Formula Systems Q4 Revenues Jump 26.9% to $708.4M, Net Income Hits $554.8M
Formula Systems grew full-year 2025 revenues 18.4% to $2.63 billion and Q4 revenues 26.9% to $708.4 million. Net income attributable soared to $554.8 million ($35.03 per share) driven by a $550.4 million capital gain from Sapiens’ sale, and the board proposes a $200 million dividend.
1. Strong Revenue Growth
Formula Systems reported full-year 2025 revenues of $2.63 billion, up 18.4% year-over-year, and a Q4 record $708.4 million, up 26.9% from the prior year. Fourth-quarter operating income fell 13.5% to $41.6 million due to an $18.7 million increase in amortization expense; adjusted operating income rose 25.5% to $60.3 million.
2. Sapiens Sale and Capital Gain
On August 13, 2025, Sapiens agreed to a $43.50 per share acquisition by Advent, completed December 17, 2025. Formula retained an 18.68% stake, lost control of Sapiens, and recognized a $550.4 million capital gain, driving a record $554.8 million net income attributable in Q4.
3. Proposed $200 Million Dividend
Following the Sapiens transaction, Formula’s board expects to distribute up to $200 million in dividends, subject to approval of its audited 2025 financial statements. Details on the record date and payment date will be provided after the annual report filing expected by mid-May 2026.