NetSol Technologies Inc (NTWK) Q3 2025 Earnings Report

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NetSol Technologies Inc

NTWK

$2.80 -1.75%

Exchange: NASDAQ | Sector: Technology | Industry: Software Application

Q3 2025

Published: May 14, 2025

Earnings Highlights

Revenue of $17.54M up 13.5% year-over-year
EPS of $0.12 increased by 316.7% from previous year
Gross margin of 49.8%
Net income of 1.42M
"Not available in the provided materials." - N/A

NTWK

Company NTWK

Period Q3 2025

Currency USD

Report Type Quarterly Earnings

Generated Dec 8, 2025

Executive Summary

NetSol Technologies delivered a solid QQ3 2025 with revenue growth and improving margin dynamics, underscoring continued demand for its NFS Ascent and Otoz-based platforms. Revenue of USD 17.54 million rose about 13.5% year over year and 12.9% quarter over quarter, with gross profit of USD 8.74 million and a gross margin near 49.8%. Net income reached USD 1.42 million, translating to an EPS of USD 0.12, while EBITDA stood at USD 1.55 million and the operating margin approximated 8.9%. Importantly, profitability metrics improved on a year-over-year basis, albeit cash conversion remains challenged in the near term as operating cash flow was negative (USD -0.36 million) and free cash flow was negative (USD -0.69 million).

Key Performance Indicators

Revenue

Increasing

17.54M

QoQ: 12.92% | YoY: 13.45%

Gross Profit

Increasing

8.74M

49.83% margin

QoQ: 26.32% | YoY: 16.95%

Operating Income

Increasing

1.55M

QoQ: 419.01% | YoY: 17.87%

Net Income

Increasing

1.42M

QoQ: 224.14% | YoY: 334.73%

EPS

Increasing

0.12

QoQ: 220.12% | YoY: 316.67%

Revenue Trend

Margin Analysis

Financial Highlights

Revenue: USD 17,543,957; YoY +13.45%; QoQ +12.92%. Gross Profit: USD 8,741,773; Gross Margin 49.83%. Operating Income: USD 1,553,398; Operating Margin 8.85%. Net Income: USD 1,423,968; Net Margin 8.12%. EPS: USD 0.12 ( diluted ). EBITDA: USD 1,553,398; EBITDA Margin 8.85%. Cash Flow: Net cash from operations USD -363,401; Capex USD -329,609; Free Cash Flow USD -693,010. Cash and equivalents: USD 18,774,739. Total debt: USD 9,445,029; Net debt: USD -9,329,710 (net cash position). Balance sheet: Total assets USD 58,143,579; Total liabilities USD 19,247,786; Total stockholders’ equity USD 35,454,060. Liquidity: Current Ratio 2.26; Quick Ratio 2.26; Cash Ratio 1.00. Valuation: P/E 4.96; P/S 1.61; P/B 0.80; Enterprise Value/Revenue 12.2. Key drivers include NFS Ascent product suite, cloud offerings, and Otoz platform opportunities.

Income Statement

Metric	Value	YoY Change	QoQ Change
Revenue	17.54M	13.45%	12.92%
Gross Profit	8.74M	16.95%	26.32%
Operating Income	1.55M	17.87%	419.01%
Net Income	1.42M	334.73%	224.14%
EPS	0.12	316.67%	220.12%

Key Financial Ratios

Gross Profit Margin

Good

49.80%

Gross profit margin is healthy and competitive within industry standards

Operating Profit Margin

Fair

8.85%

Operating margin is moderate, room for improvement in cost management

Net Profit Margin

Fair

8.12%

Net profit margin is moderate, room for improvement in cost management

Return on Assets

Weak

2.45%

Return on assets suggests inefficient capital allocation

Return on Equity

Weak

4.02%

Return on equity suggests inefficient capital allocation

Current Ratio

Healthy

2.26

Current ratio shows adequate liquidity to meet short-term obligations

Debt to Equity

Conservative

0.27

Debt-to-equity shows conservative leverage and low financial risk

P/E Ratio

Value

4.96x

P/E ratio suggests potential undervaluation or stable earnings

Price to Book

Undervalued

0.80x

Trading below book value, potential value opportunity or distressed

Historical Earnings Comparison

Period	Revenue ($M)	EPS ($)	YoY Growth	Report
Q3 2025	17.54	0.12	+13.5%	View
Q2 2025	15.54	-0.10	+2.0%	View
Q1 2025	14.60	0.01	+2.5%	View
Q4 2024	16.45	-0.01	+19.3%	View
Q3 2024	15.46	0.03	+14.5%	View

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NetSol Technologies Inc (NTWK) Q3 2025 Earnings Report

Earnings Highlights

Executive Summary

Key Performance Indicators

Revenue Trend

Margin Analysis

Financial Highlights

Income Statement

Key Financial Ratios

Management Insights Available for Members

Peer Comparison Available for Members

Investment Outlook & SWOT Available for Members

Historical Earnings Comparison

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