Exhibit 99.1

PRESS RELEASE

Formula Systems Reports Fourth Quarter and Full Year 2022 Financial Results with Record-Breaking Full Year 2022 Results Recorded Across All Key Financial Indices (Revenues, Gross Profit, Operating Income and Net Income).

Net income for the year increased by 49.1% year over year to a record-breaking result of $81.4 million.

Or Yehuda, Israel, March 16, 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 fourth quarter and full year ended December 31, 2022.

Financial Highlights for the Fourth Quarter Ended December 31, 2022

● Consolidated revenues for the fourth quarter ended December 31, 2022 decreased by 3.6% to $633.9 million, compared to $657.6 million in the same period last year. On a constant currency basis (calculated based on average currency exchange rates for the three months ended December 31, 2021), consolidated revenues for the fourth quarter of 2022 would have increased by 4.4% to a record breaking $686.8 million.

● Consolidated operating income for the fourth quarter ended December 31, 2022 increased by 1.0% to $60.2 million, compared to $59.6 million in the same period last year. On a constant currency basis (calculated based on average currency exchange rates for the three months ended December 31, 2021), consolidated operating income for the fourth quarter of 2022 would have increased by 11.1% to a record-breaking result of $66.1 million from ongoing activities.

● Consolidated net income attributable to Formula’s shareholders for the fourth quarter ended December 31, 2022 decreased by 1.3% to $15.3 million, or $1.00 per fully diluted share, compared to $15.5 million, or $0.99 per fully diluted share, in the same period last year.

Financial Highlights for the Full Year Ended December 31, 2022

● Consolidated revenues for full year increased by 7.0% to $2.57 billion, compared to $2.40 billion in the same period last year.

● Consolidated operating income for full year increased by 33.0% to $276.6 million, compared to $208.0 million in the same period last year. Operating income for the full year included a capital gain realized from the disposition of a Matrix IT Ltd. subsidiary in an amount of $44.3 million. Excluding such impact, consolidated operating income for the full year increased by 11.7% compared to the same period last year.

● Consolidated net income attributable to Formula’s shareholders for the full year increased by 49.1% to $81.4 million, or $5.21 per fully diluted share, compared to $54.6 million, or $3.5 per fully diluted share, in the same period last year. Net income for the full year was positively impacted by approximately $17.1 million resulting from the disposition of a subsidiary of Matrix IT Ltd. Excluding such impact, consolidated net income attributable to Formula’s shareholders for the full year increased by 17.7% compared to the same period last year.

● As of December 31, 2022, Formula held 48.7%, 44.1%, 46.3%, 100%, 50%, 90.1%, 80%, 100% and 100% of the outstanding ordinary shares of Matrix IT Ltd., Sapiens International Corporation N.V., Magic Software Enterprises Ltd., Michpal Micro Computers (1983) Ltd., TSG IT Advanced Systems Ltd., Insync Staffing Solutions, Inc., Ofek Aerial Photography Ltd., ZAP Group Ltd., and Shamrad Electronic (1997) Ltd., respectively.

● Consolidated cash and cash equivalents, short-term bank deposits and short-term investments totaled approximately $569.1 million as of December 31, 2022, compared to $512.5 million as of December 31, 2021.

● Total equity as of December 31, 2022, was $1.18 billion (representing 42.1% of the total consolidated statements of financial position), compared to $1.18 billion (representing 42.9% of the total consolidated statements of financial position) as of December 31, 2021.

Debentures Covenants

As of December 31, 2022, Formula was in compliance with all of its financial covenants under the debenture series issued by it, based on the following achievements:

Covenant 1

● Target equity attributable to Formula’s shareholders (excluding non-controlling interests): above $215 million.

● Actual equity attributable to Formula’s shareholders as of December 31, 2022 was $551.9 million.

Covenant 2

● Target ratio of net financial indebtedness to net capitalization (in each case, as defined under the indenture for Formula’s Series A and C Secured Debentures): below 65%.

● Actual ratio of net financial indebtedness to net capitalization, as of December 31, 2022 was 6.3%.

Covenant 3

● Target ratio of net financial indebtedness to EBITDA (based on the accumulated calculation for the four most recent quarters): below 5.

● Actual ratio of net financial indebtedness to EBITDA (based on the accumulated calculation for the four most recent quarters and excluding a capital gain of $44.2 million realized from the disposition of a Matrix IT Ltd. subsidiary), as of December 31, 2022, was 0.24.

