NetSol Technologies Reports 13.4% Revenue Growth to $17.5 Million for Q3 2025

NetSol Technologies Inc. reported its financial results for the three and nine months ended March 31, 2025, showing a significant increase in net revenues and profitability compared to the same period last year. The company generated total net revenues of $17.5 million for the three months, up 13.4% from $15.5 million in the prior year. For the nine months, revenues reached $47.7 million, a 6.1% increase from $44.9 million. The net income attributable to NetSol for the quarter was $1.4 million, compared to $327,549 in the same quarter of 2024, while the nine-month net income was $347,721, down from $766,755.

The financial performance was bolstered by a notable increase in subscription and support revenues, which rose to $7.9 million for the quarter, up from $7.1 million, and $24.7 million for the nine months, compared to $20.5 million. Service revenues also saw growth, increasing to $9.7 million for the quarter and $22.9 million for the nine months, reflecting strong demand for implementation services, particularly in the U.S. and Europe. However, license fees dropped significantly, from $558,340 in the previous year to just $1,198 for the quarter, primarily due to a lack of large software sales that were recorded in the prior year.

Operationally, NetSol has made strategic moves, including the hiring of a Vice President of Artificial Intelligence to lead its AI Labs, which aims to enhance its product offerings. The company also reported a merger of its subsidiary OTOZ Inc. with NetSol Technologies Americas, effective April 1, 2025, which is expected to streamline operations without immediate financial impact. Additionally, NetSol has entered into several contracts expected to generate significant revenue, including a $2.7 million agreement with a Chinese leasing company and a $1.7 million partnership with Sindbad Management SPC.

Despite the positive revenue growth, the company faced challenges with its operating expenses, which increased to $7.2 million for the quarter, up from $6.2 million, primarily due to higher selling, general, and administrative costs. The gross profit margin improved slightly to 49.8% from 48.3%, indicating better cost management relative to revenue. The company’s cash position at the end of the reporting period was $18.8 million, a decrease from $19.1 million at the end of June 2024, with net cash provided by operating activities showing a turnaround to $6,315 from a cash outflow of $3.6 million in the previous year.

Looking ahead, NetSol Technologies remains optimistic about its growth trajectory, citing positive trends in the automotive sales market and ongoing demand for its financial solutions. The company plans to continue investing in its technology and expanding its market presence, particularly in the Asia-Pacific region, while managing its operational costs effectively.