Revenue growth accelerated to 11.2% in 2025Q3, yet operating margins contracted to 11.7% from 15.9% in 2024Q3, reflecting challenges in scaling cloud infrastructure.
| Metric | TTM | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 564.33M | 542.38M | 514.58M | 474.74M | 461.04M | 382.9M | 325.67M | 289.71M | 269.19M | 216.19M | 185.64M | 157.45M | 135.38M | 113.91M | 69.93M | 52.23M | 45.7M | 43.53M | 42.4M | 44.31M | 39.4M | 47.8M | 52.32M | 64.83M | 63.44M | 72.74M | 91.83M | 71M | 44.6M | 39M |
| Revenue Growth % | 4.71% | 5.4% | 8.39% | 2.97% | 20.41% | 17.57% | 12.41% | 7.62% | 24.52% | 16.46% | 17.9% | 16.3% | 18.85% | 62.9% | 33.87% | 14.31% | 4.96% | 2.69% | -4.32% | 12.45% | -17.57% | -8.63% | -19.3% | 2.2% | -12.8% | -20.78% | 29.34% | 59.19% | 14.36% | - |
| Cost of Goods Sold | 314.32M | 298.15M | 294.99M | 274.57M | 273.19M | 226.93M | 196.15M | 180.14M | 175.68M | 130.4M | 111.19M | 99.09M | 84.97M | 66.46M | 40.07M | 29.92M | 26.57M | 26.46M | 25.58M | 28.8M | 24.85M | 26.76M | 28.61M | 36.11M | 43.57M | 45.17M | 39.82M | 29.2M | 16.4M | 15.1M |
| COGS % of Revenue | - | 54.97% | 57.33% | 57.84% | 59.26% | 59.27% | 60.23% | 62.18% | 65.26% | 60.32% | 59.9% | 62.94% | 62.77% | 58.34% | 57.3% | 57.28% | 58.15% | 60.77% | 60.34% | 65% | 63.05% | 55.99% | 54.68% | 55.7% | 68.68% | 62.09% | 43.37% | 41.13% | 36.77% | 38.72% |
| Gross Profit | 250.01M | 244.23M | 219.59M | 200.16M | 187.84M | 155.97M | 129.52M | 109.57M | 93.52M | 85.79M | 74.44M | 58.35M | 50.41M | 47.45M | 29.86M | 22.31M | 19.12M | 17.08M | 16.81M | 15.51M | 14.56M | 21.04M | 23.71M | 28.72M | 19.86M | 27.58M | 52.01M | 41.8M | 28.2M | 23.9M |
| Gross Margin % | 44.3% | 45.03% | 42.67% | 42.16% | 40.74% | 40.73% | 39.77% | 37.82% | 34.74% | 39.68% | 40.1% | 37.06% | 37.23% | 41.66% | 42.7% | 42.72% | 41.85% | 39.23% | 39.66% | 35% | 36.95% | 44.01% | 45.32% | 44.3% | 31.32% | 37.91% | 56.63% | 58.87% | 63.23% | 61.28% |
| Gross Profit Growth % | - | 11.22% | 9.71% | 6.56% | 20.43% | 20.42% | 18.21% | 17.17% | 9.01% | 15.24% | 27.57% | 15.77% | 6.23% | 58.91% | 33.82% | 16.68% | 11.99% | 1.58% | 8.39% | 6.54% | -30.81% | -11.26% | -17.44% | 44.57% | -27.97% | -46.97% | 24.42% | 48.23% | 17.99% | - |
| Operating Expenses | 172.56M | 152.85M | 140.73M | 133.67M | 130.36M | 110.97M | 91.65M | 86.55M | 92.51M | 60.95M | 50.09M | 43.45M | 38.52M | 35.41M | 23.12M | 15.6M | 13.78M | 14.59M | 16.02M | 16.01M | 18.97M | 21.79M | 25.2M | 29.8M | 33.23M | 55.78M | 38.77M | 32.1M | 23.2M | 22.1M |
| OpEx % of Revenue | - | 28.18% | 27.35% | 28.16% | 28.27% | 28.98% | 28.14% | 29.87% | 34.37% | 28.19% | 26.99% | 27.6% | 28.46% | 31.08% | 33.06% | 29.87% | 30.16% | 33.52% | 37.78% | 36.13% | 48.14% | 45.58% | 48.16% | 45.97% | 52.38% | 76.68% | 42.21% | 45.21% | 52.02% | 56.67% |
