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Formula Systems Reports Second Quarter and First Half 2026 <a href="https://bitcomme.com/junshi-biosciences-announces-2026-interim-financial-results-and-provides-corporate-updates/” title=”Junshi Biosciences Announces 2026 Interim Financial Results and Provides Corporate Updates”>Financial Results
Revenues for the second quarter increased by 29.8% year over year, reaching a second quarter record-breaking $782.4 million. Net income attributable to Formula Systems’ shareholders for the second quarter increased by 54.6% year over year, reaching $23.3 million.
OR YEHUDA, Israel, Aug. 25, 2026 (GLOBE NEWSWIRE) — Formula Systems (1985) Ltd. (Nasdaq and TASE: FORTY) (“Formula” or the “Company”), a global information technology group providing a broad range of software, proprietary and non-proprietary technology solutions and professional services through its subsidiaries and affiliates, today announced its results of operations for the second quarter and first half ended June 30, 2026.
Financial Highlights for the Second Quarter Ended June 30, 2026
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Revenues for the second quarter ended June 30, 2026 increased by 29.8% year over year, reaching a second quarter record-breaking $782.4 million, compared to $602.7 million in the same period last year.
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Operating income for the second quarter ended June 30, 2026 increased by 41.3% year over year, reaching $71.6 million compared to $50.7 million in the same period last year.
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Net income from continued operations attributable to Formula’s shareholders for the second quarter ended June 30, 2026, increased by approximately 163.7% year over year, reaching $23.3 million, or $1.47 per fully diluted share, compared to $8.8 million, or $0.56 per fully diluted share, in the same period last year.
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Net income attributable to Formula’s shareholders for the second quarter ended June 30, 2026 increased by approximately 54.6% year over year, reaching $23.3 million, or $1.47 per fully diluted share, compared to $15.1 million, or $0.95 per fully diluted share, in the same period last year.
Financial Highlights for First Half Ended June 30, 2026
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Revenues for the six-month period ended June 30, 2026 increased by 24.4% year over year, reaching a first half record-breaking $1.52 billion, compared to $1.22 billion in the same period last year.
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Operating income for the six-month period ended June 30, 2026 increased by 53.3% year over year, reaching $153.7 million compared to $100.2 million in the same period last year. Operating income for the first half of 2026 included a capital gain of $16.6 million resulting from exercise of employee stock-based compensation and a secondary private placement transaction completed by our affiliate, TSG IT Advanced Systems Ltd. (“TSG”), in January 2026. On January 13, 2026, TSG’s Board of Directors approved a capital raise through a private placement to institutional investors, pursuant to which TSG raised approximately NIS 192 million (approximately $58.9 million) through the issuance of 320,374 ordinary shares at a price of NIS 600 per share, together with 128,150 non-tradable warrants (allocated at no additional consideration at a ratio of 0.4 warrant per share), each exercisable for one ordinary share at an exercise price of NIS 720 per share through July 22, 2027. The allocated shares and warrants represent approximately 9.23% of TSG’s fully diluted share capital. As a result of this transaction and the exercise of TSG’s employee stock-based compensation, during the six-month period ended June 30, 2026 Formula’s ownership interest in TSG was diluted from 37.33% to 32.87%, resulting with a $16.6 million capital gain. Excluding this capital gain, operating income would have increased by 36.7% year over year, to $137.0 million.
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Net income from continued operations attributable to Formula’s shareholders for the six-month period ended June 30, 2026 increased by approximately 186.4% year over year, reaching $58.9 million, or $3.72 per fully diluted share, compared to $20.6 million, or $1.31 per fully diluted share, in the same period last year. Excluding the impact of the capital gain resulting from TSG’s secondary private placement transaction and the exercise of TSG’s employee stock-based compensation, net income from continued operations attributable to Formula’s shareholders would have increased by 105.5% year over year, to $42.3 million.
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Net income attributable to Formula’s shareholders for the six-month period ended June 30, 2026 increased by approximately 71.4% year over year, reaching $58.9 million, or $3.72 per fully diluted share, compared to $34.4 million, or $2.20 per fully diluted share, in the same period last year. Excluding the impact of the capital gain resulting from TSG’s secondary private placement transaction and the exercise of TSG’s employee stock-based compensation, net income attributable to Formula’s shareholders would have increased by 23.0% year over year, to $42.3 million.
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As of June 30, 2026, Formula held 47.68%, 18.68%, 69.09%, 32.87%, 90.09%, 80%, 100%, 100%, 51% and 100% of the outstanding ordinary shares of Matrix IT Ltd., SI Swan UK Topco Limited., Michpal Technologies Ltd., TSG IT Advanced Systems Ltd., Insync Staffing, Inc., Ofek Aerial Photography Ltd., ZAP Group Ltd., Shamrad Electronic (1997) Ltd., Hashahar Telecom And Electricity Ltd., and Formula Infrastructure Ltd., respectively.
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Consolidated cash and cash equivalents and short-term bank deposits totaled approximately $864.5 million as of June 30, 2026, compared to $1,280 million as of December 31, 2025.
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Total equity as of June 30, 2026 was $1.66 billion (representing 47.2% of the total consolidated statements of financial position), compared to $1.78 billion (representing 49.6% of the total consolidated statements of financial position) as of December 31, 2025.
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The above comparative figures for the second quarter and first half ended June 30, 2025 reflect the reclassification of the results of Sapiens (of which Formula sold its controlling interest in December 2025), as discontinued operations, in accordance with IFRS 5. Similarly, the Company’s record-breaking consolidated results for the second quarter and first half ended June 30, 2026 (as described above) are relative to the Company’s historical consolidated results in prior years that exclude Sapiens.
