ENCINO, Calif., Dec. 17, 2025 (GLOBE NEWSWIRE) -- NETSOL Technologies, Inc. (Nasdaq: NTWK), a provider of AI-enabled solutions and services enabling OEMs, dealerships and financial institutions to sell, finance and lease assets, is proud to announce that its Founder and CEO, Najeeb Ghauri, has been invited to ring the Nasdaq Opening Bell on December 18, 2025, at 9:30 AM ET at the Nasdaq MarketSite in Times Square, New York City. This honor commemorates NETSOL’s 26th anniversary as a Nasdaq-listed company an ...

ENCINO, Calif., Dec. 16, 2025 (GLOBE NEWSWIRE) -- NETSOL Technologies, Inc. (Nasdaq: NTWK), a provider of AI-enabled solutions and services enabling OEMs, dealerships and financial institutions to sell, finance and lease assets, has signed a $50 million contract extension with a tier-one global auto captive, a long-standing customer with whom the company has maintained a strategic partnership since 1996. The total contract value is expected to be recognized over the four-year term and will support recurring ...

Core Insights - NETSOL Technologies has successfully deployed its Transcend Retail platform at Porsche North Houston and Jim Shorkey Nissan, enhancing digital retail capabilities for these dealerships [1][6]. Group 1: Product Overview - Transcend Retail is an omnichannel, end-to-end digital retail platform designed to transform the automotive sales process, providing a connected retail journey that improves sales and customer experience [2]. - The platform has been recognized for its modern user interface and ease of use, leading to increased lead capture and customer engagement compared to previous tools [4][7]. Group 2: Implementation and Expansion - The deployment at Porsche North Houston was completed in under five weeks, showcasing the platform's flexibility and scalability [3]. - Following the successful implementation at Porsche North Houston, five additional dealerships within Indigo Auto Group are scheduled to go live by December 1, 2025, indicating a rapid expansion of the platform [5]. Group 3: Market Impact - The adoption of Transcend Retail by Jim Shorkey Nissan reflects NETSOL's strategy to modernize the retail experience for dealerships in North America, addressing the need for operational efficiency in a competitive market [6]. - The CEO of NETSOL highlighted the partnership with premier dealership groups as a significant step towards delivering a seamless and intelligent digital automotive retail experience [8].

Core Insights - NetSol Technologies (NTWK) shares have declined 27.6% since the first-quarter fiscal 2026 earnings report, underperforming the S&P 500's 2% decrease during the same period [1] - The company reported total net revenues of $15.0 million for the September quarter, a 2.8% increase from $14.6 million a year earlier, primarily driven by growth in subscription and support revenues [2] - Profitability has weakened significantly, with gross profit falling to $5.9 million from $6.6 million, and GAAP net income swinging to a loss of $2.4 million compared to a net income of $0.07 million in the prior year [2] Revenue and Profitability Metrics - Subscription, SaaS, cloud, and support revenues rose 9.4% year over year to $9.0 million, indicating a shift towards recurring revenue streams [3] - Service revenues decreased to $6.0 million from $6.4 million, while license fees remained minimal at approximately $72,000 [3] - The gross margin compressed to 39.4% from 45%, attributed to higher delivery costs and changes in revenue mix [3] Management Commentary - Management acknowledged near-term pressures on margins and profitability but emphasized strategic progress and momentum in key markets [4] - CEO highlighted expanding traction in the recurring revenue model and increasing demand for the AI-powered Transcend platform [4] Financial Challenges - The quarter's loss was partly due to unfavorable foreign-currency movements, with a recognized foreign-exchange loss of $287,000 compared to a gain of $543,000 in the previous year [5] - Increased operating expenses to $7.8 million from $7.3 million were driven by the expansion of the global sales force and strategic technology investments [3][6] Factors Influencing Performance - Front-loaded investments in the global sales organization and seasonal impacts contributed to lower service activity and milestone-based revenue recognition [6] - The transition from a license-based model to a predominantly SaaS model affects revenue recognition timing, which may suppress near-term growth but improve long-term stability [7] Future Outlook - NetSol reaffirmed its expectation for full-year revenue growth of 5% to 7%, supported by a strengthening sales pipeline and demand for the Transcend platform [8] - Recent strategic investments are expected to enhance performance in subsequent quarters [8] Strategic Developments - The company initiated a new engagement with Sonic Automotive in the U.S. to define an omnichannel digital retail solution using the Transcend Retail platform [9] - In Asia, a strategic cooperation agreement was signed with Tianjin Binhai Smart Group to advance cross-border data and financial service initiatives [10] - NetSol supported the overseas expansion of a major Chinese leasing company through the deployment of its Transcend Finance platform in Indonesia [10]

