Formula Systems (1985) Ltd.
FORTY Technology Information Technology Services
Formula Systems (1985) Ltd.’s revenue for fiscal 2025 (year ended December 2025) was $2.6 billion, up 18.4% from fiscal 2024. In the quarter to June 2026, revenue grew 29.8%, EPS grew 55.1%, free cash flow grew 1,330.8% and total debt rose 1.98%, each against the same quarter a year earlier. Operating cash flow growth for three consecutive years.
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Formula Systems (1985) Ltd. (FORTY) Altman Z-score
Formula Systems (1985) Ltd.'s Altman Z-score for fiscal 2025 is 2.48, in the grey zone (1.81–2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 2.48 | 0.65 |
| FY2024 | 1.83 | (0.19) |
| FY2023 | 2.01 | 0.00 |
| FY2022 | 2.02 | (0.17) |
| FY2021 | 2.19 | 0.28 |
| FY2020 | 1.91 | (0.01) |
| FY2019 | 1.91 | 0.03 |
| FY2018 | 1.89 | 0.01 |
| FY2017 | 1.88 | (0.18) |
| FY2016 | 2.06 | 0.05 |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.23 | — | 0.28 | |
| Retained earnings / total assets | 0.31 | — | 0.43 | |
| EBIT / total assets | 0.05 | — | 0.18 | |
| Market value of equity / total liabilities | 1.42 | — | 0.85 | |
| Sales / total assets | 0.73 | — | 0.73 | |
| Altman Z-score | Grey zone | 2.48 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 3.94 | ||
Z and Z″ put Formula Systems (1985) Ltd. in different zones: grey zone by Z, safe zone by Z″.
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| PONY Pony AI Inc. - Sponsored ADR compare | 31.1× |
| INOD Innodata Inc compare | 19.1× |
| MGRT Mega Fortune Company Limited compare | 12.3× |
| GLOB Globant S.A. compare | 3.0× |
| EFOR Everforth Inc. compare | 2.5× |
| FORTY Formula Systems (1985) Ltd. | 2.5× |
| DXC DXC Technology Company. compare | 1.1× |
| KEEL Keel Infrastructure Corp compare | 0.9× |
| CNXC Concentrix Corporation compare | 0.9× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets