Formula Systems reports record Q2 and H1, announces dividend, strong covenants
Aug 25, 2026, 7:43 AM EDT1 sourcesAI-analyzed
Why it may matterVerify against the original reporting
Exceptional YoY and H1 growth metrics, substantial net income expansion, and a meaningful dividend create immediate upside catalysts. The strong covenant position reduces funding risk and supports potential strategic actions. While one-time capital gains (TSG) inflate operating income, ex-capital gains, underlying profitability still shows solid improvement, which tends to re-rate shares on a multi-quarter horizon.
AI summary
What happened, with direct paths to the underlying reporting
Formula Systems posted record Q2 2026 revenue of $782.4 million and first-half revenue of $1.52 billion, with substantial YoY gains in operating and net income. The results include a $16.6 million capital gain from a TSG placement, with stand-alone figures excluding Sapiens, which moved to discontinued operations after Advent’s acquisition. The company also declared a $1.63 per-share dividend and noted strong covenant compliance, signaling solid cash generation and optionality for growth initiatives.
Q2 2026 revenue $782.4m, up 29.8% YoY; H1 revenue $1.521b, up 24.4%.
Q2 operating income $71.6m, up 41.3% YoY; net income continued ops $23.3m, +163.7%.
Dividend of $1.63/share ($25m total) declared; payout Oct 6, 2026; record Sept 22.
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