- NETSOL Technologies (NTWK, Financial) reported a 13% increase in revenues to $17.5 million for Q3 FY2025.
- Service revenues soared by 24%, while subscription and support revenues rose by 10%.
- Net income saw an impressive 326% rise to $1.4 million compared to the previous year.
NETSOL Technologies, Inc. (NTWK) reported robust financial performance for the third quarter of fiscal year 2025, with total net revenues jumping 13% year-over-year to $17.5 million. The company's strong performance was primarily driven by a significant 24% increase in service revenues, which totaled $9.7 million. Meanwhile, subscription and support revenues grew by 10% to $7.9 million, highlighting the company's successful execution of its subscription-based service model.
Notably, NETSOL's net income for the quarter surged to $1.4 million, or $0.12 per share, marking a substantial increase from the $328,000, or $0.03 per share, recorded in Q3 FY2024. This remarkable improvement in profitability was supported by an expanded gross margin of 50%, up from 48% in the prior year period.
The company's balance sheet remains healthy with cash and cash equivalents totaling $18.8 million as of March 31, 2025. However, this reflects a slight decrease from the $19.1 million reported as of June 30, 2024, indicating ongoing investments in growth initiatives and operational capabilities.
Among the strategic advancements, NETSOL secured new multi-million-dollar contracts in Oman and Indonesia, reinforcing its market presence and capabilities in delivering digital finance solutions. Additionally, the company successfully implemented its Transcend Finance platform for a Japanese client in Australia, showcasing its expertise in global financial technology.
These achievements underscore NETSOL's ongoing transformation towards a subscription-driven revenue model, although the subscription and support segment's share of total sales decreased slightly to 45% from 46% in the previous year, suggesting that the transition is a work in progress.
