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]

Financial Data and Key Metrics Changes - Total net revenues for Q4 fiscal 2025 increased by 11.9% to $18.4 million compared to $16.4 million in the prior year period [13] - Gross profit for Q4 was $10.3 million, representing a 56% gross margin, up from 52% in the prior year quarter [13] - Total net revenues for fiscal 2025 were $66.1 million, an increase from $61.4 million in fiscal 2024 [15] - Non-GAAP EBITDA for Q4 was $4.7 million, nearly quadrupling the prior year's Q4 figure of $1.2 million [14] Business Line Data and Key Metrics Changes - Subscription and support revenues for Q4 grew by 9.9% to $8.2 million compared to $7.5 million in the same period last year [13] - Services revenues rose to $9.7 million, up from $8.4 million in the prior year period, reflecting strong project delivery [13] - Total subscription and support revenues for fiscal 2025 were $32.9 million, compared to $28 million in the previous year [15] - Services revenues for fiscal 2025 rose to $32.6 million, up from $28 million in fiscal 2024, a 16.3% increase [15] Market Data and Key Metrics Changes - The company secured a $16 million five-year contract with a major U.S. automaker to transform its dealership operations [10] - A major Chinese automotive finance company upgraded to Transcend Finance as part of a multimillion-dollar deal involving the migration of over 3 million contracts [10] - The company made its official entry into the Middle East with a deal signed with Sinbad Management, SPC in Oman [10] Company Strategy and Development Direction - The company is focused on delivering long-term value through its unified AI-powered Transcend platform and expanding its presence in key global markets [5] - The strategy includes migrating existing customers from a licensed revenue model to a recurring revenue model [6] - Continued investment in AI and automation capabilities is a priority, with the launch of Transcend AI Labs as a dedicated innovation hub [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth momentum, citing strong performance across all three regions [18] - The company plans to update guidance in the second quarter for better clarity on future expectations [23] - Management emphasized the importance of operational efficiency and financial discipline to drive sustainable growth [11] Other Important Information - The company strengthened its leadership team with key senior-level appointments to guide long-term vision [11] - Cash equivalents at fiscal year-end stood at $17.4 million, reflecting disciplined management of working capital [16] Q&A Session Summary Question: Is the recent quarter's performance an anomaly or the start of a new trend? - Management indicated confidence in continued growth momentum and a strong fiscal year [18] Question: What is the payment structure for subscription revenues? - Subscription revenues are received on a mix of annual, quarterly, and monthly bases depending on contracts [20] Question: What is the sales cycle for new contracts? - The sales cycle has lengthened, but significant work is done before contracts are signed to ensure timely implementation [21] Question: Will the company provide guidance for the next year? - Management prefers to update guidance in the second quarter for better clarity on future expectations [23]

Core Insights - NETSOL Technologies, Inc. has signed a multi-million-dollar contract with a top-tier Japanese auto captive finance company in Australia, following a competitive evaluation process where its Transcend Finance platform was selected over a competitor [1][2][6] - The agreement is structured as a long-term five-year contract based on a monthly recurring revenue model, covering operations in Australia and New Zealand [2] - This engagement builds on a long-standing relationship with the customer that dates back to 2008, highlighting NETSOL's ability to deliver stability and innovation [3] Company Overview - NETSOL Technologies specializes in AI-powered solutions for OEMs, dealerships, and financial institutions, providing services that enable the sale, finance, and lease of assets [1][7] - The Transcend Finance platform offers integrated retail and wholesale solutions, enhancing lifecycle management, digital engagement, and compliance for automotive finance companies [4] - The company has a presence in over 30 countries and is recognized for its commitment to excellence and customer-centric approach [7] Implementation Strategy - The engagement will include a specialized on-site team to support the auto captive's internal teams, ensuring a seamless implementation process [5] - NETSOL's approach allows the client to focus on daily operations while receiving comprehensive support throughout the project [5] Strategic Importance - This contract marks a significant milestone in NETSOL's expansion in the Asia-Pacific region, reinforcing its position as a trusted partner for leading automakers and their financial arms [6] - The agreement involves strategic upgrades and new deployments, showcasing NETSOL's technological leadership and innovation in the automotive finance sector [6]

Core Insights - NETSOL Technologies, Inc. has appointed Ian Smith to its Board of Directors effective July 1, 2025, enhancing its leadership team with his extensive experience in financial services and automotive finance [1][5]. Group 1: Appointment and Experience - Ian Smith brings over 30 years of global leadership experience in financial services, particularly in automotive finance and digital transformation [2]. - He previously served as CEO of BMW Group Financial Services – USA and the Americas from 2017 to 2021, managing a balance sheet exceeding $50 billion and an annual net operating income of over $600 million [2]. - Smith has held various executive roles within the BMW Group, focusing on innovation and market expansion [3]. Group 2: Current Roles and Qualifications - Currently, Smith is the President of MIP, Inc., a medical textiles company, and serves as an Executive Advisor for PEO Leadership [3]. - His qualifications include a Certificate in Company Direction from the Institute of Directors and a Postgraduate Certificate from Edinburgh Business School, reflecting his commitment to governance excellence [4]. Group 3: Strategic Vision and Contributions - The CEO of NETSOL, Najeeb Ghauri, expressed confidence that Smith's leadership experience and understanding of the global auto finance ecosystem align with the company's strategic vision [5]. - Smith aims to contribute his expertise in automotive financial services and digital transformation to support NETSOL's growth and innovation [5]. - His appointment is expected to significantly enhance NETSOL's long-term growth and shareholder value [5]. Group 4: Company Overview - NETSOL Technologies specializes in AI-powered solutions for the asset finance and leasing industry, serving clients across over 30 countries [6]. - The company has a history of innovation and ethical business practices, focusing on sustainability and customer success [6].

Core Insights - NETSOL Technologies, Inc. has appointed Dario Morelli as Vice President of Artificial Intelligence to lead its new innovation hub, Transcend AI Labs, emphasizing the company's commitment to an AI-first strategy in the asset finance and leasing sector [1][5] Group 1: Leadership Appointment - Dario Morelli brings over 15 years of experience in data, analytics, and AI from various industries, including fintech and insurance, enhancing NETSOL's capabilities in AI [2] - Morelli previously led multi-million-dollar AI initiatives at Admiral Group, improving operational efficiency across multiple countries [2] - His experience includes establishing a data analytics team at TrueLayer, which played a crucial role in the company's payments strategy and regulatory compliance [3] Group 2: Strategic Vision - The appointment of Morelli is seen as pivotal for advancing NETSOL's AI-first strategy and reinforcing its innovative position in the industry [5] - Morelli expressed enthusiasm about shaping the future of AI in asset finance, focusing on delivering AI-powered solutions that enhance internal operations and client value [5] - The company aims to leverage AI for transformative changes in operational efficiency and client experiences [5] Group 3: Company Overview - NETSOL Technologies is a global leader in asset finance and leasing solutions, serving clients in over 30 countries since its inception in 1996 [6] - The company is recognized for its technological innovations and commitment to customer success, fostering strong partnerships in a dynamic market [6] - NETSOL emphasizes ethical business practices and sustainability, positioning itself as a trusted partner for leading firms worldwide [6]