NETSOL Technologies reports 21% year-over-year growth in total net revenues in Q2 fiscal 2026

Rhea-AI Summary

NETSOL Technologies (Nasdaq: NTWK) reported Q2 fiscal 2026 total net revenues of $18.8 million, up 21.1% year-over-year, driven by services and subscription growth. Gross margin expanded to 48.0%, operating income was $1.3 million, and GAAP net income was $0.2 million.

For the six months ended Dec 31, 2025, revenues were $33.8 million and GAAP net loss was $2.1 million. Cash and cash equivalents were $18.1 million at period end.

Positive

• Total net revenues +21.1% YoY to $18.8M in Q2
• Services revenue +40.9% YoY to $9.6M in Q2
• Gross margin expanded to 48.0% (from 44.5%)
• Operating income of $1.3M in Q2 vs loss of $0.5M prior-year

Negative

• Six-month GAAP net loss widened to $2.1M (vs $1.1M prior-year)
• Subscription and support mix fell to 48.3% of revenue from 55.6% prior-year

News Market Reaction

+0.32%

3 alerts

+0.32% News Effect

-9.5% Trough Tracked

+$140K Valuation Impact

$44M Market Cap

0.3x Rel. Volume

On the day this news was published, NTWK gained 0.32%, reflecting a mild positive market reaction. Argus tracked a trough of -9.5% from its starting point during tracking. Our momentum scanner triggered 3 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $140K to the company's valuation, bringing the market cap to $44M at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Q2 total net revenues: $18.8 million Q2 services revenues: $9.6 million Q2 subscription & support: $9.1 million +5 more

8 metrics

Q2 total net revenues $18.8 million Q2 FY2026, up 21.1% year-over-year

Q2 services revenues $9.6 million Q2 FY2026, up 40.9% year-over-year

Q2 subscription & support $9.1 million Q2 FY2026 recurring subscription and support, up 5.1%

Q2 gross margin 48.0% Q2 FY2026, up from 44.5% in prior-year period

Q2 operating income $1.3 million Q2 FY2026, versus $0.5 million operating loss in Q2 FY2025

Q2 GAAP net income $0.2 million Q2 FY2026, EPS $0.02 per diluted share

Six‑month total net revenues $33.8 million Six months ended December 31, 2025, versus $30.1 million prior year

Cash and cash equivalents $18.1 million As of December 31, 2025, up from $17.4 million at June 30, 2025

Market Reality Check

Price: $3.23 Vol: Volume 21,305 is at 0.47x...

low vol

$3.23 Last Close

Volume Volume 21,305 is at 0.47x its 20-day average of 45,658, indicating subdued trading activity into the release. low

Technical Shares at $3.17 are trading below the 200-day MA of $3.56 and sit well under the 52-week high of $5.75.

Peers on Argus

NTWK slipped 2.76% with relatively light volume, while several software peers (H...

NTWK slipped 2.76% with relatively light volume, while several software peers (HKIT, PHUN, MFI, YXT) also showed single‑digit declines and INLX was flat. Despite this broad weakness, the momentum scanner did not flag a coordinated sector move.

Historical Context

5 past events · Latest: Feb 09 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 09	Earnings call notice	Neutral	+5.6%	Scheduled Q2 FY2026 results conference call with Q&A and replay details.
Jan 27	Platform deployment	Positive	+4.8%	Northridge Finance went live on Transcend Finance to support growth strategy.
Jan 26	CFO appointment	Positive	+1.0%	Appointment of new CFO and reassignment of prior CFO to Chief Accounting Officer.
Dec 17	Nasdaq anniversary	Neutral	-2.0%	Opening Bell ceremony marking 26 years as a Nasdaq-listed company.
Dec 16	Major contract extension	Positive	-2.2%	Signed $50M, four-year contract extension with a tier-one global auto captive.

Pattern Detected

Recent news has mostly seen price moves align with the underlying sentiment, with only the large $50M contract extension drawing a negative next‑day reaction.

Recent Company History

Over the last few months, NETSOL has reported operational and commercial progress, including a $50 million four-year contract extension with a tier-one auto captive and a go-live of its Transcend Finance platform for Northridge Finance. It also marked governance continuity with a new CFO and celebrated its 26th Nasdaq listing anniversary. The current earnings release showing revenue growth and margin expansion builds on these updates, highlighting both expanding customer adoption and ongoing efforts to strengthen financial performance.

