Netcall (NET) AI Stock Analysis

• Market Cap: £225.04M
• Dividend Yield: 0.8%
• Average Volume (3M): 291.59K
• Price to Earnings (P/E): 53.9
• Beta (1Y): 0.54
• Revenue Growth: 22.80%
• EPS Growth: -32.13%
• Country: UK
• Employees: 283
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): <0.01
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: 147.00p ▲(32.43% Upside)

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

Revenue Growth & Gross Margins

Sustained top-line growth paired with very high gross margins indicates scalable product economics and pricing power. For a subscription-anchored software business, this supports durable recurring revenue conversion and margin expansion potential as customer adoption increases.

Balance Sheet Strength

Extremely low leverage preserves financial flexibility for investment, acquisitions, and downturns without heavy interest burden. A solid equity base and positive ROE mean the company can fund growth internally and sustain operations through shocks.

Cash Generation & Conversion

High cash conversion versus accounting earnings shows strong underlying cash generation. Reliable operating cash supports reinvestment in product, customer success and low-code platform expansion, reducing dependency on external financing over the medium term.

Negative Factors

Free Cash Flow Growth Decline

An 8.5% drop in FCF growth can constrain strategic spending on R&D, sales scale-up, or M&A. If persistent, weaker FCF growth limits the firm’s ability to self-fund expansion and dividends, and may force trade-offs between growth investments and margin preservation.

Earnings Volatility (EPS Drop)

A c.32% decline in EPS signals meaningful earnings volatility that may reflect rising costs, margin pressure, or one-off items. Persistent EPS weakness undermines retained earnings and reduces buffer for reinvestment, making long-term planning and capital allocation harder.

Modest Net Margin

Despite high gross margins, modest EBIT and net margins suggest elevated operating or sales costs. Lower ultimate profitability limits free cash available for growth initiatives and makes the business more vulnerable to competitive pricing pressure and rising operating expenses over time.

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

Netcall Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:NET, the sentiment is Positive. The current price of 111 is below the 20-day moving average (MA) of 120.37, below the 50-day MA of 114.75, and below the 200-day MA of 115.38, indicating a bullish trend. The MACD of 4.94 indicates Negative momentum. The RSI at 74.27 is Negative, neither overbought nor oversold. The STOCH value of 85.56 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	£223.80M	20.22	11.31%	1.68%	6.27%	0.83%
APTD	72 Outperform	£149.90M	34.48	7.71%	1.92%	-6.63%	-7.88%
ACSO	70 Outperform	£105.09M	14.48	5.30%	―	-3.95%	16.87%
TRB	70 Outperform	£151.05M	18.70	15.34%	1.71%	3.48%	318.89%
NET	68 Neutral	£225.04M	53.88	9.59%	0.80%	22.80%	-32.13%
AOM	68 Neutral	£202.17M	-1,010.71	-2.20%	―	31.86%	-115.22%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Netcall Corporate Events

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.

Netcall PLC Reports Successful AGM Resolution Approvals

Netcall PLC announced the successful approval of all resolutions at its Annual General Meeting held on December 17, 2025. The outcome reaffirms stakeholder support for the Company’s strategies and activities, consolidating its position as a leader in the enterprise software industry that integrates automation and customer engagement. Proxy vote details will be made available on the Company’s website, ensuring transparency.

The most recent analyst rating on (GB:NET) stock is a Buy with a £150.00 price target. To see the full list of analyst forecasts on Netcall stock, see the GB:NET Stock Forecast page.

Netcall Reports Positive Momentum and Strategic Expansion in FY26

Netcall announced at its Annual General Meeting that it continues to experience positive momentum in the first half of FY26, with demand for its Liberty cloud platform increasing as organizations seek unified automation and AI solutions. The company has completed its cloud investment program and is seeing growth through new business sign-ups, cross-sales, and recent public sector wins. The acquisition of Jadu enhances Netcall’s digital experience and AI capabilities, expanding its presence among UK local governments and aligning with its strategy to broaden its customer base and increase recurring revenue.

The most recent analyst rating on (GB:NET) stock is a Buy with a £150.00 price target. To see the full list of analyst forecasts on Netcall stock, see the GB:NET Stock Forecast page.

Netcall Reports Strong First Half of FY26 and Strategic Expansion

Netcall has announced continued positive momentum in the first half of FY26, with trading aligning with management expectations. The company is experiencing increased demand for its Liberty cloud platform, driven by the industry shift towards unified automation and AI solutions, which is enhancing annual contract value growth and recurring revenue visibility. The completion of their cloud investment program positions Netcall to capitalize on the migration to cloud subscriptions, complemented by the adoption of new AI capabilities. Recent acquisitions, including Jadu, are expanding their presence in local governments and creating cross-sell opportunities. With a strong pipeline and robust balance sheet, Netcall remains confident in its progress for FY26.

The most recent analyst rating on (GB:NET) stock is a Buy with a £150.00 price target. To see the full list of analyst forecasts on Netcall stock, see the GB:NET Stock Forecast page.

Netcall Acquires Jadu Holdings to Enhance Digital and AI Capabilities

Netcall has acquired Jadu Holdings Limited, a UK-based digital experience platform provider, to enhance its Liberty platform with new digital and AI capabilities. This acquisition expands Netcall’s market presence in the UK local government sector and internationally, particularly in the US, and is expected to be earnings enhancing. The acquisition aligns with Netcall’s strategy to increase its customer base and cross-sell opportunities, while Jadu’s cloud-based revenue model supports predictable earnings.

The most recent analyst rating on (GB:NET) stock is a Buy with a £150.00 price target. To see the full list of analyst forecasts on Netcall stock, see the GB:NET Stock Forecast page.

Netcall PLC Announces AGM and Annual Report Release

Netcall PLC has announced the posting of its annual report and accounts for the financial period ending 30 June 2025, along with the notice for its annual general meeting (AGM) scheduled for 17 December 2025 in London. The AGM is seen as a crucial event for shareholder engagement, with opportunities for shareholders to submit questions in advance and attend the meeting in person, reflecting the company’s commitment to transparent communication with its stakeholders.

The most recent analyst rating on (GB:NET) stock is a Buy with a £150.00 price target. To see the full list of analyst forecasts on Netcall stock, see the GB:NET Stock Forecast page.