NETSOL Q1 earnings: $160K profit, $5.6M cash outflow
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Filing Summary
NETSOL Technologies, Inc. (NTWK) reported fiscal first-quarter 2027 revenue of $16.4 million for the quarter ended September 30, 2026, up 9.3% from $15.0 million. Gross margin was 50.5%, versus 39.4%; the quarter included capitalization of approximately $1.0 million in software development costs. Operating income was $0.4 million, versus a $1.8 million loss. GAAP net income attributable to NETSOL was $0.16 million, versus a $2.36 million loss; adjusted EBITDA attributable to NETSOL was $0.48 million, versus negative $1.66 million.
Net cash used in operating activities was $5.6 million, compared with $5.3 million provided a year earlier, primarily due to working-capital movements. Cash and cash equivalents were $19.7 million at September 30, 2026, versus $27.1 million at June 30, 2026.
NETSOL Technologies Limited, the majority-owned subsidiary, recommended a buyback of up to 4,000,000 shares, approximately 4.45% of its issued capital, subject to shareholder approval on December 3, 2026, funded from distributable profits. NETSOL Technologies Europe Limited began evaluating strategic alternatives for VLS, including a potential sale or wind-down; no plan was approved or agreement executed. VLS represented approximately 1.7% of consolidated revenue and 1.3% of consolidated assets.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointRevenue increased 9.3% to $16.4 million year over year.
- Moderate pointNETSOL-attributable GAAP income was $0.16 million, versus a $2.36 million loss.
Negative
- Moderate pointOperating cash flow used $5.6 million, versus $5.3 million provided.
Filing Explained
At
Sources and calculations
- NETSOL Technologies, Inc. Form 8-K and earnings release (2026-11-12)
- NETSOL fiscal first-quarter 2027 fundamentals (2027Q1)
- Available liquidity against the last reported quarterly operating outflow, in days at that rate $19,697,789 / ($5,556,001 / 92) = 326.2 days
8-K Event Classification
Key Figures
Key Terms
constant currency financial
capitalized software development costs financial
contract liabilities financial
Non-GAAP EBITDA financial
Adjusted EBITDA, net financial
Earnings Snapshot
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What was NETSOL (NTWK)'s revenue in fiscal Q1 2027?
What were NETSOL (NTWK)'s earnings in fiscal Q1 2027?
Why did NETSOL (NTWK) use cash in operating activities?
What buyback did NETSOL's subsidiary recommend?
Is NETSOL (NTWK) planning to sell or wind down VLS?
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date
of Report (Date of earliest event reported):
Commission
file number:
(Exact name of small business issuer as specified in its charter)
| (State or other Jurisdiction of | (I.R.S. Employer NO.) | |
| Incorporation or Organization) |
(Address of principal executive offices) (Zip Code)
(Issuer’s telephone/facsimile numbers, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging
growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On November 12, 2026, NetSol Technologies, Inc. issued a press release announcing results of operations and financial conditions for the quarter ended September 30, 2026. The press release is furnished as Exhibit 99.1 to this Form 8-K. NetSol Technologies, Inc. also attached an Investor Overview to the company’s earning call webcast in the form furnished as Exhibit 99.2 to this form 8-K.
The information in this report shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Exhibits
| 99.1 | News Release dated November 12, 2026 |
| 99.2 | Investor Overview |
| 104 | Cover Page Interactive Data File (Embedded within the Inline XBRL document) |
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| NETSOL TECHNOLOGIES, INC. | |||
| Date: | November 13, 2026 | /s/ Najeeb Ghauri | |
| NAJEEB GHAURI | |||
| Chief Executive Officer | |||
| Date: | November 13, 2026 | /s/ Sardar Mohammad Abubakr | |
| SARDAR MOHAMMAD ABUBAKR | |||
| Chief Financial Officer |
Exhibit 99.1
NETSOL Technologies reports fiscal first quarter 2027 revenue growth of 9.3% and gross margin expansion to 50.5%
First quarter revenue rises 9.3% to $16.4 million; GAAP net income of $0.16 million compared with a net loss in the prior-year period
ENCINO, Calif., Nov. 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 results for its fiscal first quarter ended September 30, 2026.
