NetSol Technologies, Inc.

For Q3 ended March 31, 2026, NetSol reported total net revenues of $19.8 million, up about 13% from $17.5 million in the prior-year period. Subscription and support revenue grew 11.7% to $8.8 million; license fees were $4.7 million versus just over $1 thousand a year ago; and services revenue was $6.3 million versus $9.7 million. Gross profit was $11 million, or 55.6% of revenue, compared with $8.7 million, or 49.8%; non-GAAP EBITDA was $3.4 million versus $2.3 million; and GAAP net income attributable to NetSol was $1.3 million, or $0.11 per diluted share, versus $1.4 million, or $0.12. For the nine months ended March 31, 2026, revenue was $53.7 million, up 12.5%, gross profit was $26 million, or 48.4%, and non-GAAP EBITDA was $3.5 million, up 84.2%. Cash and cash equivalents were $14.7 million at March 31, 2026, down from $17.4 million at June 30, 2025. Management reaffirmed full-year fiscal 2026 revenue guidance of approximately $73 million to $74 million.

Najeeb Ghauri said the quarter validated NetSol’s strategy of unifying products under the Transcend platform, deepening customer relationships, and embedding AI into workflows. He pointed to go-lives and renewals, including Northridge Finance, Ford China, and Investec, as evidence that Transcend Finance is scaling across geographies and converting into recurring revenue. He also emphasized strong demand for Transcend Retail in the U.S. BMW dealer market and said the company is focused on extending its largest customer relationships and growing recurring revenue.

Sardar Mohammad Abubakr highlighted that Q3 revenue of $19.8 million was a record and increased about 13% year over year, driven mainly by higher license fees tied to the renewal of a $50 million, 4-year tier 1 auto captive contract and recurring subscription/support growth. He noted gross profit of $11 million, or 55.6% of revenue, versus $8.7 million, or 49.8%, and non-GAAP EBITDA of $3.4 million, up 47.8%, with margin expanding to 17.2% from 13.1%. He also cited a roughly $400 thousand one-time Pakistan super tax charge, cash of $14.7 million, and working-capital swings tied to billing and collections on large customer arrangements.

In Q&A, Todd Felte asked whether the quarter’s growth was sustainable or mostly due to a one-time license fee; management said the pattern should continue because the pipeline is strong and customer interest remains healthy. Felte also asked about buying out the remaining interest in the Pakistani subsidiary, and Ghauri said it remains a top priority but depends on financing. A second analyst asked about exposure to China auto finance weakness and global auto trends; Ghauri said the company is aware of macro risks but feels comfortable given its customer base, teams in China and Pakistan, and dependence on NetSol’s products. He also said the company is exploring other verticals, U.S. expansion ideas, and possibly M&A over time.