NETSOL Technologies (NTWK)
Market Price (10/8/2026): $5.98 | Market Cap: $71.0 MilSector: Information Technology | Industry: Application Software
NETSOL Technologies (NTWK)
Market Price (10/8/2026): $5.98Market Cap: $71.0 MilSector: Information TechnologyIndustry: Application Software
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
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 -24% Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 19%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 12% Attractive yieldFCF Yield is 12% Megatrend and thematic driversMegatrends include Cloud Computing, Fintech & Digital Payments, and Automation & Robotics. Themes include Software as a Service (SaaS), Show more. | Trading close to highsDist 52W High is 0.0%, Dist 3Y High is 0.0% | Valuation getting more expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is 80% Key risksNTWK key risks include [1] significant foreign currency exposure with substantial uninsured cash held in foreign entities, Show more. |
| 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 -24% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 19%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 12% |
| Attractive yieldFCF Yield is 12% |
| Megatrend and thematic driversMegatrends include Cloud Computing, Fintech & Digital Payments, and Automation & Robotics. Themes include Software as a Service (SaaS), Show more. |
| Trading close to highsDist 52W High is 0.0%, Dist 3Y High is 0.0% |
| Valuation getting more expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is 80% |
| Key risksNTWK key risks include [1] significant foreign currency exposure with substantial uninsured cash held in foreign entities, Show more. |
Qualitative Assessment
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Updated on 10/5/2026
NETSOL Technologies (NTWK) stock has gained about 35% since 6/30/2026 because of the following key factors:
1. NETSOL Technologies reported exceptionally strong fiscal 2026 financial results, surpassing prior guidance. The company achieved record full-year revenue of $74.4 million, an increase of 12.5% year-over-year, exceeding its guidance of $73 million. Operating income nearly doubled, growing 98.4% to $6.9 million, and the operating margin expanded to 9.3% from 5.3% in the prior fiscal year. Furthermore, the gross margin improved to 52.6% from 49.3%. These results, released on September 28, 2026, demonstrated significant operational improvement and profitability.
2. The company provided robust financial guidance for fiscal 2027, signaling continued growth. NETSOL Technologies anticipates total net revenue growth of 13% to 16% over fiscal 2026, alongside projected consolidated adjusted EBITDA growth of 15% to 25%, corresponding to approximately $10.5 million to $11.4 million. This positive outlook for the current fiscal year (which began July 1, 2026) instilled investor confidence in the company's future performance.
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NETSOL Technologies (NTWK) stock has gained about 35% since 6/30/2026 because of the following key factors:
1. NETSOL Technologies reported exceptionally strong fiscal 2026 financial results, surpassing prior guidance. The company achieved record full-year revenue of $74.4 million, an increase of 12.5% year-over-year, exceeding its guidance of $73 million. Operating income nearly doubled, growing 98.4% to $6.9 million, and the operating margin expanded to 9.3% from 5.3% in the prior fiscal year. Furthermore, the gross margin improved to 52.6% from 49.3%. These results, released on September 28, 2026, demonstrated significant operational improvement and profitability.
2. The company provided robust financial guidance for fiscal 2027, signaling continued growth. NETSOL Technologies anticipates total net revenue growth of 13% to 16% over fiscal 2026, alongside projected consolidated adjusted EBITDA growth of 15% to 25%, corresponding to approximately $10.5 million to $11.4 million. This positive outlook for the current fiscal year (which began July 1, 2026) instilled investor confidence in the company's future performance.
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Updated on 10/5/2026
NETSOL Technologies (NTWK) stock has gained about 35% since 6/30/2026 because of the following key factors:
1. NETSOL Technologies reported exceptionally strong fiscal 2026 financial results, surpassing prior guidance. The company achieved record full-year revenue of $74.4 million, an increase of 12.5% year-over-year, exceeding its guidance of $73 million. Operating income nearly doubled, growing 98.4% to $6.9 million, and the operating margin expanded to 9.3% from 5.3% in the prior fiscal year. Furthermore, the gross margin improved to 52.6% from 49.3%. These results, released on September 28, 2026, demonstrated significant operational improvement and profitability.
2. The company provided robust financial guidance for fiscal 2027, signaling continued growth. NETSOL Technologies anticipates total net revenue growth of 13% to 16% over fiscal 2026, alongside projected consolidated adjusted EBITDA growth of 15% to 25%, corresponding to approximately $10.5 million to $11.4 million. This positive outlook for the current fiscal year (which began July 1, 2026) instilled investor confidence in the company's future performance.
3. A significant $50 million contract extension with a global auto captive underscored strong business momentum and recurring revenue. This substantial contract win, highlighted in the fiscal 2026 earnings report, contributes to the company's contracted revenue, which stood at approximately $60 million as of June 30, 2026. Additionally, subscription and support revenue for fiscal 2026 increased 8.7% to $35.8 million, representing 48.1% of total revenue, indicating a healthy and growing recurring revenue base.
4. Inclusion in the prestigious Russell 3000E and Russell Microcap Indexes enhanced the company's market visibility and liquidity. Effective June 29, 2026, NETSOL Technologies' addition to these indexes, announced on July 13, 2026, provided a positive catalyst for the stock by broadening its investor base and increasing its exposure to institutional funds.
Show less
NETSOL Technologies (NTWK) stock has gained about 35% since 6/30/2026 because of the following key factors:
1. NETSOL Technologies reported exceptionally strong fiscal 2026 financial results, surpassing prior guidance. The company achieved record full-year revenue of $74.4 million, an increase of 12.5% year-over-year, exceeding its guidance of $73 million. Operating income nearly doubled, growing 98.4% to $6.9 million, and the operating margin expanded to 9.3% from 5.3% in the prior fiscal year. Furthermore, the gross margin improved to 52.6% from 49.3%. These results, released on September 28, 2026, demonstrated significant operational improvement and profitability.
2. The company provided robust financial guidance for fiscal 2027, signaling continued growth. NETSOL Technologies anticipates total net revenue growth of 13% to 16% over fiscal 2026, alongside projected consolidated adjusted EBITDA growth of 15% to 25%, corresponding to approximately $10.5 million to $11.4 million. This positive outlook for the current fiscal year (which began July 1, 2026) instilled investor confidence in the company's future performance.
3. A significant $50 million contract extension with a global auto captive underscored strong business momentum and recurring revenue. This substantial contract win, highlighted in the fiscal 2026 earnings report, contributes to the company's contracted revenue, which stood at approximately $60 million as of June 30, 2026. Additionally, subscription and support revenue for fiscal 2026 increased 8.7% to $35.8 million, representing 48.1% of total revenue, indicating a healthy and growing recurring revenue base.
4. Inclusion in the prestigious Russell 3000E and Russell Microcap Indexes enhanced the company's market visibility and liquidity. Effective June 29, 2026, NETSOL Technologies' addition to these indexes, announced on July 13, 2026, provided a positive catalyst for the stock by broadening its investor base and increasing its exposure to institutional funds.
Show less
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Stock Movement Drivers
Fundamental Drivers
The 35.5% change in NTWK stock from 6/30/2026 to 10/7/2026 was primarily driven by a 61.9% change in the company's Net Income Margin (%).| (LTM values as of) | 6302026 | 10072026 | Change |
|---|---|---|---|
| Stock Price ($) | 4.62 | 6.26 | 35.5% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 72 | 74 | 3.2% |
| Net Income Margin (%) | 2.5% | 4.0% | 61.9% |
| P/E Multiple | 30.9 | 25.2 | -18.6% |
| Shares Outstanding (Mil) | 12 | 12 | -0.4% |
| Cumulative Contribution | 35.5% |
Market Drivers
6/30/2026 to 10/7/2026| Return | Correlation | |
|---|---|---|
| NTWK | 35.5% | |
| Market (SPY) | 4.1% | 3.2% |
| Sector (XLK) | 5.7% | -7.8% |
Fundamental Drivers
The 84.7% change in NTWK stock from 3/31/2026 to 10/7/2026 was primarily driven by a 46.5% change in the company's Net Income Margin (%).| (LTM values as of) | 3312026 | 10072026 | Change |
|---|---|---|---|
| Stock Price ($) | 3.39 | 6.26 | 84.7% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 70 | 74 | 6.6% |
| Net Income Margin (%) | 2.7% | 4.0% | 46.5% |
| P/E Multiple | 21.2 | 25.2 | 18.9% |
| Shares Outstanding (Mil) | 12 | 12 | -0.6% |
| Cumulative Contribution | 84.7% |
Market Drivers
3/31/2026 to 10/7/2026| Return | Correlation | |
|---|---|---|
| NTWK | 84.7% | |
| Market (SPY) | 19.8% | 12.5% |
| Sector (XLK) | 51.7% | 10.8% |
Fundamental Drivers
The 31.8% change in NTWK stock from 9/30/2025 to 10/7/2026 was primarily driven by a 32.3% change in the company's P/E Multiple.| (LTM values as of) | 9302025 | 10072026 | Change |
|---|---|---|---|
| Stock Price ($) | 4.75 | 6.26 | 31.8% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 66 | 74 | 12.5% |
| Net Income Margin (%) | 4.4% | 4.0% | -10.3% |
| P/E Multiple | 19.0 | 25.2 | 32.3% |
| Shares Outstanding (Mil) | 12 | 12 | -1.3% |
| Cumulative Contribution | 31.8% |
Market Drivers
9/30/2025 to 10/7/2026| Return | Correlation | |
|---|---|---|
| NTWK | 31.8% | |
| Market (SPY) | 17.6% | 14.6% |
| Sector (XLK) | 43.5% | 11.2% |
Fundamental Drivers
The 245.9% change in NTWK stock from 9/30/2023 to 10/7/2026 was primarily driven by a 155.7% change in the company's P/S Multiple.| (LTM values as of) | 9302023 | 10072026 | Change |
|---|---|---|---|
| Stock Price ($) | 1.81 | 6.26 | 245.9% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 52 | 74 | 41.9% |
| P/S Multiple | 0.4 | 1.0 | 155.7% |
| Shares Outstanding (Mil) | 11 | 12 | -4.7% |
| Cumulative Contribution | 245.9% |
Market Drivers
9/30/2023 to 10/7/2026| Return | Correlation | |
|---|---|---|
| NTWK | 245.9% | |
| Market (SPY) | 88.1% | 16.8% |
| Sector (XLK) | 150.1% | 15.9% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| NTWK Return | 4% | -27% | -24% | 19% | 16% | 104% | 62% |
| Peers Return | 6% | -20% | -4% | 55% | -19% | -26% | -25% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 14% | 108% |
