Formula Systems (1985) Ltd. (NASDAQ:FORTY) emerges as a top midcap tech stock with a solid track record of earnings growth and portfolio optimization. Recently, they announced the sale of their insurance-software subsidiary to Advent International in a significant all-cash deal, highlighting private equity’s interest in AI-enabled software assets.

The company reported record revenues of $743.4 million in Q2 of 2025, marking its strongest quarter to date with an 11.3% increase year-over-year. Demand for software services and enterprise automation drove these results, showcasing Formula’s ability to thrive in a competitive global IT market.

Based in Or Yehuda, Israel, Formula Systems (1985) Ltd. (NASDAQ:FORTY) operates as a tech investment group with investments in IT services, software, and digital transformation platforms worldwide. The company epitomizes the market’s preference for high-cash-flow mid-cap tech stocks with diverse portfolios.

While Formula Systems (1985) Ltd. (NASDAQ:FORTY) presents investment potential, some AI stocks may offer higher upside with lower risk. For those seeking undervalued AI stocks poised to benefit from current economic trends, explore Insider Monkey’s report on the best short-term AI stock.

Read more at Yahoo Finance: Formula Systems Posted Record Q2 in 2025