NETSOL swings to Q1 net loss as cost rise

Netsol Technologies

12/11/2025 13:54

Overview

NETSOL fiscal Q1 2026 revenue grows 2.8% yr/yr, driven by subscription and support growth

Company reports GAAP net loss of $2.4 mln for fiscal Q1 2026 vs year-ago profit

Loss from operations for fiscal Q1 2026 was $1.8 mln, up from $0.76 mln last year

Outlook

Company did not provide specific financial guidance for future periods

Result Drivers

SUBSCRIPTION GROWTH - Co reports 9.4% increase in subscription and support revenues, indicating traction in recurring revenue model

OPERATING EXPENSES - Higher operating expenses impacted profitability, with expenses rising to $7.8 mln from $7.3 mln

GROSS MARGIN COMPRESSION - Gross profit margin decreased to 39.4% from 45% due to increased costs

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
$15 mln
Q1 EPS
-$0.20
Q1 Net Income
-$2.40 mln
Q1 Adjusted EBITDA
-$1.80 mln
Q1 Gross Profit
$5.90 mln
Q1 Operating Expenses
$7.80 mln


Press Release: ID:nGNX3grrqF

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)