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MGIC

Magic Software Enterprises Ltd.

MGIC

Magic Software Enterprises Ltd. • NASDAQ
$23.08 ▲ 1.81% (+0.41)
Market Cap $1.13 B
52w High $24.94
52w Low $11.36
Dividend Yield 0.86%
P/E 28.15
Volume 13.69K
Outstanding Shares 49.10M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $161.656M ▲ $27.092M ▲ $9.863M ▼ 6.101% ▼ $0.2 $22.029M ▲
Q2-2025 $151.642M ▲ $26.73M ▲ $10.084M ▲ 6.65% ▲ $0.2 ▲ $21.363M ▲
Q1-2025 $147.336M ▲ $24.888M ▼ $9.478M ▼ 6.433% ▼ $0.19 ▼ $21.02M ▼
Q4-2024 $142.582M ▼ $25.904M ▲ $10.622M ▲ 7.45% ▲ $0.22 ▲ $22.272M ▲
Q3-2024 $142.968M $24.61M $8.431M 5.897% $0.17 $20.335M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $103.305M ▲ $559.806M ▲ $258.979M ▲ $276.037M ▼
Q2-2025 $89.957M ▼ $541.652M ▲ $239.355M ▼ $278.837M ▲
Q1-2025 $105.015M ▼ $534.11M ▼ $241.069M ▲ $269.412M ▼
Q4-2024 $120.4M ▲ $540.331M ▲ $239.262M ▲ $277.19M ▼
Q3-2024 $99.681M $526.293M $221.74M $279.414M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $9.863M ▼ $19.374M ▲ $-478K ▲ $-6.131M ▲ $13.346M ▲ $18.881M ▲
Q2-2025 $9.918M ▲ $6.356M ▼ $-3.036M ▲ $-23.578M ▼ $-14.627M ▼ $6.053M ▼
Q1-2025 $9.478M ▼ $14.899M ▼ $-4.662M ▼ $-18.475M ▼ $-8.195M ▼ $14.375M ▼
Q4-2024 $10.622M ▲ $25.713M ▲ $-697K ▲ $-11.412M ▲ $13.837M ▲ $25.178M ▲
Q3-2024 $8.431M $7.741M $-3.694M $-14.116M $-8.7M $7.359M

Five-Year Company Overview

Income Statement

Income Statement Magic Software’s income statement shows a business that is consistently profitable with fairly stable margins. Revenue has risen over the past five years, though the growth pace has been modest and included a small dip along the way. Profitability at each level — gross, operating, and net — has held up well, suggesting disciplined cost control and a business model that scales reasonably. Earnings per share have been steady in recent years after peaking earlier, which points to a mature, stable operation rather than a fast-accelerating growth story. Overall, the income statement reflects reliability and resilience, but not explosive growth.

Balance Sheet

Balance Sheet The balance sheet looks conservative and generally healthy. Total assets and shareholders’ equity have trended upward, showing that the company is gradually building its asset base and retained value. Cash levels are solid and have remained fairly stable, providing a cushion for operations and investment. Debt has increased compared with earlier years but still appears manageable relative to the company’s size and equity, indicating a moderate use of leverage rather than an aggressive one. In summary, the balance sheet suggests financial stability with room to support ongoing development and selective expansion, but it still requires attention to keep debt from creeping too high over time.

Cash Flow

Cash Flow Magic Software’s cash flow profile is a key strength. Cash generated from operations has been consistently positive and has improved over the five-year period, showing that reported profits translate well into real cash. Free cash flow has also been solid and closely tracks operating cash flow, reflecting limited capital spending needs and an asset-light, software-driven model. Capital expenditures are relatively small, which leaves more cash available for dividends, acquisitions, or further product development. Overall, cash flow quality is high and supports the view of a business with dependable underlying economics, even if top-line growth is not dramatic.

Competitive Edge

Competitive Edge Competitively, Magic Software operates in a well-defined niche around low-code application development and system integration. Its long history, large base of repeat customers, and deep integration into clients’ core systems create meaningful switching costs. The company’s platforms are designed to reduce complexity for enterprises, supported by a wide library of pre-built connectors and strong relationships with major technology partners such as leading cloud and enterprise software providers. The combination of software platforms and professional services helps embed Magic deeply within customer workflows. The main competitive risks are intensifying competition in low-code and integration tools, rapid shifts in technology standards, and the need to keep its offerings modern as larger players and newer startups alike push into similar territory.

Innovation and R&D

Innovation and R&D Innovation is at the heart of Magic Software’s strategy. Its core low-code, metadata-driven platforms are designed to simplify development and integration work, which is a long-standing differentiator. More recently, the company has been leaning into artificial intelligence and cloud services: examples include AI-powered support tools, data management and analytics services, and expanded cloud-based offerings aimed at giving customers better visibility and automation. Sector-specific solutions, such as tools tailored for manufacturing, show a push to deepen relevance in selected verticals. Potential mergers and acquisitions, including the proposed tie-up with Matrix I.T., could further broaden its capabilities and scale. The main execution risks are staying ahead of rapid AI and cloud innovation, integrating new technologies and acquired businesses smoothly, and ensuring that R&D spending continues to translate into clearly differentiated products rather than incremental features.

Summary

Overall, Magic Software presents as a steady, profitable technology company with a specialized focus on low-code development and integration. Financially, it combines modest but consistent growth with solid margins, a sound balance sheet, and strong cash generation. Strategically, its long tenure, embedded customer relationships, and high switching costs provide a durable base, while partnerships and professional services extend its reach. The big opportunities lie in successfully leveraging AI, cloud, and data analytics to refresh and enhance its platforms, and in realizing any potential scale and cross-selling benefits from corporate transactions. Key risks include relatively moderate growth momentum, rising competition in low-code and integration platforms, and the need to keep innovating fast enough to maintain its edge in a rapidly evolving technology landscape.

NEWS

November 18, 2025 · 8:05 AM UTC

Magic Software Reports Third quarter 2025 Financial Results with Record-Braking Revenues of $161.7$ million – a 13.1% Year Over Year Increase

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October 29, 2025 · 4:05 PM UTC

MGIC Investment Corporation Reports Third Quarter 2025 Results

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October 27, 2025 · 4:05 PM UTC

MGIC Announces Enhanced Capabilities within ICE Encompass Partner Connect

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October 23, 2025 · 4:05 PM UTC

MGIC Investment Appoints Klein and O'Leary-Gill to its Board of Directors

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October 23, 2025 · 1:10 PM UTC

MGIC Investment Corporation Announces Quarterly Dividend of $0.15 Per Share

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