Formula Systems stock (US34964C1069): Declares $200M special dividend

Formula Systems has approved a special cash dividend of $13.045 per share, totaling around $200 million, payable June 4, 2026, to shareholders of record on May 25. The payout reflects strong 2025 results including the Sapiens sale.

Formula Systems (Nasdaq/TASE: FORTY), a global IT holding company, announced a special cash dividend of $13.045 per share, equivalent to approximately $200 million in total. The board approved the distribution based on the company's 2025 results, particularly the completion of the acquisition of its subsidiary Sapiens by Advent, which bolstered its cash position. The dividend will be paid on June 4, 2026, to shareholders of record as of May 25, 2026, with an ex-dividend date of May 25. It applies to both ordinary shares on the Tel Aviv Stock Exchange and American Depositary Receipts on Nasdaq, in U.S. dollars, subject to Israeli withholding tax of 25-30% depending on exemptions, Stock Titan as of May 2026.

Earlier, Formula Systems reported record revenues of $743.4 million in Q2 2025, underscoring robust demand for its software services and enterprise automation solutions through subsidiaries. This performance has positioned it as a top midcap tech stock over recent years, Intellectia as of May 2026.

As of: 14.05.2026

By the editorial team – specialized in equity coverage.

At a glance

• Name: Formula Systems (1985) Ltd
• Sector/industry: Information Technology Services
• Headquarters/country: Israel
• Core markets: Global
• Key revenue drivers: Software consulting, proprietary software products
• Home exchange/listing venue: Nasdaq (FORTY), TASE (FORTY)
• Trading currency: USD

Formula Systems: core business model

Formula Systems operates as a holding company that provides information technology services through its subsidiaries and affiliates. It focuses on software consulting services, computer-based business solutions, and the development of proprietary software products. The group serves diverse sectors including finance, healthcare, and manufacturing with tailored IT solutions.

This structure allows Formula Systems to leverage expertise across multiple geographies and technologies, driving growth through organic expansion and strategic acquisitions. Its model emphasizes integration of acquired entities to enhance service offerings and market reach.

Main revenue and product drivers for Formula Systems

Key revenue streams come from software consulting and proprietary products, with recent highlights including strong Q2 2025 performance at $743.4 million in revenues for the quarter reported in financial updates published in 2025. Enterprise automation and software services have been primary growth engines amid rising digital transformation demands.

The completion of the Sapiens divestiture to Advent in 2025 significantly contributed to cash generation, enabling the special dividend. Formula Systems continues to pursue M&A opportunities, as noted in its recent 20-F filing detailing dozens of tech acquisitions, Stock Titan as of May 2026.

Industry trends and competitive position

In the IT services sector, Formula Systems benefits from trends like AI integration, cybersecurity, and cloud migration. Its global footprint and focus on proprietary software position it competitively against peers in midcap tech, particularly in serving US-linked markets through Nasdaq listing.

Challenges include AI disruption and integration risks from acquisitions, as outlined in SEC filings, but its track record in M&A supports resilience.

Why Formula Systems matters for US investors

Listed on Nasdaq as FORTY, Formula Systems offers US investors exposure to a profitable Israeli IT holding with global operations and USD-denominated dividends. Its ADRs facilitate easy access, and the special dividend payout underscores cash return potential amid US tech sector interest.

Conclusion

Formula Systems' special dividend announcement highlights its solid 2025 financial position post-Sapiens sale, rewarding shareholders with a substantial $13.045 per share payout. While M&A and sector risks persist, the company's IT services model and Nasdaq presence maintain appeal for diversified portfolios tracking global tech. Investors should monitor upcoming payments and filings for further insights.

Disclaimer: This article does not constitute investment advice. Stocks are volatile financial instruments.