Monthly Win Rates [3] | |||||||
| NTWK Win Rate | 50% | 33% | 25% | 42% | 58% | 50% | |
| Peers Win Rate | 64% | 47% | 47% | 68% | 50% | 40% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 50% | |
Max Drawdowns [4] | |||||||
| NTWK Max Drawdown | -32% | -34% | -46% | -21% | -46% | -22% | |
| Peers Max Drawdown | -25% | -40% | -25% | -40% | -52% | -46% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: ADSK, HIT, BMR, DSGX, EGAN. 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] 2026 data is for the year up to 10/7/2026 (YTD)
How Low Can It Go
| Event | NTWK | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -14.6% | -18.8% |
| % Gain to Breakeven | 17.1% | 23.1% |
| Time to Breakeven | 36 days | 79 days |
| Summer-Fall 2023 Five Percent Yield Shock | ||
| % Loss | -20.8% | -9.5% |
| % Gain to Breakeven | 26.3% | 10.5% |
| Time to Breakeven | 41 days | 24 days |
| 2023 SVB Regional Banking Crisis | ||
| % Loss | -27.8% | -6.7% |
| % Gain to Breakeven | 38.5% | 7.1% |
| Time to Breakeven | 265 days | 31 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -30.2% | -24.5% |
| % Gain to Breakeven | 43.2% | 32.4% |
| Time to Breakeven | 1173 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -49.5% | -33.7% |
| % Gain to Breakeven | 98.0% | 50.9% |
| Time to Breakeven | 295 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -28.0% | -19.2% |
| % Gain to Breakeven | 38.9% | 23.8% |
| Time to Breakeven | 18 days | 105 days |
In The Past
NETSOL Technologies's stock fell -14.6% during the 2025 US Tariff Shock. Such a loss loss requires a 17.1% gain to breakeven.
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Asset Allocation
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| Event | NTWK | S&P 500 |
|---|---|---|
| Summer-Fall 2023 Five Percent Yield Shock | ||
| % Loss | -20.8% | -9.5% |
| % Gain to Breakeven | 26.3% | 10.5% |
| Time to Breakeven | 41 days | 24 days |
| 2023 SVB Regional Banking Crisis | ||
| % Loss | -27.8% | -6.7% |
| % Gain to Breakeven | 38.5% | 7.1% |
| Time to Breakeven | 265 days | 31 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -30.2% | -24.5% |
| % Gain to Breakeven | 43.2% | 32.4% |
| Time to Breakeven | 1173 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -49.5% | -33.7% |
| % Gain to Breakeven | 98.0% | 50.9% |
| Time to Breakeven | 295 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -28.0% | -19.2% |
| % Gain to Breakeven | 38.9% | 23.8% |
| Time to Breakeven | 18 days | 105 days |
| 2016-2017 Trump Reflation Bond Selloff | ||
| % Loss | -37.8% | -3.7% |
| % Gain to Breakeven | 60.8% | 3.9% |
| Time to Breakeven | 364 days | 6 days |
| 2011 US Debt Ceiling Crisis & European Contagion | ||
| % Loss | -54.0% | -17.9% |
| % Gain to Breakeven | 117.4% | 21.8% |
| Time to Breakeven | 486 days | 123 days |
In The Past
NETSOL Technologies's stock fell -14.6% during the 2025 US Tariff Shock. Such a loss loss requires a 17.1% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About NETSOL Technologies (NTWK)
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NETSOL Technologies (NTWK) is a global software company that designs, develops, and markets specialized software products for the automobile financing and leasing, banking, and broader financial services industries. The company provides advanced technological solutions aimed at streamlining and automating complex credit, financing, and leasing operations for financial institutions worldwide.
NETSOL's primary offerings include NFS Ascent, a comprehensive suite of financial applications tailored for the finance and leasing sector. Key components of NFS Ascent include Omni Point of Sale, a Contract Management System (CMS), and a Wholesale Finance System (WFS), available both as traditional software and a cloud-based version (NFS Ascent On The Cloud). Additionally, the company offers NFS Digital solutions, which are mobile applications covering functions like self point of sale, mobile account management, and mobile field investigations. Another significant product is Otoz Digital Auto-Retail, a white-labelled SaaS platform built for the automotive retail industry, encompassing an API-based ecosystem and specialized portals for dealers and customers.
The company serves a diverse and high-profile customer base, including blue-chip organizations, Dow-Jones 30 Industrials, Fortune 500 manufacturers and financial institutions, vehicle manufacturers, and enterprise technology providers across various global markets. Beyond its core software platforms, NETSOL Technologies also provides essential system integration, consulting, and general IT products and services to support its clients' technological and operational requirements.
```AI Analysis | Feedback
NetSol Technologies (NTWK) is like:
- SAP for the global auto finance and leasing industry.
