Formula Systems Reports First Quarter 2026 Financial Results
Rhea-AI Summary
Formula Systems (Nasdaq/TASE: FORTY) reported record Q1 2026 results. Revenue rose 19.2% year over year to $738.3 million and operating income grew 65.6% to $82.0 million, including a $16.8 million capital gain.
Net income attributable to shareholders increased 84.5% to $35.6 million ($2.25 EPS). Net income from continued operations rose 203.4% to $35.6 million, or 60.5% to $18.9 million excluding the capital gain. The company completed the Matrix–Magic Software merger, remained in full compliance with debenture covenants, and held $1.18 billion in cash and deposits. A special cash dividend of $13.045 per share (about $200 million) will be paid on June 4, 2026 to shareholders of record on May 25, 2026.
AI-generated analysis. Not financial advice.
Positive
- Q1 2026 revenue up 19.2% year over year to $738.3 million
- Q1 2026 operating income up 65.6% to $82.0 million, or 31.7% to $65.2 million excluding capital gain
- Net income attributable to shareholders up 84.5% to $35.6 million, $2.25 per diluted share
- Net income from continued operations up 203.4% to $35.6 million; 60.5% to $18.9 million excluding capital gain
- Special cash dividend of $13.045 per share, totaling approximately $200 million, approved for June 4, 2026 payment
- Total equity increased to $1.82 billion, representing 50.1% of total assets, with all debenture covenants satisfied
Negative
- Consolidated cash and short-term deposits declined from $1.28 billion at December 31, 2025 to $1.18 billion at March 31, 2026
- Formula’s ownership in TSG diluted from 37.33% to 33.08% following TSG’s private placement and employee stock compensation exercises
Key Figures
Market Reality Check
Peers on Argus
FORTY fell 3.32% while peers were mixed: ASGN -19.65%, DXC +0.7%, GLOB +1.5%, VNET +6.14%, WNS +0.1%, suggesting a stock-specific move rather than a broad sector rotation.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Mar 26 | Q4/FY 2025 earnings | Positive | +2.4% | Record 2025 revenue and net income driven by Sapiens sale and subsidiaries. |
| Nov 20 | Q3 2025 earnings | Positive | -7.0% | Strong Q3 and nine‑month growth with Sapiens treated as discontinued ops. |
| Aug 19 | Q2 2025 earnings | Positive | +3.2% | Record Q2 revenue, higher operating income despite lower net income. |
| May 22 | Q1 2025 earnings | Positive | -6.5% | Record Q1 revenue and profits plus dividend declaration and strong balance sheet. |
| Mar 20 | Q4/FY 2024 earnings | Positive | -2.3% | Record 2024 revenue and net income plus Matrix–Magic merger MOU. |
Earnings releases have often been strong fundamentally, but share reactions skew modestly negative, with more divergences than alignments.
Over the past five earnings-related announcements from Mar 2024–Mar 2026, Formula Systems consistently reported record or growing revenues, solid operating income, and strategic moves such as the Sapiens sale and the Matrix–Magic merger. Despite generally strong fundamentals, share reactions were mixed: three events saw negative next‑day moves, while two were positive. The current Q1 2026 release, with record revenue and net income plus contributions from the TSG capital gain and Matrix–Magic merger, continues this pattern of robust operational performance alongside uneven market responses.
Historical Comparison
In the last 5 earnings releases, FORTY’s average next‑day move was -2.04%. Today’s -3.32% move on record Q1 2026 results fits the pattern of cautious to negative reactions despite strong fundamentals.
Earnings updates show progression from record 2024 results, through Sapiens’ sale and reclassification as discontinued operations, to the Matrix–Magic merger and now record Q1 2026 performance across key metrics.
Market Pulse Summary
This announcement highlights record Q1 2026 revenue of $738.3 million and net income of $35.6 million, aided by strong subsidiary contributions and a $16.8 million gain from TSG transactions. It follows a recently declared $13.045-per-share special dividend totaling about $200 million. Compared with prior earnings releases, the company continues to emphasize balance sheet strength, covenant compliance, and growth at Matrix, Michpal and TSG. Key metrics to watch include organic revenue growth, recurring profitability, and further capital deployment decisions.
