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Formula Systems Posts Record 2025 Profit on Sapiens Sale and Strong Revenue Growth

Story Highlights
  • Formula Systems’ 2025 results were driven by the December 17 sale of control in Sapiens to Advent, retaining an 18.68% minority stake and recording a large capital gain.
  • The company reported double-digit revenue growth, strong adjusted operating performance, a fortified balance sheet, and plans a dividend of up to $200 million, pending audited approval.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Formula Systems Posts Record 2025 Profit on Sapiens Sale and Strong Revenue Growth

Meet Samuel – Your Personal Investing Prophet

An announcement from Formula Systems ( (FORTY) ) is now available.

On March 26, 2026, Formula Systems reported its fourth-quarter and full-year 2025 results, highlighted by the December 17, 2025 completion of the sale of control in subsidiary Sapiens International to Advent, after shareholder approval on November 19. The deal, under which Formula retained an 18.68% minority stake in Sapiens, drove record net income attributable to shareholders of $554.8 million in Q4 and $606.5 million for 2025, largely due to a substantial capital gain.

Fourth-quarter revenue rose 26.9% year over year to a record $708.4 million, and full-year revenue increased 18.4% to $2.63 billion, while operating income growth was dampened by higher amortization tied to revised useful lives of certain non-core customer relationship intangibles. Excluding this amortization impact, adjusted operating income and net income from continuing operations showed strong growth, and the company ended 2025 with approximately $1.3 billion in cash and deposits, $1.8 billion in total equity, full compliance with debenture covenants, and an expected dividend distribution of up to $200 million, subject to approval of audited results.

The most recent analyst rating on (FORTY) stock is a Buy with a $183.00 price target. To see the full list of analyst forecasts on Formula Systems stock, see the FORTY Stock Forecast page.

Spark’s Take on FORTY Stock

According to Spark, TipRanks’ AI Analyst, FORTY is a Outperform.

Formula Systems scores well due to strong financial performance and positive technical indicators. The company’s robust growth and profitability, along with bullish market momentum, are significant strengths. However, the high P/E ratio suggests potential overvaluation, which slightly tempers the overall score.

To see Spark’s full report on FORTY stock, click here.

More about Formula Systems

Formula Systems (1985) Ltd., based in Or Yehuda, Israel, is a global information technology group listed on Nasdaq and the Tel Aviv Stock Exchange. Through its subsidiaries and affiliates, it provides software consulting services, computer-based business solutions, and proprietary software products, with significant holdings in companies such as Matrix IT and Magic Software.

Average Trading Volume: 579

Technical Sentiment Signal: Hold

Current Market Cap: $1.86B

See more data about FORTY stock on TipRanks’ Stock Analysis page.

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