Investor Presentation • Nov 23, 2025
Investor Presentation
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Financial Statements as at 30.9.25
Matrix Investor Presentation





The presentation contains forecasts, estimates and plans of the Company regarding its operations and other information about future events and matters, which constitute forward-looking information, as defined in the Securities Law, 1968, and materialization thereof is uncertain and may be affected by factors that are unforeseeable or beyond the Company's control. Therefore, the Company is uncertain whether its forecasts and/or estimates and/or plans will be realized, in whole or in part, or whether they will be realized differently than expected ,due to, among other things, factors beyond its control, changes in market conditions, business and competition environment, as well as materialization of any of the Company's risk factors.
The presentation includes, among other things, information from various publications as well as data received from external sources (noted in the presentation), and macroeconomic facts and figures, the contents of which have not been reviewed by the Company independently, including slides relating to analyst ratings, all as known by the Company at the time of preparation of the presentation.
For the avoidance of doubt, we note that the Company does not undertake to update and/or change the information included in this presentation.
This presentation was prepared as a summary and for convenience only, and is not intended to be in lieu of a review of the reports publicized by the Company, including its financial statements.
The information contained in this presentation is subject to that stated in the relevant Company's reports.
This presentation should not be viewed an offer or invitation to acquire the Company's securities. The information included in the presentation is not a recommendation or opinion to invest in the Company and is not in lieu of a potential investor's judgment.







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matrix + mogic
The Companies'
Merger Transaction

Financial Statements


2025Summary – Third Q
Nine Month Period
Ended 30.9.2025

2025Third Quarter Summary


matrix FORWARD

Financial Inde es

US Market

Israeli Market













• Following completion, Magic's shareholders will hold 31.125% of the Company's issued and outstanding share capital on a fully diluted basis, while the shareholders who held Matrix shares immediately prior to the merger completion date will hold 68.875% of the issued and outstanding share capital.







MARCH 25 THE MERGER TRANSACTION

The combined market cap of Matrix and Magic has increased by approximately NIS 3.4 billion since the publication of the memorandum of understanding and currently stands at around NIS 11.25 billion, positioning the companies among the largest publicly traded IT firms globally.
THE COMBINED COMPANY WOULD BE ONE OF THE LARGEST LISTED IT SERVICES FIRMS BY MARKET CAP
| Market Cap (\$M) | Company | Rank | |
|---|---|---|---|
| \$213,814 | accenture | 1 | |
| 81,672 | Infosys | 2 | |
| 41,330 | cognizant | 3 | |
| 34,342 | wipro | 4 | |
| 23,319 | CGI | 5 | |
| 11,222 | 6 | ||
| 8,249 | kyndryl | 7 | |
| 1/1 | 6,198 | Globant | 8 |
| ı | 3,250 | TECHNOLOGY | 9 |
| 2,132 | matrix + | 10 | |
| 1,528 | Orid Dynamics | 11 | |
| 1,353 | endava: | 12 |
| tank | Company | Market Cap (\$M) |
|---|---|---|
| 1 | Capgemini | \$28,936 |
| 2 | ındra | 4,958 |
| 3 | sopra S steria | 3,656 |
| 4 | matrix + | 2,132 |
| 5 | netcompany | 2,042 |
| 6 | NEURONES | 1,263 |
| 7 | nagarro nagarro | 1,234 |
| 8 | kain•s° | 1,157 |
| 9 | AtoS | 951 |
| 10 | aubay | 615 |



NOVEMBER 25 THE MERGER TRANSACTION

The combined market cap of Matrix and Magic has increased by approximately NIS 3.4 billion since the publication of the memorandum of understanding and currently stands at around NIS 11.25 billion, positioning the companies among the largest publicly traded IT firms globally.
THE COMBINED COMPANY WOULD BE ONE OF THE LARGEST LISTED IT SERVICES FIRMS BY MARKET CAP
| U.S. Listed IT Services | ||||
|---|---|---|---|---|
| Rank | Market Cap (\$mm) | |||
| 1 | accenture | \$154,067 | ||
| 2 | Infosys | 69,412 | ||
| 3 | 35,103 | |||
| 4 | wipro | 28,377 | ||
| 5 | CGI | 19,113 | ||
| 6 | 9,007 | |||
| 7 | kyndryl | 6,645 | ||
| 8 | matrix + | 3,500 | ||
| 9 | Globant) | 2,677 | ||
| 10 | TECHNOLOGY | 2,311 | ||
| 11 | Grid Dynamics | 759 | ||
| 12 | endava. | 481 |
| European Listed IT Services | |||
|---|---|---|---|
| Rank | Market Cap (\$mm) | ||
| 1 | Capgemini | \$25,415 | |
| 2 | ındra | 10,241 | |
| 3 | matrix💸 🕂 🥝 | 3,500 | |
| 4 | sopra 🕽 steria | 2,904 | |
| 5 | netcompany | 2,303 | |
| 6 | kain•s* | 1,473 | |
| 7 | Atos | 1,110 | |
| 8 | NEURONES | 1,092 | |
| 9 | @ubay |
743 | |
| 10 | ( nagarro | 685 |