Key Terms
reverse triangular merger financial
private placement financial
IFRS 5 regulatory
EBITDA financial
debentures financial
AI-generated analysis. Not financial advice.
Revenues for the first quarter increased by
OR YEHUDA, Israel, May 28, 2026 (GLOBE NEWSWIRE) -- Formula Systems (1985) Ltd. (Nasdaq and TASE: FORTY) (“Formula” or the “Company”), a global information technology group engaged, through its subsidiaries and affiliates, in providing software consulting services and computer-based business solutions and developing proprietary software products, today announced its results of operations for the first quarter ended March 31, 2026.
Financial Highlights for the First Quarter of 2026
- On February 24, 2026, Matrix IT Ltd. (“Matrix”) and Magic Software Enterprises Ltd. (“Magic Software”), both subsidiaries of the Company, announced the completion of their merger agreement. The transaction, which was effected through a reverse triangular merger, resulted in Matrix acquiring all of the issued and outstanding share capital of Magic Software in consideration for the allotment of 28,861,564 ordinary shares of Matrix to Magic Software’s shareholders (0.5878202 Matrix ordinary shares for each Magic Software ordinary share). Following completion of the merger, Magic Software became a wholly owned (
100% ) subsidiary of Matrix, its shares were delisted from trading on Nasdaq and the Tel Aviv Stock Exchange, and it ceased to be a public company. - Revenues for the first quarter ended March 31, 2026 increased by
19.2% year over year, reaching a first quarter record-breaking$738.3 million , compared to$619.4 million in the same period last year. - Operating income for the first quarter ended March 31, 2026 increased by
65.6% year over year, reaching a first quarter record-breaking$82.0 million compared to$49.5 million in the same period last year. Operating income for the first quarter of 2026 included a capital gain of$16.8 million resulting from exercise of employee stock-based compensation and a secondary private placement transaction completed by our affiliate, TSG IT Advanced Systems Ltd. (“TSG”), in January 2026. On January 13, 2026, TSG’s Board of Directors approved a capital raise through a private placement to institutional investors, pursuant to which TSG raised approximately NIS 192 million (approximately$58.9 million ) through the issuance of 320,374 ordinary shares at a price of NIS 600 per share, together with 128,150 non-tradable warrants (allocated at no additional consideration at a ratio of 0.4 warrant per share), each exercisable for one ordinary share at an exercise price of NIS 720 per share through July 22, 2027. The terms of the private placement also provides for a potential additional investment by the institutional investors of approximately NIS 92 million (approximately$29.1 million ) in the event all warrants are fully exercised. The allocated shares and warrants represent approximately9.23% of TSG’s fully diluted share capital. As a result of this transaction and the exercise of TSG’s employee stock-based compensation,during the first quarter of 2026 Formula’s ownership interest in TSG was diluted from37.33% to33.08% , causing the$16.8 million capital gain. Excluding this capital gain, operating income would have increased by31.7% year over year, to$65.2 million . - Net income from continued operations attributable to Formula’s shareholders for the first quarter ended March 31, 2026, increased by approximately
203.4% year over year, reaching a first quarter record-breaking$35.6 million , or$2.25 per fully diluted share, compared to$11.7 million , or$0.75 per fully diluted share, in the same period last year. Excluding the impact of the capital gain resulting from TSG’s secondary private placement transaction and the exercise of TSG’s employee stock-based compensation, net income from continued operations attributable to Formula’s shareholders would have increased by60.5% year over year, to$18.9 million . - Net income attributable to Formula’s shareholders for the first quarter ended March 31, 2026 increased by approximately
84.5% year over year, reaching a first quarter record-braking$35.6 million , or$2.25 per fully diluted share, compared to$19.3 million , or$1.23 per fully diluted share, in the same period last year. - On May 14, 2026, Formula announced that its board of directors has approved the distribution of a special cash dividend, based on its results for 2025, including, in particular, the completion of the acquisition of Formula’s former subsidiary Sapiens International Corporation (“Sapiens”) by Advent, of
$13.045 per share, or approximately$200.0 million in total. The dividend will be paid in U.S dollars on June 4, 2026, to all of the Company’s shareholders of record at the close of trading on the Nasdaq Global Select Market (or the Tel-Aviv Stock Exchange, as appropriate) on May 25, 2026. - As of March 31, 2026, Formula held