First quarter highlights▪
| ▪ | First quarter revenue increased 9.3% to $16.4 million, compared with $15.0 million in the prior-year period; subscription and support revenue increased 6.1% to $9.5 million. | |
| ▪ | First quarter gross margin expanded by more than 1,100 basis points to 50.5%, compared with 39.4% in the prior-year period; income from operations was $0.4 million, compared with an operating loss of $1.8 million. | |
| ▪ | First quarter GAAP net income attributable to NETSOL was $0.16 million, or $0.01 per diluted share, compared with a net loss of $2.36 million, or $0.21 per diluted share, in the prior-year period. | |
| ▪ | First quarter adjusted EBITDA attributable to NETSOL was $0.48 million, compared with negative $1.66 million in the prior-year period. | |
| ▪ | Net cash used in operating activities was $5.6 million, primarily attributable to working capital; cash and cash equivalents were $19.7 million at September 30, 2026. |
First quarter fiscal 2027 financial results
Revenue
Total net revenues for the first quarter of fiscal 2027 increased 9.3% to $16.4 million, compared with $15.0 million in the prior-year period. On a constant currency basis, total net revenues were $16.5 million. First quarter revenue and gross margin were each the highest for a first quarter in the past five fiscal years.
Subscription (SaaS and Cloud) and support revenues increased 6.1% to $9.5 million, compared with $9.0 million in the prior-year period.
Services revenues increased 6.3% to $6.4 million, compared with $6.0 million in the prior-year period.
Gross profit and operating income
Gross profit increased to $8.3 million, or 50.5% of net revenues, compared with $5.9 million, or 39.4% of net revenues, in the prior-year period. Gross margin expanded by more than 1,100 basis points.
Gross margin benefited from revenue mix and the capitalization of approximately $1.0 million of software development costs, compared with none in the prior-year period.
Headcount was 1,272 at September 30, 2026, compared with 1,370 at June 30, 2026 and 1,442 at September 30, 2025.
Income from operations was $0.4 million, compared with a loss from operations of $1.8 million in the prior-year period, representing an operating margin of 2.5% compared with negative 12.2%.
Net income and non-GAAP results
GAAP net income attributable to NETSOL was $0.16 million, or $0.01 per diluted share, compared with a net loss of $2.36 million, or $0.21 per diluted share, in the prior-year period.
Consolidated net income was $0.53 million, compared with a consolidated net loss of $2.22 million in the prior-year period. Net income attributable to non-controlling interests was $0.37 million, compared with $0.14 million.
The improvement reflects stronger gross margin performance and a significantly narrower foreign currency exchange loss of $7,000, compared with $287,000 in the prior-year period.
Non-GAAP results for the first quarter, compared with the prior-year period, were:
| ▪ | Non-GAAP EBITDA: $0.78 million, compared with negative $1.78 million. | |
| ▪ | Consolidated adjusted EBITDA: $0.89 million, compared with negative $1.35 million. | |
| ▪ | Adjusted EBITDA attributable to NETSOL: $0.48 million, compared with negative $1.66 million. |
Cash flow and balance sheet
Net cash used in operating activities for the first quarter was $5.6 million, compared with $5.3 million provided by operating activities in the prior-year period. The change was primarily attributable to working capital: contract liabilities decreased $3.4 million, contract assets increased $2.6 million and accounts payable and accrued expenses decreased $1.5 million, partially offset by a $1.1 million decrease in accounts receivable. The company also invested approximately $2.0 million in property, equipment and capitalized software development, compared with approximately $0.5 million in the prior-year period. This included approximately $1.0 million of capitalized software development costs, compared with none in the prior-year period, which also contributed to the gross margin improvement.
