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NetSol Technologies (NASDAQ: NTWK) Pakistan unit profit surges on Q3 growth

Filing Impact
(Moderate)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

NetSol Technologies, Inc. reported that its majority-owned Pakistani subsidiary, NetSol Technologies Limited, posted sharply improved results for the quarter ended March 31, 2026. Revenue rose to PKR 3,247 million, up 42% from PKR 2,287 million a year earlier, driven by higher subscription and support revenue and a one-time license fee from renewal of a four-year contract with a German auto finance company.

Gross profit increased 125% to PKR 1,932 million from PKR 858 million. Net profit climbed to PKR 1,127 million, with diluted EPS of PKR 12.94, compared with net profit of PKR 177 million and diluted EPS of PKR 2.03 in the prior-year quarter. The company emphasized these figures reflect only the subsidiary and not NetSol Technologies, Inc. on a consolidated basis.

Positive

  • None.

Negative

  • None.

Insights

Pakistani subsidiary delivers strong quarterly growth, but figures are non-consolidated.

NetSol PK shows robust operating momentum, with revenue up 42% to PKR 3,247 million, helped by higher subscription and support revenue and a one-time license fee on a renewed four-year contract with a German auto finance company.

Profitability improved even faster, as gross profit rose 125% to PKR 1,932 million and net profit reached PKR 1,127 million, lifting diluted EPS to PKR 12.94. These results apply only to the Pakistani subsidiary, so the overall impact depends on consolidated performance disclosed in future reports.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Quarterly revenue PKR 3,247 million Quarter ended March 31, 2026; up 42% from PKR 2,287 million
Prior-year quarterly revenue PKR 2,287 million Same quarter of last fiscal year
Gross profit PKR 1,932 million Quarter ended March 31, 2026; up 125% from PKR 858 million
Prior-year gross profit PKR 858 million Comparative quarter of last fiscal year
Net profit PKR 1,127 million Quarter ended March 31, 2026; vs PKR 177 million last year
Prior-year net profit PKR 177 million Same quarter of fiscal 2025
Diluted EPS PKR 12.94 per share Quarter ended March 31, 2026
Prior-year diluted EPS PKR 2.03 per share Same quarter of fiscal 2025
subscription and support revenue financial
"This increase is mainly due to increase in the subscription and support revenue"
one time license fee financial
"as well as recognition of one time license fee upon renewal of a four year contract"
diluted share financial
"an EPS of PKR 12.94 per diluted share in comparison of a net profit"
Diluted share count is the total number of company shares that would exist if all potential claims that can become stock—such as employee stock options, warrants and convertible bonds—were exercised or converted. Investors use diluted shares to see a more conservative view of ownership and per-share metrics (like earnings per share), because it’s like slicing a cake into more pieces: the same profit spread over more slices makes each slice smaller.
Pakistan Stock Exchange financial
"The results are posted on the Pakistan Stock Exchange."
Results of Operations and Financial Condition regulatory
"Item 2.02 Results of Operations and Financial Condition."
Revenue PKR 3,247 million +42% YoY
Gross profit PKR 1,932 million +125% YoY
Net profit PKR 1,127 million
Diluted EPS PKR 12.94
false 0001039280 0001039280 2026-05-05 2026-05-05 iso4217:USD xbrli:shares iso4217:USD xbrli:shares

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

 

 

Date of Report (Date of earliest event reported): May 5, 2026

 

Commission file number: 0-22773

 

NETSOL TECHNOLOGIES, INC.

