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PRESS RELEASE Formula Systems Exhibit 99.1 Formula Systems Reports Second Quarter and First Half 2026 Financial Results Revenues for the second quarter increased by 29.8 % year over year , reaching a second quarter record - breaking $ 782.4 million . Net income attributable to Formula Systems ' shareholders for the second quarter increased by 54.6 % year over year , reaching $ 23.3 million . OR YEHUDA , Israel , Aug. 25 , 2026 ( GLOBE NEWSWIRE ) -- Formula Systems ( 1985 ) Ltd. ( Nasdaq and TASE : FORTY ) ( " Formula " or the " Company " ) , a global information technology group providing a broad range of software , proprietary and non - proprietary technology solutions and professional services through its subsidiaries and affiliates , today announced its results of operations for the second quarter and first half ended June 30 , 2026 . Financial Highlights for the Second Quarter Ended June 30 , 2026 Revenues for the second quarter ended June 30 , 2026 increased by 29.8 % year over year , reaching a second quarter record - breaking $ 782.4 million , compared to $ 602.7 million in the same period last year . Operating income for the second quarter ended June 30 , 2026 increased by 41.3 % year over year , reaching $ 71.6 million compared to $ 50.7 million in the same period last year . Net income from continued operations attributable to Formula's shareholders for the second quarter ended June 30 , 2026 , increased by approximately 163.7 % year over year , reaching $ 23.3 million , or $ 1.47 per fully diluted share , compared to $ 8.8 million , or $ 0.56 per fully diluted share , in the same period last year . Net income attributable to Formula's shareholders for the second quarter ended June 30 , 2026 increased by approximately 54.6 % year over year , reaching $ 23.3 million , or $ 1.47 per fully diluted share , compared to $ 15.1 million , or $ 0.95 per fully diluted share , in the same period last year . Financial Highlights for First Half Ended June 30 , 2026 • Revenues for the six - month period ended June 30 , 2026 increased by 24.4 % year over year , reaching a first half record - breaking $ 1.52 billion , compared to $ 1.22 billion in the same period last year . • Operating income for the six - month period ended June 30 , 2026 increased by 53.3 % year over year , reaching $ 153.7 million compared to $ 100.2 million in the same period last year . Operating income for the first half of 2026 included a capital gain of $ 16.6 million resulting from exercise of employee stock - based compensation and a secondary private placement transaction completed by our affiliate , TSG IT Advanced Systems Ltd. ( “ TSG ” ) , in January 2026. On January 13 , 2026 , TSG's Board of Directors approved a capital raise through a private placement to institutional investors , pursuant to which TSG raised approximately NIS 192 million ( approximately $ 58.9 million ) through the issuance of 320,374 ordinary shares at a price of NIS 600 per share , together with 128,150 non - tradable warrants ( allocated at no additional consideration at a ratio of 0.4 warrant per share ) , each exercisable for one ordinary share at an exercise price of NIS 720 per share through July 22 , 2027. The allocated shares and warrants represent approximately 9.23 % of TSG's fully diluted share capital . As a result of this transaction and the exercise of TSG's employee stock - based compensation , during the six - month period ended June 30 , 2026 Formula's ownership interest in TSG was diluted from 37.33 % to 32.87 % , resulting with a $ 16.6 million capital gain . Excluding this capital gain , operating income would have increased by 36.7 % year over year , to $ 137.0 million .