Netcall (NET) AI Stock Analysis

• Market Cap: £165.37M
• Dividend Yield: 0.8%
• Average Volume (3M): 291.59K
• Price to Earnings (P/E): 37.6
• Beta (1Y): 0.66
• Revenue Growth: 22.80%
• EPS Growth: -32.13%
• Country: UK
• Employees: 283
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.02
• Shares Outstanding: 170,483,750
• 10 Day Avg. Volume: 196,541
• 30 Day Avg. Volume: 291,589
• PEG Ratio: -1.46
• Price to Book (P/B): 4.33
• Price to Sales (P/S): 3.97
• P/FCF Ratio: 18.82
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £162.50
• Price Target Upside: 46.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.04
• Revenue Forecast (FY): £57.63M

• Rating: 68 Neutral
• Price Target: 106.00 p ▼(-4.50% Downside)
• Action: Upgraded Date: 01/29/26
• Date: Action: Upgraded 01/29/26

The score is driven primarily by solid financial performance (strong growth, high margins, and minimal leverage), partially offset by weakening net income and free-cash-flow growth. Technically, the uptrend is strong but conditions are extremely overbought, raising near-term risk. Valuation is the largest headwind due to the very high P/E and low yield.

Positive Factors

Recurring revenue model

Netcall's primary revenue mix is subscription-based software complemented by licenses and professional services, providing recurring cash flows, higher revenue visibility and stronger customer retention. This durable model supports predictable income, easier upsell of Liberty low-code offerings and steady investment in product development.

High gross and healthy operating margins

Very high gross margins reflect a software-centric business with scalable economics, while double-digit EBIT margin demonstrates operational leverage. Sustained margins allow reinvestment in R&D and sales, support profitability through growth cycles, and provide a buffer against cost inflation over the medium term.

Very low financial leverage

Minimal debt gives the company financial flexibility to fund product development, strategic partnerships or acquisitions without heavy interest burdens. Low leverage reduces bankruptcy risk, preserves free cash flow for growth initiatives, and makes the business more resilient to macroeconomic shocks over several quarters.

Negative Factors

Declining net income and FCF growth

A decline in net income alongside an 8.47% drop in free cash flow growth signals emerging durability risks: reduced internal funding for R&D, sales expansion or acquisitions. If this trend persists it can constrain strategic flexibility, slow product development cadence and weaken competitive positioning over months.

Material EPS deterioration

A roughly 54% decline in EPS reflects significant per-share earnings pressure that may stem from margin compression, one-offs, or dilution. Persistent EPS weakness undermines shareholder returns, reduces retained-earnings buildup for reinvestment and can limit the company’s ability to sustainably increase dividends or buybacks.

Moderate ROE and equity financing mix

ROE around 9% is modest for a software business and the equity ratio indicates roughly half of assets are financed by non-equity sources. Moderate capital efficiency may cap long-term shareholder returns relative to higher-ROE peers and suggests room to improve asset utilization and revenue per invested capital.

Netcall Business Overview & Revenue Model

Company Description

Netcall (NET) is a UK-based technology company specializing in customer engagement and business process automation solutions. It operates primarily in the software sector, offering products that empower organizations to enhance customer interactions and streamline operations. Key offerings include its low-code development platform, Liberty, which enables businesses to build and deploy applications quickly, and its customer engagement solutions that integrate various communication channels to improve service delivery.

How the Company Makes Money

Netcall generates revenue through a combination of subscription-based services, software licenses, and professional services. The primary revenue stream comes from subscriptions to its low-code platform and customer engagement software, which allows clients to access and utilize these tools on a recurring basis. Additionally, Netcall earns money through the sale of software licenses for its products, which can be a one-time fee or structured as part of a longer-term contract. The company also offers professional services, including consulting, implementation, and training, which provide further revenue opportunities. Significant partnerships with other technology and service providers enhance its offerings and expand market reach, contributing to overall earnings.

Netcall Financial Statement Overview

Summary

Strong revenue growth (+11.06%) and high gross margin (76.43%) support profitability (EBIT margin 12.46%). Balance sheet leverage is very low (debt-to-equity 0.02). Offsetting this, net income declined versus the prior year and free cash flow growth fell (-8.47%), creating some durability risk.

Income Statement

Netcall has demonstrated strong revenue growth with an 11.06% increase in the latest year, supported by a solid gross profit margin of 76.43%. The company maintains healthy profitability with a net profit margin of 8.44% and an EBIT margin of 12.46%. However, the decline in net income from the previous year indicates potential challenges in maintaining net profitability.

Balance Sheet

The balance sheet reflects a robust equity position with a low debt-to-equity ratio of 0.02, indicating minimal leverage. The return on equity stands at 9.20%, showing effective utilization of equity. However, the equity ratio of 49.85% suggests room for improvement in asset financing through equity.

Cash Flow

Netcall's cash flow analysis reveals a decrease in free cash flow growth by 8.47%, which could impact future investments. The operating cash flow to net income ratio of 2.55 indicates strong cash generation relative to net income, while the free cash flow to net income ratio of 2.50 highlights efficient cash conversion.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	51.39M	47.96M	39.06M	36.04M	30.46M	27.15M
Gross Profit	39.07M	36.65M	33.45M	30.27M	25.44M	24.53M
EBITDA	8.49M	8.43M	8.58M	6.34M	5.39M	4.17M
Net Income	2.40M	4.05M	5.85M	4.21M	2.40M	974.00K
Balance Sheet
Total Assets	95.13M	88.25M	77.04M	65.53M	56.98M	51.82M
Cash, Cash Equivalents and Short-Term Investments	14.77M	27.16M	34.01M	24.81M	17.61M	14.53M
Total Debt	988.00K	1.04M	481.00K	405.00K	4.17M	7.70M
Total Liabilities	47.25M	44.26M	36.54M	30.15M	29.56M	27.21M
Stockholders Equity	47.88M	43.99M	40.50M	35.38M	27.42M	24.61M
Cash Flow
Free Cash Flow	8.99M	10.11M	12.15M	8.81M	8.05M	2.93M
Operating Cash Flow	9.28M	10.33M	14.73M	11.56M	9.98M	5.68M
Investing Cash Flow	-14.95M	-15.66M	-4.21M	-2.74M	-1.94M	-2.75M
Financing Cash Flow	-1.59M	-1.56M	-1.26M	-1.68M	-4.93M	-1.16M