Financial Performance - NetSol Technologies reported a strong performance in the three months ended September 30, 2025, with a focus on enhancing its asset finance solutions [135]. - Total net revenues for Q3 2025 were $15,011,923, compared to $14,598,498 in Q3 2024, representing a 2.8% increase [175]. - Subscription and support fees increased to $8,960,555 for Q3 2025, up from $8,192,471 in Q3 2024, reflecting a 9.4% increase [180]. - Gross profit decreased to $5,911,990 in Q3 2025, down from $6,564,112 in Q3 2024, a decline of 10% [182]. - Operating expenses increased to $7,750,696 in Q3 2025, compared to $7,324,270 in Q3 2024, an increase of 5.8% [187]. - Net income attributable to NetSol was $(2,357,288) in Q3 2025, compared to $70,795 in Q3 2024, reflecting a significant decline [175]. - The cost of revenues increased to $9,099,933 in Q3 2025, up from $8,034,386 in Q3 2024, an increase of 13.3% [182]. - The gross profit margin decreased from 45.0% in Q3 2024 to 39.4% in Q3 2025 [182]. - Loss from operations increased by $1,078,548 to $1,838,706, representing 12.3% of sales for the three months ended September 30, 2025, compared to a loss of 5.2% for the same period in 2024 [191]. - Net loss attributable to NetSol was $2,357,288 for the three months ended September 30, 2025, compared to net income of $70,795 for the same period in 2024, resulting in a loss per share of $0.20 [194]. Revenue Sources and Business Model - NetSol's primary revenue sources include licensing, subscriptions, and support of its Transcend™ Finance applications, which cater to leading businesses in the finance sector [142]. - The company serves over 30 countries, providing advanced AI and cloud services tailored for the asset finance and leasing industry [140]. - The Transcend™ Platform is an AI-powered solution designed to optimize asset sales, financing, and leasing processes, enhancing decision-making through predictive insights [152][153]. - The company emphasizes its commitment to Tier-2 and Tier-3 banks by offering innovative cloud solutions without license fees, enabling rapid deployment and scalability [144]. - NetSol has developed a suite of intermediary portals for brokers, lenders, and dealers to streamline operations and enhance user experience [167][168][169]. Strategic Initiatives and Future Outlook - The company plans to monitor expenditures and deploy additional resources to areas of expansion amid economic uncertainties [176]. - The company anticipates needing $1.5 million for new business development activities and infrastructure enhancements over the next 12 months [210]. - NetSol entered a strategic agreement with an existing client, expected to generate approximately $1.5 million in revenues from upgrading the legacy R1 platform [173]. Operational Efficiency and Cost Management - Selling and marketing expenses increased by $824,754 to $3,116,953 for the three months ended September 30, 2025, primarily due to salary increases and hiring additional personnel [188]. - General and administrative expenses decreased by $252,722 to $4,419,400 for the three months ended September 30, 2025, with a notable decrease in bad debt expense of $338,089 [189]. - Research and development costs decreased by $145,606 to $214,343 for the three months ended September 30, 2025 [190]. - Other expense was $162,884 for the three months ended September 30, 2025, a decrease of $1,370,568 compared to other income of $1,207,684 in the prior year, primarily due to foreign currency exchange losses [192]. Cash Flow and Financial Position - Cash position improved to $22,690,618 at September 30, 2025, up from $17,357,944 at June 30, 2025 [203]. - Net cash provided by operating activities was $5,303,561 for the three months ended September 30, 2025, compared to $5,517,745 in the prior year [204]. - The UK subsidiary has an approved overdraft facility of £300,000 ($405,405) requiring a minimum of 200% coverage by invoiced trade debtors [212]. - The company is currently in compliance with financial covenants associated with its borrowings, with potential acceleration of maturity dates if compliance is not maintained [213]. Compliance and Reporting - Financial statements are prepared in accordance with U.S. GAAP, with no significant changes to accounting policies and estimates since the last Annual Report [214]. - There are no quantitative or qualitative disclosures about market risks reported in the current financial statements [216]. Commitment to Innovation and Sustainability - The company is focused on integrating advanced technologies such as AI, ML, and data analytics into its product offerings to drive innovation and efficiency [154][171]. - NetSol's consultancy services provide expert guidance in areas like information security and cloud services, helping businesses innovate and grow [170]. - NetSol's commitment to sustainability and ethical business practices positions it as a trusted partner for leading firms globally [141].

