Netsol Technologies Inc Financials
Financial Health Signals
Based on FY2025 annual data. Scores normalized against common benchmarks. How we calculate these scores
Netsol Technologies Inc has an operating margin of 4.8%, meaning the company retains $5 of operating profit per $100 of revenue. This below-average margin results in a low score of 24/100, suggesting thin profitability after operating expenses. This is down from 5.4% the prior year.
Netsol Technologies Inc's revenue grew 13.4% year-over-year to $73.1M, a solid pace of expansion. This earns a growth score of 67/100.
Netsol Technologies Inc carries a low D/E ratio of 0.00, meaning only $0.00 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 100/100, indicating a strong balance sheet with room for future borrowing.
With a current ratio of 2.35, Netsol Technologies Inc holds $2.35 in current assets for every $1 of short-term obligations. This comfortable liquidity earns a score of 74/100.
While Netsol Technologies Inc generated $447K in operating cash flow, capex of $1.4M consumed most of it, leaving -$936K in free cash flow. This results in a low score of 0/100, reflecting heavy capital investment rather than weak cash generation.
Netsol Technologies Inc's ROE of 7.7% shows moderate profitability relative to equity, earning a score of 31/100. This is up from 2.0% the prior year.
Netsol Technologies Inc scores 2.07, placing it in the grey zone between 1.81 and 2.99. The score is driven primarily by a large market capitalization ($38.1M) relative to total liabilities ($20.2M). This signals moderate financial risk that warrants monitoring.
Netsol Technologies Inc passes 5 of 9 financial strength tests. 3 of 4 profitability signals pass, 1 of 3 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.
For every $1 of reported earnings, Netsol Technologies Inc generates $0.15 in operating cash flow ($447K OCF vs $2.9M net income). This low ratio suggests earnings are primarily driven by accounting accruals rather than cash generation, which may not be sustainable.
This page shows Netsol Technologies Inc (NTWK) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 15 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Key Financial Metrics
Netsol Technologies Inc generated $73.1M in revenue in fiscal year 2025. This represents an increase of 13.4% from the prior year.
Netsol Technologies Inc's EBITDA was $5.0M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 4.8% from the prior year.
Netsol Technologies Inc generated -$936K in free cash flow in fiscal year 2025, representing cash available after capex. This represents a decrease of 139.1% from the prior year.
Netsol Technologies Inc reported $2.9M in net income in fiscal year 2025. This represents an increase of 327.5% from the prior year.
Netsol Technologies Inc earned $0.25 per diluted share (EPS) in fiscal year 2025. This represents an increase of 316.7% from the prior year.
Netsol Technologies Inc held $17.4M in cash against $47K in long-term debt as of fiscal year 2025.
Netsol Technologies Inc had 12M shares outstanding in fiscal year 2025. This represents an increase of 3.1% from the prior year.
Netsol Technologies Inc's gross margin was 44.6% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is down 0.9 percentage points from the prior year.
Netsol Technologies Inc's operating margin was 4.8% in fiscal year 2025, reflecting core business profitability. This is down 0.6 percentage points from the prior year.
Netsol Technologies Inc's net profit margin was 4.0% in fiscal year 2025, showing the share of revenue converted to profit. This is up 2.9 percentage points from the prior year.
Netsol Technologies Inc's ROE was 7.7% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is up 5.8 percentage points from the prior year.
Netsol Technologies Inc invested $1.3M in research and development in fiscal year 2025. This represents a decrease of 9.0% from the prior year.
Netsol Technologies Inc spent $1.5M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding.
Netsol Technologies Inc invested $1.4M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 168.3% from the prior year.
