FORTY 6-K

Formula Systems (1985) Ltd (FORTY)

6-K 2026-05-28 For: 2026-05-28

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Added on May 28, 2026

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Exhibit No.		Title of Exhibit
99.1		Formula Systems Reports First Quarter 2026 Financial Results

FORMULA SYSTEMS (1985) LTD.

By:	/s/ Asaf Berenstin
	Name:	Asaf Berenstin
	Title:	Chief Financial Officer
	Date:	May 28, 2026

	Three months ended
	March 31,
	2026		2025(*)
	Unaudited
Revenues		738,285		619,383
Cost of revenues		592,249		499,154
Gross profit		146,036		120,229
Research and development expenses, net		5,169		4,811
Selling, marketing and general and administrative expenses		75,647		65,894
Other income, net		16,785		-
Operating income		82,005		49,524
Financial expenses, net		4,170		6,494
Income before taxes on income		77,835		43,030
Taxes on income		15,377		10,969
Income after taxes		62,458		32,061
Share of profit of companies accounted for at equity, net		297		828
Net income from continued operations		62,755		32,889
Net income from discontinued operations		-		17,493
Net income		62,755		50,382
Net income attributable to non-controlling interests from continued operations		27,116		21,141
Net income attributable to non-controlling interests from discontinued operations		-		9,925
Net income attributable to non-controlling interests		27,116		31,066

Net income attributable to Formula’s shareholders from continued operations		35,639		11,748
Net income attributable to Formula’s shareholders from discontinued operations		0		7,568
Net income attributable to Formula’s shareholders		35,639		19,316

Earnings per share from continued operations (basic)		2.33		0.77
Earnings per share from discontinued operations (basic)		-		0.49
Earnings per share (basic)		2.33		1.26

Earnings per share from continued operations (diluted)		2.25		0.75
Earnings per share from discontinued operations (diluted)		-		0.48
Earnings per share (diluted)		2.25		1.23

Number of shares used in computing earnings per share (basic)		15,317,067		15,311,924
Number of shares used in computing earnings per share (diluted)		15,838,550		15,729,173

	March 31,		December 31,
	2026		2025
	(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		1,181,911		1,280,121
Short-term deposits		631		372
Marketable securities		363		-
Trade receivables, net		844,559		774,471
Prepaid expenses and other accounts receivable		110,699		80,604
Inventories		36,304		30,249
Total current assets		2,174,467		2,165,817

NON-CURRENT ASSETS:
Financial assets measured at fair value through profit or loss		303,751		304,549
Long-term investments and receivables		48,407		50,126
Deferred taxes		26,974		26,915
Investments in companies accounted for at equity		66,124		48,908
Property, plants and equipment, net		54,837		47,614
Right-of-use assets		144,458		145,462
Intangible assets, net and goodwill		819,128		793,864
Total non-current assets		1,463,679		1,417,438

Total assets		3,638,146		3,583,255

LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Loans from banks and others		240,568		177,899
Debentures		78,703		76,696
Current maturities of lease liabilities		43,573		42,899
Trade payables		367,127		368,319
Deferred revenues		185,566		157,545
Employees and payroll accrual		236,123		235,705
Other accounts payable		76,886		195,817
Dividend payable		-		7,886
Liabilities in respect of business combinations		4,274		6,359
Put options of non-controlling interests		59,060		61,206
Total current liabilities		1,291,880		1,330,331

LONG-TERM LIABILITIES:
Loans from banks and others		26,590		68,309
Debentures		107,939		118,656
Convertible debentures		78,344		-
Lease liabilities		105,763		107,805
Other long-term liabilities		-		54
Deferred taxes		88,143		83,426
Deferred revenues		14,693		16,457
Liabilities in respect of business combinations		15,249		13,291
Put options of non-controlling interests		79,003		61,577
Employee benefit liabilities		6,485		5,547
Total long-term liabilities		522,209		475,122

EQUITY
Total equity attributable to Formula Systems (1985) Ltd. shareholders		1,384,909		1,353,263
Non-controlling interests		439,148		424,539
Total equity		1,824,057		1,777,802

Total liabilities and equity		3,638,146		3,583,255

	March 31,		December 31,
	2026		2025
	(Unaudited)		(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		740,881		793,131
Dividend receivable		12,011		448
Other accounts receivable and prepaid expenses		5,689		5,527
Total current assets		758,581		799,106

NON-CURRENT ASSETS:
Investment in subsidiaries and a jointly controlled entity (*)
Matrix IT Ltd.		317,756		183,214
Magic Software Enterprises Ltd.		-		132,183
TSG IT Advanced Systems Ltd.		51,607		33,882
Michpal Technologies Ltd.		109,242		108,099
ZAP Group Ltd.		46,666		48,154
Other		80,910		50,428
Total investment in subsidiaries and a jointly controlled entity		606,181		555,960

Financial assets measured at fair value through profit or loss		300,000		300,000
Other investments and long term receivables		21,150		23,904
Property, plants and equipment, net		32		13
Total non-current assets		927,363		879,877

Total assets		1,685,944		1,678,983

LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Loans from banks and others		105,975		15,158
Debentures		53,742		52,350
Trade payables		1,397		963
Other accounts payable		42,534		152,634
Put options of non-controlling interests		2,165		992
Dividends payable		-		7,883
Total current liabilities		205,813		229,980

LONG-TERM LIABILITIES:
Loans from banks and others		219		871
Debentures		46,618		46,204
Deferred taxes Liability		48,385		48,665
Total long-term liabilities		95,222		95,740

EQUITY		1,384,909		1,353,263

TOTAL LIABILITIES AND EQUITY		1,685,944		1,678,983