| Selling, General & Admin | 0 | 80.42M | 72.05M | 0 | 76.34M | 0 | 54.27M | 52.13M | 60.56M | 44.46M | 39.86M | 32.1M | 26.68M | 25.24M | 18.11M | 12.31M | 11.05M | 10.71M | 12.51M | 13.56M | 16.25M | 19.26M | 21.54M | 23.78M | 28.73M | 46.68M | 27.88M | 22.9M | 16.3M | 16.8M |
| SG&A % of Revenue | - | 14.83% | 14% | - | 16.56% | - | 16.67% | 18% | 22.5% | 20.57% | 21.47% | 20.39% | 19.71% | 22.15% | 25.9% | 23.57% | 24.18% | 24.6% | 29.52% | 30.6% | 41.23% | 40.29% | 41.17% | 36.68% | 45.28% | 64.17% | 30.36% | 32.25% | 36.55% | 43.08% |
| Research & Development | 78.94M | 72.43M | 69.25M | 64.5M | 54.01M | 47.92M | 37.38M | 34.41M | 31.95M | 16.49M | 10.23M | 11.35M | 11.85M | 10.17M | 5.01M | 3.29M | 2.73M | 3.88M | 3.5M | 2.45M | 2.72M | 2.53M | 3.66M | 6.02M | 4.5M | 9.1M | 5.02M | 4.1M | 3.3M | 2.4M |
| R&D % of Revenue | - | 13.35% | 13.46% | 13.59% | 11.72% | 12.51% | 11.48% | 11.88% | 11.87% | 7.63% | 5.51% | 7.21% | 8.75% | 8.93% | 7.16% | 6.3% | 5.99% | 8.92% | 8.26% | 5.53% | 6.91% | 5.29% | 6.99% | 9.28% | 7.1% | 12.51% | 5.47% | 5.77% | 7.4% | 6.15% |
| Other Operating Expenses | 4M | 0 | -573K | 69.18M | 0 | 63.05M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5.86M | 5.1M | 3.6M | 2.9M |
| Operating Income | 77.45M | 91.38M | 78.87M | 66.49M | 57.49M | 45M | 37.87M | 23.02M | 1M | 24.84M | 24.35M | 14.91M | 11.88M | 12.04M | 5.62M | 6.71M | 5.34M | 2.48M | 797K | -1.26M | -5.52M | -1.65M | -1.48M | -1.56M | -13.36M | -39M | 13.24M | 9.7M | 4.96M | 1.8M |
| Operating Margin % | 13.72% | 16.85% | 15.33% | 14.01% | 12.47% | 11.75% | 11.63% | 7.95% | 0.37% | 11.49% | 13.12% | 9.47% | 8.78% | 10.57% | 8.04% | 12.85% | 11.69% | 5.71% | 1.88% | -2.84% | -14.02% | -3.46% | -2.84% | -2.41% | -21.06% | -53.61% | 14.42% | 13.66% | 11.13% | 4.62% |
| Operating Income Growth % | - | 15.87% | 18.61% | 15.66% | 27.74% | 18.84% | 64.49% | 2197.6% | -95.97% | 2.01% | 63.36% | 25.44% | -1.34% | 114.17% | -16.2% | 25.65% | 114.93% | 211.79% | 163.4% | 77.24% | -234.32% | -11.32% | 4.99% | 88.31% | 65.74% | -394.52% | 36.52% | 95.41% | 175.78% | - |
| EBITDA | 93.46M | 105.33M | 94.53M | 82.89M | 78.48M | 61.83M | 57.01M | 42.88M | 16.87M | 34.86M | 33.98M | 23.62M | 19.77M | 19.44M | 13.4M | 13.36M | 10.71M | 7.61M | 5.97M | 5M | 83K | 3.19M | 2.42M | 3.3M | -3.7M | -31.71M | 19.11M | 14.8M | 8.56M | 4.7M |
| EBITDA Margin % | 16.56% | 19.42% | 18.37% | 17.46% | 17.02% | 16.15% | 17.5% | 14.8% | 6.27% | 16.13% | 18.3% | 15% | 14.6% | 17.06% | 19.16% | 25.58% | 23.43% | 17.47% | 14.09% | 11.28% | 0.21% | 6.68% | 4.62% | 5.1% | -5.84% | -43.59% | 20.81% | 20.85% | 19.2% | 12.05% |
| EBITDA Growth % | -5.82% | 11.42% | 14.04% | 5.62% | 26.93% | 8.46% | 32.93% | 154.16% | -51.6% | 2.61% | 43.82% | 19.49% | 1.71% | 45.05% | 0.3% | 24.79% | 40.74% | 27.36% | 19.46% | 5924.1% | -97.4% | 32.05% | -26.79% | 189.22% | 88.33% | -265.97% | 29.09% | 72.82% | 82.21% | - |
| D&A (Non-Cash Add-back) | 16.01M | 13.95M | 15.66M | 16.4M | 20.99M | 16.82M | 19.14M | 19.86M | 15.87M | 10.02M | 9.63M | 8.72M | 7.89M | 7.39M | 7.78M | 6.65M | 5.37M | 5.12M | 5.18M | 6.26M | 5.61M | 4.84M | 3.9M | 4.87M | 9.66M | 7.29M | 5.86M | 5.1M | 3.6M | 2.9M |
