Large mature operators often run tight current ratios by design.
Formula Systems has a free cash flow margin of 13.9%, earning a moderate score of 60/100. The company generates positive cash flow after capital investments, but with room for improvement.
Formula Systems earns a strong 37.6% return on equity (ROE), meaning it generates $38 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 95/100.
For every $1 of reported earnings, Formula Systems generates $0.57 in operating cash flow ($382.0M OCF vs $669.1M net income). This mixed ratio suggests some earnings may rely on non-cash accounting items.
Key Financial Metrics
Earnings & Revenue
Formula Systems generated $2.6B in revenue in fiscal year 2025.
Formula Systems reported $669.1M in net income in fiscal year 2025. This represents an increase of 371.5% from the prior year.
Formula Systems earned $2.30 per diluted share (EPS) in fiscal year 2025.
Cash & Balance Sheet
Formula Systems generated $365.9M in free cash flow in fiscal year 2025, representing cash available after capex.
Formula Systems held $1.3B in cash against $107.8M in long-term debt as of fiscal year 2025.
Formula Systems had 15M shares outstanding in fiscal year 2025. This represents an increase of 0.3% from the prior year.
Margins & Returns
Formula Systems's net profit margin was 25.5% in fiscal year 2025, showing the share of revenue converted to profit.
Formula Systems's ROE was 37.6% in fiscal year 2025, measuring profit generated per dollar of shareholder equity.
Capital Allocation
Formula Systems invested $16.2M in capex in fiscal year 2025, funding long-term assets and infrastructure.
FORTY Income Statement
| Metric | Q3'16 | Q3'15 | Q3'14 | Q3'13 | Q3'12 | Q3'11 |
|---|---|---|---|---|---|---|
| Revenue | N/A | N/A | N/A | N/A | N/A | N/A |
| Cost of Revenue | N/A | N/A | N/A | N/A | N/A | N/A |
| Gross Profit | N/A | N/A | N/A | N/A | N/A | N/A |
| R&D Expenses | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A Expenses | N/A | N/A | N/A | N/A | N/A | N/A |
| Operating Income | N/A | N/A | N/A | N/A | N/A | N/A |
| Interest Expense | N/A | N/A | N/A | N/A | N/A | N/A |
| Income Tax | N/A | N/A | N/A | N/A | N/A | N/A |
| Net Income | N/A | N/A | N/A | N/A | N/A | N/A |
| EPS (Diluted) | N/A | N/A | N/A | N/A | N/A | N/A |
FORTY Balance Sheet
| Metric | Q3'16 | Q3'15 | Q3'14 | Q3'13 | Q3'12 | Q3'11 |
|---|---|---|---|---|---|---|
| Total Assets | $1.1B-5.2% | $1.1B+29.1% | $871.8M-1.1% | $881.6M+31.4% | $671.1M+7.6% | $623.8M |
| Current Assets | $357.5M-0.3% | $358.5M+7.6% | $333.2M-9.7% | $369.0M+20.2% | $307.0M-7.5% | $331.8M |
| Cash & Equivalents | $132.6M+23.4% | $107.4M+30.8% | $82.1M-26.2% | $111.2M+26.2% | $88.2M-20.2% | $110.5M |
| Inventory | $4.6M+104.1% | $2.3M-6.1% | $2.4M+12.0% | $2.1M-12.3% | $2.5M-56.3% | $5.6M |
| Accounts Receivable | $176.7M-9.5% | $195.3M+0.9% | $193.6M-4.1% | $201.9M+23.7% | $163.2M+5.7% | $154.4M |
| Goodwill | $162.2M-56.5% | $373.2M+64.1% | $227.4M-30.4% | $326.9M+3656.1% | $8.7M-94.8% | $166.5M |
| Total Liabilities | $504.2M-31.4% | $735.4M+85.9% | $395.6M-37.8% | $636.6M+99.6% | $318.9M-25.2% | $426.2M |
| Current Liabilities | $211.8M-6.5% | $226.6M+7.4% | $211.0M-5.8% | $224.0M+22.6% | $182.7M+2.6% | $178.0M |
| Long-Term Debt | $58.3M | $0 | $0 | $0-100.0% | $15.2M-52.1% | $31.9M |
| Total Equity | $451.6M+15.9% | $389.7M+22.0% | $319.3M+30.3% | $245.1M+12.1% | $218.7M+10.7% | $197.6M |
