FORTY

MKT CAP:$2B

Formula Systems (1985) Ltd.

Market Cap

$2B

Technology·Information Technology Services·🇮🇱 Israel·NASDAQ

Technology·IT Services·🇮🇱·NASDAQ

Stock Price

$140.01-$27.01 (-16.17%)

Apr 21, 2026

Company Details

Formula Systems (1985) Ltd., through its subsidiaries, provides proprietary and non-proprietary software solutions, IT professional services, software product marketing and support, and computer infrastructure and integration solutions worl...

CEO

Asaf Berenstin

IPO Date

Oct 20, 1997

Website

www.formulasystems.com

Key Metrics TTM

Revenue

$2.9B

+5.4% YoY

Net Income

$610M

EPS (Diluted)

$38.16

Free Cash Flow

$0

Revenue / Share

$183.60

Gross Margin

22.1%

Operating Margin

7.8%

Net Margin

21.0%

FCF Margin

0.0%

P/S

0.7x

P/E

3.5x

Earnings Reports

FY 2025

Dec 30, 2025

$2.6BEPS $38.72

Q4 2025

Dec 30, 2025

$713M+3.1%EPS $35.25

Q3 2025

Nov 20, 2025

$697M-0.5%EPS $0.73

Q2 2025

Aug 19, 2025

$743M+11.3%EPS $0.95

Q1 2025

May 22, 2025

$755M+8.1%EPS $1.23

Revenue & Profitability

Quarter	Revenue	Gross Profit	Operating Income
Q2 20	$437M	$103M	$41M
Q3 20	$487M	$116M	$45M
Q1 21	$573M	$126M	$47M
Q2 21	$588M	$141M	$51M
Q3 21	$586M	$142M	$50M
Q2 23	$655M	$161M	$60M
Q3 23	$655M	$160M	$58M
Q4 23	$640M	$161M	$60M
Q1 24	$698M	$164M	$63M
Q2 24	$668M	$166M	$65M
Q3 24	$700M	$173M	$71M
Q4 24	$691M	$180M	$72M
Q1 25	$755M	$181M	$71M
Q2 25	$743M	$185M	$68M
Q3 25	$697M	$136M	$55M
Q4 25	$713M	$141M	$33M

Valuation

Quarter	P/S	P/E
Q2 20	0.7x	28.7x
Q3 20	0.6x	26.4x
Q1 21	0.7x	28.8x
Q2 21	0.7x	27.6x
Q3 21	0.7x	29.6x
Q2 23	0.5x	20.3x
Q3 23	0.5x	19.8x
Q4 23	0.4x	16.0x
Q1 24	0.5x	19.4x
Q2 24	0.4x	16.4x
Q3 24	0.5x	16.3x
Q4 24	0.5x	17.1x
Q1 25	0.5x	16.7x
Q2 25	0.7x	25.1x
Q3 25	0.7x	28.0x
Q4 25	1.4x	6.5x

Operating Cash Flow

Quarter	Operating CF	Free CF
Q1 20	$0	$0
Q2 20	$0	$0
Q3 20	$0	$0
Q1 21	$0	$0
Q2 21	$0	$0
Q3 21	$0	$0
Q2 23	$0	$0
Q3 23	$0	$0
Q4 23	$0	$0
Q1 24	$0	$0
Q2 24	$0	$0
Q3 24	$0	$0
Q4 24	$0	$0
Q1 25	$0	$0
Q2 25	$0	$0
Q3 25	$0	$0

OpEx vs Revenue Growth (YoY)

Quarter	Revenue Growth	OpEx Growth
Q2 20	+11.7%	+10.2%
Q3 20	+18.1%	+16.4%
Q1 21	+27.8%	+27.7%
Q2 21	+26.1%	+25.7%
Q3 21	+34.1%	+35.2%
Q2 23	+34.5%	+34.7%
Q3 23	+14.4%	+13.6%
Q4 23	+8.9%	+7.9%
Q1 24	+19.1%	+18.7%
Q2 24	+1.9%	+1.2%
Q3 24	+6.9%	+5.4%
Q4 24	+8.0%	+6.8%
Q1 25	+8.1%	+7.6%
Q2 25	+11.3%	+12.1%
Q3 25	-0.5%	+2.1%
Q4 25	+3.1%	+9.8%

