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Sep 30, 2025
MGIC Q3 2025 Earnings Report
Magic Software reported record Q3 2025 results with $161.7 million in revenue and $9.9 million in net income.
Key Takeaways
Magic Software achieved record-breaking results in Q3 2025, with double-digit revenue growth driven by strong performance in Israel and North America. Operating income and net income also saw notable increases, reflecting robust demand and operational execution.
Revenue hit a quarterly record of $161.7 million, up 13.1% YoY
Net income attributable to shareholders reached $9.9 million
GAAP EPS was $0.20; Non-GAAP EPS was $0.25
Cash and cash equivalents stood at $103.3 million as of quarter-end
Forward Guidance
Magic Software raised its full-year 2025 revenue guidance to $610–$620 million, citing strong Q3 momentum and market confidence.
Positive Outlook
- Raised 2025 revenue guidance to $610–$620 million
- Strong Q3 performance across revenue, gross profit, and operating income
- Continued demand for AI and cloud transformation solutions
- High growth in Israeli and North American markets
- Merger with Matrix I.T. to enhance scale and tech capabilities
Challenges Ahead
- Slight decline in gross margin YoY
- Operating margin compression in Non-GAAP metrics
- Cash flow from operations decreased YoY
- Dividend payout reduces retained earnings
- Exposure to currency fluctuations and related tax complexities
Historical Earnings Impact
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Avg. Return Before/After Earnings
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