Magic Software Q4: Expecting Reversal of Negative Mix
PorAinvest
jueves, 14 de agosto de 2025, 11:27 am ET1 min de lectura
MGIC--
Magic Software (NASDAQ:MGIC) reported a solid second quarter, with North American (NA) revenues showing signs of recovery. Despite the impact of negative mix effects on profit growth, the company expects a reversal in Q4, indicating a positive trend in its business [1].
The company's revenue grew by 11% year-over-year (YoY) and 2.8% sequentially, with most of the growth coming from Israel and project-based work. Defense demand was a significant driver of this growth [1]. The acquisition of Theoris in late April 2024 also contributed to the revenue increase, although the company expects a sequential trough in Q3 before a pickup in Q4 [1].
Magic Software's gross margins remain strong, with software solutions contributing around 17% of revenue and professional services accounting for 83%. The company's professional services, which carry a third of the gross margin, have shown significant growth [1].
The company's pipeline is robust, with legacy players moving to the cloud and generating cloud solutions revenues. Additionally, the deployment of AI and GenAI solutions has increased. Defense remains a solid market for Magic Software [1].
Magic Software is a small part of the parent company Asseco, which has a valuation multiple of around 25x earnings before interest, taxes, depreciation, and amortization (EBITDA). This valuation is in line with other tech consulting stocks and is considered fairly valued given the company's solid revenue growth [1].
Dianthus Therapeutics (DNTH), a clinical-stage biotech, reported a wider net loss in Q2 2025 due to increased research and development and administrative expenses. The company's focus remains on clinical development and achieving trial milestones [2].
References
[1] https://seekingalpha.com/article/4813637-magic-software-expecting-a-reversal-of-negative-mix-in-q4
[2] https://www.aol.com/finance/dianthus-dnth-q2-loss-widens-204458466.html
Magic Software (NASDAQ:MGIC) reported a decent quarter with NA revenues showing signs of recovery, despite negative mix effects impacting profit growth. The company expects a reversal of negative mix in Q4, indicating a positive trend in its business.
Title: Magic Software (MGIC) Shows Signs of Recovery in Q2, Expects Profit Growth in Q4Magic Software (NASDAQ:MGIC) reported a solid second quarter, with North American (NA) revenues showing signs of recovery. Despite the impact of negative mix effects on profit growth, the company expects a reversal in Q4, indicating a positive trend in its business [1].
The company's revenue grew by 11% year-over-year (YoY) and 2.8% sequentially, with most of the growth coming from Israel and project-based work. Defense demand was a significant driver of this growth [1]. The acquisition of Theoris in late April 2024 also contributed to the revenue increase, although the company expects a sequential trough in Q3 before a pickup in Q4 [1].
Magic Software's gross margins remain strong, with software solutions contributing around 17% of revenue and professional services accounting for 83%. The company's professional services, which carry a third of the gross margin, have shown significant growth [1].
The company's pipeline is robust, with legacy players moving to the cloud and generating cloud solutions revenues. Additionally, the deployment of AI and GenAI solutions has increased. Defense remains a solid market for Magic Software [1].
Magic Software is a small part of the parent company Asseco, which has a valuation multiple of around 25x earnings before interest, taxes, depreciation, and amortization (EBITDA). This valuation is in line with other tech consulting stocks and is considered fairly valued given the company's solid revenue growth [1].
Dianthus Therapeutics (DNTH), a clinical-stage biotech, reported a wider net loss in Q2 2025 due to increased research and development and administrative expenses. The company's focus remains on clinical development and achieving trial milestones [2].
References
[1] https://seekingalpha.com/article/4813637-magic-software-expecting-a-reversal-of-negative-mix-in-q4
[2] https://www.aol.com/finance/dianthus-dnth-q2-loss-widens-204458466.html
Divulgación editorial y transparencia de la IA: Ainvest News utiliza tecnología avanzada de Modelos de Lenguaje Largo (LLM) para sintetizar y analizar datos de mercado en tiempo real. Para garantizar los más altos estándares de integridad, cada artículo se somete a un riguroso proceso de verificación con participación humana.
Mientras la IA asiste en el procesamiento de datos y la redacción inicial, un miembro editorial profesional de Ainvest revisa, verifica y aprueba de forma independiente todo el contenido para garantizar su precisión y cumplimiento con los estándares editoriales de Ainvest Fintech Inc. Esta supervisión humana está diseñada para mitigar las alucinaciones de la IA y garantizar el contexto financiero.
Advertencia sobre inversiones: Este contenido se proporciona únicamente con fines informativos y no constituye asesoramiento profesional de inversión, legal o financiero. Los mercados conllevan riesgos inherentes. Se recomienda a los usuarios que realicen una investigación independiente o consulten a un asesor financiero certificado antes de tomar cualquier decisión. Ainvest Fintech Inc. se exime de toda responsabilidad por las acciones tomadas con base en esta información. ¿Encontró un error? Reportar un problema
Comentarios
Aún no hay comentarios