- Fiserv specifically tailored for vehicle financing companies.
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- NFS Ascent Suite: A comprehensive suite of financial applications for the finance and leasing industry, available both on-premise and as a cloud version.
- NFS Digital Solutions: A collection of mobile-centric applications supporting functions like self point-of-sale, account management, dealer interaction, auditing, and collections.
- Otoz Digital Auto-Retail: A white-labelled SaaS platform designed for digital automotive retail operations.
- Otoz Platform: A white-label platform offering tools such as Dealer Tool and Customer App portals, supporting the broader Otoz ecosystem.
- System Integration Services: Professional services for integrating software and IT systems into client environments.
- Consulting Services: Expert advisory services providing strategic guidance in technology and business processes.
- IT Products and Services: General information technology solutions and support.
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NETSOL Technologies (NTWK) primarily sells its software products and services to other companies. Based on the provided background information, specific names of its major customer companies are not listed.
However, the company targets and serves large organizations within the following industries and segments:
- Automobile financing and leasing industry
- Banking industry
- Financial services industry
- Vehicle manufacturers
- Enterprise technology providers
- Blue chip organizations
- Dow-Jones 30 Industrials
- Fortune 500 manufacturers and financial institutions
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Najeeb Ghauri, Founder, Chairman & Chief Executive Officer, NETSOL Technologies, Inc.
Najeeb Ghauri founded NETSOL Technologies in 1997. Prior to establishing NETSOL, he held senior divisional roles at Fortune 500 companies such as Unilever and Atlantic Richfield Corporation (ARCO). He spearheaded NETSOL's NASDAQ listing in 1999, marking it as the first Pakistani IT firm to be publicly listed in the U.S. Mr. Ghauri was also a finalist for Ernst & Young's Entrepreneur of the Year award.
Sardar Abubakr, Chief Financial Officer
Sardar Abubakr was appointed Chief Financial Officer of NETSOL Technologies, Inc. effective January 20, 2026. He brings over two decades of international leadership experience across Europe and Asia, covering finance, strategy, digital transformation, and mergers & acquisitions. Most recently, he served as Vice President of New Business Ventures and M&A at Jazz, a subsidiary of VEON Group, where he led new venture creation, strategic transactions, and major restructuring within a prominent regional digital ecosystem.
Roger Almond, Chief Accounting Officer
Roger Almond transitioned to Chief Accounting Officer of NETSOL Technologies, Inc. effective January 20, 2026, after serving as the company's Chief Financial Officer since September 2013. His prior experience includes positions as Audit Manager at Grant Thornton from 2003 to 2006 and Chief Financial Officer of Keysor Century Corporation from 1999 to 2003.
Naeem Ghauri, Co-Founder, President & Head of Global Sales, Chief Executive Officer Innovation and OTOZ
Naeem Ghauri is a co-founder of NETSOL Technologies. He previously served as the Chief Executive Officer of NetSol from August 2001 to October 2006. Before his time at NETSOL, he was a Program Director for Mercedes-Benz Finance Ltd., a subsidiary of DaimlerChrysler, overseeing multi-country technology delivery, and worked as a Senior IT Consultant with various blue-chip companies in Europe. Mr. Ghauri also founded OTOZ, Inc.
Salim Ghauri, Founder & Chief Executive Officer, NETSOL Technologies, LLC (Pakistan)
Salim Ghauri is a co-founder of NETSOL Technologies, having started NETSOL in Pakistan in 1995 or 1996. Prior to founding NETSOL, he worked as an IT consultant in Saudi Arabia and Australia. Under his leadership, NETSOL became the first company in Pakistan to achieve CMMI Level 5 status.
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The key risks to NETSOL Technologies (NTWK) include its inconsistent operating performance and profitability, the intense competition within its niche market and dependence on the cyclical health of the financing sector, and a concentration of revenue from a limited number of major customers.
- Inconsistent Operating Performance and Profitability: NETSOL Technologies has shown fluctuating financial results, including a GAAP net loss and widening operating loss in the first quarter of fiscal year 2026, which is a significant reversal from the prior fiscal year's net income. While the company is transitioning to a recurring revenue model with growth in subscription and support revenues, its overall profitability and cash flow generation have been inconsistent compared to larger SaaS competitors. Additionally, the company's gross margins are notably below the industry benchmark for pure-play SaaS companies, indicating a structural challenge in achieving higher profitability.
- Competition and Niche Market Dependence: The company operates in a highly competitive global FinTech industry, specifically targeting the asset finance and leasing sector. While this specialization is a strength, it also limits the total addressable market and ties the company's revenue streams closely to the cyclical nature of the global financing sector. NETSOL faces direct competition from other specialized software providers and more formidable indirect competition from large, diversified FinTech conglomerates that possess extensive resources for research and development, broad global reach, and the ability to offer bundled lending solutions with other financial services.
- Customer Concentration: A substantial portion of NETSOL Technologies' revenue is derived from a small number of major clients. For instance, in fiscal year 2019, approximately 53.8% of its revenue came from its two largest customers, Daimler and BMW. This significant customer concentration poses a considerable risk, as the loss of a major client or adverse business conditions affecting these key customers could have a material negative impact on the company's financial performance.
