Formula Group celebrates: net profit doubled, revenue reached $1.5 billion
With a 163% jump in net profit from continuing operations and all-time record revenues, the Israeli software giant presents a phenomenal first half and distributes tens of millions of dollars to shareholders.
The Israeli software giant, Formula Systems Group, published its financial results for the second quarter and the first half of 2026 on Tuesday.
Financial Highlights for Q2 2026
Revenues in the second quarter of 2026 rose by approximately 29.8% to a record $782.4 million, compared to $602.7 million in the same quarter last year. Operating profit increased by approximately 41.3% to $71.6 million, up from $50.7 million. Net profit from continuing operations attributable to shareholders rose by 163.7% to $23.3 million, or $1.47 per share on a fully diluted basis, compared to $8.8 million ($0.56 per share) in the same period last year.
Financial Highlights for H1 2026
Revenues for the first half of 2026 grew by 24.4% to a record $1.52 billion. Operating profit rose by 53.3% to $153.7 million. This figure includes a capital gain of $16.6 million resulting from the dilution of the company's holdings in TSG following a private placement and employee option exercises. Excluding this gain, operating profit would have risen by 36.7% to approximately $137.0 million.
Net profit attributable to shareholders from continuing operations for the first half rose by 186.4% to $58.9 million ($3.72 per share). Adjusted net profit, excluding the aforementioned capital gain, would have been $42.3 million, reflecting a 105.5% annual growth compared to the same period last year.
Dividends and Balance Sheet
The board of directors has approved a dividend distribution of $1.63 per share, totaling approximately $25 million. The dividend will be paid on October 6, 2026, to shareholders of record as of September 22, 2026. As of June 30, 2026, the group held $864.5 million in cash and marketable securities, with total equity standing at $1.66 billion.
Guy Bernstein, CEO of Formula Systems, stated: "Our business results reflect the strength of the Formula group and our ability to continue growing and increasing profits. We remain committed to operational excellence in cloud, cyber, data, and artificial intelligence, allowing us to create significant value for our customers and drive consistent growth throughout 2026."