Market Pulse Summary

This announcement highlights solid Q2 FY2026 performance, with total net revenues up 21.1% to $18.8 ...

Analysis

This announcement highlights solid Q2 FY2026 performance, with total net revenues up 21.1% to $18.8 million, services revenue up 40.9%, and gross margin expanding to 48.0%. The quarter delivered $1.3 million in operating income and positive GAAP net income after prior losses, while cash reached $18.1 million. Investors may track sustainability of services growth, conversion of implementations into recurring subscription revenue, and future quarters’ profitability to assess the trajectory.

Key Terms

non-gaap, ebitda, gaap, loan origination system

4 terms

non-gaap financial

"Non-GAAP EBITDA for the quarter was $1.7 million compared with a non-GAAP EBITDA loss..."

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

ebitda financial

"Non-GAAP EBITDA for the quarter was $1.7 million compared with a non-GAAP EBITDA loss..."

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

gaap financial

"GAAP net income attributable to NETSOL for the quarter totaled $0.2 million or $0.02 per diluted share..."

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

loan origination system technical

"an AI-enabled credit decisioning capability built into our loan origination system, designed to help..."

A loan origination system is the software lenders use to handle the entire lifecycle of a loan application—from taking in an application and checking credit and documents to making approval decisions and disbursing funds. It matters to investors because the system drives how fast and cheaply a lender can underwrite loans, stay compliant, and scale business; think of it as the checkout and quality-control workflow that determines customer speed, error rates, and profit margins.

AI-generated analysis. Not financial advice.

ENCINO, Calif., Feb. 12, 2026 (GLOBE NEWSWIRE) -- NETSOL Technologies, Inc. (Nasdaq: NTWK), a provider of AI-enabled solutions and services powering OEMs, dealerships and financial institutions to sell, finance and lease assets, reported its results for the second fiscal quarter of 2026 and six months ended December 31, 2025.

• Total net revenues up 21.1% to $18.8 million
• Services revenues up 40.9% to $9.6 million
• Recurring subscription and support revenues up 5.1% to $9.1 million
• Gross margin expanded to 48.0% (from 44.5%)
• Operating income was $1.3 million (vs. loss of $0.5 million)
• Cash and cash equivalents up 4.0% to $18.1 million

Second Quarter 2026 Financial Results 

Total net revenues for the second quarter of fiscal 2026 increased 21.1% to $18.8 million, compared with $15.5 million in the prior-year period, driven primarily by higher services revenues and higher subscription and support revenues. On a constant currency basis, total net revenues were $18.8 million. 

• Recurring subscription and support revenues increased approximately 5.1% to $9.1 million compared with $8.6 million in the prior-year period. Total subscription and support revenues as percentage of total net revenues were 48.3%, compared with 55.6% in the prior-year period, reflecting higher implementation services revenues in the quarter. Total subscription and support revenues on a constant currency basis were $9.2 million. 
  
  
• Total services revenues increased 40.9% to $9.6 million, compared with $6.8 million in the prior-year period. The increase primarily reflected implementation timing and project mix. Total services revenues on a constant currency basis were $9.6 million. 
  

Gross profit for the quarter was $9.0 million or 48.0% of net revenues, compared with $6.9 million or 44.5% of net revenues in the second quarter of fiscal 2025. On a constant currency basis, gross profit was $9.0 million or 47.8% of net revenues.

Cost of sales for the quarter was $9.8 million or 52.0% of net revenues compared with $8.6 million or 55.5% of net revenues in the second quarter of fiscal 2025. On a constant currency basis, cost of sales was $9.8 million or 52.2% of net revenues. The increase in cost of sales primarily reflected increased salaries and travel costs.
  
Income from operations for the quarter was $1.3 million compared with a loss from operations of $0.5 million in the second quarter of fiscal 2025. On a constant currency basis, income from operations was $1.3 million. 

GAAP net income attributable to NETSOL for the quarter totaled $0.2 million or $0.02 per diluted share, compared with a GAAP net loss of $1.1 million or $0.10 per diluted share in the second quarter of fiscal 2025. On a constant currency basis, GAAP net income attributable to NETSOL for the quarter totaled $0.2 million or $0.01 per diluted share. 