Comments of Management

Commenting on the results, Guy Bernstein, CEO of Formula Systems, said: “I am very proud of our fourth quarter and full year achievements. During the year, we continued to make big strides across multiple fronts, which is reflected by our record-breaking results recorded in all our key financial indices for the year (revenues, gross profit, operating income, and net income). Our broad investment portfolio allows us to carefully mitigate the current risks in the IT market, which are mainly the challenging macro-economic environment, as well as the fierce competition over talented IT workforce. We continue our efforts across our entire group to create significant value for our customers in managing, streamlining, accelerating, and contributing to their growth.”

“Matrix finished the year strong with record-breaking results for the year recorded across all its key financial indices. We are pleased with Matrix’s continued recognition as a market leader in Israel in the implementation of fastest-growing technologies, such as cloud, cyber, digital, data, DevOps and AI, which enable the company to create significant value for its customers in managing, streamlining, accelerating and making their businesses thrive. There is a strong demand in Israel for software services in digital, cloud, cyber, data, and core operating systems—areas in which Matrix is a market leader, and which are at the center of the IT market demand. North-America, which accounts for 9.3% of Matrix’s annual revenues, also showed significant growth, with an increase of approximately 17% in revenues and 41% in operating income, along with a substantial improvement in operating margin. We believe that Matrix has significant growth potential in the North American market. Among all of its operations in North America, Matrix continues to expand and upgrade its collaboration with NICE Actimize in the field of AI-based solutions for anti-money laundering and prevention of financial crimes, as well as expanding its customer base across all its other areas of expertise in the North-American market.”

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“Sapiens’ revenues for the year reached $475 million, and on a constant currency basis, grew by approximately 8%. Non-GAAP operating income the year reached $83.5 million, representing an operating margin of 17.6%. A key accomplishment in 2022 includes Sapiens continued growth of cloud-based customers with over 90% of new logos delivered on the cloud Sapiens is still in the early days of an incredible industry transformation as insurance carriers continue to transform their core systems to remain relevant, competitive, and compliant. As a global player with multiple product lines and cloud capabilities and a cost-efficient operating model which combines off-and on-shore delivery capabilities, we believe that Sapiens is positioned in a sweet spot to reap the gains of this opportunity.”

“Magic Software finished the year strong, with record-breaking fourth quarter revenue of $147.1 million, growing 10.6% year over year, exceeding market expectations. Magic’s results for the year also reached record high as well as double digit growth in all its key financial indices (revenues, gross profit, operating income, and net income). Magic’s strong results demonstrate the growing investment made by enterprises and organizations worldwide to leverage their digital technologies and cloud-based platforms creating high demand for its innovative software solutions and services, which together with the outstanding execution of its teams led to another year of strong performance recorded across its business.”

“Michpal Group continues to realize synergies and monetize on its business model with its revenues for the year growing by 23% on a constant currency basis compared to the same period last year, to NIS 128 million (approximately $38.0 million) with 36% accounted to organic growth.”

“TSG materialized its strategy of expanding its presence in the Israeli municipal institutions sector by acquiring 60% of the outstanding share capital of E.P.R. Systems Ltd. Headquartered in Israel, E.P.R has over 20 years of experience and serve more than 100 local authorities in Israel. The company offers comprehensive software solutions for municipal institutions primarily to manage all their billing and collection operations for all types of revenues, including taxes, fees and levies and several innovative extension modules. Additionally, E.P.R offers a full scope of expert implementation, application management and hosting services, enabling municipal institutions to execute their digital and business strategies.”

“Lastly, Zap Group, a leading group of consumer sites in Israel and a well-reputable brand in the Israeli market, offering a wide range of solutions in the field of advertising continues to invest both organically and inorganically in its service lines and is currently in the final stages before going live with its new marketplace platform. We believe this new platform will enable small and medium businesses in Israel to sell their products through an advanced platform that combines objective price comparison between sellers with a reliable and comfortable online buying experience. In addition, during the fourth quarter of 2022 ZAP Group concluded the acquisition of 51% of the outstanding share capital of Safra an Israeli company specializing in social media services for small and medium businesses. Safra is a leading digital company in Israel that provides Facebook Instagram and Tik-tok advertising services to enhance business performance. During the fourth quarter, ZAP Group also acquired 51% of the outstanding share capital of Marcomit, an Israeli company which specializes in digital branding for large enterprises. Marcomit provides strategical brand services for high profile companies including advanced branding materials for media and digital adverting. We believe that the operations of both Safra and Marcomit are synergetic and complementary to Zap Group’s operations in the field of advertising to allow Zap Group to build continued long term profitable growth and shareholder value.”

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Stand-Alone Financial Measures

This press release presents, further below, certain stand-alone financial measures to reflect Formula’s stand-alone financial position in reference to its assets and liabilities as the parent company of the group. These financial measures are prepared consistent with the accounting principles applied in the consolidated financial statements of the group. Such measures include investments in subsidiaries and a jointly controlled entity measured at cost adjusted by Formula’s share in the investees’ accumulated undistributed earnings and other comprehensive income or loss.

