NetSol Technologies (NTWK) Q4 2026 earnings summary

Executive summary

• Fiscal 2026 delivered record net revenues of $74.4 million, up 12.5% year-over-year, surpassing guidance.

• Operating income nearly doubled to $6.9 million, and consolidated net income rose 22.4% to $5.6 million.

• The business is transitioning to a platform model, with recurring subscription and support revenue now about half of total revenue.

• Major contract wins and expansions, including BMO's transition to Transcend Finance, a $50 million contract extension, and deployments in the U.S., U.K., and Asia Pacific, validated the strategic direction.

• Leadership and board were strengthened with industry veterans, and operational efficiency is being enhanced through AI and automation.

Financial highlights

• Q4 revenue reached a record $20.7 million, up 12.5% year-over-year; full-year revenue was $74.4 million, up 4.5%.

• Q4 gross profit rose 27.3% to $13.2 million, with gross margin expanding to 63.6%.

• Operating margin increased 400 basis points to 9.3%; full-year gross margin expanded 330 basis points to 52.6%.

• Non-GAAP EBITDA grew 22.8% to $8 million; consolidated adjusted EBITDA increased 68.8% to $9.15 million.

• Net cash from operations was $13.9 million, and cash balance increased 56.3% to $27.1 million.

Outlook and guidance

• Fiscal 2027 guidance: net revenue growth of 13%-16%, gross margin of approximately 50% or better, and consolidated adjusted EBITDA growth of 15%-25%.

• Focus areas include scaling Transcend Retail in the U.S., embedding AI, upgrading legacy customers, and expanding with clients into new markets.

• Guidance assumes continued subscription growth, disciplined cost management, and no material acquisitions.

• Contracted revenue as of June 30, 2026, was approximately $60 million.