Cash and cash equivalents were $19.7 million at September 30, 2026 compared with $27.1 million at June 30, 2026, reflecting the working capital movements described above. Working capital was $29.1 million at September 30, 2026.
NETSOL stockholders’ equity was $42.0 million at September 30, 2026.
On October 30, 2026, the board of NETSOL Technologies Limited, the company’s majority-owned subsidiary listed on the Pakistan Stock Exchange, recommended a buy-back of up to 4,000,000 of its shares, approximately 4.45% of its issued capital, to be held in treasury and funded from the subsidiary’s distributable profits. The proposal is subject to shareholder approval on December 3, 2026. The company is not assigning a financial benefit to the proposal at this stage.
Separately, on October 1, 2026, the Board of NETSOL Technologies Europe Limited began evaluating strategic alternatives for its subsidiary Virtual Lease Services Limited (VLS), including a potential sale or wind-down, though no plan has been approved or agreement executed. VLS revenue for the three months ended September 30, 2026 represented approximately 1.7% of consolidated revenues, and its total assets represented approximately 1.3% of total consolidated assets. If a sale or wind-down is completed, the company may recognize a loss on disposal and incur exit-related costs, which cannot be estimated at this time.
Management commentary
Najeeb Ghauri, Founder and Chief Executive Officer of NETSOL Technologies, Inc., commented:
“This quarter shows the kind of progress we set out to deliver entering fiscal 2027. Revenue, gross margin and profitability all moved in the right direction compared with a year ago, and we did it while continuing to strengthen our commercial pipeline and deepen trust with our largest customers. That combination, growth, margin improvement and deepening customer relationships, is what we mean when we talk about making this company’s performance more predictable.”
Asad Ghauri, Global Head of Sales and Group Managing Director of Europe at NETSOL Technologies, Inc., commented:
“We saw strong commercial momentum this quarter. We brought Transcend Retail live across two new U.S. dealerships, Atlanta Autos and Royal Coach RV, and BMO Equipment Finance, a 30-year customer, moved from our legacy LeasePak platform onto Transcend Finance, part of a broader pattern we’re seeing across our install base.”
Sardar Abubakr, Chief Financial Officer of NETSOL Technologies, Inc., commented:
“The first quarter marked a clear improvement from where we stood a year ago. Revenue grew 9.3%, gross margin expanded more than 1,100 basis points and we moved from an operating loss to operating income, with net income attributable to NETSOL of $0.16 million compared with a loss of $2.36 million a year ago.”
“In the fourth quarter we billed and collected ahead of delivery, and in the first quarter we delivered against those billings. That is most of the operating cash outflow. Our liquidity is fine and we can fund the business through the year.”
“Our priorities for the remainder of the year are unchanged: grow recurring revenue, build on this quarter’s year-over-year margin gains and continue converting consolidated performance into value for NETSOL shareholders.”
Conference call
NETSOL Technologies management will hold a conference call Thursday, November 12, 2026, at 9:00 am Eastern Time (6:00 am Pacific Time) to discuss its results for the first quarter of fiscal 2027 ended September 30, 2026. A question-and-answer session will follow management’s prepared remarks.
Participant dial-in: 1-877-407-0789 or 1-201-689-8562
A live webcast of the conference call will be available here. Information about the webcast will also be available on the Investor Relations section of NETSOL’s website at www.netsoltech.com.
Telephone replay:
Telephone replays will be made available approximately 3 hours after conference end time.