Non-GAAP EBITDA for the quarter was $1.7 million compared with a non-GAAP EBITDA loss of $0.8 million in the second quarter of fiscal 2025. (see note regarding “Use of Non-GAAP Financial Measures,” below for further discussion of this non-GAAP measure). 

Najeeb Ghauri, Founder and Chief Executive Officer of NETSOL Technologies Inc., commented, “NETSOL delivered a strong second quarter of fiscal 2026, with total net revenues up 21% year-over-year to $18.8 million. Services revenue grew 41%, driven by active implementations of Transcend Finance and Transcend Retail, and we view implementation momentum as an important leading indicator of future subscription scale.

“Transcend Retail is gaining meaningful traction in the U.S. automotive market, with adoption by leading dealer groups and franchised dealerships. Partnerships with MINI USA, Sonic Automotive, Indigo Auto Group, and others reflect growing validation of our platform and the outcomes it enables for dealers.

“While SaaS revenue growth is currently moderated by the timing of customer go-lives, we believe recurring revenues can accelerate over time as these deployments complete.

“We are also investing in AI to extend our product roadmap, including Check, an AI-enabled credit decisioning capability built into our loan origination system, designed to help credit and funding teams work faster and with greater precision by turning data into real-time, actionable decisions.”

Sardar Abubakr, Chief Financial Officer of NETSOL Technologies Inc., commented, “We delivered measurable profitability improvements in the quarter. Gross profit increased to $9.0 million, or 48% of net revenues, up from 44.5% in the prior-year period, and delivered operating income of $1.3 million.

“Our priority is to scale efficiently by maintaining cost discipline while investing in the areas that expand long-term earnings quality, including subscription growth and strategic services that support customer adoption. We believe our balance of revenue growth, margin improvement, and targeted investment positions NETSOL to build sustainable shareholder value.”

Six Months Ended December 31, 2025, Financial Results 

Total net revenues for the six months ended December 31, 2025, were $33.8 million, compared with $30.1 million in the prior-year period. On a constant currency basis, total net revenues were $33.5 million. 

• Recurring subscription and support revenues for the six months ended December 31, 2025, increased 7.2% to $18.0 million from $16.8 million in the prior-year period. Total subscription and support revenues on a constant currency basis were $17.9 million. 
  
  
• Total services revenues increased 17.9% to $15.6 million from $13.2 million in the prior-year period. Total services revenues on a constant currency basis were $15.5 million. The increase in total services revenues during this period primarily reflected increased implementation services for Transcend Retail and Transcend Finance.  
  

Gross profit for the six months ended December 31, 2025, was $14.9 million or 44.2% of net revenues, compared with $13.5 million or 44.8% of net revenues in the prior-year period. On a constant currency basis, gross profit for the six months ended December 31, 2025, was $14.6 million or 43.5% of net revenues as measured on a constant currency basis.

Cost of sales for the six months ended December 31, 2025 was $18.9 million or 55.8% of net revenues compared with $16.7 million or 55.3% of net revenues in the prior-year period. On a constant currency basis, cost of sales was $18.9 million or 56.5% of net revenues.
  
Loss from operations for the six months ended December 31, 2025 was $0.5 million compared with a loss from operations of $1.2 million in the prior-year period. On a constant currency basis, loss from operations was $0.8 million. 

GAAP net loss attributable to NETSOL for the six months ended December 31, 2025, totaled $2.1 million or $0.18 per diluted share, compared with GAAP net loss of $1.1 million or $0.09 per diluted share in the prior-year period. On a constant currency basis, GAAP net loss attributable to NETSOL for the first six months of fiscal 2026 totaled $2.5 million or $0.21 per diluted share. 

Non-GAAP EBITDA for the six months ended December 31, 2025, was a loss of $0.1 million compared with non-GAAP EBITDA loss of $0.5 million in the prior-year period (see note regarding “Use of Non-GAAP Financial Measures,” below for further discussion of this non-GAAP measure). 
   
Balance Sheet and Capital Structure 

Cash and cash equivalents were $18.1 million as of December 31, 2025, compared with $17.4 million as of June 30, 2025. Working capital was $26.4 million as of December 31, 2025, compared with $26.6 million as of June 30, 2025. Total NETSOL stockholders’ equity at December 31, 2025, was $35.9 million or $3.04 per diluted share. 

Conference Call

NETSOL Technologies management will hold a conference call on Thursday, February 12, 2026, at 9:00 am Eastern Time (6:00 am Pacific Time) to discuss its financial results to discuss these financial results. A question-and-answer session will follow management's presentation.

Participant listening: 1-877-407-0789 or 1-201-689-8562

The conference call will also be broadcast live and available for replay here, along with additional replay access being provided through the company information section of NETSOL’s website.

Telephone replays will be made available approximately 3 hours after conference end time.

Telephone replay

Replay dial-in: 1-844-512-2921 or 1-412-317-6671
Replay expiration: Thursday, February 26, 2026 at 11:59 PM ET 
Access ID: 13758657

About NETSOL Technologies 
NETSOL Technologies delivers state-of-the-art solutions for the asset finance and leasing industry, serving automotive and equipment OEMs, auto captives and financial institutions across over 30 countries. Since its inception in 1996, NETSOL has been at the cutting edge of technology, pioneering innovations with its asset finance solutions, and today leverages advanced AI and cloud services to meet the complex needs of the global market. Renowned for its deep industry expertise, customer-centric approach and commitment to excellence, NETSOL fosters strong partnerships with its clients, ensuring their success in an ever-evolving landscape. With a rich history of innovation, ethical business practices and a focus on sustainability, NETSOL is dedicated to empowering businesses worldwide, securing its position as the trusted partner for leading firms around the globe.

Forward-Looking Statements
This press release may contain forward-looking statements relating to the development of the Company's products and services and future operation results, including statements regarding the Company that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. The words “expects,” “anticipates,” variations of such words, and similar expressions, identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, but their absence does not mean that the statement is not forward-looking. These statements are not guarantees of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict. Factors that could affect the Company's actual results include the progress and costs of the development of products and services and the timing of the market acceptance. The subject Companies expressly disclaim any obligation or undertaking to update or revise any forward-looking statement contained herein to reflect any change in the company's expectations with regard thereto or any change in events, conditions or circumstances upon which any statement is based.

Use of Non-GAAP Financial Measures
The reconciliation of Adjusted EBITDA to net income, the most comparable financial measure based upon GAAP, as well as a further explanation of adjusted EBITDA, is included in the financial tables in Schedule 4 of this press release.

Investor Relations Contact:
Investor Relations
(818) 222-9195
investors@netsoltech.com

NETSOL Technologies, Inc. and Subsidiaries Schedule 1: Consolidated Balance Sheets
		As of				As of
ASSETS		December 31, 2025				June 30, 2025
Cash and cash equivalents		$	18,132,086			$	17,357,944
Accounts receivable, net of allowance of $401,507 and $355,464			7,776,096				7,527,572
Revenues in excess of billings, net of allowance of $84,882 and $34,496			17,080,695				18,230,619
Other current assets			3,423,634				3,203,468
	Total current assets		46,412,511				46,319,603
			763,396				903,766
			5,185,764				5,073,372
			1,015,011				809,513
			6,941				32,331
			9,302,524				9,302,524
	Total assets	$	62,686,147			$	62,441,109
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses		$	8,059,205			$	8,010,844
Current portion of loans and obligations under finance leases			8,509,841				8,240,061
Current portion of operating lease obligations			542,022				433,242
Unearned revenue			2,884,757				3,029,850
	Total current liabilities		19,995,825				19,713,997
			337,028				134,608
			414,725				333,374
	Total liabilities		20,747,578				20,181,979
Preferred stock, $.01 par value; 500,000 shares authorized;			-				-
Common stock, $.01 par value; 18,000,000 shares authorized;
	12,753,209 shares issued and 11,814,178 outstanding as of December 31, 2025 ,
	12,700,465 shares issued and 11,761,434 outstanding as of June 30, 2025		127,535				127,008
Additional paid-in-capital			129,545,854				129,529,901
Treasury stock (at cost, 939,031 shares
as of December 31, 2025 and June 30, 2025)			(3,920,856	)			(3,920,856	)
Accumulated deficit			(43,399,611	)			(41,289,080	)
Other comprehensive loss			(46,413,009	)			(46,613,208	)
	Total NETSOL stockholders' equity		35,939,913				37,833,765
Non-controlling interest			5,998,656				4,425,365
	Total stockholders' equity		41,938,569				42,259,130
	Total liabilities and stockholders' equity	$	62,686,147			$	62,441,109

NETSOL Technologies, Inc. and Subsidiaries Schedule 2: Consolidated Statement of Operations
			For the Three Months								For the Six Months
			Ended December 31,								Ended December 31,
			2025				2024				2025				2024
Net Revenues:
	License fees		$	117,482			$	72,688			$	189,707			$	73,917
	Subscription and support			9,079,783				8,642,629				18,040,338				16,835,100
	Services			9,611,213				6,821,344				15,590,356				13,226,142
		Total net revenues		18,808,478				15,536,661				33,820,401				30,135,159
Cost of revenues				9,779,386				8,616,320				18,879,319				16,650,706
Gross profit				9,029,092				6,920,341				14,941,082				13,484,453
Operating expenses:
	Selling, general and administrative			7,481,647				7,073,622				15,018,000				14,037,943
	Research and development cost			247,713				333,669				462,056				693,618
		Total operating expenses		7,729,360				7,407,291				15,480,056				14,731,561
Income (loss) from operations				1,299,732				(486,950	)			(538,974	)			(1,247,108	)
Other income and (expenses)
	Interest expense			(176,273	)			(236,386	)			(350,884	)			(494,605	)
	Interest income			208,775				529,072				489,749				1,298,939
	Gain (loss) on foreign currency exchange transactions			46,074				(698,426	)			(240,843	)			(155,881	)
	Other income			63,925				38,098				81,595				191,589
		Total other income (expenses)		142,501				(367,642	)			(20,383	)			840,042
Net income (loss) before income taxes				1,442,233				(854,592	)			(559,357	)			(407,066	)
Income tax provision				(480,194	)			(331,614	)			(695,969	)			(561,431	)
Net income (loss)				962,039				(1,186,206	)			(1,255,326	)			(968,497	)
	Non-controlling interest			(715,282	)			39,164				(855,205	)			(107,750	)
Net income (loss) attributable to NetSol			$	246,757			$	(1,147,042	)		$	(2,110,531	)		$	(1,076,247	)
Net income (loss) per share:
	Net income (loss) per common share
		Basic	$	0.02			$	(0.10	)		$	(0.18	)		$	(0.09	)
		Diluted	$	0.02			$	(0.10	)		$	(0.18	)		$	(0.09	)
Weighted average number of shares outstanding
	Basic			11,797,068				11,484,298				11,782,439				11,456,996
	Diluted			11,812,098				11,484,298				11,782,439				11,456,996

NETSOL Technologies, Inc. and Subsidiaries Schedule 3: Consolidated Statement of Cash Flows
				For the Six Months
				Ended December 31,
					2025				2024
Cash flows from operating activities:
	Net loss			$	(1,255,326	)		$	(968,497	)
	Adjustments to reconcile net loss to net cash provided by operating activities:
	Depreciation and amortization				624,352				738,582
	Provision for bad debts				90,462				475,172
	Gain on sale of assets				(79,325	)			(25,084	)
	Stock based compensation				206,400				95,134
	Changes in operating assets and liabilities:
		Accounts receivable			(275,785	)			4,405,610
		Revenues in excess of billing			1,468,463				2,688,774
		Other current assets			401,208				(170,856	)
		Accounts payable and accrued expenses			5,092				(878,148	)
		Unearned revenue			(630,660	)			(5,990,971	)
	Net cash provided by operating activities				554,881				369,716
Cash flows from investing activities:
	Purchases of property and equipment				(856,330	)			(568,134	)
	Sales of property and equipment				77,522				45,535
	Investment in associates				25,396				-
	Purchase of subsidiary shares				-				(8,878	)
	Net cash used in investing activities				(753,412	)			(531,477	)
Cash flows from financing activities:
	Proceeds from the exercise of stock options and warrants				-				430,000
	Proceeds from exercise of subsidiary options				358,133				-
	Dividend paid by subsidiary to non-controlling interest				-				(306,799	)
	Proceeds from bank loans				792,484				2,676,932
	Payments on finance lease obligations and loans - net				(425,764	)			(162,370	)
	Net cash provided by financing activities				724,853				2,637,763
Effect of exchange rate changes					247,820				(332,525	)
Net increase (decrease) in cash and cash equivalents					774,142				2,143,477
Cash and cash equivalents at beginning of the period					17,357,944				19,127,165
Cash and cash equivalents at end of period				$	18,132,086			$	21,270,642

NETSOL Technologies, Inc. and Subsidiaries Schedule 4: Reconciliation to GAAP
	For the Three Months								For the Six Months
	Ended December 31,								Ended December 31,
		2025				2024				2025				2024
Net Income (loss) attributable to NetSol	$	246,757			$	(1,147,042	)		$	(2,110,531	)		$	(1,076,247	)
Non-controlling interest		715,282				(39,164	)			855,205				107,750
Income taxes		480,194				331,614				695,969				561,431
Depreciation and amortization		299,746				372,585				624,352				738,582
Interest expense		176,273				236,386				350,884				494,605
Interest (income)		(208,775	)			(529,072	)			(489,749	)			(1,298,939	)
EBITDA	$	1,709,477			$	(774,693	)		$	(73,870	)		$	(472,818	)
Add back:
Non-cash stock-based compensation		61,000				47,355		-		206,400				95,134
Adjusted EBITDA, gross	$	1,770,477			$	(727,338	)		$	132,530			$	(377,684	)
Less non-controlling interest (a)		(868,111	)			(61,529	)			(1,092,059	)			(207,310	)
Adjusted EBITDA, net	$	902,366			$	(788,867	)		$	(959,529	)		$	(584,994	)
Weighted Average number of shares outstanding
Basic		11,797,068				11,484,298				11,782,439				11,456,996
Diluted		11,812,098				11,484,298				11,782,439				11,456,996
Basic adjusted EBITDA	$	0.08			$	(0.07	)		$	(0.08	)		$	(0.05	)
Diluted adjusted EBITDA	$	0.08			$	(0.07	)		$	(0.08	)		$	(0.05	)
(a)The reconciliation of adjusted EBITDA of non-controlling interest
to net income attributable to non-controlling interest is as follows
Net Income (loss) attributable to non-controlling interest	$	715,282			$	(39,164	)		$	855,205			$	107,750
Income Taxes		95,791				102,414				135,583				173,001
Depreciation and amortization		69,777				92,546				144,862				181,681
Interest expense		51,081				68,636				99,908				147,828
Interest (income)		(63,820	)			(165,365	)			(143,499	)			(408,012	)
EBITDA	$	868,111			$	59,067			$	1,092,059			$	202,248
Add back:
Non-cash stock-based compensation		-				2,462				-				5,062
Adjusted EBITDA of non-controlling interest	$	868,111			$	61,529			$	1,092,059			$	207,310

FAQ

What were NETSOL (NTWK) Q2 fiscal 2026 revenues and growth rate?

NETSOL reported $18.8 million in Q2 fiscal 2026 revenue, a 21.1% increase year-over-year. According to the company, higher services and subscription revenues drove the growth, with services up 40.9% and subscription/support contributing roughly 48.3% of total revenue.

How did NETSOL (NTWK) gross margin and profitability perform in Q2 2026?

Gross margin expanded to 48.0% in Q2 2026, improving from 44.5% a year earlier. According to the company, margin expansion plus revenue growth produced operating income of $1.3 million and GAAP net income of $0.2 million for the quarter.

What drove NETSOL (NTWK) services revenue growth in Q2 fiscal 2026?

Services revenue rose 40.9% to $9.6 million, primarily from implementation timing and project mix. According to the company, active implementations of Transcend Finance and Transcend Retail accounted for much of the services revenue increase and implementation momentum.

Why did NETSOL (NTWK) subscription mix decline in Q2 2026 and what does it mean?

Subscription and support as a share of revenue fell to 48.3% from 55.6% due to higher implementation services in the quarter. According to the company, timing of customer go-lives temporarily moderates SaaS mix as implementations convert to recurring contracts over time.

What was NETSOL (NTWK) cash position and balance sheet highlights as of Dec 31, 2025?

Cash and cash equivalents were $18.1 million at December 31, 2025, with working capital of $26.4 million and stockholders’ equity of $35.9 million. According to the company, cash increased modestly from June 30, 2025 and supports ongoing investments.

How did NETSOL (NTWK) perform over the first six months of fiscal 2026?

For the six months ended Dec 31, 2025, NETSOL reported $33.8 million in revenue and a GAAP net loss of $2.1 million. According to the company, revenue grew versus prior-year while profitability remained negative for the six-month period.