Formula Systems Posted Record Q2 in 2025
Formula Systems (1985) Ltd. (NASDAQ:FORTY) has emerged as one of the best-performing midcap tech stocks in recent years, showcasing steady earnings growth and strategic portfolio realignment. In a significant move on August 13, 2025, the Israel-based IT and software holding company announced the acquisition of its insurance-software subsidiary Sapiens International Corporation N.V. by Advent International in an all-cash transaction. This landmark deal underscores private equity’s keen interest in mature, cash-flowing AI-enabled software assets.
The decision to sell Sapiens is part of Formula’s ongoing effort to streamline its holdings and unlock value across its diverse technology portfolio. The company reported record revenues of $743.4 million in the second quarter of 2025, marking an 11.3% year-over-year increase and its strongest quarter to date. This growth was driven by robust demand in software services and enterprise automation, highlighting Formula’s resilience in a fluctuating global IT spending environment.
Headquartered in Or Yehuda, Israel, Formula Systems (1985) Ltd. (NASDAQ:FORTY) operates as a tech investment group with investments in IT services, software, and digital transformation platforms across various regions. The company exemplifies the disciplined, high-cash-flow mid-cap model that is currently favored by the market.
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In conclusion, Formula Systems’ strategic decisions and financial performance position it as a strong player in the tech industry. With a focus on optimizing its portfolio and driving growth, the company continues to attract investor interest and maintain its competitive edge in the market.
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