Formula believes that these financial measures provide useful information to management and investors regarding Formula’s stand-alone financial position. Formula’s management uses these measures to compare the Company’s performance to that of prior periods for trend analyses. These measures are also used in financial reports prepared for management and in quarterly financial reports presented to the Company’s board of directors. The Company believes that the use of these stand-alone financial measures provides an additional tool for investors to use in evaluating Formula’s financial position.

Management of the Company does not consider these stand-alone measures in isolation or as an alternative to financial measures determined in accordance with GAAP. Formula urges investors to review the consolidated financial statements which it includes in press releases announcing quarterly financial results, including this press release, and not to rely on any single financial measure to evaluate the Company’s business or financial position.

About Formula

Formula Systems, whose ordinary shares are traded on the Tel-Aviv Stock Exchange and its ADSs are traded on the Nasdaq Global Select Market, is a global information technology holding company engaged, through its subsidiaries and affiliates, in providing software consulting services and computer-based business solutions and developing proprietary software products.

For more information, visit www.formulasystems.com.

Press Contact:

Formula Systems (1985) Ltd.

+972-3-5389487

ir@formula.co.il

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Forward Looking Statements

Certain matters discussed in this press release that are incorporated herein and therein by reference are forward-looking statements within the meaning of Section 27A of the Securities Act, Section 21E of the Exchange Act and the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, that are based on our beliefs, assumptions and expectations, as well as information currently available to us. Such forward-looking statements may be identified by the use of the words “anticipate,” “believe,” “estimate,” “expect,” “may,” “will,” “plan” and similar expressions. Such statements reflect our current views with respect to future events and are subject to certain risks and uncertainties. There are important factors that could cause our actual results, levels of activity, performance or achievements to differ materially from the results, levels of activity, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to: adverse macro-economic trends, including inflation, rising interest rates and supply chain delays, triggered in part by the COVID-19 (coronavirus) pandemic, which trends may last for a significant period and materially adversely affect our results of operations; the degree of our success in our plans to leverage our global footprint to grow our sales; the degree of our success in integrating the companies that we have acquired through the implementation of our M&A growth strategy; the lengthy development cycles for our solutions, which may frustrate our ability to realize revenues and/or profits from our potential new solutions; our lengthy and complex sales cycles, which do not always result in the realization of revenues; the degree of our success in retaining our existing customers or competing effectively for greater market share; difficulties in successfully planning and managing changes in the size of our operations; the frequency of the long-term, large, complex projects that we perform that involve complex estimates of project costs and profit margins, which sometimes change mid-stream; the challenges and potential liability that heightened privacy laws and regulations pose to our business; occasional disputes with clients, which may adversely impact our results of operations and our reputation; various intellectual property issues related to our business; potential unanticipated product vulnerabilities or cybersecurity breaches of our or our customers’ systems; risks related to the insurance industry in which our clients operate; risks associated with our global sales and operations, such as changes in regulatory requirements, adverse consequences of international conflicts such as Russia’s invasion of the Ukraine, or fluctuations in currency exchange rates; and risks related to our principal location in Israel.

While we believe such forward-looking statements are based on reasonable assumptions, should one or more of the underlying assumptions prove incorrect, or these risks or uncertainties materialize, our actual results may differ materially from those expressed or implied by the forward-looking statements. Please read the risks discussed under the heading “Item 3.D Risk Factors” in our most recent Annual Report on Form 20-F, filed with the U.S. Securities and Exchange Commission on May 16, 2022, in order to review conditions that we believe could cause actual results to differ materially from those contemplated by the forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Except as required by law, we undertake no obligation to update publicly any forward-looking statements for any reason, or to conform those statements to actual results or to changes in our expectations.

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FORMULA SYSTEMS (1985) LTD.

CONSOLIDATED CONDENSED STATEMENTS OF PROFIT OR LOSS

U.S. dollars in thousands (except per share data)