Replay dial-in: 1-844-512-2921 or 1-412-317-6671
Replay expiration: Thursday, November 26, 2026 at 11:59 PM ET
Access ID: 13763709
About NETSOL Technologies
NETSOL Technologies delivers state-of-the-art solutions for asset finance, leasing and digital automotive retail, serving automotive and equipment OEMs, dealerships, auto captives and financial institutions across over 30 countries. Since its inception in 1997, 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 customers, 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 contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the company’s products and services, expectations for future operations, fiscal 2027 guidance for revenues, gross margin and adjusted EBITDA, contracted revenue, remaining performance obligations and revenue visibility, AI-enabled products and productivity initiatives, the company’s efficiency program, capital allocation, potential strategic partnerships and acquisitions, potential structural actions concerning non-controlling interests, and other statements that are not historical facts. These forward-looking statements may be identified by terminology such as “expects,” “anticipates,” “believes,” “intends,” “plans,” “projects,” “targets,” “guidance,” “assumes,” and similar expressions. These statements are not guarantees of future performance and are subject to a number of risks, uncertainties, and assumptions that are difficult to predict. The fiscal 2027 outlook assumes continued subscription growth, execution of contracted implementations, disciplined cost management and no material acquisitions. Factors that could cause actual results to differ materially include, but are not limited to, the timing of customer agreements, go-lives, contract signings and renewals, implementation milestones, the rate of adoption of AI-enabled product capabilities, foreign currency volatility, customer concentration and customer decisions, the timing of advance billings and collections, investment levels, competition, geopolitical and macroeconomic conditions, and other factors discussed in NETSOL’s most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q filed with the U.S. Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. NETSOL undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law.
Use of Non-GAAP financial measures
This press release includes references to non-GAAP EBITDA, non-GAAP adjusted EBITDA, gross, and non-GAAP adjusted EBITDA, net, which are non-GAAP financial measures. Non-GAAP EBITDA is net income before non-controlling interest, income taxes, depreciation and amortization, interest expense and interest income. Non-GAAP adjusted EBITDA, gross, further excludes foreign currency exchange gains and losses and non-cash stock-based compensation; non-GAAP adjusted EBITDA, net, further deducts the adjusted EBITDA attributable to non-controlling interests. Management believes these measures assist investors in evaluating operating performance and comparing results across periods. Non-GAAP measures should be considered in addition to, and not as substitutes for, the most directly comparable GAAP measures. Reconciliations of these measures to net income attributable to NETSOL, the most directly comparable GAAP measure, together with an explanation of how management uses these measures, are provided in Schedule 4 of the financial tables that follow.
Investor Relations Contact:
Investor Relations
(818) 222-9195
investors@netsoltech.com
NETSOL Technologies, Inc. and Subsidiaries
Schedule 1: Consolidated Balance Sheets
As of | ||||||||
| September 30, 2026 | June 30, 2026 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 19,697,789 | $ | 27,123,955 | ||||
| Accounts receivable, net of allowance of $161,853 and $48,606 | 9,144,194 | 10,286,342 | ||||||
