NETSOL Technologies Q3 revenue rises on recurring revenue growth

Netsol Technologies

14/05/2026 12:19

Overview

AI-enabled asset finance software firm's fiscal Q3 revenue rose 13% yr/yr to a record high

Recurring subscription and support revenue grew 11.7% yr/yr; gross margin expanded to 55.6%

Adjusted EBITDA rose 48% yr/yr, driven by higher license fees from a major contract extension

Outlook

NETSOL reaffirms fiscal 2026 full-year revenue guidance of $73 mln

Company forecasts annualized recurring revenue to rise 7% year-over-year to $35 mln

Result Drivers

LICENSE FEE RECOGNITION - Higher license fees from a one-time license investment tied to a four-year, $50 mln contract extension with a tier-one customer drove revenue growth

RECURRING REVENUE GROWTH - Recurring subscription and support revenues rose 11.7% yr/yr, supported by demand for AI-enabled Transcend Platform and digital retail solution

SERVICES REVENUE DECLINE - Services revenue fell due to timing and composition of implementation projects and absence of prior-year one-time contract amendment benefit

Company press release: ID:nGNX4J8bYj

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
$19.80 mln
Q3 EPS
$0.11
Q3 Gross Profit
$11 mln


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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.)