Netcall Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 111.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:NET, the sentiment is Negative. The current price of 111 is above the 20-day moving average (MA) of 106.42, below the 50-day MA of 116.90, and below the 200-day MA of 116.34, indicating a bearish trend. The MACD of -6.09 indicates Positive momentum. The RSI at 25.78 is Positive, neither overbought nor oversold. The STOCH value of 22.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:NET.

Netcall Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DOTD	73 Outperform	£144.04M	11.95	8.80%	1.68%	6.27%	0.83%
APTD	72 Outperform	£127.69M	33.60	7.76%	1.92%	-6.63%	-7.88%
ACSO	70 Outperform	£82.37M	54.18	2.93%	―	-3.95%	16.87%
TRB	70 Outperform	£122.12M	5.94	15.34%	1.71%	3.48%	318.89%
NET	68 Neutral	£165.37M	37.63	5.22%	0.80%	22.80%	-32.13%
AOM	68 Neutral	£151.47M	-33.80	-0.19%	―	31.86%	-115.22%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Netcall Corporate Events

Netcall director Nigel Halkes increases stake with on‑market share purchase

Netcall plc reported that non‑executive director Nigel Halkes purchased 5,000 ordinary shares at 97.45 pence each on 17 March 2026, increasing his holding to 10,000 shares. The on‑market acquisition on the London Stock Exchange modestly lifts board‑level ownership and may be read by investors as a signal of confidence in the company’s strategy and long‑term prospects.

The transaction, involving a relatively small volume, nonetheless underscores ongoing alignment between Netcall’s governance team and shareholders. It comes as the enterprise software group continues to promote its AI‑powered Liberty platform across key regulated sectors, where sustained adoption and mission‑critical deployments heighten the significance of director share dealings for stakeholders tracking management commitment.

The most recent analyst rating on (GB:NET) stock is a Buy with a £109.00 price target. To see the full list of analyst forecasts on Netcall stock, see the GB:NET Stock Forecast page.

Netcall lifts cloud and AI growth as Jadu deal boosts first-half momentum

Netcall reported a strong first half to 31 December 2025, with revenue up 15% to £26.5m, driven by 11% organic growth and an initial contribution from the December acquisition of Jadu. Cloud services led the performance, with cloud revenue up 34%, cloud annual contract value rising 42% to £42.6m and total ACV reaching £50.5m, while recurring revenue increased to 83% of the total and adjusted EBITDA grew 13% to £6.5m despite lower statutory pre-tax profit.

The group highlighted accelerating adoption of AI across its Liberty platform, with AI-related bookings more than tripling and strong expansion within its customer base delivering a cloud net retention rate of 115%. The Jadu deal broadens Netcall’s digital experience and AI capabilities and deepens its reach in UK local government and into the US via partners, while the debt-free company retains £14.8m of cash, a record £92.4m contracted order book and a strong pipeline underpinning management’s confidence in continued growth in FY26.

The most recent analyst rating on (GB:NET) stock is a Buy with a £120.00 price target. To see the full list of analyst forecasts on Netcall stock, see the GB:NET Stock Forecast page.

Netcall Passes £50m ACV Milestone on Surging Cloud and AI Demand

Netcall reported another period of strong double-digit growth for the first half of its 2026 financial year, with revenue expected to rise 15% to £26.5m and adjusted EBITDA up 12% to £6.4m, driven by 11% organic growth and the initial contribution from its recent acquisition of Jadu. Robust demand for cloud-based automation and AI continues to underpin performance, with cloud annual contract value surging 42% to £42.6m and total ACV passing the £50m mark, reflecting higher new bookings, larger deal sizes and growing uptake of Liberty AI modules. The Jadu integration is progressing well, expanding Netcall’s footprint in local government, adding a US partner network and enhancing the Liberty platform’s digital experience and AI capabilities, supporting the company’s strategy to deepen recurring revenue, increase ACV per account and strengthen its competitive position as it enters the second half with positive momentum and a scalable platform.

The most recent analyst rating on (GB:NET) stock is a Buy with a £160.00 price target. To see the full list of analyst forecasts on Netcall stock, see the GB:NET Stock Forecast page.

Netcall Wins £3m Multi‑Year Liberty Cloud Deal with S&P 500 Financial Firm

Netcall has secured a new £3.0m multi-year Liberty cloud contract with a major S&P 500 global financial services firm, expanding a relationship that began in the second half of FY25 and increasing the customer’s annual subscription to £1.0m. The Liberty Create-based, AI-enabled case management application will automate workflows from intake to resolution, integrate with core systems and standardise processes, aiming to cut manual work and improve oversight and analytics across the client’s global operations. The win underscores Netcall’s land-and-expand strategy with blue-chip enterprises, enhances visibility of future recurring revenues and reinforces the group’s competitive position in the financial services vertical, even though it is not deemed material to overall performance expectations.

The most recent analyst rating on (GB:NET) stock is a Hold with a £117.00 price target. To see the full list of analyst forecasts on Netcall stock, see the GB:NET Stock Forecast page.