Want to see NTWK full AI Analyst Report?
Top Page
Netsol Technologies
(NASDAQ:NTWK)
Select Model
Select Model
Rating:72Outperform
Price Target:
$5.00
▲(58.73% Upside)
Action:Upgraded
Date:05/15/26
The score is driven by strong earnings-call momentum and an unusually low P/E, supported by positive technical trend signals. The main offset is weaker financial quality due to negative TTM operating and free cash flow despite improved profitability.
Positive Factors
Recurring revenue growth / ARR
An ARR base near $35M with mid-single-digit annual growth increases revenue visibility and underpins subscription & support income. Durable recurring streams improve customer retention economics, enable predictable renewal-driven cash flows and justify continued product investment.
Negative Factors
Weak cash flow conversion
Negative operating and free cash flow despite accounting profits indicate cash tied up in working capital or timing of collections. Persisting cash-conversion weakness increases reliance on external funding or slows reinvestment, undermining long-term self-funding of growth initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue growth / ARR
An ARR base near $35M with mid-single-digit annual growth increases revenue visibility and underpins subscription & support income. Durable recurring streams improve customer retention economics, enable predictable renewal-driven cash flows and justify continued product investment.
Read all positive factors
Netsol Technologies Key Performance Indicators (KPIs)
Any
Revenue by Segment
Shows how revenue is distributed across different business units, highlighting which segments are driving growth and which may need strategic adjustments.
Shows how revenue is distributed across different business units, highlighting which segments are driving growth and which may need strategic adjustments.
Data provided by:
The Fly
The FlyNetsol Technologies (NTWK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$55.94M
Dividend YieldN/A
Average Volume (3M)86.26K
Price to Earnings (P/E)31.2
Beta (1Y)0.89
Revenue Growth12.37%
EPS Growth615.79%
CountryUS
Employees1,569
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.15
Shares Outstanding11,876,414
10 Day Avg. Volume125,116
30 Day Avg. Volume86,262
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)0.95
Price to Sales (P/S)0.54
P/FCF Ratio-38.48
Enterprise Value/Market Cap0.85
Enterprise Value/Revenue0.66
Enterprise Value/Gross Profit1.32
Enterprise Value/Ebitda5.32
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Netsol Technologies Business Overview & Revenue Model
Company Description
NetSol Technologies, Inc., established in 1997 and headquartered in Calabasas, California, is a global developer and exporter of specialized software solutions tailored for the automotive finance and leasing, banking, and broader financial service...
How the Company Makes Money
NETSOL makes money primarily by selling and supporting enterprise software for asset finance/leasing operations. Key revenue streams typically include: (1) software licensing fees (or similar contractual software access arrangements, where applica...
Netsol Technologies Earnings Call Summary
Earnings Call Date:May 14, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Oct 05, 2026
Earnings Call Sentiment Positive
The call communicates strong operational and financial momentum: record quarterly revenue, double-digit top-line growth for the 9-month period, meaningful expansion in gross margins and non-GAAP EBITDA, growth in recurring revenue and ARR, strategic customer go-lives and renewals, expansion in US retail and clear AI roadmap. Offsetting items include a decline in services revenue due to timing, a one-time $400K Pakistan tax charge, a modest decline in cash due to working-capital timing, FX headwinds, and the concentration effect of recognizing a large license renewal in the quarter. Management reaffirmed full-year guidance and emphasized a strong pipeline, suggesting confidence in sustainability of growth. Overall positives materially outweigh the listed negatives.Positive Updates
Record Quarterly Revenue
Total net revenues were $19.8M in Q3, the highest quarterly revenue in company history, up ~13% YoY from $17.5M (constant currency $19.6M).
Negative Updates
Services Revenue Decline and Timing Volatility
Services revenue declined to $6.3M in Q3 from $9.7M prior year, primarily reflecting timing and composition of implementation projects and a prior-period one-time pickup (~$2.4M); 9-month services were $21.9M versus $22.9M prior year.
Read all updates
Q3-2026 Updates
Positive
Negative
Record Quarterly Revenue
Total net revenues were $19.8M in Q3, the highest quarterly revenue in company history, up ~13% YoY from $17.5M (constant currency $19.6M).
