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
QoQ: 419.01% | YoY:17.87%
QoQ: 224.14% | YoY:334.73%
QoQ: 220.12% | YoY:316.67%
Key Insights
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: T...
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
operatingProfitMargin
8.85%
operatingCashFlowPerShare
$-0.03
freeCashFlowPerShare
$-0.06
Management Commentary
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Not available in the provided materials.
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Forward Guidance
No explicit management guidance for QQ4 2025 or beyond was included in the provided materials. In the absence of formal guidance, investors should monitor: (1) the trajectory of NFS Ascent and Otoz platform adoption and monetization, (2) continued operating discipline to convert revenue growth into cash flow, (3) any commentary on cost structure optimization and potential mix shifts, and (4) customer concentration and retention metrics. Given NetSol’s cash position and relatively modest leverage, the company could opportunistically invest in product development, partnerships, or selective business development activities if visibility on ARR growth improves. Key monitoring factors include quarterly cash conversion, accounts receivable days outstanding, and any change in working capital dynamics as platform deployment scales.