TASE Reports the Results of the Financial Statements for the Third Quarter of 2026

TASE posts record revenue, profit, and trading growth, driven by surging investor activity.

What the company is saying

The Tel-Aviv Stock Exchange Ltd. (TASE) is highlighting robust financial and operational performance for the third quarter and first nine months of 2026. The company reports a 31% year-on-year revenue increase to NIS 544 million and a 74% surge in net profit to NIS 224.7 million for the nine-month period. CEO Ittai Ben Zeev frames these results as evidence of the Israeli capital market’s resilience and increased public and foreign investor participation, despite ongoing geopolitical tensions. The narrative emphasizes broad-based growth across revenue streams, a 52.4% jump in equity trading volumes, and record IPO activity, with 21 new listings raising NIS 7.8 billion. TASE also spotlights the approval of a new strategic plan for 2027-2031, targeting 15%-18% annual revenue growth, and the completion of a NIS 150 million share buyback. The tone is confident, attributing performance to both internal execution and macroeconomic stability.

What the data suggests

The disclosed figures confirm a period of exceptional financial performance. Revenue for the first nine months of 2026 reached NIS 544 million, up 31% from the prior year, while net profit rose 74% to NIS 224.7 million. Adjusted EBITDA for the same period increased 58% to NIS 335.5 million. Third-quarter results were similarly strong, with revenue up 19% to NIS 175.3 million and net profit up 37% to NIS 68.3 million. Trading activity was buoyant: average daily equity trading volumes climbed 52.4% to NIS 5.2 billion, and the equity market cap expanded to NIS 3.1 trillion, a 72% year-on-year increase. The period saw 21 IPOs and 155,000 new securities accounts opened, with foreign investors accounting for 40% of trading by Q3’s end. Costs rose modestly (4% year-on-year), and tax expense increased in line with higher profits. The company’s strategic plan projects further growth but remains a forward-looking target, not yet evidenced by realised results.

Analysis

The announcement is overwhelmingly supported by realised, measurable financial and operational results for the first nine months and third quarter of 2026. Key profitability metrics (net profit, adjusted EBITDA) and revenue are disclosed with clear year-on-year growth rates, and operational statistics (trading volumes, IPOs, market cap) are detailed and current. The only forward-looking claim is the strategic plan targeting a 15%-18% CAGR in revenues for 2027-2031, which is explicitly presented as a future target, not as a realised outcome. The tone is positive but proportionate to the strong results, and there is no evidence of narrative inflation or overstatement. The share buyback is completed and quantified, with no indication of large, uncertain capital outlays tied to long-term, unproven benefits. The data fully supports the positive narrative, and the gap between perception and reality is minimal.

Risk flags

• ●Sustaining current growth rates may prove challenging as the 31% revenue and 74% profit increases reflect a period of unusually strong market activity; any slowdown in trading volumes, IPO activity, or investor engagement could pressure future results.
• ●The new strategic plan targets a 15%-18% CAGR in revenues through 2031, but there is no guarantee these ambitious growth rates are achievable, especially given potential macroeconomic, regulatory, or geopolitical headwinds in Israel and global markets.
• ●A significant portion of recent growth is attributed to increased foreign investor activity (now 40% of trading); shifts in global risk appetite or regional instability could reverse these inflows and impact trading volumes and market liquidity.
• ●While costs have risen only modestly, continued increases in employee benefits, share-based payments, or technology investments could compress margins if revenue growth moderates.
• ●The completed share buyback (NIS 150 million) reduces cash reserves and may limit financial flexibility for future investments or to weather market downturns.

Bottom line

TASE’s Q3 and year-to-date results show record revenue, profit, and trading activity, underpinned by strong domestic and foreign investor engagement and a surge in new listings. The company’s operational and financial disclosures are comprehensive, with all key metrics showing double-digit growth and clear explanations for cost and tax increases. The new strategic plan sets ambitious long-term revenue growth targets, but its success will depend on sustaining current momentum amid potential market volatility and geopolitical risks. Investors should view the realised results as a strong foundation, while recognising that future performance will hinge on continued execution and external conditions. The most important takeaway is that TASE is currently benefiting from a rare alignment of market growth drivers, but maintaining this trajectory will require careful management and favourable macro trends.