	Three months ended					Year ended
	December 31,					December 31,
	2022			2021		2022			2021
		Unaudited					Unaudited
Revenues		633,884			657,601		2,572,357			2,404,376
Cost of revenues		468,692			501,881		1,949,892			1,840,517
Gross profit		165,192			155,720		622,465			563,859
Research and development costs, net		18,867			16,737		72,129			65,858
Selling, marketing and general and administrative expenses		86,148			79,409		317,956			289,985
Capital gain from realization of a Matrix IT’s subsidiary		-			-		44,260			-
Operating income		60,177			59,574		276,640			208,016
Financial expenses, net		6,902			7,382		19,930			24,005
Income before taxes on income		53,275			52,192		256,710			184,011
Taxes on income		10,907			12,600		55,235			42,614
Income after taxes		42,368			39,592		201,475			141,397
Share of profit of companies accounted for at equity, net		(2,383	)		152		(1,808	)		505
Net income		39,985			39,744		199,667			141,902
Net income attributable to non-controlling interests		24,646			24,206		118,274			87,317
Net income attributable to Formula Systems’ shareholders		15,339			15,538		81,393			54,585
Earnings per share (basic)		1.01			1.02		5.31			3.57
Earnings per share (diluted)		1.00			0.99		5.21			3.50
Number of shares used in computing earnings per share (basic)		15,298,267			15,290,517		15,295,986			15,289,580
Number of shares used in computing earnings per share (diluted)		15,467,654			15,498,375		15,502,830			15,403,543

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FORMULA SYSTEMS (1985) LTD.

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

U.S. dollars in thousands

	December 31,		December 31,
	2022		2021
	(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		544,342		485,391
Short-term deposits		23,976		25,924
Short-term investments		738		1,142
Trade receivables, net		704,610		696,321
Other accounts receivable and prepaid expenses		64,142		72,118
Inventories		35,181		21,221
Total current assets		1,372,989		1,302,117
LONG-TERM ASSETS:
Deferred taxes		42,220		46,364
Other investments, long-term accounts receivable and prepaid expenses		39,754		23,676
Investments in companies accounted for at equity method		20,641		28,900
Property, plants and equipment, net		54,971		56,886
Right-of-use assets		117,341		115,833
Net intangible assets and goodwill		1,146,791		1,174,790
Total  long-term assets		1,421,718		1,446,449
TOTAL  ASSETS		2,794,707		2,748,566
CURRENT LIABILITIES:
Loans and credit from banks and others		157,908		175,696
Debentures		68,293		48,455
Current maturities of lease liabilities		45,464		41,655
Trade payables		222,229		205,835
Deferred revenues		132,729		140,660
Employees and payroll accrual		201,908		207,553
Other accounts payable		80,919		80,411
Liabilities in respect of business combinations		32,904		7,773
Put options of non-controlling interests		60,500		39,558
Total current liabilities		1,002,854		947,596
LONG-TERM LIABILITIES:
Loans from banks and others		115,874		157,229
Debentures		305,632		205,035
Lease liabilities		79,500		84,839
Other long-term liabilities		11,790		12,183
Deferred taxes		58,992		78,135
Deferred revenues		8,859		17,757
Liabilities in respect of business combinations		13,370		21,644
Put options of non-controlling interests		11,688		31,720
Employees benefit liabilities, net		9,116		12,641
Total long-term liabilities		614,821		621,183
EQUITY
Equity attributable to Formula Systems’ shareholders		551,865		540,960
Non-controlling interests		625,167		638,827
Total equity		1,177,032		1,179,787
TOTAL LIABILITIES AND EQUITY		2,794,707		2,748,566

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FORMULA SYSTEMS (1985) LTD.

STAND-ALONE STATEMENTS OF FINANCIAL POSITION

U.S. dollars in thousands

	December 31,		December 31,
	2022		2021
	(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		39,363		14,163
Other accounts receivable and prepaid expenses		7,326		4,513
Total current assets		46,689		18,676
LONG-TERM ASSETS:
Investment in subsidiaries and a jointly controlled entity (*)
Matrix IT Ltd.		149,701		154,391
Sapiens International Corporation N.V.		228,953		231,130
Magic Software Enterprises Ltd.		125,060		122,358
Other		154,303		174,481
Total investment in subsidiaries and a jointly controlled entity		658,017		682,360
Long term receivables and other investments		12,870		2,547
Property, plants and equipment, net		8		10
Total long-term assets		670,895		684,917
TOTAL ASSETS		717,584		703,593
CURRENT LIABILITIES:
Debentures		32,999		28,654
Trade payables		125		192
Other accounts payable		5,596		5,339
Put options of non-controlling interests		848		-
Liability in respect of a business combination		426		-
Total current liabilities		39,994		34,185
LONG-TERM LIABILITIES:
Debentures		125,484		126,049
Put options of non-controlling interests		-		1,249
Liability in respect of a business combination		241		1,150
Total long-term liabilities		125,725		128,448
EQUITY		551,865		540,960
TOTAL LIABILITIES AND EQUITY		717,584		703,593

(*) The investments’ carrying amounts are measured consistent with the accounting principles applied in the consolidated financial statements of the group and representing the investments’ cost adjusted by Formula’s share in the investees’ accumulated undistributed earnings and other comprehensive income or loss.

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