NETSOL Technologies, Inc. (Nasdaq: NTWK) announced record financial results for the fiscal year ended June 30, 2026, in a Form 8-K filed on September 28, 2026. The company reported total net revenues of $74.4 million for the full year, representing a 12.5% increase over the prior year. This figure exceeded the company’s guidance of $73 million. Subscription and support revenue increased by 8.7% to $35.8 million, while services revenue grew by 3.3% to $33.6 million. Additionally, the company reported total license fees of $5.0 million, a significant increase from $0.6 million in the prior year.
On the profitability side, the company’s full-year gross margin expanded by 330 basis points to 52.6%. Operating income nearly doubled to $6.9 million, with an operating margin of 9.3%. GAAP net income attributable to NETSOL was $2.95 million, or $0.25 per diluted share. Consolidated net income increased by 22.4% to $5.6 million. Adjusted EBITDA also saw substantial growth, rising 68.8% on a consolidated basis to $9.15 million.
For the fourth quarter of fiscal 2026, revenue reached a quarterly record of $20.7 million, a 12.5% increase year-over-year. Gross margin in the quarter expanded to 63.6%, and operating income increased by 40.2% to $4.5 million. The company also reported a significant improvement in cash flow, with operating cash flow increasing to $13.9 million for the full year, compared to $0.4 million in the prior year. As of June 30, 2026, cash and cash equivalents totaled $27.1 million, an increase of 56.3% from the previous year.
NETSOL provided guidance for fiscal 2027, projecting total net revenue growth of 13% to 16% over fiscal 2026. The company anticipates gross margins of approximately 50% or better and consolidated adjusted EBITDA growth of 15% to 25%. The company also reported contracted revenue of approximately $60 million as of June 30, 2026.