NTWK Income Statement
| Metric | Q2'26 | Q2'25 | Q1'25 | Q3'25 | Q2'24 | Q1'24 | Q3'24 | Q2'23 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $2.7M-86.3% | $20.1M+24.7% | $16.1M-8.4% | $17.5M-1.8% | $17.9M+17.4% | $15.2M-1.6% | $15.5M+1.5% | $15.2M |
| Cost of Revenue | $9.8M0.0% | $9.8M+7.5% | $9.1M+3.4% | $8.8M+2.2% | $8.6M+7.2% | $8.0M+0.6% | $8.0M-0.9% | $8.1M |
| Gross Profit | -$7.0M-177.9% | $9.0M+52.7% | $5.9M-32.4% | $8.7M+26.3% | $6.9M+5.4% | $6.6M-12.2% | $7.5M+4.2% | $7.2M |
| R&D Expenses | $248K0.0% | $248K+15.6% | $214K-29.7% | $305K-8.7% | $334K-7.3% | $360K+4.2% | $346K+1.2% | $341K |
| SG&A Expenses | $7.5M0.0% | $7.5M-0.7% | $7.5M | N/A | $7.1M+1.6% | $7.0M | N/A | N/A |
| Operating Income | $1.3M0.0% | $1.3M+170.7% | -$1.8M-218.4% | $1.6M+419.0% | -$487K+35.9% | -$760K-157.7% | $1.3M+28.3% | $1.0M |
| Interest Expense | N/A | N/A | N/A | $195K-17.6% | $236K-8.5% | $258K-10.9% | $290K-0.2% | $290K |
| Income Tax | $480K0.0% | $480K+122.5% | $216K+42.6% | $151K-54.4% | $332K+44.3% | $230K+56.8% | $147K-2.3% | $150K |
| Net Income | $247K0.0% | $247K+110.5% | -$2.4M-265.5% | $1.4M+224.1% | -$1.1M-1720.2% | $71K-78.4% | $328K-19.8% | $408K |
| EPS (Diluted) | $0.020.0% | $0.02+110.0% | $-0.20-266.7% | $0.12+220.0% | $-0.10-1766.7% | $0.01-80.0% | $0.03-25.0% | $0.04 |
NTWK Balance Sheet
| Metric | Q2'26 | Q2'25 | Q1'25 | Q3'25 | Q2'24 | Q1'24 | Q3'24 | Q2'23 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $62.7M0.0% | $62.7M+0.1% | $62.6M+7.7% | $58.1M-1.6% | $59.1M-5.9% | $62.8M-0.8% | $63.3M+10.2% | $57.5M |
| Current Assets | $46.4M0.0% | $46.4M-0.4% | $46.6M+9.9% | $42.4M-1.3% | $43.0M-7.7% | $46.5M+0.7% | $46.2M+15.3% | $40.1M |
| Cash & Equivalents | $18.1M0.0% | $18.1M-20.1% | $22.7M+20.9% | $18.8M-11.7% | $21.3M-13.3% | $24.5M+98.8% | $12.3M-21.2% | $15.7M |
| Inventory | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Accounts Receivable | $7.8M0.0% | $7.8M+23.0% | $6.3M+16.1% | $5.4M-30.5% | $7.8M+31.9% | $5.9M-62.5% | $15.8M+164.8% | $6.0M |
| Goodwill | $9.3M0.0% | $9.3M0.0% | $9.3M0.0% | $9.3M0.0% | $9.3M0.0% | $9.3M0.0% | $9.3M0.0% | $9.3M |
| Total Liabilities | $20.7M0.0% | $20.7M-6.1% | $22.1M+14.8% | $19.2M-6.4% | $20.6M-10.9% | $23.1M-3.4% | $23.9M+26.0% | $18.9M |
| Current Liabilities | $20.0M0.0% | $20.0M-7.7% | $21.7M+15.6% | $18.7M-6.1% | $20.0M-10.8% | $22.4M-2.3% | $22.9M+28.5% | $17.8M |
