NetSol Technologies, Inc. filed its Form 10-Q for the quarterly period ended September 30, 2026, reporting a return to profitability with net income attributable to the company of $162,969, compared with a net loss of $2,357,288 in the same quarter a year earlier.

Key Highlights

  • Revenue growth: Total net revenues for the three months ended September 30, 2026, were $16,412,460, up from $15,011,923 for the same period in 2025, according to the filing.
  • Swing to profitability: Net income attributable to NetSol was $162,969 ($0.01 per basic and diluted share) versus a net loss of $2,357,288 ($0.21 per share) a year earlier.
  • Gross profit improvement: Gross profit was $8,281,095 for the quarter, compared with $5,911,990 in the prior-year quarter.
  • Cash position: Cash and cash equivalents stood at $19,697,789 as of September 30, 2026, down from $27,123,955 as of June 30, 2026.
  • Total assets: Total assets were $73,739,006 as of September 30, 2026, compared with $77,839,049 as of June 30, 2026.
  • Shares outstanding: The company had 12,955,328 shares issued and 12,016,297 outstanding as of November 6, 2026, with no preferred stock outstanding.

NetSol Technologies Q1 FY2027 Financial Results: Revenue, Margins, and Balance Sheet

NetSol Technologies (NASDAQ:NTWK), a Nevada-incorporated technology company headquartered in Encino, California, filed its quarterly report covering the three months ended September 30, 2026. According to the filing, total net revenues reached $16,412,460, driven by subscription and support revenue of $9,505,208, service revenue of $6,357,989, and license fees of $549,263. This compares with total net revenues of $15,011,923 for the same quarter in 2025, when license fees were $72,225.

The filing reported cost of revenues of $8,131,365, down from $9,099,933 a year earlier, producing a gross profit of $8,281,095 versus $5,911,990. Total operating expenses were $7,872,335, including selling, general and administrative expenses of $7,700,709 and research and development costs of $171,626. Income from operations was $408,760, compared with a loss from operations of $1,838,706 in the prior-year period. After accounting for other income and expenses, including interest expense of $111,360 and interest income of $301,068, net income before income taxes was $639,334. After an income tax provision of $105,126, net income was $534,208, of which $162,969 was attributable to NetSol and $371,239 to non-controlling interest.

On the balance sheet as of September 30, 2026, the filing reported total stockholders' equity of $50,447,985, including NetSol stockholders' equity of $42,013,415 and non-controlling interest of $8,434,570. The accumulated deficit narrowed to $38,175,758 from $38,338,727 at June 30, 2026. Treasury stock was recorded at $3,920,856, representing 939,031 shares. Contract assets, net, were $18,977,455 (current) and $2,483,199 (long-term). The company is classified as a non-accelerated filer and smaller reporting company.

What Was Disclosed

NetSol Technologies disclosed its unaudited condensed consolidated financial statements for the three months ended September 30, 2026, showing revenue of $16,412,460, net income attributable to the company of $162,969, and total assets of $73,739,006, with 12,016,297 shares outstanding as of November 6, 2026.