| Retained Earnings | $318.7M+27.5% | $250.0M+35.8% | $184.1M+59.0% | $115.8M+26.3% | $91.7M+56.9% | $58.4M |
FORTY Cash Flow Statement
| Metric | Q3'16 | Q3'15 | Q3'14 | Q3'13 | Q3'12 | Q3'11 |
|---|---|---|---|---|---|---|
| Operating Cash Flow | N/A | N/A | N/A | N/A | N/A | N/A |
| Capital Expenditures | N/A | N/A | N/A | N/A | N/A | N/A |
| Free Cash Flow | N/A | N/A | N/A | N/A | N/A | N/A |
| Investing Cash Flow | N/A | N/A | N/A | N/A | N/A | N/A |
| Financing Cash Flow | N/A | N/A | N/A | N/A | N/A | N/A |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | N/A | N/A | N/A | N/A | N/A | N/A |
FORTY Financial Ratios
| Metric | Q3'16 | Q3'15 | Q3'14 | Q3'13 | Q3'12 | Q3'11 |
|---|---|---|---|---|---|---|
| Gross Margin | N/A | N/A | N/A | N/A | N/A | N/A |
| Operating Margin | N/A | N/A | N/A | N/A | N/A | N/A |
| Net Margin | N/A | N/A | N/A | N/A | N/A | N/A |
| Return on Equity | N/A | N/A | N/A | N/A | N/A | N/A |
| Return on Assets | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Ratio | 1.69+0.1 | 1.580.0 | 1.58-0.1 | 1.65-0.0 | 1.68-0.2 | 1.86 |
| Debt-to-Equity | 0.13+0.1 | 0.000.0 | 0.000.0 | 0.00-0.1 | 0.07-0.1 | 0.16 |
| FCF Margin | N/A | N/A | N/A | N/A | N/A | N/A |
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Frequently Asked Questions
What is Formula Systems's annual revenue?
Formula Systems (FORTY) reported $2.6B in total revenue for fiscal year 2025. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
Is Formula Systems profitable?
Yes, Formula Systems (FORTY) reported a net income of $669.1M in fiscal year 2025, with a net profit margin of 25.5%.
How much debt does Formula Systems have?
As of fiscal year 2025, Formula Systems (FORTY) had $1.3B in cash and equivalents against $107.8M in long-term debt.
What is Formula Systems's net profit margin?
Formula Systems (FORTY) had a net profit margin of 25.5% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Formula Systems's return on equity (ROE)?
Formula Systems (FORTY) has a return on equity of 37.6% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Formula Systems's free cash flow?
Formula Systems (FORTY) generated $365.9M in free cash flow during fiscal year 2025. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Formula Systems's operating cash flow?
Formula Systems (FORTY) generated $382.0M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Formula Systems's total assets?
Formula Systems (FORTY) had $3.6B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Formula Systems's capital expenditures?
Formula Systems (FORTY) invested $16.2M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
What is Formula Systems's current ratio?
Formula Systems (FORTY) had a current ratio of 1.63 as of fiscal year 2025, which is generally considered healthy.
What is Formula Systems's debt-to-equity ratio?
Formula Systems (FORTY) had a debt-to-equity ratio of 0.06 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Formula Systems's return on assets (ROA)?
Formula Systems (FORTY) had a return on assets of 18.7% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
Are Formula Systems's earnings high quality?
Formula Systems (FORTY) has an earnings quality ratio of 0.57x, considered mixed quality. This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
How financially healthy is Formula Systems?
Formula Systems (FORTY) scores 47 out of 100 on our Financial Profile, indicating moderate overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.