Earnings Releases·Nov 13, 2026, 2:39 PM ET

NETSOL Technologies — Fiscal First Quarter 2027 Earnings Summary

Total net revenues rose 9.3% year-over-year to $16.4 million, while gross margin expanded 1,100 basis points to 50.5% and the company returned to profitability with GAAP net income of $0.16 million versus a $2.36 million loss in the prior year.
Management provided a fiscal 2027 outlook assuming continued subscription growth and disciplined cost management with no material acquisitions, while noting that revenue and gross margin reached their highest first-quarter levels in five years.
The board of the majority-owned subsidiary NETSOL Technologies Limited recommended a share buy-back of up to 4,000,000 shares (approx. 4.45% of capital), subject to shareholder approval in December 2026.
The company is evaluating strategic alternatives, including a potential sale or wind-down, for subsidiary Virtual Lease Services Limited (VLS), which contributed 1.7% of consolidated revenues and may result in unestimated disposal losses.
Operating cash outflow of $5.6 million was driven by working capital changes, including decreases in contract liabilities and increases in contract assets, though liquidity remains sufficient to fund operations through the year.