ENCINO, Calif., June 17, 2025 (GLOBE NEWSWIRE) -- NETSOL Technologies, Inc. (Nasdaq: NTWK), a global provider of business services and enterprise application solutions, today announced the continued expansion of its Transcend Finance platform by the financial division of one of China’s largest state-owned automotive manufacturers. This follows the automaker’s strategic acquisition of another domestic finance company, specifically to enhance its wholesale finance operations. The end-to-end deployment was fac ...

The strategic move follows the successful integration of NETSOL's Flex and Dock solutions in August 2024 and marks a significant step in Charles and Dean's commitment to scaling operations and enhancing service delivery.ENCINO, Calif., June 10, 2025 (GLOBE NEWSWIRE) -- NETSOL Technologies, Inc. (Nasdaq: NTWK), a global business services and enterprise application solutions provider, has announced that Charles and Dean, one of the United Kingdom's leading independent finance brokers, has expanded its adoptio ...

Shares of NetSol Technologies, Inc. (NTWK) have risen 14.4% since the company reported its earnings for the third quarter of fiscal 2025. This compares to the S&P 500 index’s 1.4% gain over the same time frame. Over the past month, the stock has rallied 21.2% compared with the S&P 500’s 15.4% rise.Robust Growth in NTWK’s Revenues and EarningsFor the fiscal third quarter ended March 31, 2025, NetSol Technologies reported a 13% year-over-year increase in total net revenues, reaching $17.5 million compared to ...

ENCINO, Calif., May 20, 2025 (GLOBE NEWSWIRE) -- NETSOL Technologies, Inc. (Nasdaq: NTWK), a global business services and enterprise application solutions provider, has announced the appointment of Richard Howard, a distinguished automotive executive with an extensive leadership track record at Daimler Financial Services, to its Advisory Board. While Richard joins NETSOL in the capacity of an Advisory Board Member, his involvement will go far beyond a traditional advisory role. He will play an active part i ...

NETSOL Technologies, Inc. (NASDAQ:NTWK) Q1 2025 Earnings Conference Call May 14, 2025 9:00 AM ET Company Participants Patti McGlasson - General Counsel Najeeb Ghauri - Founder, Chairman, and CEO Roger Almond - CFO Conference Call Participants Todd Felty - Stonix Wealth Management Operator Good morning, and welcome to NETSOL Technology's Fiscal Third Quarter 2025 Earnings Conference Call. On the call today are Najeeb Ghauri, Founder, Chairman, and Chief Executive Officer, Roger Almond, Chief Financial Office ...

NetSol (NTWK) Q3 2025 Earnings Call May 14, 2025 09:00 AM ET Company Participants Patti McGlasson - Senior VP of Legal & Corporate Affairs, Corporate Secretary and General CounselNajeeb Ghauri - Founder, Chairman and Chief Executive OfficerRoger Almond - CFOTodd Felte - SVP - Branch Manager Operator Good morning, and welcome to Netsoul Technologies Fiscal Third Quarter twenty twenty five Earnings Conference Call. On the call today are Najeeb Ghauri, Founder, Chairman and Chief Executive Officer Roger Allman ...

Financial Data and Key Metrics Changes - Total net revenues for Q3 fiscal year 2025 increased by 13% to $17.5 million compared to $15.5 million in Q3 fiscal year 2024 [12] - Services revenue increased by 24% to $9.7 million from $7.8 million in the prior year, driven by a contract amendment for an ongoing implementation project [13] - Subscription, SaaS, and cloud support revenues rose by 10% to $7.9 million compared to $7.1 million in the previous year [13] - Gross profit for the quarter was $8.7 million, representing 50% of total revenues, up from 48% in Q3 fiscal year 2024 [13] - GAAP net income attributable to the company was $1.4 million or $0.12 per diluted share, compared to $328,000 or $0.03 per diluted share in the prior year [14] - Non-GAAP EBITDA for Q3 fiscal year 2025 was $2.2 million or $0.19 per diluted share, compared to $767,000 or $0.07 per diluted share in the prior year [15] Business Line Data and Key Metrics Changes - The company successfully completed a major deployment of its Transcend Finance platform for a financial institution in Australia, expanding its partnership [5] - New multimillion-dollar contracts were signed with financial services providers in Oman and Indonesia, indicating growth in the company's service offerings [6][8] Market Data and Key Metrics Changes - The company is expanding its footprint in the Middle East and Indonesia, with significant contracts signed in these regions [6][8] - The successful implementation of projects in these markets is expected to serve as a model for future collaborations [6] Company Strategy and Development Direction - The company is transitioning towards a recurring revenue model and focusing on innovation, operational efficiency, and long-term value for customers and shareholders [4] - The launch of Transcend AI Labs aims to develop cutting-edge AI solutions tailored for the asset finance and leasing sectors, indicating a strategic shift towards AI [9] - The company is committed to redefining technology to drive smarter decision-making across the financial services ecosystem [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the momentum carrying into the final quarter of fiscal year 2025 and beyond, highlighting strategic investments in AI [10][19] - The company is focused on sustainable growth and product innovation, with a positive outlook for revenue and profitability [17][19] Other Important Information - The annual meeting for shareholders is scheduled for June 24, 2025, encouraging participation and voting on proposals [18] Q&A Session Summary Question: Expectations for subscription and support revenue growth - Management expects subscription and support revenue to continue growing due to positive trends in SaaS revenue [21] Question: Guidance for revenue and earnings for the next fiscal year - Management indicated that they plan to provide revenue and earnings guidance as they close the year, expressing optimism about future performance [22][23] Question: Plans for investor relations and analyst coverage - Management is currently satisfied with in-house investor relations but will consider external options in the next fiscal year [24]

