NetSol Technologies (NASDAQ:NTWK) Issues Earnings Results, Beats Estimates By $0.03 EPS

NetSol Technologies (NASDAQ:NTWK) posted its quarterly earnings results on Thursday. The software maker reported $0.11 EPS for the quarter, beating the consensus estimate of $0.08 by $0.03, Zacks reports. The company had revenue of $19.83 million for the quarter, compared to analyst estimates of $15.10 million. NetSol Technologies had a net margin of 2.74% and a return on equity of 4.68%.

Here are the key takeaways from NetSol Technologies’ conference call:

• NetSol reported a record third quarter with total net revenue of $19.8 million, up about 13% year over year, while operating income and adjusted EBITDA also improved meaningfully.
• Recurring subscription and support revenue grew 11.7% in the quarter, highlighting stronger ongoing revenue quality and the benefit of multi-year customer relationships.
• A $50 million, four-year Mercedes-Benz contract extension drove $4.7 million of license revenue in the quarter and provides additional visibility into future subscription, support, and services revenue.
• NetSol expanded its Transcend Finance footprint with go-lives at Northridge Finance in the U.K. and Ford China, and it renewed a multi-million dollar agreement with Investec Bank.
• Management reiterated full-year fiscal 2026 revenue guidance of $73 million to $74 million and said it will continue investing in Transcend Retail and AI-enabled workflow tools to drive growth.

NetSol Technologies Stock Performance

Shares of NASDAQ NTWK traded down $0.29 during midday trading on Thursday, reaching $4.15. 70,905 shares of the stock were exchanged, compared to its average volume of 41,557. The company has a quick ratio of 2.32, a current ratio of 2.32 and a debt-to-equity ratio of 0.01. The firm has a market cap of $49.22 million, a price-to-earnings ratio of 25.94 and a beta of 0.81. The firm has a 50-day simple moving average of $3.60 and a two-hundred day simple moving average of $3.38. NetSol Technologies has a twelve month low of $2.66 and a twelve month high of $5.75.

Institutional Trading of NetSol Technologies

Hedge funds have recently added to or reduced their stakes in the company. Empowered Funds LLC grew its position in NetSol Technologies by 10.7% during the fourth quarter. Empowered Funds LLC now owns 62,527 shares of the software maker’s stock valued at $189,000 after buying an additional 6,051 shares during the period. XTX Topco Ltd acquired a new position in shares of NetSol Technologies in the fourth quarter worth about $58,000. Bridgeway Capital Management LLC raised its position in shares of NetSol Technologies by 10.3% in the fourth quarter. Bridgeway Capital Management LLC now owns 65,027 shares of the software maker’s stock worth $197,000 after acquiring an additional 6,051 shares during the period. Rothschild Wealth LLC purchased a new stake in shares of NetSol Technologies during the 4th quarter worth about $303,000. Finally, Mink Brook Asset Management LLC purchased a new stake in shares of NetSol Technologies during the 4th quarter worth about $331,000. 16.02% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Separately, Weiss Ratings raised NetSol Technologies from a “sell (d)” rating to a “hold (c)” rating in a report on Thursday, February 19th. One investment analyst has rated the stock with a Hold rating, According to data from MarketBeat, the stock currently has a consensus rating of “Hold”.

NetSol Technologies Company Profile

NetSol Technologies, Inc is a publicly traded enterprise software provider specializing in asset finance and leasing solutions. Headquartered in Calabasas, California, the company was founded in 1997 by Najeeb Ghauri, who continues to serve as its chief executive officer. NetSol has built a reputation for delivering end-to-end digital solutions tailored to the finance, leasing, and rental industries, enabling clients to streamline operations, improve customer engagement, and accelerate business growth.

The company’s flagship offering, NFS Ascent, is a configurable, modular platform that supports the entire contract lifecycle—from origination and credit approval through servicing and end-of-term processing.