Q2 2026 NetSol Technologies Inc Earnings Call Transcript
Key Points
- Total net revenues increased by 21% year-over-year to $18.5 million, driven by higher services revenues and growth in recurring subscription and support revenues.
- Services revenue grew by 41%, primarily from new implementations from major customers.
- The company launched 'Check', an AI-enabled credit decisioning engine, which is expected to modernize credit underwriting and expand long-term revenue opportunities.
- A $50 million 4-year contract extension with a Tier 1 global auto captive was secured, reinforcing customer trust and providing meaningful revenue visibility.
- The company reported a strong balance sheet with a current ratio of 2.3, reflecting strong liquidity and substantial flexibility for growth initiatives.
- Cost of sales increased to $9.8 million, reflecting increased salaries and travel costs, although the margin has improved.
- GAAP net loss attributable to NetSol for the six months totaled $2.1 million, compared to a GAAP net loss of $1.1 million in the prior year period.
- Non-GAAP EBITDA for the six months ended December 31, 2025, was a loss of $0.1 million, indicating ongoing challenges in achieving profitability.
- The company faces macroeconomic and currency dynamics that remain a consideration for future performance.
- Non-controlling interest took a significant chunk out of earnings per share, impacting overall profitability.
Good morning, and welcome to the NetSol Technologies second quarter and six months ended December 31, 2025, earnings conference call. On the call today are Founder and Chief Executive Officer of NetSol Technologies, Inc., Najeeb Ghauri; Co-Founder and President, Naeem Ghauri; Chief Financial Officer, Sardar Abubakr; and Senior Vice President, Legal and Corporate Affairs, General Counsel and Corporate Secretary, Patti McGlasson.
I will now hand the call over to Patti, who will provide the necessary disclaimers regarding forward-looking statements made during today's call. Patti, please go ahead.
Good morning, everyone, and thank you for joining us today. After we review the company's business highlights and financial results for the second quarter and six months ending December 31, 2025, we will open the call for questions.
Before we begin, I'd like to remind you that our remarks today may include forward-looking
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