47.67% ,18.68% ,69.09% ,33.08% ,90.09% ,80% ,100% ,100% ,51% and100% of the outstanding ordinary shares of Matrix IT Ltd., SI Swan UK Topco Limited., Michpal Technologies Ltd., TSG IT Advanced Systems Ltd., Insync Staffing, Inc., Ofek Aerial Photography Ltd., ZAP Group Ltd., Shamrad Electronic (1997) Ltd., Hashahar Telecom And Electricity Ltd., and Formula Infrastructure Ltd., respectively. - Consolidated cash and cash equivalents and short-term bank deposits totaled approximately
$1.18 billion as of March 31, 2026, compared to$1.28 billion as of December 31, 2025. - Total equity as of March 31, 2026 was
$1.82 billion (representing50.1% of the total consolidated statements of financial position), compared to$1.78 billion (representing49.6% of the total consolidated statements of financial position) as of December 31, 2025. - The above comparative figures for the first quarter ended March 31, 2025 reflect the reclassification of the results of Sapiens (of which Formula sold its controlling interest in December 2025), as discontinued operations, in accordance with IFRS 5. Similarly, the Company’s record-breaking consolidated results for the quarter ended March 31, 2026 (as described above) are relative to the Company’s historical consolidated results in prior years that exclude Sapiens.
Debentures Covenants
As of March 31, 2026, Formula was in compliance with all of its financial covenants under the debenture series issued by it, based on the following achievements:
Covenant 1
- Target equity attributable to Formula’s shareholders (excluding non-controlling interests): above
$325 million . - Actual equity attributable to Formula’s shareholders as of March 31, 2026 was
$1.38 billion .
Covenant 2
- Target ratio of net financial indebtedness to net capitalization (in each case, as defined under the indenture for Formula’s Series C and D Secured Debentures): below
65% . - Actual ratio of net financial indebtedness to net capitalization, as of March 31, 2026 was (
55.46% ).
Covenant 3
- Target ratio of net financial indebtedness to EBITDA (based on the accumulated calculation for the four most recent quarters): below 5.
- Actual ratio of net financial indebtedness to EBITDA as of March 31, 2026 was (
376.94% ).
Comments of Management
Commenting on the results, Guy Bernstein, CEO of Formula Systems, said: “We continue to demonstrate strong and consistent performance, delivering record-breaking results in the first quarter across all key financial metrics: revenues, gross profit, operating income, net income and EBITDA. These results reflect the breadth of our portfolio and our teams’ commitment to operational excellence. With solid execution across all business segments, we remain confident in our ability to drive sustained, profitable growth throughout 2026.”
“Matrix reported a strong start to 2026 in its first quarter following the completion of the merger with Magic Software, with significant growth in profitability and improved margins. First quarter revenues increased by
“Michpal Technologies opened 2026 with a strong first quarter, reflecting continued growth across all financial metrics and demonstrating its ability to leverage synergies and expand revenues and profits across it two business segments. With a solid cash position of approximately NIS 302 million (approximately
“TSG opened 2026 with record-breaking first quarter results, demonstrating continued significant growth in revenues and profits across its business segments. Revenues for the first quarter of 2026 increased by approximately
Stand-Alone Financial Measures
This press release presents, further below, certain stand-alone financial measures to reflect Formula’s stand-alone financial position in reference to its assets and liabilities as the parent company of its group of companies. These financial measures are prepared consistently with the accounting principles applied in the consolidated financial statements of the group. Such measures include investments in subsidiaries and a jointly controlled entity measured at cost adjusted by Formula’s share in the investees’ accumulated undistributed earnings and other comprehensive income or loss.
Formula believes that these financial measures provide useful information to management and investors regarding Formula’s stand-alone financial position. Formula’s management uses these measures to compare the Company’s performance in the current period to that of prior periods for trend analysis. These measures are also used in financial reports prepared for management and in quarterly financial reports presented to the Company’s board of directors. The Company believes that the use of these stand-alone financial measures provides an additional tool for investors to use in evaluating Formula’s financial position.
