NTWK NETSOL TECHNOLOGIES INC
Price Chart
Executive Summary
NETSOL Technologies reported record Q3 FY2026 revenue of $19.8M (+13% YoY), with recurring subscription and support revenue up 11.7% to $8.8M. GAAP EPS was $0.11 vs $0.12 a year ago, and the company reaffirmed full-year FY2026 revenue guidance of ~$73M. The quarter benefited from a one-time $4.7M license fee from a $50M contract extension with a tier-one auto captive customer, which boosted license fees from near zero in the prior year.
Key Financial Metrics
Actionable Insight
The record revenue and expanding margins confirm the company's growth trajectory, supported by a large contract extension and growing recurring revenue. The one-time license fee boosted Q3, so monitor Q4 for normalization of license revenue. The reaffirmed $73M full-year guidance implies Q4 revenue of ~$19.3M, suggesting continued strength. Watch for updates on Transcend Retail adoption and AI module deployments.
Key Facts
- Record quarterly revenue of $19.8M, highest in company history, up 13% YoY from $17.5M
- Recurring subscription and support revenue grew 11.7% YoY to $8.8M
- Gross margin expanded to 55.6% from 49.8% in the prior-year period
- Non-GAAP EBITDA grew 48.2% YoY to $3.4M, margin 17.2% vs 13.1%
- GAAP net income attributable to NETSOL was $1.3M or $0.11 per diluted share vs $1.4M or $0.12 a year ago
- License fees surged to $4.7M from $1,198, driven by a one-time license investment from a $50M contract extension
- Reaffirmed full-year FY2026 revenue guidance of approximately $73M
- Annualized recurring revenue forecasted up 7% YoY to ~$35M
- Cash and cash equivalents $14.7M at March 31, 2026, down from $17.4M at June 30, 2025 due to working capital timing
Financial Impact
Record revenue of $19.8M (+13% YoY); GAAP EPS $0.11 vs $0.12 YoY; Non-GAAP EBITDA $3.4M (+48.2% YoY); gross margin 55.6% vs 49.8%
Risk Factors
- One-time $4.7M license fee from a contract extension may not recur, creating a tough comp in Q4
- Services revenue declined to $6.3M from $9.7M, reflecting project timing and a prior-year one-time pickup
- Cash burn: operating cash flow was -$0.8M for the nine months, and cash declined to $14.7M from $17.4M
- Nine-month GAAP net loss of $0.8M vs net income of $0.3M a year ago, driven by higher tax provision and non-controlling interest
Market Snapshot
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001493152-26-022963 |
| Document: form8-k.htm | 0001493152-26-022963 |
| Document: 0001493152-26-022963-index-headers.html | 0001493152-26-022963 |
| Document: 0001493152-26-022963-index.html | 0001493152-26-022963 |
| Document: 0001493152-26-022963.txt | 0001493152-26-022963 |
| 8-K Data (Synthetic) | 0001493152-26-022963 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
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May 14, 2026
26d ago
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8-K
| $4.15 $4.11 | ▼ −0.96% | ▼ −0.25% | $4.37 (+5.30%) |
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May 14, 2026
26d ago
|
Press Release
| $4.15 $4.11 | ▼ −0.96% | ▼ −0.25% | $4.37 (+5.30%) |
|
May 6, 2026
4w ago
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Press Release
| $3.85 $4.30 | ▲ +11.69% | ▲ +10.56% | $4.37 (+13.51%) |
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May 6, 2026
4w ago
|
8-K
| $3.85 $4.30 | ▲ +11.69% | ▲ +10.56% | $4.37 (+13.51%) |
|
Apr 9, 2026
8w ago
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Press Release
| $3.36 $3.53 | ▲ +5.06% | ▲ +1.87% | $4.37 (+30.06%) |
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Mar 11, 2026
12w ago
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Press Release
| $3.67 $3.52 | ▼ −4.09% | ▼ −3.11% | $4.37 (+19.07%) |
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Mar 11, 2026
12w ago
|
Press Release
| $3.66 $3.61 | ▼ −1.37% | ▲ +0.82% | $4.37 (+19.40%) |
US Market Status
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