NetSol Technologies, Inc.

For fiscal 2026, total net revenues were $74.4 million, up 12.5% year over year and above the company’s $73 million guidance. Gross profit was $39.1 million, up 20.2%, with gross margin expanding 330 basis points to 52.6%; operating income was $6.9 million, up 98.4%, with operating margin improving to 9.3%. Non-GAAP EBITDA grew 22.8% to $8.0 million, consolidated adjusted EBITDA increased 68.8% to $9.15 million, and adjusted EBITDA attributable to NetSol rose 61% to about $6.01 million. Net income attributable to NetSol was $2.95 million, or $0.25 per diluted share, while consolidated net income increased 22.4% to $5.6 million. Cash provided by operating activities was $13.9 million and cash ended at $27.1 million, up 56.3%. In Q4, revenue was $20.7 million, gross profit was $13.2 million, gross margin was 63.6%, operating income was $4.5 million, and net income attributable to NetSol was $3.8 million, or $0.32 per diluted share. For fiscal 2027, NetSol expects revenue growth of 13% to 16%, gross margin of approximately 50% or better, and consolidated adjusted EBITDA growth of 15% to 25%, or about $10.5 million to $11.4 million.

Najeeb Ghauri framed fiscal 2026 as a proof point that NetSol is transforming from a services-and-license business into a more platform- and subscription-driven company. He emphasized recurring revenue, the BMO upgrade as validation of the strategy, growth in Transcend Retail, and expansion with customers into new markets such as Indonesia. His tone was upbeat and confident, repeatedly describing the company as being on a new trajectory and saying the market does not yet fully reflect the value of the recurring-revenue base and platform.

Sardar Abubakr focused on the improvement in financial quality: Q4 revenue of $20.7 million, gross margin of 63.6%, operating income of $4.5 million, and full-year gross margin of 52.6% with operating income of $6.9 million. He also pointed to cash generation, with operating cash flow of $13.9 million and cash of $27.1 million, and noted about $6.5 million of operating cash flow came from contract liabilities. On capital allocation, he said cash will support core product investment, AI-enabled efficiency work, possible portfolio simplification, and selective M&A or structural actions, including evaluating options related to NetSol Pakistan; he also said headcount was about 1,370 versus about 1,460 a year earlier.

Analysts pressed on why fiscal 2027 gross margin guidance is around 50% despite the stronger fourth quarter; management said 50% is a conservative, stable guide and expects margins could exceed that as new agreements and renewals progress. Questions also focused on the BMO LeasePak-to-Transcend migration, with management saying it should provide a meaningful uplift to subscription revenue, and on the LeasePak installed base, which Asad said has about 7 U.S.-based customers. Analysts asked about cash deployment, buybacks, and M&A; management said it is actively evaluating structural options for Pakistan and selective core or close-to-core acquisitions, but did not announce buybacks. Management also said it has finalized discussions with a research firm and expects analyst coverage to begin after the call.