| Long-Term Debt | $257K0.0% | $257K+90.7% | $135K+611.2% | $19K-39.9% | $32K+537.3% | $5K-88.0% | $41K-58.4% | $100K |
| Total Equity | $35.9M0.0% | $35.9M+0.4% | $35.8M+1.0% | $35.5M+4.5% | $33.9M-2.3% | $34.7M-1.6% | $35.3M+2.4% | $34.5M |
| Retained Earnings | $43.4M+200.0% | -$43.4M+0.6% | -$43.6M+0.5% | -$43.9M+3.1% | -$45.3M-2.6% | -$44.1M0.0% | -$44.1M+0.7% | -$44.5M |
NTWK Cash Flow Statement
| Metric | Q2'26 | Q2'25 | Q1'25 | Q3'25 | Q2'24 | Q1'24 | Q3'24 | Q2'23 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $555K+111.7% | -$4.7M-189.5% | $5.3M+1559.4% | -$363K+92.9% | -$5.1M-193.3% | $5.5M+231.1% | -$4.2M-297.3% | -$1.1M |
| Capital Expenditures | $856K+130.8% | $371K-23.5% | $485K+47.2% | $330K-29.5% | $467K+364.0% | $101K-73.3% | $378K+89.9% | $199K |
| Free Cash Flow | -$301K+94.1% | -$5.1M-206.3% | $4.8M+795.3% | -$693K+87.7% | -$5.6M-203.7% | $5.4M+218.1% | -$4.6M-264.5% | -$1.3M |
| Investing Cash Flow | $753K+342.9% | -$310K+30.0% | -$443K-42.2% | -$312K+26.3% | -$423K-289.2% | -$109K+57.1% | -$253K-27.2% | -$199K |
| Financing Cash Flow | $725K+35.8% | $534K+179.1% | $191K+110.8% | -$1.8M-171.3% | $2.5M+1521.9% | $153K+151.2% | $61K+256.2% | $17K |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | N/A | $0 | N/A | N/A | N/A | N/A | N/A | N/A |
NTWK Financial Ratios
| Metric | Q2'26 | Q2'25 | Q1'25 | Q3'25 | Q2'24 | Q1'24 | Q3'24 | Q2'23 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | -255.7%-300.7pp | 45.0%+8.2pp | 36.8%-13.1pp | 49.8%+11.1pp | 38.7%-4.4pp | 43.1%-5.2pp | 48.3%+1.3pp | 47.1% |
| Operating Margin | 47.3%+40.8pp | 6.5%+17.9pp | -11.4%-20.3pp | 8.8%+11.6pp | -2.7%+2.3pp | -5.0%-13.5pp | 8.5%+1.8pp | 6.7% |
| Net Margin | 9.0%+7.7pp | 1.2%+15.9pp | -14.7%-22.8pp | 8.1%+14.5pp | -6.4%-6.9pp | 0.5%-1.7pp | 2.1%-0.6pp | 2.7% |
| Return on Equity | 0.7%0.0pp | 0.7% | N/A | 4.0% | N/A | 0.2%-0.7pp | 0.9%-0.3pp | 1.2% |
| Return on Assets | 0.4%0.0pp | 0.4%+4.2pp | -3.8%-6.2pp | 2.5%+4.4pp | -1.9%-2.1pp | 0.1%-0.4pp | 0.5%-0.2pp | 0.7% |
| Current Ratio | 2.320.0 | 2.32+0.2 | 2.15-0.1 | 2.26+0.1 | 2.15+0.1 | 2.08+0.1 | 2.02-0.2 | 2.25 |
| Debt-to-Equity | 0.010.0 | 0.010.0 | 0.000.0 | 0.000.0 | 0.000.0 | 0.000.0 | 0.000.0 | 0.00 |
| FCF Margin | -11.0%+14.6pp | -25.5%-55.5pp | 30.0%+33.9pp | -4.0%+27.5pp | -31.4%-67.0pp | 35.6%+65.2pp | -29.6%-21.4pp | -8.3% |
Similar Companies
Frequently Asked Questions
What is Netsol Technologies Inc's annual revenue?
