The call conveyed clear operational momentum: strong top-line growth (Q2 revenue up ~21%), outsized services growth (+40.9% in the quarter), improved quarterly profitability (positive operating income and EBITDA), product innovation (AI-enabled 'Check') and a meaningful $50M multi-year contract. These positives were balanced by six-month GAAP losses widening, modest six-month margin pressure and ongoing investments (hiring, travel) that weigh on near-term profitability, plus dilution from a 30% noncontrolling interest and macro/currency risk. Management raised full-year revenue guidance and emphasized liquidity and disciplined execution, indicating confidence in continued improvement.

Company Guidance

Management raised full-year fiscal 2026 revenue guidance to nearly $73 million (or better), citing a strong pipeline, multiyear contracts and recurring revenue that together drive visibility into near- and long-term performance. That guidance is supported by Q2 results of $18.8M in net revenues (+21.1% YoY) with services $9.6M (+40.9%) and subscription & support $9.1M (+5.1%), Q2 gross profit $9.0M (48% margin) and EBITDA $1.7M (~9% margin), six‑month revenues $33.8M (recurring subscription $18.0M, +7.2%; services $15.6M, +17.9%), six‑month gross profit $14.9M (44.2%), a six‑month GAAP net loss of $2.1M ($0.18/share) and non‑GAAP EBITDA loss of $0.1M, plus a strong balance sheet (cash $18.1M, working capital $26.4M, stockholders’ equity $35.9M or $3.04/share, current ratio 2.3) and a $50M four‑year contract extension.

Strong Quarterly Revenue Growth

Total net revenues rose 21.1% year-over-year to $18.8 million in Q2 FY2026 (from $15.5 million), marking one of the company's strongest quarters and potentially a record quarterly revenue.

Robust Services Expansion

Services revenue grew 40.9% year-over-year to $9.6 million in the quarter, driven by new implementations from major customers that are expected to feed recurring subscription and support revenue over time.

Recurring Revenue Progress

Subscription and support revenues increased approximately 5.1% year-over-year to $9.1 million in Q2 and rose 7.2% to $18.0 million for the six months, showing continued growth in the recurring revenue base.

Profitability and Operating-Leverage Improvement (Quarter)

Gross profit in Q2 was $9.0 million (48.0% of net revenues). Income from operations turned positive at $1.3 million versus a $0.5 million loss in the prior-year quarter, and non-GAAP EBITDA improved to $1.7 million (versus a $0.8 million loss prior year).

Strategic Contract Win

Secured a $50 million, four-year contract extension with a Tier 1 global auto captive and long-standing partner, providing multi-year revenue visibility and validating platform scalability.

AI Product Innovation and Platform Expansion

Launched 'Check,' an AI-enabled credit decisioning engine integrated into the Transcend platform, and embedded AI horizontally across products and operations to drive differentiation, operating leverage and potential value-based pricing.

Balance Sheet and Liquidity Strength

Cash and cash equivalents were $18.1 million (up from $17.4M at June 30, 2025). Working capital remained stable at $26.4 million, stockholders' equity was $35.9 million ($3.04 per share), and the current ratio was 2.3, supporting continued investments.

Raised Full-Year Revenue Guidance

Management increased full-year fiscal 2026 revenue growth guidance to nearly $73 million or better, supported by a robust pipeline, multiyear contracts, and investments in AI-enabled Transcend platform and go-to-market initiatives.

Leadership Strengthening

Appointed Sardar Abubakr as CFO and transitioned Roger Almond to Chief Accounting Officer, aimed at reinforcing financial governance and supporting scale.

Netsol Technologies (NTWK) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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NTWK Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
May 07, 2026	2026 (Q3)	- / -	0.122	―	―	―
Feb 12, 2026	2026 (Q2)	- / 0.02	-0.1	121.00% (+0.12)	―
Nov 12, 2025	2026 (Q1)	- / -0.20	0.006	-3433.33% (-0.21)	―
Sep 29, 2025	2025 (Q4)	- / 0.22	-0.007	3228.57% (+0.23)	―
May 14, 2025	2025 (Q3)	- / 0.12	0.029	320.69% (+0.09)	―
Feb 13, 2025	2025 (Q2)	- / -0.10	0.036	-377.78% (-0.14)	―
Nov 13, 2024	2025 (Q1)	- / -	0.003	―	―
Sep 30, 2024	2024 (Q4)	- / <0.01	0.003	100.00% (<+0.01)	―
May 20, 2024	2024 (Q3)	- / 0.03	0.226	-87.17% (-0.20)	―
Feb 13, 2024	2024 (Q2)	- / 0.04	-0.186	119.35% (+0.22)	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

NTWK Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Feb 12, 2026	$3.17	$3.18	+0.32%
Nov 12, 2025	$3.95	$2.96	-24.94%
Sep 29, 2025	$4.74	$5.22	+10.13%
May 14, 2025	$2.50	$2.81	+12.40%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

FAQ

When does Netsol Technologies Inc (NTWK) report earnings?

Netsol Technologies Inc (NTWK) is schdueled to report earning on May 07, 2026, TBA (Confirmed).

What is Netsol Technologies Inc (NTWK) earnings time?

Netsol Technologies Inc (NTWK) earnings time is at May 07, 2026, TBA (Confirmed).

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What is NTWK EPS forecast?

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