Management of the Company does not consider these stand-alone measures in isolation or as an alternative to financial measures determined in accordance with IFRS. Formula Systems urges investors to review the consolidated financial statements which it includes in press releases announcing quarterly financial results, including this press release, and not to rely on any single financial measure to evaluate the Company’s business or financial position.
About Formula
Formula Systems (1985) Ltd., whose ordinary shares are traded on the Tel-Aviv Stock Exchange and ADSs are traded on the Nasdaq Global Select Market, is a global information technology holding company engaged, through its subsidiaries and affiliates, in providing software consulting services and computer-based business solutions and developing proprietary software products.
For more information, visit www.formulasystems.com.
Press Contact:
Formula Systems (1985) Ltd.
+972-3-5389305
ir@formula.co.il
Forward Looking Statements
Certain matters discussed in this press release that are incorporated herein and therein by reference are forward-looking statements within the meaning of Section 27A of the Securities Act, Section 21E of the Exchange Act and the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, that are based on Formula’s (“we,” “us” or “our”) beliefs, assumptions and expectations, as well as information currently available to us. Such forward-looking statements may be identified by the use of the words “anticipate,” “believe,” “estimate,” “expect,” “may,” “will,” “plan” and similar expressions. Such statements reflect our current views with respect to future events and are subject to certain risks and uncertainties. There are important factors that could cause our actual results, levels of activity, performance or achievements to differ materially from the results, levels of activity, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to: adverse macro-economic trends and their duration, including persistent inflation, relatively high interest rates, and supply chain delays, which trends may last for a significant period and materially adversely affect our results of operations; the degree of our success in our plans to leverage our global footprint to grow our sales; the degree of our success in integrating the companies that we have acquired through the implementation of our M&A growth strategy; the degree of our success in developing and deploying new technologies for software solutions that address the updated needs of our customers and serve as the basis for our revenues; the lengthy development cycles for our solutions, which may frustrate our ability to realize revenues and/or profits from our potential new solutions; our lengthy and complex sales cycles, which do not always result in the realization of revenues; the degree of our success in retaining our existing customers or competing effectively for greater market share; difficulties in successfully planning and managing changes in the size of our operations; the frequency of the long-term, large, complex projects that we perform that involve complex estimates of project costs and profit margins, which sometimes change mid-stream; the challenges and potential liability that heightened privacy laws and regulations pose to our business; occasional disputes with clients, which may adversely impact our results of operations and our reputation; various intellectual property issues related to our business; potential unanticipated product vulnerabilities or cybersecurity breaches of our or our customers’ systems particularly in the current hybrid office/work-from-home environment; risks related to industries, such as the insurance, healthcare, defense and telecom industries, in which certain of our clients operate; risks posed by our global sales and operations, such as changes in regulatory requirements, supply chain disruptions, geopolitical factors, wide-spread viruses and epidemics or fluctuations in currency exchange rates; and risks related to our and our subsidiaries’ principal location in Israel.
While we believe such forward-looking statements are based on reasonable assumptions, should one or more of the underlying assumptions prove incorrect, or these risks or uncertainties materialize, our actual results may differ materially from those expressed or implied by the forward-looking statements. Please read the risks discussed under the heading “Item 3.D Risk Factors” in our most recent Annual Report on Form 20-F for the year ended December 31, 2025, filed with the U.S. Securities and Exchange Commission on May 13, 2026, in order to review conditions that we believe could cause actual results to differ materially from those contemplated by the forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance, events and circumstances reflected in the forward-looking statements will be achieved or will occur. Except as required by law, we do not undertake to update publicly any forward-looking statements for any reason, or to conform those statements to actual results or to changes in our expectations.
FORMULA SYSTEMS (1985) LTD.