Group 1 - The earnings conference call for NetSol Technologies for the first quarter of fiscal 2026 was conducted, featuring key executives including the CEO and CFO [2][3] - The call included a review of the company's business highlights and financial results for the specified quarter [3] - The company emphasized the importance of caution regarding forward-looking statements made during the call, which are subject to risks and uncertainties [4]

Financial Data and Key Metrics Changes - Total net revenues for Q1 fiscal 2026 increased by 2.8% to $15 million, compared to $14.6 million in the prior year period, driven by a 9.4% increase in subscription and support revenues [15][5] - Gross profit for Q1 fiscal 2026 was $5.9 million, or 39.4% of net revenues, down from $6.6 million, or 45% of net revenues in Q1 fiscal 2025 [16] - GAAP net loss attributable to the company for the quarter totaled $2.4 million, or $0.20 per diluted share, compared to a GAAP net income of $71,000, or $0.006 per diluted share in the prior year period [17] Business Line Data and Key Metrics Changes - Subscription, SaaS, and cloud support revenues increased by 9.4% to $9 million, compared to $8.2 million in the prior year period [15] - Total services revenue decreased to $6 million from $6.4 million in the prior year period [15] Market Data and Key Metrics Changes - The company achieved significant milestones in the Asia-Pacific region, including a strategic cooperation agreement in China focused on integrated financial services for the automotive industry [8] - The company maintained a sizable market share in the Chinese auto finance market and became a partner of choice for Chinese OEMs and asset finance companies looking to expand abroad [9] Company Strategy and Development Direction - The company is focused on expanding its global footprint through its AI-powered Transcend platform, aiming to simplify and optimize every stage of the asset, retail, and commercial lifecycle [20] - Ongoing investments in artificial intelligence, including the launch of CheckAI, reflect the company's commitment to intelligent automation and asset finance [6] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging operating environment due to macroeconomic headwinds, including credit tightening and rising auto loan delinquencies, but emphasized that the business fundamentals remain solid [10][13] - The company is targeting full-year revenue guidance of 5-7%, supported by a growing pipeline and investments made in its go-to-market and AI-enabled platform [13] Other Important Information - The company experienced a 36% increase in selling and marketing costs due to strategic investments in expanding its global sales organization [11] - The cash position as of September 30, 2025, was $22.7 million, providing ample liquidity to support ongoing growth initiatives [19] Q&A Session Summary - There were no questions from participants during the Q&A session, indicating a lack of immediate inquiries regarding the company's performance or outlook [23][28]

