Quarterly ResultMay 28, 2026, 08:19 AM
Formula Systems Q1 Revenue $738.3M, Net Income $35.6M; Declares $13.045 Dividend
AI Summary
Formula Systems reported record-breaking financial results for the first quarter ended March 31, 2026, with revenues reaching $738.3 million, a 19.2% increase year-over-year, and net income attributable to shareholders rising 84.5% to $35.6 million. The company also announced a special cash dividend of $13.045 per share, totaling $200.0 million, following the acquisition of its former subsidiary Sapiens. Additionally, the merger of its subsidiaries Matrix IT and Magic Software Enterprises was completed, and TSG IT Advanced Systems raised approximately $58.9 million through a private placement.
Key Highlights
- Matrix IT completed its merger with Magic Software Enterprises, making Magic a wholly-owned subsidiary.
- Q1 2026 revenues increased 19.2% year-over-year to a record-breaking $738.3 million.
- Operating income for Q1 2026 rose 65.6% year-over-year to a record $82.0 million.
- Net income attributable to Formula's shareholders for Q1 2026 increased 84.5% year-over-year to a record $35.6 million.
- Diluted earnings per share for Q1 2026 was $2.25, up from $1.23 in the prior year.
- The board approved a special cash dividend of $13.045 per share, totaling approximately $200.0 million.
- TSG IT Advanced Systems completed a private placement, raising approximately $58.9 million.
- Formula's ownership in TSG was diluted from 37.33% to 33.08%, resulting in a $16.8 million capital gain.
Price Impact
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