NETSOL posts record revenue and issues fiscal 2027 guide

Posted by on Sep 30th, 2026

What happened

NETSOL Technologies, Inc. (NASDAQ: NTWK) reported fiscal 2026 revenue of $74.4 million, a record that topped guidance. Subscription and support revenue rose 8.7% to $35.8 million. Operating income nearly doubled to $6.9 million. Gross margin increased 330 basis points to 52.6%. Operating cash flow reached $13.9 million. The results covered the fiscal year ended June 30, 2026.

GAAP net income attributable to NETSOL was $2.95 million, or $0.25 per diluted share. Consolidated net income rose 22.4% to $5.6 million. Fourth-quarter revenue set a quarterly record at $20.7 million. Services revenue rose 21.3%, and gross margin reached 63.6%. The company also issued fiscal 2027 guidance for revenue growth of 13% to 16%, gross margin of about 50% or better, and consolidated adjusted EBITDA growth of 15% to 25%.

Key numbers

Metric Latest Change Source
Full-year revenue $74.4 million from $66.1 million, +12.5% SEC 8-K
Gross margin 52.6% from 49.3%, +330 basis points SEC 8-K
Operating income $6.9 million from $3.5 million, +98.4% SEC 8-K
Operating cash flow $13.9 million from $0.4 million, +$13.5 million SEC 8-K
Cash and cash equivalents $27.1 million from $17.4 million, +56.3% SEC 8-K

Why it matters

Revenue rose $8.3 million from the prior year. Operating income rose $3.4 million, and operating cash flow improved $13.5 million. That matters because the full-year record came with better profitability and cash generation, not just more sales. Year-end cash was $27.1 million, up from $17.4 million. Subscription and support revenue was about 48% of total net revenue.

The filing also showed $49.1 million of remaining performance obligations at June 30, 2026. About $22.5 million is expected within the next 12 months. OptimistFi's case is that NETSOL has to prove asset-finance specialization can produce durable, cash-generative growth. This filing strengthens that case. The main caveat is the company's own guidance, which assumes continued subscription growth, execution of contracted implementations, disciplined cost management and no material acquisitions.

What's next

The replay will stay available until Monday, October 12, 2026 at 11:59 PM ET. The company also said it plans to report contracted revenue each quarter, which it put at about $60 million at June 30, 2026. The next quarterly report will show whether subscription growth and cash conversion keep improving. A weaker report would undercut the guidance.

Sources

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Originally published on OptimistFi, evidence-first equity research. More at optimistfi.com.