Core Insights - NETSOL Technologies, Inc. reported a total net revenue increase of 2.8% year-over-year to $15 million for the fiscal first quarter of 2026, driven by a 9.4% rise in subscription and support revenues [2][9] - The company experienced a GAAP net loss of $2.4 million or $0.20 per diluted share, compared to a net income of $0.071 million or $0.006 per diluted share in the prior year period [5][9] - Management expressed optimism regarding the growth in subscription and support revenues, indicating a solid foundation for long-term stability and profitability despite near-term pressures [9][11] Financial Performance - Total net revenues for Q1 FY2026 were $15 million, up from $14.6 million in the same period last year, with subscription and support revenues reaching $9 million, a 9.4% increase from $8.2 million [2][10] - Gross profit for the quarter was $5.9 million, representing 39.4% of net revenues, down from 45% in the prior year [3] - Operating expenses increased to $7.8 million, or 51.6% of sales, compared to $7.3 million or 50.2% of sales in Q1 FY2025 [4] Losses and Adjusted Metrics - The company reported a loss from operations of $1.8 million for Q1 FY2026, compared to a loss of $0.76 million in the same quarter of the previous year [4] - Non-GAAP EBITDA for the quarter was a loss of $1.8 million, compared to a positive EBITDA of $0.30 million in Q1 FY2025 [6][7] - Non-GAAP adjusted EBITDA also showed a loss of $1.9 million, down from a gain of $0.20 million in the prior year [7] Balance Sheet and Liquidity - As of September 30, 2025, cash and cash equivalents stood at $22.7 million, an increase from $17.4 million as of June 30, 2025 [8] - Working capital decreased to $24.9 million from $26.6 million over the same period [8] - Total stockholders' equity was reported at $35.8 million, or $3.03 per share [8] Management Commentary - CEO Najeeb Ghauri highlighted the growth in total net revenues and subscription revenues as a positive indicator of the company's recurring revenue model gaining traction [9] - CFO Roger Almond emphasized the importance of balancing strategic investments with cost discipline, noting the company's strong cash position to support growth initiatives [11]

Core Points - NETSOL Technologies, Inc. will hold a conference call on November 12, 2025, at 9:00 a.m. Eastern Time to discuss its financial results for the fiscal first quarter 2026, which ended on September 30, 2025 [1] - The conference call will include a question-and-answer session following the financial results discussion [1] - The company provides AI-powered solutions and services for OEMs, dealerships, and financial institutions in the asset finance and leasing industry [3] Company Overview - NETSOL Technologies has been delivering advanced solutions for the asset finance and leasing industry since its inception in 1996, serving automotive and equipment OEMs, auto captives, and financial institutions across over 30 countries [3] - The company is recognized for its deep industry expertise, customer-centric approach, and commitment to excellence, fostering strong partnerships with clients [3] - NETSOL is dedicated to innovation, ethical business practices, and sustainability, positioning itself as a trusted partner for leading firms globally [3]

Core Insights - NETSOL Technologies, Inc. has launched Check AI, a next-generation AI-powered credit decisioning engine aimed at transforming the credit underwriting process [1][6] - Check AI is designed to automate manual tasks, accelerate decision times, and improve underwriting accuracy, thereby enhancing the credit evaluation lifecycle [2][3] Product Features - Check AI utilizes deep reasoning, intelligent automation, and agentic workflows to convert data into actionable credit decisions in real-time [3] - The system generates comprehensive AI-driven research reports that provide insights on optimized finance structures, trend forecasting, and risk profiling [3] - A human-in-the-loop approach is integrated to ensure oversight, compliance, and fairness throughout the decision-making process [4][7] Market Impact - The use of AI in credit processing can reduce credit approval cycles by up to 60%, potentially saving companies millions of dollars [5] - Check AI positions NETSOL as a trusted technology partner for financial institutions seeking to enhance their credit operations and risk management [7] Company Background - NETSOL Technologies has been delivering advanced solutions for the asset finance and leasing industry since 1996, serving clients across over 30 countries [8] - The company is recognized for its commitment to innovation, ethical business practices, and customer-centric approach, ensuring success in a rapidly evolving market [8]