| EBIT | 77.45M | 90.22M | 79.19M | 66.49M | 63.13M | 46.58M | 38.13M | 23.02M | 1.5M | 24.84M | 24.35M | 14.91M | 11.88M | 12.56M | 5.92M | 6.48M | 5.33M | 1.89M | 797K | -499K | -4.41M | -751K | -1.48M | -1.08M | -13.36M | -28.21M | 13.24M | 9.7M | 4.96M | 1.8M |
| Net Interest Income | 3.7M | 5.07M | 2.6M | -1.57M | -2.91M | -5.22M | -2.65M | -3.04M | -1.16M | 514K | 500K | 224K | -356K | -121K | -29K | -18K | -765K | -625K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 3.7M | 5.47M | 2.94M | 0 | 887K | 380K | 382K | 181K | 525K | 784K | 657K | 356K | 188K | 201K | 160K | 87K | 109K | 242K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 395K | 340K | 1.57M | 3.79M | 5.6M | 3.03M | 3.23M | 1.69M | 270K | 157K | 132K | 544K | 322K | 189K | 135K | 880K | 867K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 3.7M | -1.55M | -1.75M | -941K | -202K | -3.81M | -2.77M | -3.99M | -3.01M | 533K | 163K | 124K | 520K | 193K | 104K | -364K | -880K | -2.2M | 1.31M | 4.74M | -1.78M | 6.27M | 3.68M | 5.27M | -3.88M | -1.03M | -1.85M | 100K | -464K | -8.8M |
| Pretax Income | 81.15M | 89.83M | 77.12M | 65.55M | 57.29M | 41.2M | 35.1M | 19.07M | -2.01M | 25.37M | 24.51M | 15.03M | 12.4M | 12.24M | 5.73M | 6.35M | 4.46M | 281K | 2.11M | 3.49M | -7.3M | 4.61M | 2.2M | 3.71M | -17.24M | -40.03M | 11.39M | 9.8M | 4.5M | -7M |
| Pretax Margin % | 14.38% | 16.56% | 14.99% | 13.81% | 12.43% | 10.76% | 10.78% | 6.58% | -0.75% | 11.74% | 13.2% | 9.55% | 9.16% | 10.74% | 8.19% | 12.15% | 9.76% | 0.65% | 4.98% | 7.87% | -18.52% | 9.65% | 4.2% | 5.72% | -27.18% | -55.04% | 12.4% | 13.8% | 10.09% | -17.95% |
| Income Tax | 16.49M | 17.51M | 14.25M | 12.62M | 9.96M | 7.04M | 8.61M | 5.07M | -2.56M | 5.77M | 4.21M | 454K | 811K | 435K | -230K | 177K | 260K | 584K | 338K | 325K | 1.8M | 217K | -19K | 1.41M | 726K | -1.95M | -1.68M | 100K | 0 | 8.4M |
| Effective Tax Rate % | 20.32% | 19.49% | 18.48% | 19.25% | 17.39% | 17.09% | 24.53% | 26.57% | 127.69% | 22.75% | 17.19% | 3.02% | 6.54% | 3.55% | -4.02% | 2.79% | 5.83% | 207.83% | 16.02% | 9.32% | -24.63% | 4.7% | -0.86% | 37.99% | -4.21% | 4.87% | -14.73% | 1.02% | 0% | -120% |
| Net Income | 64.33M | 72.18M | 62.44M | 52.59M | 47.17M | 33.77M | 26.25M | 13.79M | 352K | 19.34M | 20.02M | 14.46M | 11.6M | 11.78M | 5.9M | 6.15M | 4.2M | -344K | -2.54M | -3.83M | -9.1M | -4.84M | -2.19M | -5.15M | -17.97M | -38.09M | 13.07M | 9.7M | 4.5M | -6.6M |
| Net Margin % | 11.4% | 13.31% | 12.13% | 11.08% | 10.23% | 8.82% | 8.06% | 4.76% | 0.13% | 8.94% | 10.78% | 9.19% | 8.57% | 10.34% | 8.43% | 11.78% | 9.19% | -0.79% | -6% | -8.63% | -23.09% | -10.13% | -4.18% | -7.95% | -28.33% | -52.36% | 14.23% | 13.66% | 10.09% | -16.92% |
