NETSOL Technologies (NTWK)
Market Price (12/4/2025): $2.87 | Market Cap: $33.6 MilSector: Information Technology | Industry: Application Software
NETSOL Technologies (NTWK)
Market Price (12/4/2025): $2.87Market Cap: $33.6 MilSector: Information TechnologyIndustry: Application Software
Investment Highlights
Why It Matters
Which of these 2 stories sounds closer for this stock?
1. Generates cash flow
The stock generated 4% or more of the share price (called cash flow yield), and shows moderate 10-15% or more growth.
2. Riding a trend
Think Tesla during the pandemic of 2020 when EVs were riding a cultural high, or Nvidia in the current AI boom, or even Figma. These companies don’t have enough yield, or, enough growth, or both - however - they are riding a trend. They have momentum. These can be more volatile - they don’t have the floor of strong cash flow
| Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 5.3% | Weak multi-year price returns2Y Excs Rtn is -14%, 3Y Excs Rtn is -78% | Expensive valuation multiplesP/CFOPrice/(Cash Flow from Operations). CFO is cash before capital expenditures. is 124x |
| Cash is significant % of market capNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is -15% | Not cash flow generativeFCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is -1.4% | |
| Megatrend and thematic driversMegatrends include Cloud Computing, Fintech & Digital Payments, and Automation & Robotics. Themes include Software as a Service (SaaS), Show more. | Valuation getting more expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is 88% |
| Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 5.3% |
| Cash is significant % of market capNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is -15% |
| Megatrend and thematic driversMegatrends include Cloud Computing, Fintech & Digital Payments, and Automation & Robotics. Themes include Software as a Service (SaaS), Show more. |
| Weak multi-year price returns2Y Excs Rtn is -14%, 3Y Excs Rtn is -78% |
| Expensive valuation multiplesP/CFOPrice/(Cash Flow from Operations). CFO is cash before capital expenditures. is 124x |
| Not cash flow generativeFCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is -1.4% |
| Valuation getting more expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is 88% |
Valuation, Metrics & Events
NTWK Stock
Why The Stock Moved
Qualitative Assessment
AI Generated Analysis | Feedback
Here are five key points explaining the approximate -28.4% movement in NETSOL Technologies (NTWK) stock from August 31, 2025, to December 4, 2025:
1. Disappointing Q1 Fiscal 2026 Financial Results.
On November 12, 2025, NETSOL Technologies reported a net loss of $2.4 million for the first quarter of fiscal 2026, a contrast to the net income in the prior year period. The company also experienced a loss from operations of $1.8 million, attributed to a higher operating expense ratio and a temporary compression in gross margins, despite an overall increase in total net revenues.
2. Bearish Analyst Sentiment and Downgrades.
During the latter part of 2025, Wall Street analysts maintained a "Sell" rating for NTWK, with one analyst predicting a substantial downside of -100.00% based on 12-month stock forecasts. This negative outlook contributed to an overall bearish sentiment surrounding the stock.
Stock Movement Drivers
Return vs. Risk
Price Returns Compared
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| NTWK Return | -5% | 4% | -27% | -24% | 19% | 11% | -27% |
| Peers Return | 11% | -5% | 1% | 16% | 54% | 849% | 1705% |
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 16% | 112% |
Monthly Win Rates [3] | |||||||
| NTWK Win Rate | 42% | 50% | 33% | 25% | 42% | 60% | |
| Peers Win Rate | 18% | 17% | 26% | 41% | 32% | 30% | |
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 70% | |
Max Drawdowns [4] | |||||||
| NTWK Max Drawdown | -49% | -2% | -27% | -39% | -6% | -17% | |
| Peers Max Drawdown | -17% | -12% | -9% | -18% | -8% | -41% | |
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | |
[1] Cumulative total returns since the beginning of 2020
[2] Peers: PLUS, IMMR, BMR, BTTC, CCC. See NTWK Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2025 data is for the year up to 12/3/2025 (YTD)
How Low Can It Go
| Event | NTWK | S&P 500 |
|---|---|---|
| 2022 Inflation Shock | ||
| % Loss | -69.0% | -25.4% |
| % Gain to Breakeven | 222.3% | 34.1% |
| Time to Breakeven | Not Fully Recovered days | 464 days |
| 2020 Covid Pandemic | ||
| % Loss | -54.1% | -33.9% |
| % Gain to Breakeven | 117.8% | 51.3% |
| Time to Breakeven | 301 days | 148 days |
| 2018 Correction | ||
| % Loss | -65.9% | -19.8% |
| % Gain to Breakeven | 193.3% | 24.7% |
| Time to Breakeven | Not Fully Recovered days | 120 days |
| 2008 Global Financial Crisis | ||
| % Loss | -94.4% | -56.8% |
| % Gain to Breakeven | 1683.3% | 131.3% |
| Time to Breakeven | Not Fully Recovered days | 1480 days |
Compare to PLUS, IMMR, BMR, BTTC, CCC
In The Past
NETSOL Technologies's stock fell -69.0% during the 2022 Inflation Shock from a high on 11/8/2021. A -69.0% loss requires a 222.3% gain to breakeven.
