NetSol Technologies (NTWK) Q4 and FY2026 Earnings Call: Record Revenue, FY2027 Guidance
Source Tradingkey
Key Takeaways
- NetSol Technologies reported record fiscal 2026 net revenue of $74.4 million, up 12.5% year over year and above management’s $73 million guidance.
- Fourth-quarter revenue reached a record $20.7 million. Gross margin expanded to 63.6%, while operating income rose 40.2% to $4.5 million.
- Full-year subscription and support revenue increased 8.7% to $35.8 million, representing 48.1% of total revenue. Contracted revenue stood at approximately $60 million as of June 30, 2026.
- Operating cash flow improved to $13.9 million from $0.4 million, and year-end cash increased 56.3% to $27.1 million.
- Management expects fiscal 2027 revenue growth of 13% to 16%, gross margin of approximately 50% or better, and consolidated adjusted EBITDA of $10.5 million to $11.4 million.
- Growth priorities include expanding Transcend Retail in the U.S., upgrading legacy customers to Transcend Finance, embedding AI across products and operations, and supporting customers entering new markets.
Key Financial Results
| Metric | Q4 FY2026 | YoY change | FY2026 | YoY change / context |
|---|---|---|---|---|
| Net revenue | $20.7 million | +12.5% | $74.4 million | +12.5%; record year |
| Subscription and support revenue | $8.9 million | +9.0% | $35.8 million | +8.7%; 48.1% of revenue |
| Services revenue | $11.7 million | +21.3% | $33.6 million | +3.3% |
| License revenue | — | — | $5.0 million | Included approximately $4.7 million from an existing customer agreement renewal and amendment |
| Gross profit | $13.2 million | +27.3% | $39.1 million | +20.2% |
| Gross margin | 63.6% | Up from 56.2% | 52.6% | Up 330 basis points |
| Operating income | $4.5 million | +40.2% | $6.9 million | +98.4% |
| Operating margin | 21.6% | Up from 17.4% | 9.3% | Up from 5.3% |
| Net income attributable to NetSol | $3.8 million | +45.9% | $2.95 million | Consistent with the prior year |
| Diluted EPS | $0.32 | Up from $0.22 | $0.25 | Consistent with the prior year |
| Non-GAAP EBITDA | — | — | $8.0 million | +22.8% |
| Consolidated adjusted EBITDA | — | — | $9.15 million | +68.8% |
| Operating cash flow | — | — | $13.9 million | Up from $0.4 million |
| Cash | — | — | $27.1 million | +56.3% |
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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