Magic Software Reports Record Q3 2025 Results

Magic Software ( (MGIC) ) has released its Q3 earnings. Here is a breakdown of the information Magic Software presented to its investors.

Magic Software Enterprises Ltd., a global provider of IT consulting services and end-to-end integration and application development platform solutions, has reported record-breaking financial results for the third quarter of 2025. The company, listed on NASDAQ and TASE, continues to strengthen its position in the IT industry with significant growth in key financial metrics.

In the third quarter of 2025, Magic Software achieved record revenues of $161.7 million, marking a 13.1% increase compared to the same period last year. The company’s operating income also saw a notable rise of 13.6% to $17.1 million, with net income attributable to shareholders increasing by 17% to $9.9 million. These results underscore the company’s robust performance and strategic expansion in key markets, particularly in Israel and North America.

The financial highlights for the nine months ending September 30, 2025, further illustrate Magic Software’s strong performance, with revenues reaching $460.6 million, up 12.4% from the previous year. Operating income for this period increased by 8.9% to $48.5 million, while net income attributable to shareholders rose by 11.4% to $29.3 million. The company’s cash flow from operating activities amounted to $40.6 million, and it held $103.3 million in cash and equivalents as of the end of September.

Looking ahead, Magic Software has revised its full-year 2025 revenue guidance upward, now expecting revenues between $610 million and $620 million, reflecting continued operational momentum and a favorable outlook for the fourth quarter. The company remains focused on delivering consistent performance and creating long-term value for its stakeholders as it progresses toward a merger with Matrix I.T., which is expected to enhance its scale and market reach.