TextMagic AS (OTSE:MAGIC) Operating Income: €-0.68 Mil (TTM As of Dec. 2025)

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OTSE:MAGIC TextMagic AS OTSE:MAGIC
49 GF Score
Price €1.70
GF Value €3.78
Valuation Possible Value Trap
! 3 Warning Signs
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What is TextMagic AS Operating Income?

TextMagic AS OTSE:MAGIC -2.30% 49 Operating Income is €-0.68 Mil as of Dec. 2025. GuruFocus rates OTSE:MAGIC with a GF Score™ of 49/100 and a GF Value™ of €3.78 (Possible Value Trap). The stock has 3 warning signs investors should review.

TextMagic AS's Operating Income for the six months ended in Dec. 2025 was €-0.64 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was €-0.68 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. TextMagic AS's Operating Income for the six months ended in Dec. 2025 was €-0.64 Mil. TextMagic AS's Revenue for the six months ended in Dec. 2025 was €6.75 Mil. Therefore, TextMagic AS's Operating Margin % for the quarter that ended in Dec. 2025 was -9.53%.

TextMagic AS's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. TextMagic AS's annualized ROC % for the quarter that ended in Dec. 2025 was -3.96%. TextMagic AS's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was -316.75%.


TextMagic AS  (OTSE:MAGIC) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

TextMagic AS's annualized ROC % for the quarter that ended in Dec. 2025 is calculated as:

ROC % (Q: Dec. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2025 ) + Invested Capital (Q: Dec. 2025 ))/ count )
=-1.286 * ( 1 - 0% )/( (34.758 + 30.186)/ 2 )
=-1.286/32.472
=-3.96 %

where

Note: The Operating Income data used here is two times the semi-annual (Dec. 2025) data.

2. Joel Greenblatt's definition of Return on Capital:

TextMagic AS's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2025 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2025  Q: Dec. 2025
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-1.286/( ( (0.483 + max(-2.589, 0)) + (0.329 + max(-1.67, 0)) )/ 2 )
=-1.286/( ( 0.483 + 0.329 )/ 2 )
=-1.286/0.406
=-316.75 %

where Working Capital is:

Working Capital(Q: Jun. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0.02 + 0 + 0.184) - (0.574 + 0 + 2.219)
=-2.589

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0.281 + 0 + 0.123) - (0.488 + 0 + 1.586)
=-1.67

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2025) EBIT data.

3. Operating Income is also linked to Operating Margin %:

TextMagic AS's Operating Margin % for the quarter that ended in Dec. 2025 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2025 )/Revenue (Q: Dec. 2025 )
=-0.643/6.745
=-9.53 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


TextMagic AS Operating Income Related Terms


TextMagic AS Operating Income Historical Data

* Premium members only.

The historical data trend for TextMagic AS's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

TextMagic AS Operating Income Chart

TextMagic AS Annual Data
Trend Dec21 Dec22 Dec23 Dec24 Dec25
Operating Income
0.00 2.73 2.57 1.83 -0.50

TextMagic AS Semi-Annual Data
Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Operating Income Get a 7-Day Free Trial Premium Member Only 1.68 1.09 0.69 -0.04 -0.64
OTSE:MAGIC
49GF Score
TextMagic AS OTSE:MAGIC
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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TextMagic AS Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 adds up the semi-annually data reported by the company within the most recent 12 months, which was €-0.68 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of €-0.68 Mil mean?
TextMagic AS (OTSE:MAGIC) has a Operating Income of €-0.68 Mil as of Dec. 2025. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on TextMagic AS and its competitors.
Is TextMagic AS's Operating Income too high?
TextMagic AS's current Operating Income is €-0.68 Mil. Overall, TextMagic AS has a GF Score™ of 49/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does TextMagic AS's Operating Income compare to QH and SHOP?
TextMagic AS's Operating Income of €-0.68 Mil can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Software company?
A good Operating Income depends on the Software industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on TextMagic AS and its competitors. TextMagic AS's current Operating Income is €-0.68 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TextMagic AS stock overvalued right now?
Based on GuruFocus' analysis, TextMagic AS (OTSE:MAGIC) is currently considered Possible Value Trap. The stock's GF Value™ is €3.78, compared to a current price of €1.70 — trading 55% below its estimated fair value. The current Operating Income is €-0.68 Mil. TextMagic AS's overall GF Score™ is 49/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For TextMagic AS (OTSE:MAGIC), the current Operating Income is €-0.68 Mil as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is TextMagic AS (OTSE:MAGIC) Overvalued in 2026?

Based on GuruFocus' analysis, TextMagic AS stock appears to be undervalued. The current stock price of €1.70 is trading 55% below its estimated GF Value™ of €3.78. GuruFocus considers TextMagic AS to be Possible Value Trap.

Key valuation signals for OTSE:MAGIC:

  • Operating Income: €-0.68 Mil
  • GF Value™: €3.78 vs. price of €1.70 (55% below fair value)
  • GF Score™: 49/100 with 3 warning signs

No single metric tells the full story. See the OTSE:MAGIC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


TextMagic AS Business Description

Address A. H. Tammsaare 56, Tallinn, EST, 11316
TextMagic AS is a text messaging company that helps businesses engage with customers. The Group's activities include the management and development of software products. The company operates mainly in the U.S., the U.K., Canada, Australia, and other countries. TextMagic enables companies to transform customer experiences through its text messaging marketing software, which can be used to send notifications, alerts, reminders, confirmations, and SMS marketing campaigns anytime, anywhere. Its product and service lines include text messaging services, which generate maximum revenue, virtual mobile number services, other TextMagic platform services, and the Voog.com platform. The company derives the majority of its revenue from the United States.
49GF Score

Get the complete analysis for OTSE:MAGIC

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€1.70
Price
€3.78
GF Value