Welcome to our dedicated page for Formula Systems news (Ticker: FORTY), a resource for investors and traders seeking the latest updates and insights on Formula Systems stock.
Formula Systems (FORTY) is a leading Israeli IT holding company providing specialized technology solutions through subsidiaries like Matrix (software development), Sapiens (insurance software), and Magic Software (vendor management systems). This page serves as the definitive source for all official company announcements and market-relevant updates.
Investors and industry professionals will find curated news about quarterly earnings reports, strategic partnerships, and technology innovations. Our collection includes press releases detailing new software deployments, leadership changes, and operational developments across the company's three core segments.
Bookmark this resource for real-time updates on FORTY's progress in enterprise IT solutions, insurance sector advancements, and workforce management technologies. Check regularly for verified information about the company's market positioning and technological initiatives in Israel's dynamic tech sector.
Formula Systems (FORTY) reported strong financial results for Q4 and full year 2024. The company achieved record-breaking annual revenues of $2.76 billion, marking a 5.2% year-over-year increase, while net income grew 24.5% to $79.7 million.
A significant highlight is the announced non-binding MOU between Matrix and Magic Software for a landmark merger transaction. Under the proposed deal, Matrix would acquire Magic Software through a reverse triangular merger, creating a combined entity with an approximate market cap of NIS 7.7 billion ($2.1 billion). The exchange ratio is set at 68.875% / 31.125% between Matrix and Magic Software shareholders.
Key subsidiary performances include:
- Matrix: Record Q4 with 4.1% revenue growth to NIS 1.37 billion
- Magic Software: 13.6% revenue growth to $142.6 million in Q4
- Sapiens: Full-year revenues reached $542.4 million, up 5.4%
- Michpal Technologies: 12% revenue growth to NIS 159 million
- TSG: Q4 revenues up 19.2% to NIS 85.6 million
Formula Systems reported strong Q3 2024 financial results with revenues increasing 6.9% year-over-year to a record $699.9 million. Operating income grew 21.9% to $71.0 million, including a $6.5 million capital gain from TSG IT Advanced Systems' IPO. Net income attributable to shareholders rose 51.4% to $23.6 million ($1.51 per share). For the nine-month period, revenues increased 4.3% to $2.07 billion, with operating income up 11% to $198.7 million. The company maintains strong cash positions with $510.9 million in cash and short-term deposits, and total equity of $1.36 billion as of September 30, 2024.
Formula Systems (NASDAQ: FORTY) reported strong financial results for Q2 and H1 2024. Q2 highlights include:
- Revenue increased 1.9% to $667.7 million
- Operating income rose 8.4% to a record $65.0 million
- Net income attributable to shareholders grew 10.7% to $18.8 million
H1 2024 performance:
- Revenue up 3.0% to $1.37 billion
- Operating income increased 5.7% to $127.6 million
- Net income attributable to shareholders rose 10.1% to $36.0 million
The company declared a dividend of NIS 2.32 per share. Formula's subsidiaries, including Matrix, Sapiens, and Magic Software, reported strong results across various sectors.
Formula Systems (1985) (FORTY) has published a draft agreement for a potential new series of secured, non-convertible debentures—Series D Debentures—in Israel. These debentures would be secured by a first lien on shares of Matrix IT , Sapiens International N.V., and Magic Software Enterprises , with a loan-to-value ratio not exceeding 60%. The repayment schedule includes seven annual payments of 12% from 2027 to 2033, with a final 16% payment in 2034. Interest payments begin on December 1, 2024, followed by semi-annual payments through 2034.
S&P and Midroog have issued credit ratings of ilAA- and Aa3.il respectively for the potential Series D Debentures, for up to NIS 150 million. These ratings match Formula's current Series C Debentures and corporate credit ratings. The offering is subject to regulatory approvals and will be available only to Israeli residents.
Formula Systems (FORTY) reported first-quarter 2024 financial results, showing a 4.2% year-over-year revenue increase to $698.4 million. Net income rose by 9.4% to $17.2 million ($1.10 per fully diluted share). Operating income increased by 2.9% to $62.6 million. The company’s consolidated cash and equivalents totaled $516.1 million as of March 31, 2024. Total equity remained at $1.31 billion.
Matrix IT achieved a 12.6% revenue growth, reaching an all-time high of approximately $396.9 million. Sapiens' revenues grew by 7.6% to $134.2 million. Magic Software's revenues decreased by 8.2% year-over-year but saw a 4.1% quarter-over-quarter increase. Michpal's revenues grew 14% year-over-year to approximately $10.4 million. TSG’s operating income increased by 15.4% year-over-year.
Despite challenges, including the mobilization of 250 employees due to military service, Formula Systems maintained strong financial performance and compliance with financial covenants.
Formula Systems announced the filing of its 2023 annual report, which includes audited consolidated financial statements up to December 31, 2023. The report is accessible on the company's website, and shareholders can request a hard copy free of charge. As a global IT group, Formula Systems focuses on software consulting services, computer-based business solutions, and proprietary software products.
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