NETSOL reports record $74.4m revenue for fiscal 2026

NETSOL Technologies has reported record full-year revenue of $74.4 million for fiscal 2026, exceeding its guidance as operating income almost doubled and the technology provider returned a stronger cash performance.

Revenue for the year ended June 30, 2026 increased 12.5% from $66.1 million in the previous year, exceeding NETSOL’s $73 million guidance. Subscription and support revenues rose 8.7% to $35.8 million, accounting for around 48% of total revenue.

Full-year gross profit increased 20.2% to $39.1 million, with gross margin improving from 49.3% to 52.6%.

Operating income almost doubled, increasing 98.4% from $3.5 million to $6.9 million, while operating margin rose from 5.3% to 9.3%. GAAP net income attributable to NETSOL was $2.95 million, or $0.25 per diluted share, while consolidated net income increased 22.4% to $5.6 million.

The company also reported a significant improvement in cash generation. Operating cash flow reached $13.9 million, compared with $0.4 million in fiscal 2025, while cash and cash equivalents increased 56.3% to $27.1 million at the end of June.

NETSOL ended the year with remaining performance obligations of $49.1 million, of which around $22.5 million is expected to be recognised as revenue over the following 12 months.

Fourth-quarter performance also strengthened, with revenue reaching a quarterly record of $20.7 million, up 12.5% year-on-year. Subscription and support revenue increased 9% to $8.9 million, while services revenue rose 21.3% to $11.7 million.

Quarterly gross margin expanded from 56.2% to 63.6%, while operating income increased 40.2% to $4.5 million. GAAP net income attributable to NETSOL rose 45.9% to $3.8 million, equivalent to $0.32 per diluted share.

“Fiscal 2026 marked a clear step forward for NETSOL. We delivered record annual revenue, expanded margins and finished the year with strong operational momentum.

“The rebound from our first quarter demonstrates the capability and resilience of our teams, while the continued growth of subscription and support revenue reinforces the value of our long-term customer relationships.”

NETSOL said customer activity during the year included further expansion of its Transcend Finance platform across automotive and equipment finance.

The company signed a $50 million contract extension with a long-standing tier-one global auto captive, while a tier-one US auto captive went live with the platform in China. Toyota Leasing Thailand upgraded its platform, a tier-one multinational bank in the UK renewed its agreement and BMO Equipment Finance in the US moved from its legacy system to Transcend Finance.

Asad Ghauri, Global Head of Sales and Group Managing Director of Europe at NETSOL, said: “Customer engagement remained strong across our established markets during the year, with growing demand for modern cloud platforms, AI-enabled finance solutions and digital retail.”

He added that NETSOL had progressed major implementations and developed new opportunities across automotive finance, equipment finance and digital retail during the year.

Looking ahead, NETSOL expects revenue to grow by between 13% and 16% in fiscal 2027, with a gross margin of approximately 50% or better.

The company is also targeting consolidated adjusted EBITDA growth of between 15% and 25%, equivalent to approximately $10.5 million to $11.4 million.

NETSOL said its priorities for the year ahead include growing recurring revenue, maintaining and improving margins, applying AI across its products and operations, and focusing investment on higher-return opportunities.