10-Q · May 14, 2026
NetSol Technologies reported Q3 2026 results reflecting strong revenue growth of 13.07% to $19.8 million compared to Q3 2025, alongside improved gross margins of 55.6%. However, diluted EPS decreased from $0.12 to…
Earnings analysis · 10-K
NTWK earnings analysis
Filed September 28, 2026 · Our reading of the company's report
The latest report
NetSol delivered a strong fiscal 2026, with revenue up 12.5% to $74.4 million, gross margin expanding to approximately 52.6%, and operating income nearly doubling to $6.9 million. Growth was concentrated in…
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NetSol delivered a strong fiscal 2026, with revenue up 12.5% to $74.4 million, gross margin expanding to approximately 52.6%, and operating income nearly doubling to $6.9 million. Growth was concentrated in Asia-Pacific, particularly China and Australia/New Zealand, while North America declined and Europe was broadly flat. Operating cash flow rebounded to $13.9 million and the Company ended the year with $27.1 million of cash, although customer concentration, uninsured foreign deposits, and currency exposure are meaningful risks.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.25
What stood out
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Revenue exceeded prior outlook
Fiscal 2026 revenue increased 12.5% to $74.4 million from $66.1 million, exceeding the previously reiterated approximately $73 million outlook. Core revenue rose to $71.3 million from $62.5 million, led by subscription and support revenue of $35.8 million.
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Profitability improved materially
Gross profit increased to $39.1 million from $32.6 million, lifting gross margin to approximately 52.6% from 49.3%. Income from operations nearly doubled to $6.9 million from $3.5 million, raising operating margin to approximately 9.3%.
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Asia-Pacific drove growth
Asia-Pacific remained the primary growth engine, with segment revenue of $55.0 million versus $46.4 million and operating income of $10.5 million versus $6.3 million. China revenue increased to $19.2 million from $17.0 million, while Australia and New Zealand increased to $14.7 million from $8.6 million.
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Recurring revenue and backlog strengthened
Subscription and support revenue increased to $35.8 million from $32.9 million, while license revenue rose to $5.0 million from $0.6 million. Contracted but unsatisfied performance obligations totaled approximately $49.1 million, including an estimated $22.5 million expected to be recognized over the next 12 months.
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Operating cash generation rebounded
Net cash provided by operating activities increased to $13.9 million from $0.4 million, and cash and cash equivalents rose to $27.1 million from $17.4 million. The improvement was supported in part by a $6.5 million increase in contract liabilities.
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Investment focused on product and infrastructure
Capital investment increased: the Company spent $2.0 million on property and equipment and capitalized $2.7 million of internal-use software development costs. It also made net payments of $1.2 million on finance leases and loans, while no parent-company share repurchase or dividend was disclosed for fiscal 2026.
What to watch
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Customer concentration increased
Two customers represented 25.1% and 15.2% of fiscal 2026 net revenue, or 40.3% combined, compared with 35.2% combined in fiscal 2025. Loss, delayed renewal, or reduced spending by either customer could materially affect revenue and profitability.
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Large uninsured foreign cash exposure
The Company held approximately $26.5 million of uninsured deposits in foreign entities as of June 30, 2026, compared with $16.4 million a year earlier, versus total cash of $27.1 million. The filing states that certain foreign-country balances are not covered by insurance and could be exposed to bank, political, or regulatory disruption.
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FX volatility turned unfavorable
The majority of operations are in the Asia-Pacific region, including Pakistan, where the Pakistan Rupee is continuously losing value against the U.S. dollar; the Company does not hedge this exposure. Fiscal 2026 also included a $389,814 foreign-currency transaction loss, versus a $1.3 million gain in fiscal 2025.
Management's outlook
The 10-K does not provide quantitative fiscal 2027 revenue or EPS guidance. Prior fiscal 2026 revenue guidance was approximately $73 million; reported fiscal 2026 revenue was $74.4 million. Annual outlook may be addressed in the earnings press release or conference call.
Earlier filings 4
10-Q · February 12, 2026
NETSOL Technologies showed solid growth in Q2 2026 with revenues rising to $19 million, a 21% year-over-year increase. Despite a significant improvement in gross margins, the diluted EPS of $0.02 was a miss against…
10-Q · November 12, 2025
NetSol Technologies reported a mixed performance for Q4 FY 2025, with revenues edging up to $18 million, driven by robust subscription and support fees, but experiencing significant net losses. Gross margins improved to…
10-K · September 29, 2025
NetSol Technologies, Inc. reported total revenues of $66.09 million for the fiscal year ending June 30, 2025, a notable increase from $61.39 million in the previous year, driven primarily by strong performance in…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.