Dalia Korkin admits: "The results are not as good as we had hoped"

The nursing and human resources company, Amal, published its second financial report today since its IPO, showing only a slight decrease in revenue and a decline in profitability. In the investor call, the company's CEO, Dalia Korkin, admitted that the results were lower than she had hoped, but promised that the company is on an improving trend.

Amal's stock, which was responsible for one of the most exciting IPOs of 2025, has fallen by more than 15% since its inception. The company is trading at a valuation of 2.3 billion shekels, compared to 2.6 billion at the IPO, and a valuation of 3 billion shekels it hoped to reach when it set out for the stock exchange. FIMI acquired about 80% of the company at a valuation of 1 billion shekels in 2021 and sold most of its holdings as part of the IPO.

Revenue of 1.13 billion shekels, profit eroded

In the first six months of 2026, the company's revenue grew by about 4% to about 1.13 billion shekels. Although the growth in revenue led to an increase in gross profit as well, the operating profit remained at 96.7 million shekels. This is due to an increase in expenses, among other things, the update of employee wages and preparations for the new National Insurance Institute tender. Net profit stood at 66 million shekels, compared to 67.6 million in the same period.

Looking at the quarterly trend, it is similar: a 4% growth in revenue to 577 million shekels, a slight increase in gross profit without an increase in operating profit, and net profit that decreased slightly, from 36.8 to 33.8 million shekels. "I remind you that in the previous quarter the decline was much sharper, and here there is currently some correction," said the company's CFO, Iftach Wolf, in the investor call.

Branches that lower results and the National Insurance Institute tender

Amal operates in four sectors: home care, nursing homes, mental health, and special populations. Its main problem this quarter, explained Wolf, was the home care sector, where the company sold 3% fewer care hours due to a change in management. The home care sector is the company's largest, accounting for 60% of its revenue and about 51% of its operating profitability.

Korkin said in the investor call: "Most of the branches are already in a trend of growth and improved profitability. About five branches are still lowering the results. We replaced management, and at the same time we are organizing at a very fast pace for the National Insurance Institute tender, which creates larger expenses, operational and structural changes." The new tender presents conditions that are considered tougher for nursing companies, with an estimated negative impact on annual operating profit of up to 20 million shekels.

In response to a question about what is not working in the problematic branches, Korkin said: "When employees are not dedicated enough, when they give up easily on a case that is difficult, then that is the result. In most branches, most of our employees love their work, love the elderly, love the families, and are connected to people. No technology will help in this field, you just need the people who love it."

Recovery in mental health and expansion to the homeless

In the nursing homes sector (12% of activity and 10% of operating profit), there was a slight improvement in revenue and profitability, mainly due to an increase in rates paid by the Ministry of Health and the HMOs. Korkin noted the lack of construction in the country as a barrier to expansion. "The homes are full. We receive many inquiries for acquisition, and we are checking them all. I have no doubt that in the near future we will make a decision on expanding the field, by acquisition or even new construction."

Also in the mental health and special populations sectors, there was a slight improvement in revenue and profitability. Korkin stated that "in the mental health sector, we are continuing the double-digit growth trend despite difficulties in recruiting manpower. This is a division with an excellent reputation." In the special populations sector, which includes dormitories and schools for special needs, Amal plans to expand into additional fields. "We are entering new disciplines with large partners. If you walk around Tel Aviv and see homeless people - we are there," said Korkin. "It requires special expertise, and unfortunately, the activity in this field is only growing. Working with people on the autistic spectrum is another field that should bring us to very large turnovers and nice profitability."

Parallel to the publication of the reports, Amal announced the acquisition of full ownership in a company in the home care sector for 72 million shekels. The deal is subject to the approval of the Competition Authority and the National Insurance Institute. Last May, Amal acquired about 75% of the company "Kesher", which operates in the special needs sector. The two recent acquisitions together are expected to add about 190 million shekels to revenue and about 19-20 million shekels to profit.

"These acquisitions highlight our relative advantage in identifying, acquiring, and integrating companies," concluded Korkin. "This is what we have done over the years and what we will continue to do - it is almost our specialization."