NTWK · NetSol Technologies, Inc.

NetSol Technologies reported record quarterly revenue of $19.8 million for Q3 fiscal 2026, a 13% increase year-over-year, driven primarily by a one-time license fee of $4.7 million from a four-year, $50 million contract extension with a tier-one global auto captive customer. Recurring subscription and support revenue grew 11.7% to $8.8 million, reflecting continued momentum in the company's AI-enabled Transcend Platform. Services revenue declined to $6.3 million from $9.7 million in the prior-year period, partly due to a one-time $2.4 million pickup in the prior year from a customer contract amendment. Gross margin expanded significantly to 55.6% from 49.8%, benefiting from the high-margin license revenue. Non-GAAP EBITDA grew 48.2% to $3.4 million, with margin improving to 17.2% from 13.1%. GAAP net income attributable to NETSOL was $1.3 million ($0.11 diluted EPS), compared to $1.4 million ($0.12) in the prior year, with the slight decline attributed to a higher income tax provision. Management highlighted the strategic importance of the $50 million contract extension and the growing contribution of Transcend Retail to recurring revenue. The company reaffirmed its full-year fiscal 2026 revenue guidance of approximately $73 million, signaling confidence in sustained growth.