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Magic Software (MGIC)
:MGIC
Earnings Data
Report Date
Aug 13, 2025TBA Not Confirmed
Period Ending
2025 (Q2)Consensus EPS Forecast
0.25Last Year’s EPS
0.24Same Quarter Last Year
Moderate Buy
Based on 2 Analysts Ratings
Earnings Call Summary
Earnings Call Date:May 21, 2025
|% Change Since: 2.28%
|Next Earnings Date:Aug 13, 2025
Earnings Call Sentiment|Neutral
The earnings call highlighted strong revenue growth and expansion in AI services, despite a decline in cash flow and gross margins, and potential operational challenges in the upcoming quarter.Company Guidance
In the first quarter of 2025, Magic Software Enterprises reported record revenue of $147.3 million, marking a 12.7% increase from the same quarter in 2024. The company's growth was driven by a 17.7% rise in revenue from Israeli operations and an 11.1% increase in North America, partly due to the acquisition of Theoris, Inc. Magic's non-GAAP gross margin was 28.5%, with a breakdown showing 17% related to Software Solutions and 83% to Professional Services. The company's non-GAAP net income rose by 8.3% to $12.2 million, or $0.25 per diluted share. Financial expenses decreased due to a reduction in debt from $78 million to $56 million. Cash flow from operating activities was $14.9 million, reflecting an increased investment in working capital. For the full year 2025, Magic reiterated its revenue guidance of $593 million to $603 million, anticipating a year-over-year growth of 7.3% to 9.1%. The company highlighted potential temporary impacts on the second-quarter operations due to a reduction in billable days caused by the Passover holiday. It also discussed a planned merger with Matrix I.T, expected to be completed in the third quarter of 2025, aiming to enhance its capabilities and market presence.Record Revenue Growth
Revenue in the first quarter of 2025 reached a record $147.3 million, up approximately 12.7% from the first quarter of 2024.
Strong Performance in Israel
Israel delivered double-digit year-over-year growth of 17.7% and sequential growth of 11.3%, driven by strong demand for cloud, DevOps, and AI services.
North American Growth with Acquisition
North American revenue increased by approximately 11.1% due to the acquisition of Theoris, Inc.
Generative AI Success
Magic achieved a 62% success rate in genAI projects, significantly outperforming the industry average of 12%.
Improved Financial Health
Financial expenses decreased from $1.5 million to $600,000 due to reduced overall financial debt from $78 million to $56 million.
MGIC Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
MGIC Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
May 21, 2025 | $15.80 | $15.38 | -2.66% |
Mar 11, 2025 | $12.53 | $13.06 | +4.23% |
Nov 18, 2024 | $10.92 | $10.52 | -3.66% |
Aug 14, 2024 | $9.88 | $9.77 | -1.11% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Magic Software (MGIC) report earnings?
Magic Software (MGIC) is schdueled to report earning on Aug 13, 2025, TBA Not Confirmed.
What is Magic Software (MGIC) earnings time?
Magic Software (MGIC) earnings time is at Aug 13, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is MGIC EPS forecast?
MGIC EPS forecast for the fiscal quarter 2025 (Q2) is 0.25.