Skai Inside ORT: What Actually Moves the Value and What Only Looks Dramatic
ORT's Skai line is not set by the sales multiple alone. It runs through three separate layers: a revenue multiple on a $128.3 million sales base, allocation through an OPM capital structure, and only then dollar-to-shekel translation. In 2025, most of the drama in shekels came from FX rather than from the valuation itself.
The main article argued that ORT has to be read through the gap between paper value and value that is actually accessible to shareholders. This follow-up isolates one line, Skai, because it is very easy to look at ILS 32.7 million at the end of 2025 and assume the only real question is which sales multiple the appraiser chose. That is only part of the story.
ORT's carrying value in Skai is built in three separate layers. First comes the operating value, based on a sales multiple applied to a $128.3 million revenue base. Then Skai's net financial assets are added, producing a total company value of $360.8 million. Only then does the OPM framework allocate that value across ordinary shares, preferred shares, and employee options based on seniority. And only after that does the dollar figure translate into shekels in ORT's statements.
That is the difference between what actually moves the value and what only looks dramatic on first read.
| Layer | What the filings set out | Why it matters |
|---|---|---|
| Multiple and revenue base | 2.6x on $128.3 million of revenue, producing $331.8 million of enterprise value | The multiple moves value, but only the first layer |
| Capital structure and OPM | $29.0 million of net financial assets are added, then value is allocated through ordinary shares, preferred shares, and employee options | ORT does not simply own a flat 2.6% of one clean equity line |
| FX translation | The carrying value fell from ILS 37.7 million to ILS 32.7 million, but almost all of that move came from the dollar | The sharp-looking shekel move did not necessarily reflect a sharp business move in Skai itself |
The Multiple Matters, but It Is Only the Starting Point
Skai's valuation relies on four comparables: Asure Software at 1.8x, Magnite at 3.4x, Cardlytics at 1.0x, and Amplitude at 4.1x. The selected average is 2.6x. Applied to 2025 revenue of $128.3 million, that produces enterprise value of $331.8 million.
The less obvious point is that the multiple does not directly produce ORT's carrying value. It produces operating value first. Skai's net financial assets of $29.0 million are then added, and only after that do we get to total company value of $360.8 million. So even if the reader agrees with the multiple, that still is not the same thing as agreeing with ORT's own carrying value.
The filings also provide direct sensitivity for ORT's holding. Across a 2.4x to 2.8x multiple range, the carrying value moves from ILS 30.6 million to ILS 34.8 million. Put differently, every 0.1 turn in the multiple changes value by roughly ILS 1.0 million to ILS 1.1 million. That is meaningful, but it still does not explain all of the volatility that shows up in this line.
The short version is simple. The multiple absolutely matters, but even in the appraiser's own framework it is only the point where the value starts to be built, not where it ends.
OPM: Why 2.6% Is Not Really the Number
ORT presents Skai from two ownership angles: about 3.17% of issued share capital and about 2.6% on a fully diluted basis. Both are true. Neither is enough on its own to explain the carrying value.
If you take total company value of $360.8 million and multiply it by 3.17%, you get about $11.4 million. If you multiply it by 2.6%, you get about $9.4 million. The carrying value in the statements is $10.24 million. In other words, the real number sits right between the two flat ownership reads. That is not a technical rounding issue. It is the capital structure at work.
The valuation does not assume ORT owns one uniform slice of Skai. It shows a package of 5.25 million securities: 615,619 ordinary shares plus preferred shares from series A through F-1. At the same time, Skai's fully diluted capital table includes 168.3 million shares and another 32.4 million employee options, meaning the option layer alone represents 16.13% of total capital.
That is where the OPM comes in. The model allocates company value according to seniority, liquidation rights, and strike structures for each layer. That is why ordinary shares are valued at $1.69 per share while preferred F is valued at $3.13 and preferred F-1 at $2.81. ORT therefore does not just own "2.6% of a company." It owns a mix of claims across several layers of value.
The appendix also shows how real those step-ups are. Ordinary shares only begin participating above liquidation value of $84.7 million. Preferred D sits at a $210.5 million breakpoint, and preferred F at $605.9 million before the model moves into the pro-rata layer. That is why it is wrong to read Skai inside ORT as a plain 2.6% look-through. What appears in the statements is the product of a capital structure that lifts ORT's value above the simple fully diluted math, while still leaving it below the simple 3.17% issued-share reading.
The message is sharp: anyone valuing Skai through one flat ownership percentage is missing the entire mechanism between company value and ORT's actual holding value.
What Looks Dramatic, but Was Mostly FX
This is the part that is easiest to misread. In shekels, ORT's Skai carrying value fell from ILS 37.679 million at the end of 2024 to ILS 32.679 million at the end of 2025. That is a ILS 5.0 million drop, which at first glance looks like a meaningful deterioration in Skai's own economic value.
But in dollars the move was far milder. The carrying value went from $10.374 million to $10.244 million, a decline of only about 1.3%. Note 5 breaks down the 2025 move explicitly: out of a total ILS 5.155 million decline, about ILS 4.851 million came from FX losses and only about ILS 304 thousand from negative revaluation.
Put differently, roughly 94% of the shekel decline came from currency and only about 6% came from the valuation itself. The line looked dramatic, but most of it did not tell a new story about Skai. It told a story about the dollar.
That matters especially for ORT shareholders because it separates three questions that are usually compressed into one number. The first is whether Skai itself held its revenue base and still justified a 2.6x multiple. The second is how the capital structure allocates that company value across different layers. The third is what the exchange rate does to ORT's reported shekel number in the near term. In 2025, the third question was the dominant one in the reported shekel move.
That also means the reader has to be careful in both directions. On one side, not to read a sharp shekel decline as if Skai itself lost a similar amount of value in dollars. On the other, not to read dollar stability as if ORT's reported earnings line is insulated. As long as the holding is measured in dollars and reported in shekels, currency will remain part of the story even when the business itself barely changes.
Conclusion
The right way to read Skai inside ORT is not through one number but through a sequence of three layers. The multiple sets operating value. Net financial assets and the OPM framework determine how company value becomes ORT's holding value. Only then does currency determine how that value looks in ORT's shekel reporting.
That gives the continuation question a fairly clean answer. What actually moves the value? Changes in the multiple, the revenue base, the capital stack, and Skai's financial-asset position. What only looks dramatic? A shekel swing driven mainly by dollar translation while the dollar valuation itself barely moved.
That does not weaken the main article's argument. It sharpens it. Even after the number is built relatively carefully, $10.24 million is still a private, model-based, dollar-linked value rather than liquid cash. Skai therefore remains ORT's main value anchor, but the path from that anchor to accessible shareholder value still runs not only through the business, but also through the capital structure and the currency line.
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