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NETSOL Technologies (NTWK) operates within several significant addressable markets related to the global leasing, financing, and automotive industries.
Here are the estimated market sizes for their main products and services:
* **Asset Finance and Leasing Software Market:** The global asset finance and leasing software market was valued at USD 1.34 billion in 2023 and is projected to reach USD 3.72 billion by 2032, growing at a compound annual growth rate (CAGR) of 12.01% from 2024 to 2032. Another estimate places the global market at USD 4.36 billion in 2025, growing to USD 8.56 billion by 2034, with a CAGR of 7.80%. North America is a significant region in this market.
* **Automotive Finance Market:** The global automotive finance market size was valued at USD 295.13 billion in 2024 and is projected to reach USD 451.71 billion by 2030, growing at a CAGR of 7.4% from 2025 to 2030. Europe dominated this market in 2024, and Asia Pacific is expected to be the fastest-growing regional market.
* **Automotive Retail SaaS Market:** The global automotive retail SaaS market size was estimated at USD 20.13 billion in 2024 and is expected to reach USD 39.43 billion by 2032, with a CAGR of 8.76%.
* **Digital Dealer Platform Market:** The global digital dealer platform market is set to rise from approximately USD 3.66 billion in 2026 to USD 11.4 billion by 2035, growing at a CAGR of 13.5% between 2026 and 2035. North America leads this market with a 45–50% share, followed by Europe with 30–33%.
* **Online Vehicle Retail Market:** The global online vehicle retail market was valued at US$ 320.4 billion in 2023 and is estimated to grow at a CAGR of 6.6% from 2024 to 2034, reaching US$ 684.2 billion by the end of 2034. North America accounted for a significant share of this global market in 2023.
* **Automotive F&I (Finance & Insurance) Software Market:** The global automotive F&I software market size was USD 1.7 billion in 2024 and is projected to reach USD 3.55 billion by 2033, exhibiting a CAGR of 8.7% during the forecast period.
* **Automotive Dealer Technology Platforms Market:** The global automotive dealer technology platforms market was valued at USD 2,690 million in 2025 and is anticipated to reach USD 4,587.5 million by 2033, expanding at a CAGR of 6.9%.
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NETSOL Technologies (NTWK) is expected to drive future revenue growth over the next 2-3 years through several key initiatives:
- Growth in Recurring Subscription and Support Revenues: NETSOL is strategically shifting its business model towards recurring subscription and support revenues, emphasizing its cloud and Software-as-a-Service (SaaS) offerings. This shift provides a more stable and predictable revenue stream, with subscription and support revenues increasing 26% in the first quarter of fiscal 2025 and 18% for the full fiscal year 2025. The company anticipates this trend to continue, with recurring subscription and support revenues forming the majority of its revenue base.
- Expansion into New Geographic Markets, particularly the U.S.: The company is actively focusing on expanding its market penetration, especially within the U.S., which it identifies as a significant market for leasing volume and automotive sales. This expansion is evidenced by a 5-year, $16 million contract secured with a major automaker in the U.S. and a $15 million five-year deal with BMW in the US in fiscal year 2024.
- Launch and Adoption of New AI-Powered Products and Platforms: Innovation through artificial intelligence is a significant driver. NETSOL has introduced new AI-powered platforms such as "Transcend" for digital retail and asset finance and "Check," an AI-enabled credit decisioning engine integrated into its loan origination platform. Investments in AI are expected to fuel growth and enhance product recognition.
- Securing Strategic Multi-Year Contracts: Recent large, multi-year contract wins provide long-term revenue visibility. Examples include a $50-million, four-year contract extension with a Tier 1 global auto captive and a significant $10M+ deal in China with a Tier-one U.S.-based auto captive. These contracts demonstrate strong client relationships and contribute to sustained revenue.
- Increase in Services Revenue from Product Implementations: Growth in services revenue, driven by new implementations for major customers, is a key indicator for future recurring revenue. Services revenue increased 40.9% in Q2 fiscal 2026, largely due to heightened implementation efforts. As these implementations transition to live operations and expand, they are expected to convert into recurring subscription and support revenues.
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Share Repurchases
- NetSol PK announced a share buyback program on January 3, 2025, to repurchase up to 10,000,000 shares, representing approximately 11.1% of outstanding shares, through June 29, 2025. As of February 10, 2025, approximately 2,358,000 shares, valued at about $1,345,000, had been repurchased.
- In fiscal year 2021, the company made share repurchases including $100.17K in September 2021, $299.93K in June 2021, and $672.43K in March 2021.
Capital Expenditures
- For the second quarter of fiscal year 2026 (ended December 31, 2025), capital expenditures were $371,000, a 20.6% decrease year-over-year.
- Over the last twelve months, capital expenditures totaled -$1.67 million.
- The company consistently invests in its product portfolio, including AI-enabled capabilities for its Transcend platform, and aims to expand its global footprint, which involves expenses such as new employee hires and platform development.
Peer Outperformance in Application Software
NTWK has outperformed 82% of its 124 Application Software peers over 5Y. Application Software ranks 11th of 12 industries in Information Technology by median 5Y return. The sector’s gains have largely come from elsewhere.
