Formula Systems (1985) Ltd.(FORTY)Earnings, Financials & Key Ratios
FORTY•NASDAQ
$113.00
62.8× P/E·Price updated Jul 7, 2026
AboutFormula 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 worldwide. The company offers computer and telecommunication infrastructure solutions; computer solutions to computer and communications infrastructures; cloud computing solutions; and database and big data services. It also provides customer relations management, computer systems management infrastructures, web world content management, database and data warehouse mining, application integration, database and system, data management, and software development tools; and professional training courses and advanced professional studies. In addition, it markets and sells computers and peripheral equipment to business customers; offers property and casualty insurance platforms, such as Sapiens, Sapiens CoreSuite, Sapiens IDITSuite, Sapiens PolicyPro, Sapiens BillingPro, Sapiens ClaimsPro, e-Tica, and Tia Enterprise; life, pension, and annuities platforms, including Sapiens CoreSuite, Sapiens UnderwritingPro, Sapiens ApplicationPro, Sapiens IllustrationPro, and Sapiens ConsolidationMaster; reinsurance software solutions comprising Sapiens ReinsuranceMaster, Sapiens ReinsurancePro, and Sapiens Reinsurance GO; and Sapiens platform for workers' compensation solutions. Further, the company provides financial and compliance solutions that include Sapiens FinancialPro, Sapiens Financial GO, and Sapiens StatementPro; Sapiens DECISION, a decision management platform; and technology-based solutions. Additionally, it offers application development and business process integration platforms; vertical software solutions; strategic consulting and outsourcing services; and professional services in various areas, as well as develops on-premise payroll software. Formula Systems (1985) Ltd. was incorporated in 1985 and is headquartered in Or Yehuda, Israel.Show more
- Revenue$2.65B-4.0%
- EBITDA$342M-11.3%
- Net Income$28M-64.4%
- EPS (Diluted)1.80-64.6%
- Gross Margin17.05%-31.3%
- EBITDA Margin12.93%-7.6%
- Operating Margin7.12%-27.4%
- Net Margin1.07%-62.9%
- ROE1.79%-69.7%
FORTY Price & Volume
Formula Systems (1985) Ltd. (FORTY) stock price & volume — 10-year historical chart
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Acquisition Driven Growth Masks Structural Margin Compression
Investment Thesis • Updated 2025Q4
VerdictNeutral
Growth:Mixed
Profitability:Strained
Financial:Healthy
Cash Flow:Mixed
Primary Risk:Geopolitical and labor volatility
Key Thesis Takeaways
- Formula Systems maintains a complex federated model that relies heavily on aggressive external acquisitions, as evidenced by the $514.3 million deployed for net acquisitions in 2025Q4.
- While the company has bolstered its liquidity with $1.3 billion in cash, investors should monitor the persistent decline in operating margins, which compressed to 4.6% in 2025Q4.
- The reliance on non-operating income to drive a 78.3% net margin suggests that core operational profitability remains strained by rising labor costs and integration challenges.
Verdict Logic
while the company holds a healthy $1.3 billion cash position, the current P/E of 53.16 and declining operating margins suggest that the market may be overvaluing the firm's acquisition-led growth strategy.
FORTY Growth Metrics
Formula Systems (1985) Ltd. (FORTY) revenue, earnings & EPS growth — 3, 5 & 10-year CAGR
Revenue CAGR
10 Years12.73%
5 Years6.49%
3 Years0.97%
TTM1.11%
Profit CAGR
10 Years3.93%
5 Years-9.51%
3 Years-29.61%
TTM665.97%
EPS CAGR
10 Years3.23%
5 Years-9.77%
3 Years-29.83%
TTM649.71%
Return on Capital
10 Years10.44%
5 Years12.82%
3 Years12.33%
Last Year9.14%
FORTY Recent Earnings
Formula Systems (1985) Ltd. (FORTY) EPS & revenue vs analyst estimates — last 4 quarters
Q2 2026Latest
May 28, 2026Metric
Actual
Est
EPS
$2.25
—
Rev
$738M
—
Q2 2026
May 20, 2026Metric
Actual
Est
EPS
$2.33
—
Rev
$738M
—
Q2 2026
Mar 26, 2026Metric
Actual
Est
EPS
$0.27
—
Rev
$713M
—
Q4 2025
Nov 20, 2025Metric
Actual
Est
EPS
$0.73
—
Rev
$697M
—
| Quarter | Date | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|---|
| Q2 2026Latest | May 28, 2026 | $2.25 | $738M |
| Q2 2026 | May 20, 2026 | $2.33 | $738M |
| Q2 2026 | Mar 26, 2026 | $0.27 | $713M |
| Q4 2025 | Nov 20, 2025 | $0.73 | $697M |
Based on last 12 quarters of dataView full earnings history →
Peers Comparison
Key metrics vs top competitors for Formula Systems (1985) Ltd. (FORTY)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $113.00 | $1.73B | 62.78 | -3.97% | 1.07% | 1.79% | 1.62% | |
| $98.63 | $5.98B | 10.20 | 7.68% | 17.58% | 13.98% | — | |
| $138.75 | $14.46B | 14.42 | 6.25% | 38.37% | 36.43% | — | |
| $84.10 | $4.34B | 37.54 | 26.75% | 9.17% | 10.69% | — | |
| $50.36 | $2.77B | 57.23 | 13.2% | -1.97% | — | — | |
| $43.94 | $20.82B | 9.66 | 6.95% | 10.41% | 14.79% | — |
Compare FORTY vs Peers
Formula Systems (1985) Ltd. (FORTY) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
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FORTY Frequently Asked Questions
Formula Systems (1985) Ltd. (FORTY) stock FAQ — growth, dividends, profitability & financials explained
Growth & Financials
What is Formula Systems (1985) Ltd.'s revenue?
Formula Systems (1985) Ltd. (FORTY) reported $2.79B in revenue for fiscal year 2025. This represents a 977% increase from $258.8M in 1998.
How fast is Formula Systems (1985) Ltd. growing?
Formula Systems (1985) Ltd. (FORTY) saw revenue decline by 4.0% over the past year.
Is FORTY profitable?
Yes, Formula Systems (1985) Ltd. (FORTY) is profitable, generating $610.2M in net income for fiscal year 2025 (1.1% net margin).
Dividend & Returns
Does FORTY pay dividends?
Yes, Formula Systems (1985) Ltd. (FORTY) pays a dividend with a yield of 1.62%. This makes it attractive for income-focused investors.
What is FORTY's return on equity?
Formula Systems (1985) Ltd. (FORTY) has a return on equity (ROE) of 1.8%. This is below average, suggesting room for improvement.
What is Formula Systems (1985) Ltd.'s free cash flow?
Formula Systems (1985) Ltd. (FORTY) generated $374.8M in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.