Read all positive updates
Company Guidance
Management reaffirmed full‑year fiscal 2026 revenue guidance of approximately $73–$74 million; Q3 was a record quarter with total net revenues of $19.8M (up ~13% from $17.5M), subscription & support of $8.8M (up ~11.7% YoY), license fees of $4.7M (vs ~$1K prior year), services $6.3M (vs $9.7M prior, which included a ~$2.4M one‑time pickup), gross profit $11.0M (55.6% margin), non‑GAAP adjusted EBITDA $3.4M (17.2% margin, +~47.8% YoY), GAAP net income attributable $1.3M ($0.11 diluted), and on a 9‑month basis revenues were $53.7M (up ~12.5%), subscription & support $26.9M (up ~8.6%), license fees $4.9M, services $21.9M, 9‑month gross profit $26.0M (48.4%), non‑GAAP EBITDA $3.5M (6.6% margin, +~84.2% YoY), cash & equivalents $14.7M (vs $17.4M at 6/30/25), and annualized recurring revenue exiting Q3 of ~$35M (vs $32.9M prior year, +7%).Netsol Technologies Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
41
Neutral
| Breakdown | TTM | Jun 2025 | Sep 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 72.06M | 66.09M | 61.39M | 52.39M | 57.25M | 54.92M |
| Gross Profit | 36.32M | 32.57M | 29.28M | 16.92M | 23.74M | 26.35M |
| EBITDA | 8.98M | 8.38M | 6.09M | 791.66K | 6.27M | 7.64M |
| Net Income | 1.77M | 2.92M | 683.87K | -5.24M | -851.16K | 1.78M |
Balance Sheet | ||||||
| Total Assets | 71.92M | 62.44M | 64.19M | 58.38M | 72.61M | 86.61M |
| Cash, Cash Equivalents and Short-Term Investments | 14.74M | 17.36M | 19.13M | 15.53M | 23.96M | 33.71M |
| Total Debt | 9.33M | 9.14M | 7.67M | 7.11M | 10.04M | 13.49M |
| Total Liabilities | 27.65M | 20.18M | 24.65M | 21.60M | 21.75M | 24.74M |
| Stockholders Equity | 37.18M | 37.83M | 34.84M | 33.81M | 45.40M | 54.65M |
Cash Flow | ||||||
| Free Cash Flow | -2.21M | -935.50K | 2.39M | 370.13K | 451.42K | 13.17M |
| Operating Cash Flow | -344.40K | 447.27K | 2.91M | 2.01M | 3.06M | 15.73M |
| Investing Cash Flow | -2.74M | -1.27M | -291.54K | -1.40M | -2.26M | -2.52M |
| Financing Cash Flow | 326.34K | 822.88K | 239.55K | -718.99K | -1.38M | -1.17M |
Netsol Technologies Technical Analysis
Positive
3.15
Price Trends
4.20
Positive
3.82
Positive
3.75
Positive
Market Momentum
0.11
Negative
60.71
Neutral
77.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NTWK, the sentiment is Positive. The current price of 3.15 is below the 20-day moving average (MA) of 4.48, below the 50-day MA of 4.20, and below the 200-day MA of 3.75, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 60.71 is Neutral, neither overbought nor oversold. The STOCH value of 77.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NTWK.
Netsol Technologies Risk Analysis
Netsol Technologies disclosed 3 risk factors in its most recent earnings report. Netsol Technologies reported the most risks in the "Macro & Political" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
Netsol Technologies Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $55.94M | 31.21 | 4.81% | ― | 12.37% | 615.79% | |
68 Neutral | $78.76M | 50.39 | 16.47% | ― | -1.78% | -18.81% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
52 Neutral | $29.22M | -3.74 | -29.65% | ― | 3.00% | -51.43% | |
49 Neutral | $41.71M | -3.71 | -11.23% | ― | -18.57% | 38.84% | |
42 Neutral | $19.18M | -0.25 | -112.49% | ― | -32.55% | 99.67% |
* Technology Sector Average
NTWK
Netsol Technologies
4.71
1.42
43.16%
AWRE
Aware
1.35
-0.48
-26.23%
WFCF
Where Food Comes From
15.63
4.45
39.80%
PHUN
Phunware
2.04
-1.40
-40.70%
CYN
Cyngn
1.33
-11.52
-89.65%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.