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Latest Trefis Analyses
| Title | |
|---|---|
| ARTICLES |
Trade Ideas
Select past ideas related to NTWK. For more, see Trefis Trade Ideas.
| Date | Ticker | Company | Category | Trade Strategy | 6M Fwd Rtn | 12M Fwd Rtn | 12M Max DD |
|---|---|---|---|---|---|---|---|
| 11302025 | ENPH | Enphase Energy | Dip Buy | DB | CFO/Rev | Low D/EDip Buy with High Cash Flow MarginsBuying dips for companies with significant cash flows from operations and reasonable debt / market cap | 0.9% | 0.9% | -0.9% |
| 11262025 | PD | PagerDuty | Dip Buy | DB | FCF Yield | Low D/EDip Buy with High Free Cash Flow YieldBuying dips for companies with significant free cash flow yield (FCF / Market Cap) and reasonable debt / market cap | 0.8% | 0.8% | 0.0% |
| 11212025 | CRM | Salesforce | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | 3.3% | 3.3% | -0.1% |
| 11212025 | HUBS | HubSpot | Dip Buy | DB | CFO/Rev | Low D/EDip Buy with High Cash Flow MarginsBuying dips for companies with significant cash flows from operations and reasonable debt / market cap | 5.1% | 5.1% | 0.0% |
| 11212025 | FIVN | Five9 | Dip Buy | DB | FCF Yield | Low D/EDip Buy with High Free Cash Flow YieldBuying dips for companies with significant free cash flow yield (FCF / Market Cap) and reasonable debt / market cap | 4.0% | 4.0% | 0.0% |
| Date | Ticker | Company | Category | Trade Strategy | 6M Fwd Rtn | 12M Fwd Rtn | 12M Max DD |
|---|---|---|---|---|---|---|---|
| 11302025 | ENPH | Enphase Energy | Dip Buy | DB | CFO/Rev | Low D/EDip Buy with High Cash Flow MarginsBuying dips for companies with significant cash flows from operations and reasonable debt / market cap | 0.9% | 0.9% | -0.9% |
| 11262025 | PD | PagerDuty | Dip Buy | DB | FCF Yield | Low D/EDip Buy with High Free Cash Flow YieldBuying dips for companies with significant free cash flow yield (FCF / Market Cap) and reasonable debt / market cap | 0.8% | 0.8% | 0.0% |
| 11212025 | CRM | Salesforce | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | 3.3% | 3.3% | -0.1% |
| 11212025 | HUBS | HubSpot | Dip Buy | DB | CFO/Rev | Low D/EDip Buy with High Cash Flow MarginsBuying dips for companies with significant cash flows from operations and reasonable debt / market cap | 5.1% | 5.1% | 0.0% |
| 11212025 | FIVN | Five9 | Dip Buy | DB | FCF Yield | Low D/EDip Buy with High Free Cash Flow YieldBuying dips for companies with significant free cash flow yield (FCF / Market Cap) and reasonable debt / market cap | 4.0% | 4.0% | 0.0% |
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons for NETSOL Technologies
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 5.10 |
| Mkt Cap | 0.2 |
| Rev LTM | 1,026 |
| Op Inc LTM | 65 |
| FCF LTM | 86 |
| FCF 3Y Avg | 166 |
| CFO LTM | 93 |
| CFO 3Y Avg | 174 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 9.2% |
| Rev Chg 3Y Avg | 8.4% |
| Rev Chg Q | 17.7% |
| QoQ Delta Rev Chg LTM | 4.2% |
| Op Mgn LTM | 6.3% |
| Op Mgn 3Y Avg | 6.9% |
| QoQ Delta Op Mgn LTM | 0.3% |
| CFO/Rev LTM | 4.1% |
| CFO/Rev 3Y Avg | 8.0% |
| FCF/Rev LTM | 3.8% |
| FCF/Rev 3Y Avg | 7.7% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 0.2 |
| P/S | 0.8 |
| P/EBIT | 8.0 |
| P/E | 15.4 |
| P/CFO | 72.3 |
| Total Yield | 6.5% |
| Dividend Yield | 0.0% |
| FCF Yield 3Y Avg | 4.7% |
| D/E | 0.2 |
| Net D/E | -0.1 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | -7.7% |
| 3M Rtn | -17.3% |
| 6M Rtn | -12.7% |
| 12M Rtn | -7.1% |
| 3Y Rtn | -5.3% |
| 1M Excs Rtn | -7.7% |
| 3M Excs Rtn | -21.5% |
| 6M Excs Rtn | -27.4% |
| 12M Excs Rtn | -19.9% |
| 3Y Excs Rtn | -65.8% |
Comparison Analyses
Returns Analyses
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 6302025 | 9292025 | 10-K 6/30/2025 |
| 3312025 | 5142025 | 10-Q 3/31/2025 |
| 12312024 | 2132025 | 10-Q 12/31/2024 |
| 9302024 | 11132024 | 10-Q 9/30/2024 |
| 6302024 | 9302024 | 10-K 6/30/2024 |
| 3312024 | 5202024 | 10-Q 3/31/2024 |
| 12312023 | 2132024 | 10-Q 12/31/2023 |
| 9302023 | 11072023 | 10-Q 9/30/2023 |
| 6302023 | 9222023 | 10-K 6/30/2023 |
| 3312023 | 5112023 | 10-Q 3/31/2023 |
| 12312022 | 2142023 | 10-Q 12/31/2022 |
| 9302022 | 11102022 | 10-Q 9/30/2022 |
| 6302022 | 9272022 | 10-K 6/30/2022 |
| 3312022 | 5122022 | 10-Q 3/31/2022 |
| 12312021 | 2142022 | 10-Q 12/31/2021 |
| 9302021 | 11122021 | 10-Q 9/30/2021 |
External Quote Links
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| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |