FORMULA SYSTEMS (1985) LTD

Listed Company

FORTYCIK 0001045986NasdaqLarge AcceleratedServices-Computer Programming ServicesL3ILFY ends Dec 31

Period

FY 2024

Revenue

—

Net Income

$193.79M

Total Assets

$3.01B

Equity

—

Shares Out

15.33M

Op. Cash Flow

—

Business

Formula Systems (1985) Ltd is a global information technology parent company that invests in and manages a group of IT services and software companies and directs their strategy while providing management, technical and marketing support. Its investees design, develop and deliver IT consulting, systems integration, cloud and infrastructure services, low-code and proprietary software platforms, insurance core systems, payroll and HR software, digital advertising and staffing solutions. It operates through subsidiaries and equity investees including Matrix, Sapiens, Magic Software, Michpal, Zap Group, InSync, TSG Systems and others organized into segments for IT services, proprietary software, insurance solutions, staffing and digital platforms. Formula serves customers worldwide, with significant activity in Israel, the United States, Europe and APAC, and distributes via direct sales, channel partners, system integrators and digital platforms.

Summary from filing dated 2025-05-15

Financials

Consolidated Statement of Income

Year Ended · In millions, except per-share amounts

Concept	Dec 31, 2025 2025-12-31	Dec 31, 2024 2024-12-31	Dec 31, 2023 2023-12-31
Profit or loss [abstract]	—	—	—
Revenues:	—	—	—
Proprietary software products and related services	209	186	179
Software services and other	2,418	2,033	1,932
Total revenues	2,627	2,218	2,110
Cost of revenues:	—	—	—
Proprietary software products and related services	89	76	78
Software services and other	2,019	1,696	1,612
Total cost of revenues	2,108	1,773	1,689
Gross profit	519	446	421
Research and development expenses, net	20	18	14
Selling, marketing, general and administrative expenses	312	250	249
Other income, net	9	5	—
Operating income	196	183	158
Financial expenses	64	35	36
Financial income	14	10	11
Pre-tax income before share of profits of companies accounted for at equity, net	146	159	133
Share of profits of companies accounted for at equity, net	4	2	773,000
Taxes on income	40	39	32
Net income from continued operations	110	122	102
Net income from discontinued operations	559	72	64
Net income	669	194	166
Net income (loss) attributable to non-controlling interests:	—	—	—
From continued operations	73	74	66
From discontinued operations	−10	40	35
Net income to Non-controlling interests	63	114	102
Net income attributable to Formula’s shareholders:	—	—	—
From continued operations	37	49	36
From discontinued operations	570	31	28
Net income attributable to Formula’s shareholders	606	80	64
Earnings per share from continued operations (basic) (in Dollars per share)	2.39	3.18	2.34
Earnings per share from discontinued operations (basic) (in Dollars per share)	37.24	2.04	1.85
Earnings per share (basic) (in Dollars per share)	39.63	5.22	4.19
Earnings per share from continued operations (diluted) (in Dollars per share)	2.3	3.1	2.3
Earnings per share from discontinued operations (diluted) (in Dollars per share)	36.09	1.99	1.82
Earnings per share (diluted) (in Dollars per share)	38.39	5.09	4.12
Number of shares used in computing:	—	—	—
Earnings per share (basic) (in Shares)	15	15	15
Earnings per share (diluted) (in Shares)	16	16	15

Consolidated Balance Sheet

As of · In millions, except per-share amounts

Concept	Dec 31, 2025 2025-12-31	Dec 31, 2024 2024-12-31
CURRENT ASSETS:	—	—
Cash and cash equivalents	1,280	508
Short-term deposits	372,000	55
Trade receivables, (net from expected credit losses of $14,942 and $18,106 as of December 31, 2025 and 2024, respectively)	774	803
Prepaid expenses and other accounts receivable	81	90
Inventories	30	31
Total current assets	2,166	1,487
NON-CURRENT ASSETS:	—	—
Long-term investments and receivables	50	50
Financial assets measured at fair value through profit or loss	305	5
Investments in companies accounted for at equity	49	39
Property, plant and equipment, net	48	52
Right-of-use assets	145	156
Deferred taxes	27	34
Intangible assets, net	148	217
Goodwill	646	975
Total non-current assets	1,417	1,528
Total assets	3,583	3,015
CURRENT LIABILITIES:	—	—
Loans from banks and others	178	142
Debentures	77	87
Current maturities of lease liabilities	43	45
Trade payables	368	296
Deferred revenues	158	174
Employees and payroll accrual	236	235
Other accounts payable	196	98
Dividend payable	8	—
Liabilities in respect of business combinations	6	9
Put options of non-controlling interests	61	52
Total current liabilities	1,330	1,138
LONG-TERM LIABILITIES:	—	—
Loans from banks and others	68	63
Debentures	119	188
Lease liabilities	108	120
Other long-term liabilities	54,000	12
Deferred taxes	83	43
Deferred revenues	16	13
Liabilities in respect of business combinations	13	9
Put options of non-controlling interests	62	31
Employee benefit liabilities	6	10
Total long-term liabilities	475	487
COMMITMENTS AND CONTINGENCIES	—	—
EQUITY	—	—
Ordinary shares of NIS 1 par value - Authorized: 25,000,000 shares as of December 31, 2025 and 2024; Issued: 15,901,287 shares as of December 31, 2025 and 2024; Outstanding: 15,332,667 shares as of December 31, 2025 and 2024.	4	4
Additional paid-in capital	166	153
Retained earnings	1,106	536
Accumulated other comprehensive income	77	−13
Treasury shares (568,620 shares as of December 31, 2025 and 2024)	259,000	259,000
Total equity attributable to Formula Systems (1985) Ltd. shareholders	1,353	679
Non-controlling interests	425	710
Total equity	1,778	1,389
Total liabilities and equity	3,583	3,015