CONSOLIDATED CONDENSED STATEMENTS OF PROFIT OR LOSS
U.S. dollars in thousands (except per share data)
| Three months ended | ||||||||
| March 31, | ||||||||
| 2026 | 2025(*) | |||||||
| Unaudited | ||||||||
| Revenues | 738,285 | 619,383 | ||||||
| Cost of revenues | 592,249 | 499,154 | ||||||
| Gross profit | 146,036 | 120,229 | ||||||
| Research and development expenses, net | 5,169 | 4,811 | ||||||
| Selling, marketing and general and administrative expenses | 75,647 | 65,894 | ||||||
| Other income, net | 16,785 | - | ||||||
| Operating income | 82,005 | 49,524 | ||||||
| Financial expenses, net | 4,170 | 6,494 | ||||||
| Income before taxes on income | 77,835 | 43,030 | ||||||
| Taxes on income | 15,377 | 10,969 | ||||||
| Income after taxes | 62,458 | 32,061 | ||||||
| Share of profit of companies accounted for at equity, net | 297 | 828 | ||||||
| Net income from continued operations | 62,755 | 32,889 | ||||||
| Net income from discontinued operations | - | 17,493 | ||||||
| Net income | 62,755 | 50,382 | ||||||
| Net income attributable to non-controlling interests from continued operations | 27,116 | 21,141 | ||||||
| Net income attributable to non-controlling interests from discontinued operations | - | 9,925 | ||||||
| Net income attributable to non-controlling interests | 27,116 | 31,066 | ||||||
| Net income attributable to Formula’s shareholders from continued operations | 35,639 | 11,748 | ||||||
| Net income attributable to Formula’s shareholders from discontinued operations | 0 | 7,568 | ||||||
| Net income attributable to Formula’s shareholders | 35,639 | 19,316 | ||||||
| Earnings per share from continued operations (basic) | 2.33 | 0.77 | ||||||
| Earnings per share from discontinued operations (basic) | - | 0.49 | ||||||
| Earnings per share (basic) | 2.33 | 1.26 | ||||||
| Earnings per share from continued operations (diluted) | 2.25 | 0.75 | ||||||
| Earnings per share from discontinued operations (diluted) | - | 0.48 | ||||||
| Earnings per share (diluted) | 2.25 | 1.23 | ||||||
| Number of shares used in computing earnings per share (basic) | 15,317,067 | 15,311,924 | ||||||
| Number of shares used in computing earnings per share (diluted) | 15,838,550 | 15,729,173 | ||||||
| (*) | Following the completion of the acquisition of Sapiens International Corporation by Advent, comparative figures for the first quarter of 2025 have been reclassified to present the results of Sapiens as discontinued operations. |
FORMULA SYSTEMS (1985) LTD.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
U.S. dollars in thousands
| March 31, | December 31, | |||||||
| 2026 | 2025 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | 1,181,911 | 1,280,121 | ||||||
| Short-term deposits | 631 | 372 | ||||||
| Marketable securities | 363 | - | ||||||
| Trade receivables, net | 844,559 | 774,471 | ||||||
| Prepaid expenses and other accounts receivable | 110,699 | 80,604 | ||||||
| Inventories | 36,304 | 30,249 | ||||||
| Total current assets | 2,174,467 | 2,165,817 | ||||||
| NON-CURRENT ASSETS: | ||||||||
| Financial assets measured at fair value through profit or loss | 303,751 | 304,549 | ||||||
| Long-term investments and receivables | 48,407 | 50,126 | ||||||
| Deferred taxes | 26,974 | 26,915 | ||||||
| Investments in companies accounted for at equity | 66,124 | 48,908 | ||||||
| Property, plants and equipment, net | 54,837 | 47,614 | ||||||
| Right-of-use assets | 144,458 | 145,462 | ||||||
| Intangible assets, net and goodwill | 819,128 | 793,864 | ||||||
| Total non-current assets | 1,463,679 | 1,417,438 | ||||||
| Total assets | 3,638,146 | 3,583,255 | ||||||
| LIABILITIES AND EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Loans from banks and others | 240,568 | 177,899 | ||||||
| Debentures | 78,703 | 76,696 | ||||||