Share of Application Software constituents that NTWK has outperformed, by holding period. Peers without a full price history over a given window are excluded from that window.
1Y
87%
of 150 industry peers · 35.2% return
3Y
96%
of 139 industry peers · 227.7% return
5Y
82%
of 124 industry peers · 37.3% return
No Application Software peer with a comparable growth profile has beaten NTWK by more than 20pp over 5Y.
Median price return by industry across the Information Technology sector, ranked by 5Y. Application Software is NTWK's own industry. Use this to see which corners of the sector have carried the returns.
| Industry | Names | 1Y med | 3Y med | 5Y med | Top 3 by 5Y |
|---|---|---|---|---|---|
| Electronic Manufacturing Services | 9 | 63.7% | 185.7% | 385.5% | TTMI 870% · FLEX 767% · SANM 455% |
| Semiconductor Materials & Equipment | 27 | 91.1% | 106.8% | 126.6% | AXTI 890% · KLAC 534% · LRCX 530% |
| Technology Distributors | 9 | 48.0% | 87.7% | 97.7% | CLMB 420% · AVT 215% · SNX 175% |
| Electronic Components | 26 | 34.0% | 79.6% | 75.6% | CLS 3883% · BELFA 1307% · COHR 485% |
| Communications Equipment | 36 | 4.9% | 95.6% | 67.2% | AAOI 1705% · LITE 1220% · FEIM 882% |
| Semiconductors | 55 | 27.4% | 55.5% | 35.5% | POET 1721% · MU 1489% · NVDA 1045% |
| Technology Hardware, Storage & Peripherals | 20 | 23.6% | 112.9% | 33.9% | SMCI 1119% · DELL 1104% · STX 1064% |
| Internet Services & Infrastructure | 6 | -9.0% | 37.6% | 20.6% | DOCN 52% · VRSN 45% · GDDY 39% |
| Electronic Equipment & Instruments | 26 | -18.6% | 29.6% | -7.0% | PI 263% · KEYS 136% · VPG 114% |
| IT Consulting & Other Services | 28 | -23.3% | -10.5% | -21.5% | CHRN 520163% · TSSI 840% · APLD 826% |
| Application Software ← | 125 | -25.2% | -15.5% | -44.0% | VIDA 1459900% · INLX 4997% · PLTR 726% |
| Systems Software | 71 | -17.4% | 26.7% | -52.1% | QNC 581% · PAYS 471% · SANG 402% |
Median of constituents with a full price history over each window. Top names are unfiltered by size in this render.
Latest Trefis Analyses
| Title | |
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| ARTICLES |
Research & Analysis
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Wealth Management
Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 5.64 |
| Mkt Cap | 0.1 |
| Rev LTM | 91 |
| Op Inc LTM | 8 |
| FCF LTM | 21 |
| FCF 3Y Avg | 12 |
| CFO LTM | 21 |
| CFO 3Y Avg | 13 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 13.2% |
| Rev Chg 3Y Avg | 13.1% |
| Rev Chg Q | 11.8% |
| QoQ Delta Rev Chg LTM | 2.8% |
| Op Inc Chg LTM | 43.6% |
| Op Inc Chg 3Y Avg | 54.5% |
| Op Mgn LTM | 9.3% |
| Op Mgn 3Y Avg | 6.8% |
| QoQ Delta Op Mgn LTM | 0.9% |
| CFO/Rev LTM | 23.2% |
| CFO/Rev 3Y Avg | 14.2% |
| FCF/Rev LTM | 22.5% |
| FCF/Rev 3Y Avg | 13.7% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 0.1 |
| P/S | 1.6 |
| P/Op Inc | 18.0 |
| P/EBIT | 18.0 |
| P/E | 24.1 |
| P/CFO | 6.8 |
| Total Yield | 3.3% |
| Dividend Yield | 0.0% |
| FCF Yield 3Y Avg | 5.3% |
| D/E | 0.0 |
| Net D/E | -0.1 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | 5.3% |
| 3M Rtn | 11.1% |
| 6M Rtn | 1.9% |
| 12M Rtn | -37.6% |
| 3Y Rtn | -2.7% |
| 1M Excs Rtn | 7.3% |
| 3M Excs Rtn | 6.3% |
| 6M Excs Rtn | -13.0% |
| 12M Excs Rtn | -54.3% |
| 3Y Excs Rtn | -82.4% |
Comparison Analyses
Segment Financials
Revenue by Segment| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Single Segment | 66 | 61 | 52 | ||
| License Fees | 5 | 6 | |||
| Services | 24 | 26 | |||
| Subscription and support | 28 | 22 | |||
| Services - Related Party | 0 | ||||
| Total | 66 | 61 | 52 | 57 | 55 |
