Formula 1985 : Second Quarter and First Half 2023 Financial Results

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 OF

THE SECURITIES EXCHANGE ACT OF 1934

For the month of August 2023

Commission File Number 0-29442

FORMULA SYSTEMS (1985) LTD.

(Translation of registrant's name into English)

Terminal Center, 1 Yahadut Canada Street, Or-Yehuda, Israel 6037501

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F

Form 20-F☒ Form 40-F☐

CONTENTS

Quarterly Results of Operations

On August 17, 2023, Formula Systems (1985) Ltd. ("we" or "us") announced our financial results for the second quarter and first half ended June 30, 2023. A copy of our press release announcing our results is furnished as Exhibit 99.1to this Report of Foreign Private Issuer on Form 6-K (this "Form 6-K") and is incorporated herein by reference.

The GAAP financial statements appended to this Form 6-K in Exhibit 99.1 are hereby incorporated by reference in our Registration Statement on Form S-8(SEC File No. 333-156686).

Exhibit No. Title of Exhibit

99.1 Formula Systems Reports Second Quarter and First Half 2023 Financial Results1

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

FORMULA SYSTEMS (1985) LTD.

By: /s/ Asaf Berenstin

Name: Asaf Berenstin

Title: Chief Financial Officer

Date: August 17, 2023

2

EXHIBIT INDEX

EXHIBIT

NUMBER DESCRIPTION

99.1 Formula Systems Reports Second Quarter and First Half 2023 Financial Results3

Exhibit 99.1

PRESS RELEASE

Formula Systems Reports Second Quarter and First Half 2023 Financial Results:

Revenues for the Second Quarter Increased by 3% (or 9.1% on a constant currency basis) Year Over Year to a second-quarterrecord-breaking $655.4 Million with Net Income for the Second Quarter reaching $17.0 million.

Or Yehuda, Israel, August 17, 2023 - Formula Systems (1985) Ltd. (Nasdaq and TASE: FORTY) ("Formula" or the "Company"), a global information technology group engaged, through its subsidiaries and affiliates, in providing software consulting services and computer-based business solutions and developing proprietary software products, today announced its results for the second quarter and six month-period ended June 30, 2023.

Financial Highlights for the Second Quarter Ended June 30, 2023

• Consolidated revenues for the second quarter ended June 30, 2023 increased by approximately 2.9% to a second-quarterrecord-breaking $655.4 million, compared to $636.9 million in the same period last year. On a constant currency basis (calculated based on average currency exchange rates for the three months ended June 30, 2022), consolidated revenues for the second quarter of 2023 would have increased by approximately 9.1% to $695.0 million.
• Consolidated operating income for the second quarter ended June 30, 2023 amounted to $60.0 million compared to $99.5 million in the same period last year. Operating income for the second quarter of 2022 included a capital gain realized from the disposition of a Matrix IT subsidiary in the amount of $44.2 million. Excluding such impact, consolidated operating income for the second quarter ended June 30, 2023, increased by 8.4% compared to the second quarter of the previous year. On a constant currency basis (calculated based on average currency exchange rates for the three months ended June 30, 2022), the consolidated operating income for the second quarter of 2023 would have increased by approximately 13.5% to $62.8 million, compared to the same period last year (excluding the above-mentioned capital gain of $44.2 million recorded in 2022).
• Consolidated net income attributable to Formula's shareholders for the second quarter ended June 30, 2023 amounted to $17.0 million, or $1.11 per fully diluted share, compared to $32.9 million, or $2.12 per fully diluted share, in the same period last year. Net income for the second quarter of 2022 was positively impacted by approximately $17.1 million of income realized from the disposition of a subsidiary of Matrix IT Ltd. Excluding such impact, consolidated net income attributable to Formula's shareholders for the second quarter ended June 30, 2023 increased by 7.3% year over year compared to the second quarter of the previous year.
  Net income in the period was negatively impacted by the increase in interest expenses resulting from the increase in variable interest rates. Financial expenses net, increased by approximately 51.0% to $5.6 million, compared to $3.7 million in the same period last year.