Formula Systems (1985) Ltd
Formula Systems (1985) Ltd. is a global information technology holding company based in Israel with securities traded on the Tel Aviv Stock Exchange and Nasdaq. Through its subsidiaries and affiliates, it provides software consulting services, computer-based business solutions, and proprietary software products.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueConsulting and implementation services for enterprise software and IT projects.
Computer-based business solutions for enterprise and institutional customers.
Owned software products and related licensing or support offerings.
Additional technology services delivered through subsidiaries and affiliates.
Customers
Formula Systems serves enterprises and organizations that buy software expertise, digital business systems, and packaged technology solutions. Its customer base is typically corporate and institutional, with demand driven by outsourcing, modernization, and the need for specialized software capabilities. Because the company operates through subsidiaries, customer exposure is diversified across multiple end markets and geographies.
Large companies buying consulting, implementation, and software solutions for core operations.
Smaller commercial clients using packaged business software and services for digitization.
Organizations buying technology systems and support for administrative or operational use.
Customers licensing or subscribing to proprietary software offered by the group.
Strategy
Formula Systems’ strategy centers on operating a portfolio of technology businesses that combine consulting, software implementation, and proprietary products. That structure allows the group to serve different customer needs while broadening its exposure across software services and recurring product opportunities. Its holding-company model also supports capital allocation across subsidiaries and affiliates.
Mixing consulting with proprietary offerings can reduce dependence on any single revenue stream.
The holding-company structure lets Formula Systems scale by adding specialized technology businesses.
Enterprise customers support larger projects and repeat software demand.
Geography
Formula Systems is headquartered in Israel, while its business is described as global and conducted through subsidiaries and affiliates across multiple markets. Its listed structure spans the Tel Aviv Stock Exchange and Nasdaq, indicating a cross-border operating and capital market profile. The company’s geography matters because demand for technology services and software products is tied to local enterprise spending, labor availability, and currency exposure.
Risks
The company’s results depend on demand for technology consulting and software spending, which can vary with enterprise budgets and economic cycles. Its holding-company structure creates execution risk across multiple subsidiaries, while global operations add currency, geographic, and integration exposure. As with other software and IT service businesses, competition for talent, project delivery risk, and product obsolescence are recurring industry risks.
- Talent and project-delivery riskImpact: HighLikelihood: High
Software consulting requires specialized staff and timely implementation.
Exposure: Service delivery and client retention
- Demand sensitivity to enterprise IT budgetsImpact: HighLikelihood: Medium
Clients may delay consulting or software projects when budgets tighten.
Exposure: Consulting and business solutions revenue
- Multi-subsidiary execution riskImpact: HighLikelihood: Medium
The holding-company structure depends on performance across several operating units.
Exposure: Group-wide operations
- Foreign exchange and cross-border exposureImpact: MediumLikelihood: High
A global footprint can create translation and transaction volatility.
Exposure: International operations
- Product obsolescence and competitive pressureImpact: MediumLikelihood: Medium
Proprietary software must stay relevant against fast-moving alternatives.
Exposure: Software products
Accounting
Judgemental itemsThe parent’s reported performance depends on full consolidation and equity-accounted interests where applicable.
Impact: Can materially change revenue, assets, and net income
Consulting projects and software arrangements may recognize revenue over time or at points in time.
Impact: Affects quarterly revenue timing and margin comparability
Acquisitions in software and services can create significant intangible balances.
Impact: Impairment or amortization can materially affect earnings
Global operations expose the company to translation of foreign subsidiaries into reporting currency.
Impact: Can affect reported equity and profit volatility
Similar listed companies
Publicly listed companies with a comparable business focus.
Magic Software Enterprises LTD
RMTHF · Services-Prepackaged Software
Check Point Software Technologies Ltd
CHKP · Services-Prepackaged Software
Evogene Ltd.
EVGN · Agricultural Chemicals
monday.com Ltd.
MNDY · Services-Prepackaged Software
Israel Acquisitions Corp
ISRLF · Blank Checks
Israel Acquisitions Corp is a blank check company formed to complete a merger, share exchange, asset acquisition, or similar business combination.
Teva Pharmaceutical Industries Limited
TEVA · Pharmaceutical Preparations
Last updated: 28/09/2026