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NETSOL Technologies Reports Third Quarter Fiscal 2025 Results

• Total net revenues for Q3鈥�25 increased by 13%, reaching $17.5 million, when compared with Q3鈥�24.
• Total service revenue increased 24% in Q3鈥�25, reaching $9.7 million, when compared with Q3,鈥�24.
• Total subscription (SaaS and Cloud) and support revenues increased 10% to $7.9 million, compared to $7.1 million in the prior year period.
  
• Net profit for Q3鈥�2025 was $1.4 million.
  

ENCINO, Calif., May 14, 2025 (GLOBE NEWSWIRE) -- 听(狈补蝉诲补辩:听),听a global business services and asset finance solutions provider, reported results for the third fiscal quarter ended March 31, 2025.

鈥淲e delivered solid performance in the third quarter, with strong growth in our services revenue and continued momentum in our subscription business,鈥� said Najeeb Ghauri, Founder and CEO of NETSOL Technologies. 鈥淥ur results reflect the growing demand for our digital finance solutions and the strength of our global delivery model. As we continue transitioning toward a recurring revenue model, we remain focused on driving innovation, operational efficiency and long-term value for our customers and shareholders.鈥�

Fiscal Third Quarter 2025 Financial Results

Total net revenues for the third quarter of fiscal 2025 increased 13% to $17.5 million, compared with $15.5 million in the prior year period driven by the increases in subscription and support revenue, and services revenue. On a constant currency basis, total net revenues were $17.6 million.

Total subscription (SaaS and Cloud) and support revenues increased 10% to $7.9 million compared with $7.1 million in the prior year period. Total subscription and support revenues as a percentage of sales decreased to 45%, compared with 46% in the prior year period. Total subscription and support revenues on a constant currency basis were $7.9 million.

Total services revenues increased 24% to $9.7 million, compared with $7.8 million in the prior year period. Total services revenues on a constant currency basis were $9.6 million.

Gross profit for the third quarter of fiscal 2025 was $8.7 million or 50% of net revenues, compared to $7.5 million or 48% of net revenues in the third quarter of fiscal 2024. On a constant currency basis, gross profit was $8.7 million or 50% of net revenues as measured on a constant currency basis.

Operating expenses for the third quarter of fiscal 2025 were $7.2 million or 41% of sales compared to $6.2 million or 40% of sales for the third quarter of fiscal 2024. On a constant currency basis, operating expenses were $7.2 million or 41% of sales.

GAAP net income attributable to NETSOL was $1.4 million, or $0.12 per diluted share, compared to $328,000, or $0.03 per diluted share in Q3 of FY2024. Included in our GAAP net income in the quarter was a foreign currency exchange gain of $322,000 compared to a foreign currency exchange loss of $964,000 in the prior year period.

Non-GAAP EBITDA for the third quarter of fiscal 2025 was $2.2 million or $0.19 per diluted share, compared with non-GAAP EBITDA of $767,000, or $0.07 per diluted share in the prior year period.

Non-GAAP adjusted EBITDA for the third quarter of fiscal 2025 was $1.8 million or $0.15 per diluted share, compared with a non-GAAP adjusted EBITDA of $810,000, or $0.07 per diluted share in the third quarter of the previous fiscal year.

Balance Sheet and Capital Structure

Cash and cash equivalents were $18.8 million as of March 31, 2025, compared with $19.1 million as of June 30, 2024. Working capital was $23.7 million as of March 31, 2025, compared with $23.6 million as of June 30, 2024.

Management Commentary:

Najeeb Ghauri commented: 鈥淲e remain focused on driving innovation and operational efficiency. This quarter, a leading Japanese equipment finance company and longstanding NETSOL customer went live with NETSOL鈥檚 Transcend Finance platform in Australia. We also signed two multi-million-dollar contracts with financial services providers in both Oman and Indonesia. These wins are a clear signal of the growing confidence our clients place in us to drive their digital transformation agendas. At a time when institutions are under pressure to modernize and differentiate, our ability to consistently deliver mission-critical solutions at scale sets us apart and cements our position as a preferred technology partner for financial institutions worldwide.鈥�

Roger Almond, Chief Financial Officer of NETSOL Technologies Inc., commented: 鈥淲e delivered solid top-line growth in the third quarter, driven by continued strength in our services business and stable subscription revenue performance. We achieved double-digit revenue growth, increased gross margins and significantly improved net income. These results reinforce the strength of our operating model. As we continue to execute our strategy, we remain committed to sustainable growth, product innovation and delivering long-term value to our shareholders.鈥�

Conference Call

NETSOL Technologies management will hold a conference call on Wednesday, May 14, 2025, at 9:00 AM ET to discuss its financial results for the fiscal third quarter of 2025 (ended March 31, 2025). Following the call, management will host a question-and-answer session.

Toll-Free Dial-In: 877-407-0789
International Dial-In: 201-689-8562

The conference call will also be broadcast live and available for replay , along with additional replay access being provided through the of NETSOL鈥檚 website.

Telephone replays will be made available approximately 3 hours after the conference end time
(Replay Expiration: Wednesday, May 28, 2025, at 11:59 PM ET).

Toll-Free Replay Dial-In: 844-512-2921
International Replay Dial-In: 412-317-6671
Access ID: 13753570

About NETSOL Technologies
NETSOL Technologies is a global leader in delivering state-of-the-art solutions for the asset finance and leasing industry, serving automotive OEMs, auto captives and financial institutions across over 30 countries. Since its inception in 1996, NETSOL has been at the cutting edge of technology, pioneering innovations with its asset finance solutions and leveraging advanced AI and cloud services to meet the complex needs of the global market. Renowned for its deep industry expertise, customer-centric approach and commitment to excellence, NETSOL fosters strong partnerships with its clients, ensuring their success in an ever-evolving landscape. With a rich history of innovation, ethical business practices and a focus on sustainability, NETSOL is dedicated to empowering businesses worldwide, securing its position as the trusted partner for leading firms around the globe.

Forward-Looking Statements
This press release may contain forward-looking statements relating to the development of the Company's products and services and future operation results, including statements regarding the Company that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. The words 鈥渆xpects,鈥� 鈥渁nticipates,鈥� variations of such words, and similar expressions, identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, but their absence does not mean that the statement is not forward-looking. These statements are not guarantees of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict. Factors that could affect the Company's actual results include the progress and costs of the development of products and services and the timing of the market acceptance. The subject Companies expressly disclaim any obligation or undertaking to update or revise any forward-looking statement contained herein to reflect any change in the company's expectations with regard thereto or any change in events, conditions or circumstances upon which any statement is based.

Use of Non-GAAP Financial Measures
The reconciliation of Adjusted EBITDA to net income, the most comparable financial measure based upon GAAP, as well as a further explanation of adjusted EBITDA, is included in the financial tables in Schedule 4 of this press release.

Investor Relations Contact:
Investor Relations
(818) 222-9195