Core Insights - NETSOL Technologies, Inc. has achieved the 'National High-Tech Enterprise Certificate' for its subsidiary in China, Tianjin Nuojin Zhicheng Technology Co., Ltd., indicating strong R&D capabilities and technological innovation [1][2][7] Company Overview - NETSOL Technologies provides AI-enabled solutions for OEMs, dealerships, and financial institutions, focusing on asset sales, financing, and leasing [1][9] - The company operates under a unified global product architecture and technical standards, ensuring consistent delivery across regions [3] Certification Significance - The National High-Tech Enterprise certification reflects NETSOL's compliance with national technical and regulatory requirements, establishing a foundation for sustainable R&D and operations in China [2][6] - This certification enhances NETSOL's local R&D and delivery capabilities, allowing better support for customer needs in regulatory compliance and system stability [2][4] Operational Capabilities - NETSOL China specializes in automotive finance and leasing, with capabilities in core system R&D, project implementation, and technical support across China and the Asia-Pacific region [3][4] - The company has developed a robust system architecture to handle high-concurrency and high-availability financial business scenarios [4] Strategic Commitment - The achievement of the certification underscores NETSOL's commitment to building in-country technology capabilities aligned with global standards, enhancing its engineering culture and innovation investment [5][7] - NETSOL aims to leverage its certified local capabilities for deeper collaboration with financial institutions and automotive groups in China [5][8]

Good morning. During earnings calls this week, the CFOs of big tech companies, Meta and Microsoft, delivered a similar message: the AI race requires unprecedented capital spending, but that spending is disciplined, demand-driven, and ultimately margin-accretive rather than reckless.The companies urged investors to look past headline numbers and focus instead on utilization, long-term economics, and visible revenue traction.Meta: Spending big, signaling profitMeta CFO Susan Li emphasized the trade-off betwee ...

ENCINO, Calif., Jan. 27, 2026 (GLOBE NEWSWIRE) -- NETSOL Technologies, Inc. (Nasdaq: NTWK), a provider of AI-enabled solutions and services powering OEMs, dealerships and financial institutions to sell, finance and lease assets, has announced the deployment of its Transcend Finance platform for Northridge Finance, a division of Bank of Ireland UK, to optimize its wholesale finance capabilities. Built to simplify and automate dealer funding operations, Transcend Finance’s Wholesale Finance System provides a ...

Core Insights - NETSOL Technologies, Inc. has appointed Sardar Abubakr as Chief Financial Officer effective January 20, 2026, based in Dubai, UAE [1] - Current CFO Roger K. Almond will transition to Chief Accounting Officer, overseeing global accounting operations and SEC filings [2] Group 1: Leadership Appointment - Sardar Abubakr brings over 20 years of international leadership experience in finance, strategy, digital transformation, M&A, and operations [3] - His recent role was Vice President of New Business Ventures and M&A at Jazz, where he led strategic transactions and restructuring [3][4] - Abubakr has a history of advancing digital and financial transformation initiatives and has received a Global Innovation Award from the ITU [4] Group 2: Company Strategy and Vision - The appointment of Abubakr is seen as pivotal for NETSOL's growth, with a focus on scaling operations and enhancing financial performance [5] - The company emphasizes the importance of regional leadership teams in supporting the transition and strengthening financial operations [5] - NETSOL is recognized for its innovative solutions in the asset finance and leasing industry, serving clients across over 30 countries [6]

Core Viewpoint - NETSOL Technologies, Inc. is celebrating its 26th anniversary as a Nasdaq-listed company and its Founder and CEO, Najeeb Ghauri, will ring the Nasdaq Opening Bell on December 18, 2025, highlighting the company's contributions to global technology innovation [1][2]. Company Overview - Founded in 1996, NETSOL Technologies specializes in AI-enabled solutions for asset sale, financing, and lifecycle management, serving over 30 countries [3][5]. - The company has over 40 years of domain expertise and supports automotive dealerships with advanced retail technology [3][5]. Leadership Statement - Najeeb Ghauri expressed pride in the company's achievements and emphasized the mission to simplify complex commerce through technology, which has evolved to include cloud-native, AI-enabled platforms [4]. - The milestone at Nasdaq reflects the dedication and creativity of NETSOL's global teams and the trust from clients, partners, and investors [4]. Technological Focus - NETSOL is recognized for its innovative asset finance solutions and leverages advanced AI and cloud services to address the complex needs of the global market [5]. - The company is committed to ethical business practices and sustainability, aiming to empower businesses worldwide [5].

Core Insights - NETSOL Technologies, Inc. has signed a $50 million contract extension with a tier-one global auto captive, reinforcing a long-standing partnership since 1996 [1][5] - The contract will be recognized over a four-year term and is expected to support recurring revenue [1] Contract Details - The agreement extends the customer's use of Transcend Finance, including maintenance and licensing fees [2] - This extension builds on a previous contract signed in 2015 for over $100 million, under which NETSOL implemented its platform across 12 markets [2] Product Capabilities - Transcend Finance provides end-to-end lease and loan lifecycle capabilities, ensuring operational efficiency and compliance with regulatory demands [3] - The platform is designed for scalability and flexibility, enabling lenders and financiers to accelerate digital transformation and manage the complete finance lifecycle [4] Company Background - NETSOL Technologies has been delivering solutions for the asset finance and leasing industry since 1996, serving automotive and equipment OEMs, auto captives, and financial institutions in over 30 countries [6] - The company is recognized for its technological innovations, customer-centric approach, and commitment to excellence, fostering strong partnerships with clients [6]

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]