| $ Mil | 2013 | 2012 | 2011 | 2010 | 2009 |
|---|---|---|---|---|---|
| Asia Pacific | 13 | 11 | 9 | 14 | 2 |
| Europe | 1 | -0 | 3 | 1 | -2 |
| North America | 1 | 0 | 2 | 0 | -2 |
| Corporate headquarters | -3 | -3 | -4 | -5 | -4 |
| Total | 12 | 7 | 10 | 10 | -6 |
| $ Mil | 2015 | 2014 | 2013 | 2012 | 2011 |
|---|---|---|---|---|---|
| Asia Pacific | 70 | 76 | 80 | 69 | 62 |
| North America | 7 | 7 | 3 | 3 | 2 |
| Europe | 7 | 6 | 5 | 6 | 5 |
| Corporate headquarters | 5 | 5 | 14 | 14 | 17 |
| Total | 89 | 95 | 103 | 91 | 86 |
Price Behavior
Price Behavior
| Market Price | $6.26 | |
| Market Cap ($ Bil) | 0.1 | |
| First Trading Date | 09/25/1998 | |
| Distance from 52W High | 0.0% | |
| 50 Days | 200 Days | |
| DMA Price | $4.47 | $3.91 |
| DMA Trend | up | up |
| Distance from DMA | 40.0% | 60.0% |
| 3M | 1YR | |
| Volatility | 37.6% | 53.4% |
| Downside Capture | -92.02 | -2.23 |
| Upside Capture | 94.23 | 32.85 |
| Correlation (SPY) | 6.1% | 15.2% |
NTWK Betas & Captures as of 9/30/2026
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 0.78 | 0.39 | -0.03 | 0.40 | 0.57 | 0.57 |
| Up Beta | 4.11 | 1.86 | 0.89 | 1.26 | 1.37 | 0.54 |
| Down Beta | -2.82 | -1.46 | -0.72 | 0.75 | 1.41 | 0.82 |
| Up Capture | 232% | 90% | 22% | 46% | -1% | 30% |
| Bmk +ve Days | 6 | 16 | 27 | 66 | 132 | 424 |
| Stock +ve Days | 11 | 18 | 25 | 60 | 114 | 360 |
| Down Capture | -280% | -153% | -92% | -104% | -12% | 49% |
| Bmk -ve Days | 16 | 26 | 37 | 60 | 120 | 328 |
| Stock -ve Days | 8 | 19 | 32 | 55 | 118 | 344 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with NTWK | |
|---|---|---|---|---|
| NTWK | 38.4% | 53.3% | 0.80 | - |
| Sector ETF (XLK) | 40.8% | 26.5% | 1.26 | 11.8% |
| Equity (SPY) | 16.8% | 13.0% | 0.92 | 15.0% |
| Gold (GLD) | 3.2% | 29.5% | 0.11 | -14.6% |
| Commodities (DBC) | 44.6% | 20.9% | 1.66 | -14.7% |
| Real Estate (VNQ) | 1.6% | 13.7% | -0.13 | 9.8% |
| Bitcoin (BTCUSD) | -31.7% | 44.2% | -0.73 | 2.4% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with NTWK | |
|---|---|---|---|---|
| NTWK | 6.2% | 50.3% | 0.30 | - |
| Sector ETF (XLK) | 22.7% | 25.9% | 0.77 | 14.1% |
| Equity (SPY) | 13.8% | 17.1% | 0.62 | 14.9% |
| Gold (GLD) | 18.4% | 18.9% | 0.79 | -3.8% |
| Commodities (DBC) | 10.3% | 19.6% | 0.40 | -1.5% |
| Real Estate (VNQ) | 0.8% | 18.8% | -0.07 | 10.4% |
| Bitcoin (BTCUSD) | 15.5% | 52.2% | 0.46 | 5.4% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with NTWK | |
|---|---|---|---|---|
| NTWK | -0.1% | 53.0% | 0.21 | - |
| Sector ETF (XLK) | 25.0% | 25.0% | 0.90 | 15.3% |
| Equity (SPY) | 15.5% | 17.9% | 0.73 | 17.0% |
| Gold (GLD) | 11.5% | 16.4% | 0.57 | 0.4% |
| Commodities (DBC) | 8.4% | 18.1% | 0.38 | 4.7% |
| Real Estate (VNQ) | 4.2% | 20.7% | 0.16 | 12.3% |
| Bitcoin (BTCUSD) | 64.0% | 66.2% | 1.04 | 5.1% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Updated 6/2/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 10/29/2020 | -1.6% | 5.3% | 32.7% |
| SUMMARY STATS | |||
| # Positive | 0 | 1 | 1 |
| # Negative | 1 | 0 | 0 |
| Median Positive | 5.3% | 32.7% | |
| Median Negative | -1.6% | ||
| Max Positive | 5.3% | 32.7% | |
| Max Negative | -1.6% | ||
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 10/29/2020 | -1.6% | 5.3% | 32.7% |
| SUMMARY STATS | |||
| # Positive | 0 | 1 | 1 |
| # Negative | 1 | 0 | 0 |
| Median Positive | 5.3% | 32.7% | |
| Median Negative | -1.6% | ||
| Max Positive | 5.3% | 32.7% | |
| Max Negative | -1.6% | ||
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 06/30/2026 | 09/28/2026 | 10-K |
| 03/31/2026 | 05/14/2026 | 10-Q |
