MGIC

MKT CAP:$853M

Magic Software Enterprises Ltd.

Market Cap

$853M

Technology·Information Technology Services·🇮🇱 Israel·NASDAQ

Technology·IT Services·🇮🇱·NASDAQ

Stock Price

$17.38-$8.67 (-33.28%)

Mar 3, 2026

Company Details

Magic Software Enterprises Ltd. provides proprietary application development, business process integration, vertical software solutions, and information technologies (IT) outsourcing software services in Israel and internationally. The comp...

CEO

Yakov Tsaroya

IPO Date

Aug 30, 1991

Website

www.magicsoftware.com

Key Metrics TTM

Revenue

$564M

+5.3% YoY

Net Income

$37M

EPS (Diluted)

$0.76

Free Cash Flow

$74M

Revenue / Share

$11.48

Gross Margin

28.2%

Operating Margin

11.0%

Net Margin

6.6%

FCF Margin

13.2%

P/S

1.5x

P/E

22.9x

Earnings Reports

Q1 2025

May 21, 2025

$147M+12.7%EPS $0.19

FY 2024

May 14, 2025

$553M+3.3%EPS $0.75

Q4 2024

May 14, 2025

$143M+13.6%EPS $0.22

Q3 2024

Nov 18, 2024

$143M+10.4%EPS $0.17

Q1 2024

May 16, 2024

$131M-8.2%EPS $0.18

Revenue & Profitability

Quarter	Revenue	Gross Profit	Operating Income
Q1 20	$85M	$25M	$9M
Q2 20	$87M	$25M	$10M
Q3 20	$95M	$29M	$11M
Q4 20	$105M	$31M	$11M
Q1 21	$107M	$30M	$12M
Q2 21	$119M	$33M	$13M
Q3 21	$121M	$33M	$12M
Q4 22	$147M	$42M	$15M
Q1 23	$142M	$39M	$15M
Q2 23	$138M	$40M	$15M
Q3 23	$129M	$37M	$13M
Q4 23	$126M	$37M	$13M
Q1 24	$131M	$37M	$14M
Q3 24	$143M	$40M	$15M
Q4 24	$143M	$42M	$17M
Q1 25	$147M	$41M	$16M

Valuation

Quarter	P/S	P/E
Q1 20	1.1x	18.6x
Q2 20	1.5x	24.8x
Q3 20	1.8x	26.4x
Q4 20	2.0x	29.5x
Q1 21	2.0x	28.6x
Q2 21	1.9x	27.4x
Q3 21	2.2x	34.6x
Q4 22	1.6x	24.7x
Q1 23	1.2x	18.8x
Q2 23	1.2x	17.2x
Q3 23	1.0x	14.2x
Q4 23	0.9x	12.8x
Q1 24	1.1x	16.3x
Q3 24	1.1x	17.8x
Q4 24	1.1x	15.9x
Q1 25	1.1x	17.1x

Operating Cash Flow

Quarter	Operating CF	Free CF
Q1 20	$13M	$13M
Q2 20	$15M	$14M
Q3 20	$13M	$12M
Q4 20	$11M	$11M
Q1 21	$16M	$15M
Q2 21	$12M	$12M
Q3 21	$6M	$6M
Q4 22	$19M	$18M
Q1 23	$19M	$18M
Q2 23	$24M	$24M
Q3 23	$23M	$23M
Q4 23	$3M	$3M
Q1 24	$28M	$27M
Q3 24	$8M	$7M
Q4 24	$26M	$25M
Q1 25	$15M	$14M

Capital Expenditures

Quarter	CapEx
Q1 20	$488.0K
Q2 20	$1M
Q3 20	$788.0K
Q4 20	$324.0K
Q1 21	$510.0K
Q2 21	$178.0K
Q3 21	$233.0K
Q4 22	$1M
Q1 23	$431.0K
Q2 23	$194.0K
Q3 23	$214.0K
Q4 23	$779.0K
Q1 24	$280.0K
Q3 24	$382.0K
Q4 24	$535.0K
Q1 25	$524.0K

CapEx

OpEx vs Revenue Growth (YoY)