Announcement summary

(NYSE:BUR) The Tel-Aviv Stock Exchange Ltd. (TASE) reported a 31% increase in revenue for the first nine months of 2026, reaching NIS 544 million. Revenue for the third quarter of 2026 increased by 19% to NIS 175.3 million. Adjusted EBITDA for the third quarter rose by 32% to NIS 105.4 million. The average trading volume in equities on TASE grew by 52.4% in the first nine months of 2026, reaching NIS 5.2 billion. Net profit for the third quarter of 2026 was NIS 68.3 million, a 37% increase from NIS 50 million in the same quarter last year. Net profit for the first nine months of 2026 totaled NIS 224.7 million, up 74% from NIS 129.4 million in the prior-year period. Adjusted EBITDA for the first nine months of 2026 was NIS 335.5 million, a 58% increase from NIS 213 million last year. In the first nine months of 2026, 21 new companies completed IPOs on TASE, 6 of which were in the third quarter, raising a combined NIS 7.8 billion, compared to 17 companies in the same period last year. TASE's equity market capitalization reached NIS 3.1 trillion at the end of Q3 2026, compared to NIS 1.8 trillion at the end of Q3 2025 and NIS 2 trillion at the end of 2025. The TA-35 index increased by 15.8% and the TA-125 index by 11.2% in the first nine months of 2026. The average daily trading volume in TASE's equities market in the first nine months of 2026 was NIS 5.2 billion, up from NIS 3.4 billion in 2025. The average daily trading volume on Fridays was NIS 4 billion following the switch to Monday to Friday trading. Foreign investors' share of trading rose to 40% at the end of Q3 2026. Approximately 155,000 new securities accounts were opened in Israel since the beginning of 2026. The value of equities held by the public reached NIS 1.4 trillion in August 2026. Five additional companies dual listed on TASE. The total raised on the equities market was NIS 22 billion, compared to NIS 15.2 billion in the prior-year period. In the bond market, 18 new bond companies raised NIS 9 billion in the first nine months of 2026. The corporate bond market raised NIS 136 billion, and the Ministry of Finance raised NIS 112 billion in bond issuances since the start of the year. On September 16, 2026, TASE's Board approved a new strategic plan for 2027-2031, targeting a 15%-18% CAGR in revenues, focusing on growth, technology upgrades, revenue diversification, and international market access. On September 28, TASE closed a share buyback program, having purchased 1.2 million shares for NIS 150 million. Two new local TASE members applied for membership, and discussions are ongoing with several international entities. Three new companies joined TASE's Tailor-Made market-making program in Q3, and new market makers were engaged for foreign-currency government bonds. The TAF (Tel Aviv Funds) system was launched, displaying 12 fund indices for comparison. In Q3 2026, costs totaled NIS 87.6 million, up 4% from NIS 84.5 million last year, mainly due to higher employee benefit and share-based payment expenses. Net financing income in Q3 2026 was NIS 1.7 million, down 35% from NIS 2.6 million last year, mainly due to lower gains on marketable securities and reduced interest income. Tax expense in Q3 2026 was NIS 21.2 million, up 39% from NIS 15.2 million last year, mainly due to higher pre-tax profit. Adjusted profit in Q3 2026 was NIS 70.3 million, up 39% from NIS 50.7 million last year. In the first nine months of 2026, costs were NIS 260 million, up 4% from NIS 250.1 million last year, mainly due to higher employee benefits, share-based payments, and other operating expenses. Net financing income for the period was NIS 7.7 million, up 65% from NIS 4.7 million last year. Tax expense for the period was NIS 67.1 million, up 70% from NIS 39.5 million last year. Adjusted profit for the first nine months of 2026 was NIS 229.2 million, up 74% from NIS 132 million last year. There were 61 trading days in Q3 2026, compared to 62 last year, and 180 trading days in the first nine months of 2026, compared to 186 last year.

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