Consolidated Statement of Cash Flows

Year Ended · In millions, except per-share amounts

Concept	Dec 31, 2025 2025-12-31	Dec 31, 2024 2024-12-31	Dec 31, 2023 2023-12-31
Statement of cash flows [abstract]	—	—	—
Cash flows from operating activities:	—	—	—
Net income	669	194	166
Adjustments to reconcile net income to net cash provided by operating activities:	—	—	—
Share of profits of companies accounted for at equity, net	−4	−2	−773,000
Depreciation and amortization	153	115	122
Changes in value of debentures, net	315,000	437,000	1
Increase in employee benefit liabilities	4	699,000	3
Loss on disposal of subsidiaries, net of tax (Appendix D)	−1	—	—
Gain on disposal of discontinued operations, net of tax (Appendix D)	578	—	—
Capital gain from Initial public offering of TSG	—	4	—
Gain from secondary equity issuance of TSG	9	—	—
Loss (gain) from sale of property, plants and equipment	−65,000	589,000	66,000
Share-based payment expenses	31	16	19
Net finance expenses (income) related to bank loans and deposits	−8	1	−833,000
Changes in deferred taxes, net	−8	−12	−8
Cash paid in respect of acquisitions of activities	—	−922,000	−7
Change in liability in respect of business combinations	3	−2	−2
Change in fair value of financial assets measured at fair value through profit or loss	—	—	5,000
Amortization of premium and accrued interest on debt instruments at fair value through other comprehensive income	101,000	−27,000	−114,000
Gain from revaluation of dividend preference derivative in TSG	—	−659,000	−85,000
Effect of exchange rate on cash and cash equivalents held in currencies other than the functional currency	7	−350,000	991,000
Working capital adjustments:	—	—	—
Decrease (increase) in inventories	5	12	−3
Decrease (increase) in trade receivables	52	−81	7
Decrease in other current and long-term accounts receivable	−16	−2	−6
Increase in trade payables	24	40	19
Increase in other accounts payable and employees and payroll accrual	48	45	−25
Increase (decrease) in deferred revenues	−8	7	10
Net cash provided by operating activities	382	324	295
Cash flows from investing activities:	—	—	—
Payments for business acquisitions, net of cash acquired (Appendix C)	136	50	37
Proceeds from disposal of subsidiary discontinued operation (Appendix D)	676	—	—
Proceeds from sale of a subsidiary related to non-controlling interests (Appendix D)	−994,000	—	—
Cash paid in conjunction with deferred payments and contingent liabilities related to business combinations	−4	−8	−12
Loan extended to related party and others	—	—	7
Purchase of intangible assets	2	908,000	763,000
Purchase of investment measured using the equity method	—	16	—
Purchase of other investments	—	—	498,000
Purchase of financial assets measured at fair value through other comprehensive income	380,000	−585,000	1
Purchase of property and equipment	16	16	17
Proceeds from maturity and sale of investments in instruments at fair value through other comprehensive income or loss, net	4	5	699,000
Proceeds from sale of property and equipment	1	783,000	1
Dividend from companies accounted for at equity	6	162,000	68,000
Payment to former shareholders of consolidated company	6	6	—
Change in short-term and long-term deposits	56	24	−51
Capitalization of software development and other costs	10	12	15
Loan to an associate company	165,000	—	—
Payment of liability related to the disposal of a subsidiary	522,000	—	—
Deferred payment for acquisition of subsidiaries consolidated in prior periods	3	—	—
Net cash provided )used( in investing activities	564	−78	−139
Cash flows from financing activities:	—	—	—
Exercise of employees’ stock options in subsidiaries	—	−98,000	−5
Cash paid in conjunction with acquisitions of activities	674,000	2	7
Dividend paid to non-controlling interests	100	66	62
Dividend to Formula’s shareholders	29	19	10
Short-term bank credit, net	4	5	10
Repayment of long-term loans from banks and others	102	93	83
Receipt of long-term loans from banks and others	−100	−63	−56
Receipt of short-term loans from banks and others	12	—	—
Proceeds from issuance of debentures, net	—	67	—
Proceeds from issuance of ordinary shares by subsidiaries	84	—	—
Repayment of long-term liabilities to IIA	—	3	394,000
Repayment of debentures	107	69	60
Purchase of non-controlling interests	468,000	5	3
Repayment of lease liabilities	54	50	55
Cash paid due to exercise of put option by non-controlling interests	14	2	13
Payment to non-controlling interests due to put option	8	1	271,000
Net cash used by financing activities	−223	−185	−243
Effect of exchange rate changes on cash and cash equivalents	50	−5	−5
Increase (decrease) in cash and cash equivalents	772	56	−92
Cash and cash equivalents at the end of the year	—	—	—
Cash and cash equivalents at the end of the year	—	—	—
Interest paid	−25	−26	−26
Interest received	9	16	7
Taxes paid, net	−72	−63	−77
Purchase of property and equipment	102,000	123,000	86,000
Intangible assets and goodwill incurred but unpaid at year end	—	98,000	382,000
Contingent acquisition consideration	—	—	−124,000
Dividend payable to Formula’s shareholders	−9	—	—
Dividend payable to non-controlling interests	−3,000	−16	—
Right-of-use asset recognized with corresponding lease liability	36	83	45
Working capital (excluding cash and cash equivalents)	17	3	10
Inventories	−436,000	−256,000	−4
Property and equipment	−2	−1	−242,000
Goodwill and intangible assets	−154	−94	−45
Right-of-use assets	−575,000	—	−93,000
Other long-term assets	−2	−3	−2
Liabilities to banks and others	—	−1	−7
Long-term liabilities	−9	−422,000	−282,000
Lease liabilities	−512,000	—	−93,000
Deferred tax liability, net	11	10	3
Dividend payable	−1	—	—
Liability to formerly shareholders	—	−8	−1
Deferred payments and contingent consideration	5	20	2
Redeemable non-controlling interests at acquisition date	10	—	—
Non-controlling interests at acquisition date	4	13	12
Total	−136	−50	−37
The subsidiaries’ assets and liabilities at date of sale:	—	—	—
Working capital (excluding cash and cash equivalents)	−161	—	—
Property and equipment	9	—	—
Financial assets measured at fair value through profit or loss	300	—	—
Goodwill and intangible assets	575	—	—
Deferred tax	10	—	—
Right-of-use assets	18	—	—
Other long-term assets	89,000	—	—
Liabilities to banks and others	860,000	—	—
Long-term liabilities	63,000	—	—
Lease liabilities	21	—	—
Deferred tax liability, net	14	—	—
Dividend payable	143,000	—	—
Liability in connection with the sale of a subsidiary for consideration in the form of non-controlling interests	386,000	—	—
Capital reserve from transactions with non-controlling interests	1	—	—
Reclassification of translation reserve to profit or loss upon disposal	37	—	—
Non-controlling interests at acquisition date	361	—	—
Redeemable non-controlling interests at acquisition date	13	—	—
Gain on disposal and deconsolidation of a subsidiary	577	—	—
Subsidiaries assets and liabilities at date of sale	675	—	—

Filings

Filing historySign up free to browse every 10-K, 10-Q, 8-K, and proxy this filer has submitted to the SEC.Sign up free · Upgrade to Pro

Material Events

Material EventsTrack every 8-K filing and material event — AI-summarized, timelined, and alertable.Sign up free · Upgrade to Pro

Insiders

Insider ActivitySee executive buy/sell windows and insider trade activity over rolling 30/90/365-day windows.Sign up free · Upgrade to Pro

Institutional Holders

Institutional HoldersSee which funds hold this stock and track position changes quarter over quarter.Sign up free · Upgrade to Pro