Financial Performance - NetSol Technologies reported a strong performance in the asset finance and leasing sector, serving over 30 countries with advanced AI and cloud solutions[142]. - NetSol's total net revenues for the quarter ended March 31, 2025, were $17.54 million, a 13.4% increase from $15.46 million in the same quarter of 2024[179]. - Subscription and support fees increased to $7.89 million, up 10.5% from $7.14 million year-over-year[184]. - Services income rose to $9.65 million, reflecting a 24.2% increase from $7.77 million in the prior year[185]. - Gross profit for the quarter was $8.74 million, an increase of 17.0% from $7.47 million, with a gross profit margin of 49.8% compared to 48.3% in the previous year[186]. - Net income attributable to NetSol was $1.42 million, a significant increase from $327,549 in the same quarter of 2024, representing a 335.5% year-over-year growth[179]. - Total net revenues for the nine months ended March 31, 2025, were $47,679,116, compared to $44,944,638 for the same period in 2024, an increase of 6.1%[200]. - Gross profit for the nine months ended March 31, 2025, was $22,226,226, compared to $20,812,574 for the same period in 2024, an increase of 6.8%[208]. - Net income was $1,423,968 for the three months ended March 31, 2025, compared to $327,549 for the same period in 2024, representing a significant increase of 334.5%[198]. Revenue Sources - The company’s primary revenue sources include licensing, subscriptions, and support of its Transcend™ Finance applications, which cater to blue-chip organizations and financial institutions[144]. - NetSol is committed to Tier-2 and Tier-3 banks, offering innovative cloud solutions without license fees, enabling rapid deployments and scalability[146]. - The company secured contracts expected to generate approximately $4.4 million in revenues, including $2.7 million from a Chinese leasing company and $1.7 million from a partnership with Sindbad Management SPC[175]. Operational Efficiency - The Transcend™ Platform is an AI-powered solution that automates and optimizes asset sales, financing, and leasing processes, enhancing decision-making through predictive insights[155]. - NetSol's product suite includes advanced tools for loan origination, servicing, and wholesale finance, designed to streamline operations and improve portfolio management[158][160]. - The company emphasizes the importance of hiring and retaining top talent to ensure client satisfaction and successful service delivery[147]. - NetSol's Transcend™ AI Labs focus on integrating advanced AI services into its product offerings, driving innovation in the BFSI and automotive sectors[173]. Cost Management - Salaries and consultant fees increased by $968,018, reflecting annual salary raises, with salaries as a percentage of sales rising from 37.5% to 38.6%[187]. - Travel expenses decreased to $451,895, down 43.5% from $799,560 in the previous year, indicating improved cost management[188]. - Operating expenses increased to $7,188,375 for the three months ended March 31, 2025, compared to $6,156,917 for the same period in 2024, representing a 16.7% increase[190]. - Selling expenses rose to $2,426,083 for the three months ended March 31, 2025, up from $1,830,025 in 2024, an increase of 32.6%[191]. - General and administrative expenses increased to $4,457,504 for the three months ended March 31, 2025, compared to $3,981,310 for the same period in 2024, a rise of 12.0%[193]. - Research and development costs decreased to $304,788 for the three months ended March 31, 2025, down from $345,582 in 2024, a decrease of 11.8%[194]. Cash Flow and Financial Position - Cash position was $18,774,739 at March 31, 2025, compared to $19,127,165 at June 30, 2024[229]. - Net cash provided by operating activities was $6,315 for the nine months ended March 31, 2025, compared to net cash used of $3,602,677 for the nine months ended March 31, 2024[230]. - Accounts receivable decreased from $13,049,614 at June 30, 2024 to $5,443,498 at March 31, 2025[230]. - Revenues in excess of billings increased from $13,638,547 at June 30, 2024 to $15,424,896 at March 31, 2025[230]. - Average days sales outstanding improved to 137 days for the nine months ended March 31, 2025, down from 147 days in the same period of 2024[231]. - Net cash used in investing activities was $843,044 for the nine months ended March 31, 2025, compared to $822,451 for the same period in 2024[232]. - Net cash provided by financing activities increased significantly to $866,299 for the nine months ended March 31, 2025, from $33,612 in the prior year[233]. - Cash, cash equivalents, and marketable securities totaled approximately $18.8 million as of March 31, 2025, down from $19.1 million as of June 30, 2024[234]. Strategic Initiatives - The company has a strong presence in North America, Europe, and Asia Pacific, leveraging its global operations to maintain close customer relationships and market understanding[151]. - NetSol has strategically placed offices worldwide, enhancing its ability to provide localized support and services to clients[149]. - NetSol's commitment to sustainability and ethical business practices positions it as a trusted partner for leading firms globally[143]. - Anticipated capital expenditure needs for the next 12 months are estimated at $1.5 million for new business development and infrastructure enhancements in APAC, the U.S., and Europe[236]. - The UK subsidiary, NTE, has an approved overdraft facility of £300,000 ($389,610) with specific financial covenants related to trade debtors[238]. - NetSol PK has an approved export refinance facility amounting to Rupees 1.3 billion ($4,649,333) with covenants requiring a long-term debt equity ratio of 60:40[238]. - The company is in compliance with all financial covenants associated with its borrowings as of the date of the report[239]. - There have been no significant changes to the company's accounting policies and estimates since the last annual report[240]. - No recent accounting pronouncements have had a material impact on the consolidated financial statements[241].

