# Formula Systems (1985) Ltd > Clarifo company profile — qualitative business description generated from > the company's filings. Financial statements, charts and ratios are > available on Clarifo (https://www.clarifo.com/fi/companies/Formula Systems (1985) Ltd). ## Overview 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. ## Products & services • Software consulting services • Computer-based business solutions • Proprietary software products • IT services through subsidiaries and affiliates • Enterprise application and technology solutions - **Software consulting services** (45%) — Consulting and implementation services for enterprise software and IT projects. - **Business solutions** (30%) — Computer-based business solutions for enterprise and institutional customers. - **Proprietary software products** (15%) — Owned software products and related licensing or support offerings. - **IT services and other** (10%) — Additional technology services delivered through subsidiaries and affiliates. - Software consulting services - Computer-based business solutions - Proprietary software products - IT services through subsidiaries and affiliates - Enterprise application and technology solutions ## 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. - **Enterprise customers** (primary) — Large companies buying consulting, implementation, and software solutions for core operations. - **Mid-market businesses** (secondary) — Smaller commercial clients using packaged business software and services for digitization. - **Public and institutional organizations** (secondary) — Organizations buying technology systems and support for administrative or operational use. - **Software product users** (primary) — Customers licensing or subscribing to proprietary software offered by the group. - Enterprises outsourcing software development and consulting - Organizations needing business process and IT systems - Customers purchasing proprietary software products - Corporate clients seeking implementation and integration support - Institutional buyers requiring tailored technology solutions ## 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. - **Israel** — Headquarters and core operating base - **North America** — Part of the company's global operating footprint - **Europe** — Part of the company's global operating footprint - Headquartered in Israel - Operates as a global IT holding company - Securities listed in Tel Aviv and Nasdaq - Business conducted through subsidiaries and affiliates - Cross-border exposure to local demand and currencies ## 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. - **Diversify revenue across services and software products** (medium-term) — Mixing consulting with proprietary offerings can reduce dependence on any single revenue stream. - **Grow through subsidiaries and affiliates** (medium-term) — The holding-company structure lets Formula Systems scale by adding specialized technology businesses. - **Maintain a global enterprise client base** (short-term) — Enterprise customers support larger projects and repeat software demand. - Operate a diversified technology holding structure - Combine services with proprietary software products - Serve multiple customer types through subsidiaries - Expand through affiliated businesses and portfolio companies - Use cross-border listing and capital access to support growth ## 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. - **Demand sensitivity to enterprise IT budgets** [high] — Clients may delay consulting or software projects when budgets tighten. - **Multi-subsidiary execution risk** [high] — The holding-company structure depends on performance across several operating units. - **Foreign exchange and cross-border exposure** [medium] — A global footprint can create translation and transaction volatility. - **Talent and project-delivery risk** [high] — Software consulting requires specialized staff and timely implementation. - **Product obsolescence and competitive pressure** [medium] — Proprietary software must stay relevant against fast-moving alternatives. - Enterprise IT spending can slow in weaker economic conditions - Performance depends on multiple subsidiaries and affiliates - Global operations create currency and geographic exposure - Software and consulting markets face intense competition - Talent retention and delivery quality affect client relationships ## Accounting The company’s holding-company structure makes investment accounting and consolidation judgments important, especially where subsidiaries and affiliates are measured or reported through group structures. Investors should also watch revenue recognition across consulting projects and software arrangements, since timing can differ between services delivered over time and software-related licensing or support. As a global group, foreign currency translation and acquisition-related goodwill or intangible assets can also materially affect reported results. - **Consolidation of subsidiaries and affiliates** — Can materially change revenue, assets, and net income - **Revenue recognition** — Affects quarterly revenue timing and margin comparability - **Goodwill and intangible assets** — Impairment or amortization can materially affect earnings - **Foreign currency translation** — Can affect reported equity and profit volatility - Consolidation of subsidiaries and affiliates affects group results - Revenue recognition may differ for consulting and software contracts - Foreign currency translation can move reported earnings - Goodwill and intangible assets require impairment testing - Acquisition accounting can affect asset values and future amortization --- *Last updated: 2026-09-28T12:03:35.972482+00:00*