\$2bn+
FY24 Revenues 22% International (17% US) 12%+
FY24 EBITDA Margin
14
Platforms and IP Software Solutions







15,000+
Total Headcount
50+ Countries
Served
6,000+
Active Customers






Completion of the merger is subject to several conditions, including approval of the transaction at the special shareholders' meeting, scheduled for Wednesday, December 10, 2025, at 2:00 p.m. at Matrix's offices.
FINANCIAL STATEMENTS AS AT 30.9.25








SUMMARY OF Q3 AND THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2025
MATRIX INVESTOR PRESENTATION FINANCIAL STATEMENTS AS AT 30.9.25








MATRIX INVESTOR PRESENTATION
FINANCIAL STATEMENTS AS AT 30.9.25






2025
Growth leading to record results across all key financial performance metrics
+15.7%
+20.7%
Growth Adjusted for the increase in revenues accounted for on a net basis (*)
Growth
to a record NIS 1.64 billion
(*) During the third quarter, revenues accounted for, on a net basis, continued to increase. This affects the Company's revenues, revenue growth rate, and profit margin. See more, later in this presentation.







2025
Growth leading to record results across all key financial performance metrics
$+1789/0^{\star}$ improving its margin to 14.7%
Growth
to a record NIS 241.5 million
(*) Growth in the guarter was achieved despite a decrease of about 3.9% in the number of working hours compared with the corresponding quarter.







2025
Growth leading to record results across all key financial performance metrics
+21.5%
improving its margin to
8%
Growth
to a record NIS 131.5 million







2025
Growth leading to record results across all key financial performance metrics
+21%
improving its margin to
5.1%
Growth
to a record NIS 84.3 million







2025
Growth leading to record results across all key financial performance metrics
+21.1%
improving its margin to
4.7%
Growth
to a record NIS 78 million







2025
Growth leading to record results across all key financial performance metrics
+17.6%
improving its margin to
11.1%
Growth
to a record NIS 182.8 million







2025
Growth leading to record results across all key financial performance metrics
EBITDA Adjusted (adjusted for IFRS 16)
+19.4%
improving its margin to
8.9%
Growth
to a record NIS 145.8 million








NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2025
2025
MATRIX INVESTOR PRESENTATION
FINANCIAL STATEMENTS AS AT 30.9.25






2025
Growth leading to record results across all key financial performance metrics
+10.3%
+15.1%
in revenues accounted for
Growth Adjusted for the increase on a net basis (*)
Growth
to a record NIS 4.6 billion
(*) During the third quarter, revenues accounted for, on a net basis, continued to increase. This affects the Company's revenues, revenue growth rate, and profit margin. See more, later in this presentation.






Growth leading to record results across all key financial performance metrics
+12.60/0 improving its margin to 14.9%
Growth
to a record NIS 691.3 million
(*) The growth rate for the period was achieved despite an income of about NIS 6 million recorded in the corresponding period from retroactive compensation received from the National Insurance Institute (for reserve duty).







Growth leading to record results across all key financial performance metrics
+16.40/0 improving its margin to 8.3%
Growth
to a record NIS 384.2 million
(*) The growth rate for the period was achieved despite an income of about NIS 6 million recorded in the corresponding period from retroactive compensation received from the National Insurance Institute (for reserve duty).







2025
Growth leading to record results across all key financial performance metrics
+12.6%
improving its margin to
5.2%
Growth
to a record NIS 241.2 million







<-- PDF CHUNK SEPARATOR -->
JANUARY - SEPTEMBER
2025
Growth leading to record results across all key financial performance metrics
+11.8%
improving its margin to
4.9%
Growth
to a record NIS 226.5 million







2025
Growth leading to record results across all key financial performance metrics
+14.2%
improving its margin to
11.5%
Growth
to a record NIS 534.4 million







2025
Growth leading to record results across all key financial performance metrics
EBITDAAdjusted (adjusted for IFRS 16)
+15.8%
improving its margin to
9.3%
Growth
to a record NIS 430 million







30.9.2025
FINANCIAL STATEMENTS AS AT 30.9.25







Ranked as the leading software services company in Israel 20 consecutive years


12,000+ Professionals

A1 D2 C3 That's us!



Rated Aa3.il for the last 17 years (by Midroog-Moody's)

13% of profits are generated abroad

3,000+ Customers







IT Solutions & Computing in Israel and Abroad

Consulting Defense & Engineering


BPO & Call Centers

Commerce and Advanced Technology Solutions


























































FINANCIAL STATEMENTS AS AT 30.9.25





| 7-9/2025 | 7-9/2024 | % | |
|---|---|---|---|
| Revenues | 1,642 | 1,419 | 15.7% |
| Gross profit | 242 | 205 | 17.8% |
| SG&A | 110 | 97 | 13.6% |
| Operating income | 131 | 108 | 21.5% |
| Financial expenses, net | 20 | 16 | 22.8% |
| Tax expenses | 27 | 22 | 22.4% |
| Net income | 84 | 70 | 21% |
| Net income attributable to shareholders | 78 | 64 | 21.1% |
| EBITDA(*) | 183 | 155 | 17.6% |
| Gross profit margin | 14.7% | 14.5% | |
| SG&A margin | 6.7% | 6.8% | |
| Operating income margin | 8% | 7.6% | |
| EBITDA margin(*) | 11.1% | 11% | |
| Net income margin | 5.1% | 4.9% |

(*) Earnings Before Interest, Taxes, Depreciation, and Amortization





| 1-9/2025 | 1-9/2024 | % | |
|---|---|---|---|
| Revenues | 4,639 | 4,205 | 10.3% |
| Gross profit | 691 | 614 | 12.6% |
| SG&A | 307 | 284 | 8.2% |
| Operating income | 384 | 330 | 16.4% |
| Financial expenses, net | 65 | 48 | 35.8% |
| Tax expenses | 78 | 68 | 14.8% |
| Net income | 241 | 214 | 12.6% |
| Net income attributable to shareholders | 226 | 203 | 11.8% |
| EBITDA(*) | 534 | 468 | 14.2% |
| Gross profit margin | 14.9% | 14.6% | |
| SG&A margin | 6.6% | 6.8% | |
| Operating income margin | 8.3% | 7.9% | |
| EBITDA margin(*) | 11.5% | 11.1% | |
| Net income margin | 5.2% | 5.1% |


• 10.2% organic growth adjusted for increase in revenues accounted for on a net basis
• 11.5% organic growth in operating income 18.5%. adjusted growth(**) in operating income
• 13.6% adjusted organic growth(**) in operating income
(*) Earnings Before Interest, Taxes, Depreciation, and Amortization
(**) Adjusted to exclude retroactive reimbursement from the National Insurance Institute relating to employees called up for reserve duty, which was received in the corresponding period (~NIS 6 million).





Key results (NIS millions)

(*) During the third quarter and the period, revenues accounted for, on a net basis, continued to increase. This affects the Company's revenues, revenue growth rate, and profitability margin.




According to FY 2024 revenues








2025
Ongoing improvement in performance metrics over time
Consistent growth, reaching record revenues and profits
(NIS millions)




(*) Adjusted for the increase in revenues recognized on a net basis, revenue growth was 20.7%.





2025
Ongoing improvement in performance metrics over time
Consistent growth, reaching record revenues and profits
(NIS millions)










2025
Ongoing improvement in performance metrics over time
Consistent growth, reaching record revenues and profits
(NIS millions)











(*) Revenue growth adjusted for the increase in revenues recognized on a net basis, was 15.1%. (**) In 2022 – adjusted for a gain from the sale of an investment in a subsidiary (NIS 150 million).
2025
Ongoing improvement in performance metrics over time
Consistent growth, reaching record revenues and profits
(NIS millions)





(*) In 2022 – adjusted for a gain from the sale of an investment in a subsidiary (NIS 121 million).







FINANCIAL STATEMENTS AS AT 30.9.25








Key financial results (NIS millions) (*) Including immaterial operations in Europe
+15.9%
Growth IN REVENUES

adjusted for growth in revenues accounted for on a net basis
Q3 2025 1-9 2025
+25.9%
Growth IN OPERATING INCOME

20.7% growth
+10.6%
Growth IN REVENUES

1-9 2024
15.6% growth adjusted for growth in revenues accounted for on a net basis
1-9 2025

1-9 2024






1-9 2025


| REVENUES * | OPERATING INCOME | |||||
|---|---|---|---|---|---|---|
| Q3 2025 | Q3 2024 | % | Q3 2025 | Q3 2024 | % | |
| IT Solutions and ,Services, Consulting and Management in Israel |
979,359 | 863,213 | 13.5% | 72,936 | 56,190 | 29.8% |
| Profit margin (%) | 7.4% | 6.5% |
Mega projects in the IT and engineering sectors that provide high growth and high visibility over time.
First-time consolidation of Gav Systems also contributed to the segment's results.






