| Contract assets, net of allowance of $0 and $10 | 18,977,455 | 16,240,564 | ||||||
| Other current assets | 4,160,460 | 3,210,315 | ||||||
| Total current assets | $ | 51,979,898 | $ | 56,861,176 | ||||
| Contract assets, net - long term | 2,483,199 | 2,467,018 | ||||||
| Property and equipment, net | 5,550,633 | 5,683,502 | ||||||
| Right of use assets - operating leases | 795,642 | 831,196 | ||||||
| Other assets | 7,242 | 7,241 | ||||||
| Other intangible assets, net | 3,619,868 | 2,686,392 | ||||||
| Goodwill | 9,302,524 | 9,302,524 | ||||||
| Total assets | $ | 73,739,006 | $ | 77,839,049 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued expenses | $ | 7,276,077 | $ | 8,708,029 | ||||
| Current portion of loans and obligations under finance leases | 8,139,155 | 8,187,170 | ||||||
| Current portion of operating lease obligations | 499,603 | 447,332 | ||||||
| Contract liabilities | 6,941,958 | 10,287,225 | ||||||
| Total current liabilities | $ | 22,856,793 | $ | 27,629,756 | ||||
| Loans and obligations under finance leases; less current maturities | 174,082 | 212,982 | ||||||
| Operating lease obligations; less current maturities | 260,146 | 428,491 | ||||||
| Total liabilities | $ | 23,291,021 | $ | 28,271,229 | ||||
| Stockholders’ equity: | ||||||||
| Preferred stock, $.01 par value; 500,000 shares authorized; | - | - | ||||||
| Common stock, $.01 par value; 18,000,000 shares authorized; 12,910,343 shares issued and 11,971,312 outstanding as of September 30, 2026, 12,825,028 shares issued and 11,885,997 outstanding as of June 30, 2026 | 129,106 | 128,253 | ||||||
| Additional paid-in-capital | 130,276,620 | 130,188,049 | ||||||
| Treasury stock (at cost, 939,031 shares as of September 30, 2026 and June 30, 2026) | (3,920,856 | ) | (3,920,856 | ) | ||||
| Accumulated deficit | (38,175,758 | ) | (38,338,727 | ) | ||||
| Other comprehensive loss | (46,295,697 | ) | (46,462,794 | ) | ||||
| Total NetSol stockholders’ equity | $ | 42,013,415 | $ | 41,593,925 | ||||
| Non-controlling interest | 8,434,570 | 7,973,895 | ||||||
| Total stockholders’ equity | $ | 50,447,985 | $ | 49,567,820 | ||||
| Total liabilities and stockholders’ equity | $ | 73,739,006 | $ | 77,839,049 | ||||
Schedule 2: Consolidated Statements of Operations
| For the Three Months Ended September 30, | ||||||||
| 2026 | 2025 | |||||||
| Net Revenues: | ||||||||
| License fees | 549,263 | 72,225 | ||||||
| Subscription and support | 9,505,208 | 8,960,555 | ||||||
| Services | 6,357,989 | 5,979,143 | ||||||
| Total net revenues | $ | 16,412,460 | $ | 15,011,923 | ||||
| Cost of revenues | $ | 8,131,365 | $ | 9,099,933 | ||||
| Gross profit | $ | 8,281,095 | $ | 5,911,990 | ||||
| Operating expenses: | ||||||||
| Selling, general and administrative | 7,700,709 | 7,536,353 | ||||||
| Research and development cost | 171,626 | 214,343 | ||||||
| Total operating expenses | $ | 7,872,335 | $ | 7,750,696 | ||||
| Income (loss) from operations | $ | 408,760 | $ | (1,838,706 | ) | |||
| Other income and (expenses) | ||||||||
| Interest expense | (111,360 | ) | (174,611 | ) | ||||
| Interest income | 301,068 | 280,974 | ||||||
| Gain (loss) on foreign currency exchange transactions | (6,811 | ) | (286,917 | ) | ||||
| Other income | 47,677 | 17,670 | ||||||
| Total other income (expenses) | $ | 230,574 | $ | (162,884 | ) | |||
| Net income (loss) before income taxes | $ | 639,334 | $ | 2,001,590 | ) | |||
| Income tax provision | (105,126 | ) | (215,775 | ) | ||||
| Net income (loss) | $ | 534,208 | $ | (2,217,365 | ) | |||
| Non-controlling interest | (371,239 | ) | (139,923 | ) | ||||
| Net income (loss) attributable to NetSol | $ | 162,969 | $ | (2,357,288 | ) | |||
| Net income (loss) per share: | ||||||||
| Net income (loss) per common share | ||||||||
| Basic | $ | 0.01 | $ | (0.21 | ) | |||
| Diluted | $ | 0.01 | $ | (0.21 | ) | |||