| Current maturities of lease liabilities | 43,573 | 42,899 | ||||||
| Trade payables | 367,127 | 368,319 | ||||||
| Deferred revenues | 185,566 | 157,545 | ||||||
| Employees and payroll accrual | 236,123 | 235,705 | ||||||
| Other accounts payable | 76,886 | 195,817 | ||||||
| Dividend payable | - | 7,886 | ||||||
| Liabilities in respect of business combinations | 4,274 | 6,359 | ||||||
| Put options of non-controlling interests | 59,060 | 61,206 | ||||||
| Total current liabilities | 1,291,880 | 1,330,331 | ||||||
| LONG-TERM LIABILITIES: | ||||||||
| Loans from banks and others | 26,590 | 68,309 | ||||||
| Debentures | 107,939 | 118,656 | ||||||
| Convertible debentures | 78,344 | - | ||||||
| Lease liabilities | 105,763 | 107,805 | ||||||
| Other long-term liabilities | - | 54 | ||||||
| Deferred taxes | 88,143 | 83,426 | ||||||
| Deferred revenues | 14,693 | 16,457 | ||||||
| Liabilities in respect of business combinations | 15,249 | 13,291 | ||||||
| Put options of non-controlling interests | 79,003 | 61,577 | ||||||
| Employee benefit liabilities | 6,485 | 5,547 | ||||||
| Total long-term liabilities | 522,209 | 475,122 | ||||||
| EQUITY | ||||||||
| Total equity attributable to Formula Systems (1985) Ltd. shareholders | 1,384,909 | 1,353,263 | ||||||
| Non-controlling interests | 439,148 | 424,539 | ||||||
| Total equity | 1,824,057 | 1,777,802 | ||||||
| Total liabilities and equity | 3,638,146 | 3,583,255 | ||||||
FORMULA SYSTEMS (1985) LTD.
STAND-ALONE STATEMENTS OF FINANCIAL POSITION
U.S. dollars in thousands
| March 31, | December 31, | |||||||
| 2026 | 2025 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | 740,881 | 793,131 | ||||||
| Dividend receivable | 12,011 | 448 | ||||||
| Other accounts receivable and prepaid expenses | 5,689 | 5,527 | ||||||
| Total current assets | 758,581 | 799,106 | ||||||
| NON-CURRENT ASSETS: | ||||||||
| Investment in subsidiaries and a jointly controlled entity (*) | ||||||||
| Matrix IT Ltd. | 317,756 | 183,214 | ||||||
| Magic Software Enterprises Ltd. | - | 132,183 | ||||||
| TSG IT Advanced Systems Ltd. | 51,607 | 33,882 | ||||||
| Michpal Technologies Ltd. | 109,242 | 108,099 | ||||||
| ZAP Group Ltd. | 46,666 | 48,154 | ||||||
| Other | 80,910 | 50,428 | ||||||
| Total investment in subsidiaries and a jointly controlled entity | 606,181 | 555,960 | ||||||
| Financial assets measured at fair value through profit or loss | 300,000 | 300,000 | ||||||
| Other investments and long term receivables | 21,150 | 23,904 | ||||||
| Property, plants and equipment, net | 32 | 13 | ||||||
| Total non-current assets | 927,363 | 879,877 | ||||||
| Total assets | 1,685,944 | 1,678,983 | ||||||
| LIABILITIES AND EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Loans from banks and others | 105,975 | 15,158 | ||||||
| Debentures | 53,742 | 52,350 | ||||||
| Trade payables | 1,397 | 963 | ||||||
| Other accounts payable | 42,534 | 152,634 | ||||||
| Put options of non-controlling interests | 2,165 | 992 | ||||||
| Dividends payable | - | 7,883 | ||||||
| Total current liabilities | 205,813 | 229,980 | ||||||
| LONG-TERM LIABILITIES: | ||||||||
| Loans from banks and others | 219 | 871 | ||||||
| Debentures | 46,618 | 46,204 | ||||||
| Deferred taxes Liability | 48,385 | 48,665 | ||||||
| Total long-term liabilities | 95,222 | 95,740 | ||||||
| EQUITY | 1,384,909 | 1,353,263 | ||||||
| TOTAL LIABILITIES AND EQUITY | 1,685,944 | 1,678,983 | ||||||
| (*) | The investments’ carrying amounts are measured consistent with the accounting principles applied in the consolidated financial statements of the Group and representing the investments’ cost adjusted by Formula’s share in the investees’ accumulated undistributed earnings and other comprehensive income or loss. |
