NETSOL Technologies reports record fiscal 2026 revenue and full-year profitability, exceeding guidance

Overview

NETSOL Technologies reported fourth quarter and full fiscal year results for the year ended June 30, 2026. The company stated full-year revenue increased 12.5% to $74.4 million and that operating income nearly doubled to $6.9 million. Management framed the year as a recovery with expanding margins and increased cash balances, and introduced fiscal 2027 guidance alongside the results.

Sources: S1

Fourth quarter highlights

For the fourth quarter, NETSOL reported record total net revenues of $20.7 million, with subscription and support revenue of $8.9 million and services revenue of $11.7 million. Gross profit for the quarter was $13.2 million or 63.6% of net revenues and income from operations was $4.5 million, representing an operating margin of 21.6%. GAAP net income attributable to NETSOL for the quarter was $3.8 million or $0.32 per diluted share.

Sources: S1

Full fiscal year metrics and profitability

The company reported full fiscal year consolidated results including gross profit of $39.1 million or 52.6% of net revenues, GAAP net income attributable to NETSOL of $2.95 million or $0.25 per diluted share, and consolidated net income of $5.6 million. NETSOL also reported non-GAAP and adjusted EBITDA metrics showing increases year-over-year.

Sources: S1

Cash flow, balance sheet and contract metrics

NETSOL reported net cash provided by operating activities of $13.9 million for the full fiscal year and cash and cash equivalents of $27.1 million at June 30, 2026. The company disclosed remaining performance obligations of $49.1 million at June 30, 2026, of which approximately $22.5 million is expected to be recognized as revenue within the next 12 months, and stated contracted revenue was approximately $60 million at June 30, 2026.

Sources: S1

Guidance and management commentary

NETSOL introduced fiscal 2027 guidance that includes revenue growth of 13% to 16%, gross margin of approximately 50% or better, and consolidated adjusted EBITDA growth of 15% to 25%. Management highlighted priorities including growing recurring revenue, applying AI across products and operations, and selective partnerships and acquisitions.

Sources: S1

Why this may matter (inference)

Record revenue, margin expansion and improved operating cash flow can increase visibility into recurring revenue trajectories and capacity for product investment; the company’s flagged contracted revenue and remaining performance obligations provide additional context for near-term revenue recognition. The fiscal 2027 guidance frames management’s expectations for continued margin and EBITDA expansion but relies on execution of contracted implementations and other assumptions described by the company.

Sources: S1

What remains uncertain

• All financial results and forward-looking statements are presented by the company in its press release and reflect management's reporting and assumptions; the release is an issuer source and not independent verification.
• Fiscal 2027 guidance assumes continued subscription growth, execution of contracted implementations, disciplined cost management and no material acquisitions as stated by the company; actual results may differ.
• Contracted revenue is a non-GAAP metric defined by management as revenue expected under existing signed agreements plus management's best estimate of change requests and is not a GAAP measure, annual recurring revenue, backlog or a guaranteed revenue floor.