NetSol reports record $74.4 million revenue and guides to 13 to 16 percent growth
The Nasdaq listed software firm with its main operations in Lahore made a full year profit and said it is shifting towards recurring platform revenue.
NETSOL Technologies, which builds leasing and finance software for carmakers and banks and runs large development operations in Pakistan, reported record revenue of $74.4 million for the fiscal year ended 30 June 2026, up 12.5 percent from $66.1 million, according to its company statement on 28 September.
That beat the company's own guidance of $73 million. Subscription and support revenue rose 8.7 percent to $35.8 million, about 48 percent of the total, and services revenue grew 3.3 percent to $33.6 million. Operating income almost doubled to $6.9 million, and gross margin improved to 52.6 percent.
Net income attributable to NETSOL was $2.95 million, or $0.25 a share, roughly flat on a year earlier, while consolidated net income rose 22.4 percent to $5.6 million. Cash climbed 56 percent to $27.1 million.
“Fiscal 2026 marked a clear step forward for NETSOL.”
Customers and caveats
The company listed a four year, $50 million contract extension with a tier one global auto captive customer, a go live in China for a tier one US auto captive, a platform upgrade at Toyota Leasing Thailand, a renewal with a multinational UK bank, and a move by BMO Equipment Finance in the US onto its Transcend Finance platform.
Some of the year's growth came from one off items. About $4.7 million of licence fees related to a renewed and amended Transcend customer agreement. Headcount fell to about 1,370 from about 1,460, and the company said an efficiency programme continues through fiscal 2027.
For fiscal 2027, NETSOL expects revenue growth of 13 to 16 percent and adjusted EBITDA growth of 15 to 25 percent. It also introduced a new measure, contracted revenue, of about $60 million, which it says is not a guaranteed floor. Reported from the company's earnings release as carried by GlobeNewswire and Pulse 2.0.
