Magic Software ( (MGIC) ) has released its Q1 earnings. Here is a breakdown of the information Magic Software presented to its investors.
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Magic Software Enterprises Ltd., a global provider of IT consulting services and integration and application development platforms, has reported its financial results for the first quarter of 2025. The company, known for its innovative digital and cloud transformation solutions, operates primarily in the technology sector.
In the first quarter of 2025, Magic Software achieved a revenue increase of 12.7% compared to the same period last year, reaching $147.3 million. The company’s net income attributable to shareholders rose by 7.7% to $9.5 million, with a diluted EPS of $0.19. The company also reported a cash flow from operating activities of $14.9 million.
Key financial metrics included a 9.1% increase in GAAP operating income to $15.7 million and a 1.9% increase in non-GAAP operating income to $18.5 million. Despite these gains, the gross margin slightly decreased, and cash flow from operating activities saw a decline compared to the previous year.
Looking ahead, Magic Software remains optimistic about its growth prospects, reiterating its annual revenue guidance for 2025. The company anticipates continued demand for its services, particularly in the Israeli and U.S. markets, driven by its strategic growth initiatives and robust sales pipeline.
Overall, Magic Software is poised to maintain its momentum in the technology sector, leveraging its strategic direction and market conditions to deliver sustainable long-term value to its stakeholders.