Quarter	Revenue Growth	OpEx Growth
Q1 20	+18.7%	+20.6%
Q2 20	+12.3%	+11.1%
Q3 20	+10.5%	+8.4%
Q4 20	+15.0%	+13.9%
Q1 21	+25.9%	+24.4%
Q2 21	+37.7%	+38.8%
Q3 21	+27.4%	+29.8%
Q4 22	+40.7%	+41.2%
Q1 23	+32.8%	+33.7%
Q2 23	+15.5%	+14.7%
Q3 23	+7.1%	+6.7%
Q4 23	-14.7%	-14.7%
Q1 24	-8.2%	-8.5%
Q3 24	+3.9%	+4.7%
Q4 24	+10.1%	+8.4%
Q1 25	+17.4%	+16.8%

Stock-Based Compensation

Quarter	SBC ($)	% of Revenue
Q1 20	$0	0.0%
Q2 20	$0	0.0%
Q3 20	$0	0.0%
Q4 20	$0	0.0%
Q1 21	$491.0K	0.5%
Q2 21	$156.0K	0.1%
Q3 21	$155.0K	0.1%
Q4 22	$2M	1.3%
Q1 23	$622.0K	0.4%
Q2 23	$609.0K	0.4%
Q3 23	$600.0K	0.5%
Q4 23	$2M	1.6%
Q1 24	$891.0K	0.7%
Q3 24	$521.0K	0.4%
Q4 24	-$109.0K	-0.1%
Q1 25	-$65.0K	-0.0%

OpEx Breakdown

Quarter	R&D	G&A	S&M	SG&A
Q1 20	$2M	$14M	—	—
Q2 20	$2M	$13M	—	—
Q3 20	$2M	$16M	—	—
Q4 20	$2M	$28M	$31M	—
Q1 21	$2M	—	—	$16M
Q2 21	$2M	—	—	$18M
Q3 21	$2M	—	—	$18M
Q4 22	$3M	$38M	$47M	—
Q1 23	$3M	—	—	$21M
Q2 23	$2M	—	—	$22M
Q3 23	$3M	—	—	$20M
Q4 23	$3M	$41M	$45M	—
Q1 24	$3M	—	—	$19M
Q3 24	$3M	—	—	$22M
Q4 24	$5M	$42M	—	—
Q1 25	$3M	—	—	$22M

War Chest

Quarter	Cash	Short-term Investments	Total
Q4 21	$88M	$6M	$94M
Q1 22	$111M	$2M	$112M
Q2 22	$88M	$4M	$92M
Q3 22	$83M	$5M	$88M
Q4 22	$83M	$4M	$87M
Q1 23	$103M	$4M	$106M
Q2 23	$105M	$1M	$106M
Q3 23	$106M	$1M	$107M
Q4 23	$106M	$751.0K	$107M
Q1 24	$126M	$49.0K	$126M
Q2 24	$108M	$722.0K	$108M
Q3 24	$99M	$739.0K	$100M
Q4 24	$113M	$8M	$120M
Q1 25	$105M	$431.0K	$105M
Q2 25	$90M	$0	$90M
Q3 25	$103M	$2.0K	$103M

Shares Outstanding

Quarter	Shares (Diluted)	QoQ Change	YoY Change
Q1 20	49M	+0.1%	+0.1%
Q2 20	49M	-0.0%	+0.1%
Q3 20	49M	+0.0%	+0.1%
Q4 20	49M	+0.0%	+0.1%
Q1 21	49M	+0.1%	+0.1%
Q2 21	49M	+0.0%	+0.1%
Q3 21	49M	+0.0%	+0.1%
Q4 22	49M	+0.0%	+0.2%
Q1 23	49M	+0.0%	+0.1%
Q2 23	49M	-0.0%	+0.1%
Q3 23	49M	-0.0%	+0.0%
Q4 23	49M	-0.0%	-0.1%
Q1 24	49M	0.0%	-0.1%
Q3 24	49M	0.0%	-0.1%
Q4 24	49M	0.0%	-0.0%
Q1 25	49M	0.0%	0.0%

Shares Outstanding

Revenue Per Employee

Period	Revenue/Employee	Employees
Q1 20	$32.3K	3K
Q2 20	$32.8K	3K
Q3 20	$35.9K	3K
Q4 20	$34.4K	3K
Q1 21	$35.3K	3K
Q2 21	$39.2K	3K
Q3 21	$39.8K	3K
Q4 22	$35.4K	4K
Q1 23	$34.2K	4K
Q2 23	$33.1K	4K
Q3 23	$31.1K	4K
Q4 23	$34.6K	4K
Q1 24	$36.0K	4K
Q3 24	$39.4K	4K
Q4 24	$37.7K	4K
Q1 25	$38.9K	4K

Revenue / Employee