| 12/31/2025 | 02/12/2026 | 10-Q |
| 09/30/2025 | 11/12/2025 | 10-Q |
| 06/30/2025 | 09/29/2025 | 10-K |
| 03/31/2025 | 05/14/2025 | 10-Q |
| 12/31/2024 | 02/13/2025 | 10-Q |
| 09/30/2024 | 11/13/2024 | 10-Q |
| 06/30/2024 | 09/30/2024 | 10-K |
| 03/31/2024 | 05/20/2024 | 10-Q |
| 12/31/2023 | 02/13/2024 | 10-Q |
| 09/30/2023 | 11/07/2023 | 10-Q |
| 06/30/2023 | 09/22/2023 | 10-K |
| 03/31/2023 | 05/11/2023 | 10-Q |
| 12/31/2022 | 02/14/2023 | 10-Q |
| 09/30/2022 | 11/10/2022 | 10-Q |
| Report Date | Filing Date | Filing |
|---|---|---|
| 06/30/2026 | 09/28/2026 | 10-K |
| 03/31/2026 | 05/14/2026 | 10-Q |
| 12/31/2025 | 02/12/2026 | 10-Q |
| 09/30/2025 | 11/12/2025 | 10-Q |
| 06/30/2025 | 09/29/2025 | 10-K |
| 03/31/2025 | 05/14/2025 | 10-Q |
| 12/31/2024 | 02/13/2025 | 10-Q |
| 09/30/2024 | 11/13/2024 | 10-Q |
| 06/30/2024 | 09/30/2024 | 10-K |
| 03/31/2024 | 05/20/2024 | 10-Q |
| 12/31/2023 | 02/13/2024 | 10-Q |
| 09/30/2023 | 11/07/2023 | 10-Q |
| 06/30/2023 | 09/22/2023 | 10-K |
| 03/31/2023 | 05/11/2023 | 10-Q |
| 12/31/2022 | 02/14/2023 | 10-Q |
| 09/30/2022 | 11/10/2022 | 10-Q |
| 06/30/2022 | 09/27/2022 | 10-K |
| 03/31/2022 | 05/12/2022 | 10-Q |
| 12/31/2021 | 02/14/2022 | 10-Q |
| 09/30/2021 | 11/12/2021 | 10-Q |
| 06/30/2021 | 09/28/2021 | 10-K |
| 03/31/2021 | 05/13/2021 | 10-Q |
| 12/31/2020 | 02/16/2021 | 10-Q |
| 09/30/2020 | 11/16/2020 | 10-Q |
| 06/30/2020 | 09/28/2020 | 10-K |
| 03/31/2020 | 05/13/2020 | 10-Q |
| 12/31/2019 | 02/12/2020 | 10-Q |
| 09/30/2019 | 11/12/2019 | 10-Q |
Insider Activity
Updated 10/6/2026| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Almond, Roger Kent | CFO | Direct | Sell | 7022026 | 4.61 | 19,736 | 90,983 | 4,610 | Form |
| 2 | Ghauri, Najeeb | CEO | Direct | Buy | 5202026 | 4.02 | 5,000 | 20,120 | 3,959,612 | Form |
| 3 | Ghauri, Najeeb | CEO | Direct | Buy | 2182026 | 3.25 | 6,000 | 19,500 | 3,045,256 | Form |
| 4 | Ghauri, Najeeb | CEO | Direct | Buy | 11172025 | 2.98 | 5,950 | 17,708 | 2,770,865 | Form |
| 5 | Ghauri, Najeeb | CEO | Direct | Buy | 11172025 | 2.90 | 1,714 | 4,971 | 2,682,651 | Form |
| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Almond, Roger Kent | CFO | Direct | Sell | 7022026 | 4.61 | 19,736 | 90,983 | 4,610 | Form |
| 2 | Ghauri, Najeeb | CEO | Direct | Buy | 5202026 | 4.02 | 5,000 | 20,120 | 3,959,612 | Form |
| 3 | Ghauri, Najeeb | CEO | Direct | Buy | 2182026 | 3.25 | 6,000 | 19,500 | 3,045,256 | Form |
| 4 | Ghauri, Najeeb | CEO | Direct | Buy | 11172025 | 2.98 | 5,950 | 17,708 | 2,770,865 | Form |
| 5 | Ghauri, Najeeb | CEO | Direct | Buy | 11172025 | 2.90 | 1,714 | 4,971 | 2,682,651 | Form |
NETSOL Technologies — Investor Video Playlist
Products & Services
NETSOL Technologies | Company Overview and Transcend Platform
Products & Services
NETSOL's AI-enabled credit decisioning engine
Leadership
NETSOL Podcast: Inside the future of mobility - Industry shifts and business models shaping tomorrow
Products & Services
Customer Success Story: MINI USA (MINI of Downtown LA)
Leadership
NETSOL’s Founder and CEO Najeeb Ghauri at The Big Biz Show (5-8-2025)
Products & Services
NETSOL's AI journey
Leadership
How did NETSOL become an AI-first company? #assetfinance #autofinance #ai #equipmentfinance
Industry Resources
| Information Technology Resources |
| TechCrunch |
| Wired |
| CIO |
| MIT Technology Review |
| Gartner Insights |
| Ars Technica |
| Application Software Resources |
| Capterra |
| Software Advice |
| InfoWorld |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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Core Cache Last Updated: 10/7/2026