Core Viewpoint - NETSOL Technologies, Inc. reported solid performance in the third fiscal quarter of 2025, highlighting strong growth in services revenue and subscription business, driven by increasing demand for digital finance solutions [2][10]. Financial Performance - Total net revenues for Q3 FY2025 increased by 13% to $17.5 million, compared to $15.5 million in the prior year [3][10]. - Subscription and support revenues rose by 10% to $7.9 million, while services revenues increased by 24% to $9.7 million [4][5][10]. - Gross profit for the quarter was $8.7 million, representing 50% of net revenues, up from $7.5 million or 48% in Q3 FY2024 [5][10]. - Operating expenses were $7.2 million, accounting for 41% of sales, compared to $6.2 million or 40% in the prior year [6][10]. - GAAP net income attributable to NETSOL was $1.4 million, or $0.12 per diluted share, compared to $328,000, or $0.03 per diluted share in Q3 FY2024 [7][10]. - Non-GAAP EBITDA for Q3 FY2025 was $2.2 million, or $0.19 per diluted share, compared to $767,000, or $0.07 per diluted share in the prior year [8][10]. Balance Sheet and Capital Structure - As of March 31, 2025, cash and cash equivalents were $18.8 million, slightly down from $19.1 million as of June 30, 2024 [9][10]. - Working capital was $23.7 million as of March 31, 2025, compared to $23.6 million as of June 30, 2024 [9][10]. Management Commentary - Management emphasized a focus on innovation and operational efficiency, noting significant contracts signed with financial services providers in Oman and Indonesia, indicating growing client confidence [11][10]. - The company aims to continue executing its strategy for sustainable growth and product innovation while delivering long-term value to shareholders [11][10].

Core Points - NETSOL Technologies, Inc. will hold a conference call on May 14, 2025, at 9:00 AM ET to discuss its financial results for the fiscal third quarter of 2025, which ended on March 31, 2025 [1] - The conference call will include a question-and-answer session following the financial results discussion [1] - The call will be accessible via toll-free and international dial-in numbers, with a replay available approximately three hours after the call ends [2][3] Company Overview - NETSOL Technologies is a global leader in providing advanced solutions for the asset finance and leasing industry, serving clients in over 30 countries [3] - The company has been at the forefront of technology since its inception in 1996, focusing on innovations in asset finance solutions and utilizing AI and cloud services [3] - NETSOL is recognized for its industry expertise, customer-centric approach, and commitment to excellence, fostering strong partnerships with clients [3]