| Net Income Growth % | -9.75% | 15.59% | 18.73% | 11.5% | 39.66% | 28.68% | 90.4% | 3816.19% | -98.18% | -3.4% | 38.39% | 24.64% | -1.49% | 99.76% | -4.15% | 46.44% | 1321.22% | 86.48% | 33.49% | 57.96% | -87.92% | -121.4% | 57.56% | 71.32% | 52.82% | -391.44% | 34.72% | 115.56% | 168.18% | - |
| Net Income (Continuing) | 64.67M | 72.32M | 62.87M | 52.93M | 47.32M | 34.16M | 26.49M | 14M | 556K | 19.6M | 20.3M | 14.58M | 11.59M | 11.8M | 5.96M | 6.17M | 4.2M | -303K | -2.54M | -3.81M | -9.1M | -4.83M | -2.19M | -5.15M | -17.97M | -38.09M | 13.07M | 9.7M | 4.5M | -6.7M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 13.72M | 0 | 2.68M | 2.44M | 2.17M | 2M | 1.68M | 1.44M | 831K | 796K | 867K | 689K | 637K | 835K | 960K | 154K | 133K | 133K | 0 | 0 | 0 | 0 | 69K | 85K | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.14 | 1.29 | 1.12 | 0.95 | 0.85 | 0.65 | 0.52 | 0.28 | 0.01 | 0.39 | 0.41 | 0.30 | 0.27 | 0.28 | 0.19 | 0.28 | 0.19 | -0.02 | -0.14 | -0.29 | -0.76 | -0.43 | -0.20 | -3.55 | -3.25 | -6.89 | 2.36 | 2.15 | 0.81 | -0.71 |
| EPS Growth % | -10.24% | 15.18% | 17.89% | 11.76% | 30.77% | 25% | 85.71% | - | -98.21% | -4.88% | 36.67% | 11.11% | -3.57% | 47.37% | -32.14% | 47.37% | 1287.5% | 88.57% | 51.72% | 61.84% | -76.74% | -115% | 94.37% | -9.23% | 52.83% | -391.95% | 9.77% | 165.43% | 214.08% | - |
| EPS (Basic) | - | 1.29 | 1.13 | 0.95 | 0.86 | 0.66 | 0.52 | 0.28 | 0.01 | 0.40 | 0.42 | 0.31 | 0.29 | 0.29 | 0.21 | 0.28 | 0.19 | -0.02 | -0.14 | -0.29 | -0.76 | -0.43 | -0.20 | -3.55 | -18.73 | -41.86 | 15.84 | 12.61 | 3.50 | -15.50 |
| Diluted Shares Outstanding | 56.43M | 56.15M | 55.72M | 55.57M | 55.59M | 52.16M | 50.65M | 50.11M | 49.93M | 49.78M | 49.33M | 48.64M | 42.32M | 41.67M | 30.76M | 22.18M | 21.59M | 21.55M | 18.22M | 13.39M | 11.98M | 11.27M | 10.69M | 1.45M | 5.53M | 5.53M | 5.53M | 5.53M | 5.53M | 9.24M |
| Basic Shares Outstanding | 57.2M | 55.82M | 55.37M | 55.12M | 54.78M | 51.21M | 50.03M | 49.83M | 49.17M | 48.95M | 48.12M | 47.21M | 40.02M | 39.95M | 28.46M | 21.58M | 21.59M | 21.55M | 18.22M | 13.39M | 11.98M | 11.27M | 10.69M | 1.45M | 959.48K | 909.8K | 825K | 769.23K | 600K | 503.23K |
| Dividend Payout Ratio | - | 44.09% | 45.07% | 73.35% | 42.94% | 20.86% | 41.94% | 72.38% | 2798.58% | 50.61% | 35.9% | - | 50% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 17.78% | - |
Geopolitical and Operational Concentration
According to the most recent quarterly filings, SPNS reported a revenue growth rate of 11.2% in 2025Q3, marking a notable acceleration from the 3.5% growth observed in 2025Q2, suggesting that the company's cloud-first strategic pivot may be beginning to gain traction within its core insurance markets.
The recent uptick in top-line performance appears to indicate that the transition toward subscription-based cloud models is overcoming the initial friction of legacy license displacement. Investors should monitor whether this growth trajectory remains sustainable or if it reflects a temporary surge in professional services revenue related to new implementation cycles.