Stock-Based Compensation

Quarter	SBC ($)	% of Revenue
Q1 20	$0	0.0%
Q2 20	$0	0.0%
Q3 20	$0	0.0%
Q1 21	$0	0.0%
Q2 21	$0	0.0%
Q3 21	$0	0.0%
Q2 23	$0	0.0%
Q3 23	$0	0.0%
Q4 23	$19M	2.9%
Q1 24	$0	0.0%
Q2 24	$0	0.0%
Q3 24	$0	0.0%
Q4 24	$16M	2.3%
Q1 25	$0	0.0%
Q2 25	$0	0.0%
Q3 25	$0	0.0%

OpEx Breakdown

Quarter	R&D	G&A	S&M	SG&A
Q2 20	$12M	$50M	—	—
Q3 20	$13M	$58M	—	—
Q1 21	$16M	—	—	$62M
Q2 21	$16M	—	—	$74M
Q3 21	$17M	—	—	$74M
Q2 23	$19M	—	—	$82M
Q3 23	$20M	—	—	$82M
Q4 23	$20M	$64M	$17M	—
Q1 24	$20M	—	—	$81M
Q2 24	$20M	—	—	$81M
Q3 24	$21M	—	—	$88M
Q4 24	$22M	$69M	$16M	—
Q1 25	$21M	—	—	$89M
Q2 25	$24M	—	—	$94M
Q3 25	$5M	—	—	$76M
Q4 25	$5M	—	—	$103M

War Chest

Quarter	Cash	Short-term Investments	Total
Q1 22	$533M	$37M	$570M
Q2 22	$412M	$39M	$451M
Q3 22	$470M	$38M	$508M
Q4 22	$544M	$25M	$569M
Q1 23	$448M	$69M	$517M
Q2 23	$386M	$91M	$477M
Q3 23	$392M	$77M	$469M
Q4 23	$452M	$76M	$528M
Q1 24	$437M	$79M	$516M
Q2 24	$408M	$65M	$473M
Q3 24	$470M	$41M	$511M
Q4 24	$508M	$55M	$563M
Q1 25	$462M	$65M	$527M
Q2 25	$393M	$13M	$406M
Q3 25	$431M	$770.0K	$432M
Q4 25	$1.3B	$372.0K	$1.3B

Shares Outstanding

Quarter	Shares (Diluted)	QoQ Change	YoY Change
Q2 20	15M	+0.0%	-1.9%
Q3 20	15M	+0.0%	+0.0%
Q1 21	15M	+0.3%	+0.3%
Q2 21	15M	+0.2%	+0.5%
Q3 21	15M	+0.2%	+0.7%
Q2 23	15M	+0.5%	+1.2%
Q3 23	16M	+0.4%	+1.3%
Q4 23	16M	-0.2%	+0.9%
Q1 24	16M	+0.4%	+1.1%
Q2 24	16M	+0.3%	+0.9%
Q3 24	16M	+0.2%	+0.7%
Q4 24	16M	+0.3%	+1.2%
Q1 25	16M	+0.2%	+1.0%
Q2 25	16M	+0.2%	+0.9%
Q3 25	16M	+0.3%	+1.0%
Q4 25	16M	+0.2%	+0.9%

Shares Outstanding

Revenue Per Employee

Period	Revenue/Employee	Employees
Q2 20	$42.3K	10K
Q3 20	$47.1K	10K
Q1 21	$53.7K	11K
Q2 21	$55.1K	11K
Q3 21	$55.0K	11K
Q2 23	$157.5K	4K
Q3 23	$157.4K	4K
Q4 23	$176.5K	4K
Q1 24	$192.5K	4K
Q2 24	$184.0K	4K
Q3 24	$192.9K	4K
Q4 24	$47.7K	15K
Q1 25	$52.0K	15K
Q2 25	$51.3K	15K
Q3 25	$48.0K	15K
Q4 25	$49.2K	15K

Revenue / Employee