Netsol Technologies Inc (NTWK) reported $73.1M in total revenue for fiscal year 2025. This represents a 13.4% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Netsol Technologies Inc's revenue growing?
Netsol Technologies Inc (NTWK) revenue grew by 13.4% year-over-year, from $64.5M to $73.1M in fiscal year 2025.
Is Netsol Technologies Inc profitable?
Yes, Netsol Technologies Inc (NTWK) reported a net income of $2.9M in fiscal year 2025, with a net profit margin of 4.0%.
What is Netsol Technologies Inc's earnings per share (EPS)?
Netsol Technologies Inc (NTWK) reported diluted earnings per share of $0.25 for fiscal year 2025. This represents a 316.7% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.
What is Netsol Technologies Inc's EBITDA?
Netsol Technologies Inc (NTWK) had EBITDA of $5.0M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Netsol Technologies Inc have?
As of fiscal year 2025, Netsol Technologies Inc (NTWK) had $17.4M in cash and equivalents against $47K in long-term debt.
What is Netsol Technologies Inc's gross margin?
Netsol Technologies Inc (NTWK) had a gross margin of 44.6% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Netsol Technologies Inc's operating margin?
Netsol Technologies Inc (NTWK) had an operating margin of 4.8% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Netsol Technologies Inc's net profit margin?
Netsol Technologies Inc (NTWK) had a net profit margin of 4.0% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Netsol Technologies Inc's return on equity (ROE)?
Netsol Technologies Inc (NTWK) has a return on equity of 7.7% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Netsol Technologies Inc's free cash flow?
Netsol Technologies Inc (NTWK) generated -$936K in free cash flow during fiscal year 2025. This represents a -139.1% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Netsol Technologies Inc's operating cash flow?
Netsol Technologies Inc (NTWK) generated $447K in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Netsol Technologies Inc's total assets?
Netsol Technologies Inc (NTWK) had $62.4M in total assets as of fiscal year 2025, including both current and long-term assets.
What are Netsol Technologies Inc's capital expenditures?
Netsol Technologies Inc (NTWK) invested $1.4M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Netsol Technologies Inc spend on research and development?
Netsol Technologies Inc (NTWK) invested $1.3M in research and development during fiscal year 2025.
Does Netsol Technologies Inc buy back shares?
Yes, Netsol Technologies Inc (NTWK) spent $1.5M on share buybacks during fiscal year 2025, returning capital to shareholders by reducing shares outstanding.
How many shares does Netsol Technologies Inc have outstanding?
Netsol Technologies Inc (NTWK) had 12M shares outstanding as of fiscal year 2025.
What is Netsol Technologies Inc's current ratio?
Netsol Technologies Inc (NTWK) had a current ratio of 2.35 as of fiscal year 2025, which is generally considered healthy.
What is Netsol Technologies Inc's debt-to-equity ratio?
Netsol Technologies Inc (NTWK) had a debt-to-equity ratio of 0.00 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Netsol Technologies Inc's return on assets (ROA)?
Netsol Technologies Inc (NTWK) had a return on assets of 4.7% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Netsol Technologies Inc's Altman Z-Score?
Netsol Technologies Inc (NTWK) has an Altman Z-Score of 2.07, placing it in the Grey Zone (moderate risk). The Z-Score combines five financial ratios—working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets—to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Netsol Technologies Inc's Piotroski F-Score?
Netsol Technologies Inc (NTWK) has a Piotroski F-Score of 5 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Netsol Technologies Inc's earnings high quality?
Netsol Technologies Inc (NTWK) has an earnings quality ratio of 0.15x, considered low quality (accrual-driven). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
How financially healthy is Netsol Technologies Inc?
Netsol Technologies Inc (NTWK) scores 49 out of 100 on our Financial Profile, indicating moderate overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.