FINANCIAL STATEMENTS AS AT 30.9.25





Q3 2025
(NIS/USD thousands)


| Q3 2025 | Q3 2024 | % | Q3 2025 | Q3 2024 | % | |
|---|---|---|---|---|---|---|
| Segmental results in NIS |
118,951 | 111,104 | 7.1% | 19,006 | 16,511 | 15.1% |
| Profit margin (%) | 16% | 14.9% | ||||
| Segmental results in USD |
35,174 | 29,889 | 17.7% | 5,611 | 4,418 | 27% |
| Profit margin (%) | 16% | 14.8% |






Operating segments in January–September 2025









<-- PDF CHUNK SEPARATOR -->
(NIS thousands)

| 7-9 2025 | 7-9 2024 | Change | 1-9 2025 | 1-9 2024 | Change | |
|---|---|---|---|---|---|---|
| Interest, commissions, and other (net) |
6,097 | 5,897 | 200 | 18,747 | 19,354 | (607) |
| FX differences | 6,024 | 4,335 | 1,689 | 16,401 | 9,723 | 6,678 |
| Accounting financial expenses |
7,712 | 5,923 | 1,789 | 29,445 | 18,497 | 10,948 |
| Total financial expenses (net) |
19,833 | 16,155 | 3,678 | 64,593 | 47,574 | 17,019 |
The increase in financial expenses for the quarter and the period is primarily attributable to higher non-cash accounting expenses (mainly due to the impact of increased profitability in subsidiaries on the revaluation of existing Put options held by minority shareholders), and from FX differences resulting from the depreciation of the USD/ILS exchange rate (about 2% in the quarter and 9.4% in the period).






(NIS millions)
Despite the increase in accounting expenses and FX-difference expenses, cash interest expenses remain stable.









FINANCIAL STATEMENTS AS AT 30.9.25









(NIS millions)
| 30.9.25 | 31.12.24 | |
|---|---|---|
| Cash and cash equivalents |
498 | 668 |
| Unused credit facilities* |
1,235 | 1,229 |
| Total liquid assets | 1,733 | 1,897 |
* Of which NIS 300 million are committed credit facilities
Aa3 credit rating from Midroog (confirmed - March 2025)









(NIS millions)

| 30.9.25 | 31.12.24 | |
|---|---|---|
| Equity | 1,175 | 1,144 |
| % of total balance sheet | 26.8% | 25.5% |
| Gross financial debt | 737.5 | 785.1 |
| Financial net debt | 239.3 | 116.6 |
| Current ratio | 1.09 | 1.1 |
| Financial net debt to balance sheet ratio |
5.5% | 2.6% |
(*) Earnings Before Interest, Taxes, Depreciation, and Amortization
ratio LTM 0.36 0.2
Financial net debt to EBITDA(*)







DIVIDEND 57.9 NIS million
0.91 ag. per share
~3.3% Dividend yield
FINANCIAL STATEMENTS AS AT 30.9.25






FINANCIAL STATEMENTS AS AT 30.9.25





CONTINUED GROWTH – ORGANIC AND THROUGH ACQUISITIONS, WHILE MAINTAINING OUR OPERATING INCOME MARGIN AT 8% AND HIGHER.
Driven, among other factors, by improved operating efficiency and stable SG&A expenses.









The annual revenue run rate reached approximately USD 140 million (USD 35 million in the quarter compared with USD 30 million), with an operating margin of about 16% (USD 5.6 million in the quarter compared with about USD 4.4 million).









(see STKI rankings)
Matrix has maintained market leadership for 20 years. Our strong technological capabilities across all key categories - A¹D²C³, combined with our established reputation, enable us to sustain growth.










Strong business opportunity for the software products segment, improved developer productivity enhances our competitiveness in project execution, accelerated sales of GPUs alongside high performance communication systems, growth in our A1D2C3 lines of business where Matrix is a market leader; potential for a force-multiplier when combined with Magic's capabilities in this segment.









The merger is expected to enhance Matrix's domestic and international standing, particularly in cloud, cybersecurity, data, and AI. It is also expected to increase the share of revenues derived from the Company's proprietary IP, at higher profitability; drive significant growth in revenues from international markets; increase revenues from the financial, defense, high-tech, and healthcare sectors; and strengthen the Company's profit margins and balance sheet structure. (No financing or amortization expenses expected.)
Potential inclusion in the TA-35 Index.
All of the above expected to enhance the Company's attractiveness to international investors.









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