| Weighted average number of shares outstanding | ||||||||
| Basic | 11,906,981 | 11,429,695 | ||||||
| Diluted | 11,926,869 | 11,429,695 | ||||||
Schedule 3: Consolidated Statements of Cash Flows
| For the Three Months Ended September 30, | ||||||||
| 2026 | 2025 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income (loss) | 534,208 | (2,217,365 | ) | |||||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||
| Depreciation and amortization | 332,284 | 324,606 | ||||||
| Provision for bad debts | 112,794 | (1,583 | ) | |||||
| Gain on sale of assets | (46,594 | ) | (16,613 | ) | ||||
| Stock based compensation | 102,900 | 145,400 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 1,105,032 | 1,218,992 | ||||||
| Contract assets | (2,639,619 | ) | 4,282,495 | |||||
| Other current assets | (172,448 | ) | (323,491 | ) | ||||
| Accounts payable and accrued expenses | (1,476,931 | ) | 1,176,241 | |||||
| Contract liabilities | (3,407,627 | ) | 714,879 | |||||
| Net cash provided by (used in) operating activities | $ | (5,556,001 | ) | $ | 5,303,561 | |||
| Cash flows from investing activities: | ||||||||
| Purchases of property and equipment | (976,009 | ) | (485,281 | ) | ||||
| Sales of property and equipment | 46,594 | 16,687 | ||||||
| Investment in associates | 0 | 25,396 | ||||||
| Increase in intangible assets | (1,001,481 | ) | 0 | |||||
| Net cash used in investing activities | $ | (1,930,896 | ) | $ | (443,198 | ) | ||
| Cash flows from financing activities: | ||||||||
| Proceeds from exercise of subsidiary options | 20,292 | 64,147 | ||||||
| Proceeds from bank loans | 0 | 242,421 | ||||||
| Payments on finance lease obligations and loans - net | (119,298 | ) | (115,350 | ) | ||||
| Net cash provided by (used in) financing activities | $ | (99,006 | ) | $ | 191,218 | |||
| Effect of exchange rate changes | 159,737 | 281,093 | ||||||
| Net increase (decrease) in cash and cash equivalents | $ | (7,426,166 | ) | $ | 5,332,674 | |||
| Cash and cash equivalents at beginning of the period | 27,123,955 | 17,357,944 | ||||||
| Cash and cash equivalents at end of period | $ | 19,697,789 | $ | 22,690,618 | ||||
Schedule 4: Reconciliation of GAAP Net Income (Loss) to Non-GAAP EBITDA
| For the Three Months Ended September 30, | ||||||||
| 2026 | 2025 | |||||||
| Net Income (loss) attributable to NetSol | $ | 162,969 | $ | (2,357,288 | ) | |||
| Non-controlling interest | 371,239 | 139,923 | ||||||
| Income taxes | 105,126 | 215,775 | ||||||
| Depreciation and amortization | 332,284 | 324,606 | ||||||
| Interest expense | 111,360 | 174,611 | ||||||
| Interest (income) | (301,068 | ) | (280,974 | ) | ||||
| EBITDA | $ | 781,910 | $ | (1,783,347 | ) | |||
| Add back: | ||||||||
| Currency exchange (gain) loss | 6,811 | 286,917 | ||||||
| Non-cash stock-based compensation | 102,900 | 145,400 | ||||||
| Adjusted EBITDA, gross | $ | 891,621 | $ | (1,351,030 | ) | |||
| Less non-controlling interest (a) | (406,674 | ) | (305,661 | ) | ||||
| Adjusted EBITDA, net | $ | 484,947 | $ | (1,656,691 | ) | |||
| (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 | $ | 371,239 | $ | 139,923 | ||||
| Income Taxes | 25,391 | 39,805 | ||||||
| Depreciation and amortization | 72,671 | 75,085 | ||||||
| Interest expense | 33,855 | 48,827 | ||||||
| Interest (income) | (93,372 | ) | (79,772 | ) | ||||
| EBITDA | $ | 409,784 | $ | 223,868 | ||||
| Add back: | ||||||||
| Currency exchange (gain) loss | (3,110 | ) | 81,793 | |||||
| Non-cash stock-based compensation | 0 | 0 | ||||||
| Adjusted EBITDA of non-controlling interest | $ | 406,674 | $ | 305,661 | ||||
Exhibit 99.2
Filing Exhibits & Attachments
20 documentsPress Releases
- EX-99.1 EX-99.1 118.8 KB
- EX-99.2 EX-99.2 10.9 KB
- EX-99 GRAPHIC 329.0 KB
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