NetSol 2Q Revenues Soar 21.1% to $18.8M As Guidance Rises to $73M
NetSol Technologies reported 2Q fiscal 2026 revenues of $18.8 million, up 21.1% year-over-year driven by 40.9% services growth and 5.1% subscription revenue gains, lifting gross profit margin to 48%. Management raised full-year revenue guidance to about $73 million and highlighted AI-enabled platform momentum and U.S. auto market traction.
1. Q2 Financial Results
NetSol reported 2Q fiscal 2026 net revenues of $18.8 million, a 21.1% increase from $15.5 million a year earlier. Subscription and support revenues rose 5.1% to $9.1 million, while services revenues climbed 40.9% to $9.6 million, reflecting active implementations of its Transcend platforms.
2. Profitability and Margins
Gross profit increased to $9.0 million, representing a 48% margin compared with 44.5% a year ago, thanks to improved operating efficiency. Operating income reached $1.3 million versus a $0.5 million loss in the prior year, and non-GAAP EBITDA turned positive at $1.7 million.
3. Guidance and Outlook
Management raised fiscal 2026 revenue guidance to nearly $73 million, citing a robust sales pipeline and growing adoption of multi-year contracts. Leadership emphasized expected margin improvements and operating leverage as AI investments and go-to-market initiatives scale.
4. Leadership Changes and Strategic Investments
The company appointed Sardar Abubakr as CFO to strengthen financial oversight, while investing in AI capabilities such as the ‘Check’ credit decisioning tool. NetSol highlighted traction in the U.S. automotive dealer market for its Transcend Retail platform.