Based on reported financial data, Sapiens maintains a gross margin profile hovering near 44%, a figure that remains significantly lower than pure-play SaaS peers, reflecting the company's heavy reliance on human-capital-intensive implementation services rather than high-margin, standardized software licensing models.
The persistent gross margin range of 42-44% suggests that the company's cost structure is structurally tethered to the labor-intensive nature of core insurance system deployments. This limitation implies that meaningful margin expansion may be difficult to achieve without a more aggressive shift toward standardized, multi-tenant cloud offerings that reduce the need for bespoke professional services.
As indicated by the income statement, operating margins contracted to 11.7% in 2025Q3 from 15.9% in 2024Q3, suggesting that the company is currently struggling to achieve meaningful operating leverage as it scales its cloud infrastructure and absorbs increased R&D expenditures.
The decline in operating margin despite top-line growth warrants caution, as it may indicate that the cost of acquiring and supporting new cloud customers is currently outpacing the efficiency gains from the company's offshore delivery model. Management's ability to stabilize these margins will be critical to proving the long-term scalability of the current business model.
Based on the provided income statement, EPS experienced a 24.2% year-over-year decline in 2025Q3, a trend that appears to be driven by fluctuating R&D investments and potential non-operating items, suggesting that headline net income may not fully reflect the underlying operational health of the business.
The inconsistency in quarterly EPS growth, despite steady revenue, suggests that the company's bottom line is sensitive to the timing of project-based expenses and R&D capitalization. Analysts should scrutinize the impact of stock-based compensation and potential tax rate anomalies to determine if the current earnings volatility is a structural issue or a temporary byproduct of the cloud transition.
Quick answers to the most common questions about buying SPNS stock.
For fiscal year 2024, Sapiens International Corporation N.V. (SPNS) reported total revenue of $542.4M. This represents a 1290.7% increase compared to $39.0M in 1996.
Sapiens International Corporation N.V. (SPNS) is profitable, generating $72.2M in net income for the fiscal year ending 2024 with a net profit margin of 13.3%.
Sapiens International Corporation N.V. (SPNS) reported an operating income of $91.4M, resulting in an operating profit margin of 16.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Sapiens International Corporation N.V. (SPNS) generated $244.2M in gross profit for the year, representing a gross profit margin of 45.0%. This demonstrates the company's core pricing power and production efficiency.