(Exact name of small business issuer as specified in its charter)

 

nevada   95-4627685
(State or other Jurisdiction of   (I.R.S. Employer NO.)
Incorporation or Organization)    

 

16000 Ventura Blvd., Suite 770, Encino, CA 91436

(Address of principal executive offices) (Zip Code)

 

(818) 222-9195 / (818) 222-9197

(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
Common Stock, $.01 par value per share   NTWK   NASDAQ

 

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 May 4, 2026, NetSol Technologies, Inc.’s Pakistani subsidiary, NetSol Technologies, Ltd. posted the results of operations and financial conditions for second quarter ended March 31, 2026. The results are posted on the Pakistan Stock Exchange. These results represent only the results of one subsidiary of NetSol Technologies, Inc. and are not representative of the results of NetSol Technologies, Inc. on a consolidated basis.

 

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   Earnings Announcement for May 4, 2026, for NetSol Technologies Ltd.
104   Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 
Page 2

 

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: May 6, 2026 /s/ Najeeb Ghauri
    NAJEEB GHAURI
    Chief Executive Officer

 

Date: May 6, 2026 /s/ Sardar Mohammad Abubakr
    SARDAR MOHAMMAD ABUBAKR
    Chief Financial Officer

 

 

 

 

Exhibit 99.1

 

NetSol Technologies Limited Pakistan, (“NetSol PK”), a majority owned subsidiary of NetSol Technologies, Inc., today announced financial results for the quarter ended March 31, 2026.

 

Financial Highlights Q3, 2025-26

 

Company posted net revenues of PKR 3,247 million compared to PKR 2,287 million in corresponding quarter of last fiscal year
   
Gross profit increased to PKR 1,932 million compared to PKR 858 million in the corresponding period
   
Company reported a net profit of PKR 1,127 million compared to PKR 177 million last year

 

Revenues for the quarter ended March 31, 2026 increased significantly to PKR 3,247 million, up 42% from revenues of PKR 2,287 million reported in the same quarter of last fiscal year. This increase is mainly due to increase in the subscription and support revenue as well as recognition of one time license fee upon renewal of a four year contract with a German auto finance company. The Company’s gross profit increased by 125% to PKR 1,932 million compared to PKR 858 million in the comparative quarter of last fiscal year. The company posted a net profit of PKR 1,127 million or an EPS of PKR 12.94 per diluted share in comparison of a net profit of PKR 177 million or an EPS of PKR 2.03 per diluted share in the same quarter of fiscal 2025.

 

 

 

FAQ

How did NetSol PK’s revenue perform in the March 31, 2026 quarter?

NetSol PK’s revenue grew strongly to PKR 3,247 million, a 42% increase from PKR 2,287 million in the same quarter last year. Growth was mainly driven by higher subscription and support revenue and a one-time license fee from a renewed four-year contract.

What were NetSol PK’s profits and margins for the quarter ended March 31, 2026?

NetSol PK reported a net profit of PKR 1,127 million, up from PKR 177 million a year earlier. Gross profit increased to PKR 1,932 million from PKR 858 million, reflecting significantly improved profitability alongside strong revenue growth.

What earnings per share did NetSol PK report for this quarter?

NetSol PK reported diluted EPS of PKR 12.94 for the quarter, compared with PKR 2.03 in the same period of fiscal 2025. This sharp increase mirrors the substantial rise in net profit during the quarter.

Are NetSol PK’s reported results the same as NetSol Technologies, Inc.’s consolidated results?

No. The filing states these figures reflect only NetSol Technologies Limited Pakistan, a majority-owned subsidiary. They are not representative of NetSol Technologies, Inc.’s consolidated results, which will be reported separately in the company’s consolidated financial statements.

What drove NetSol PK’s strong revenue increase in the latest quarter?

Revenue growth was mainly due to higher subscription and support revenue and recognition of a one-time license fee. The fee was tied to renewal of a four-year contract with a German auto finance company, boosting quarterly sales.

Where were NetSol PK’s quarterly results disclosed publicly?

The filing notes that NetSol PK’s results of operations and financial condition for the quarter ended March 31, 2026 were posted on the Pakistan Stock Exchange. The 8-K includes an exhibit summarizing those earnings details.

Filing Exhibits & Attachments

4 documents