NetSol Technologies Q3 revenue rises to $19.8M; subscription revenue up 11.7%
NetSol Technologies posted record Q3 revenue of $19.8 million and increased recurring subscription and support revenue by 11.7%, driven by UK Northridge Finance and Ford China go-lives. Management reaffirmed FY26 revenue guidance of $73–74 million, reported 55.6% gross margins, and plans US dealer market expansion with AI-enabled workflows.
1. Financial Results
NetSol Technologies delivered record Q3 revenue of $19.8 million, up from the prior year, with recurring subscription and support revenue rising 11.7%. A $50 million, four-year renewal with a Tier 1 auto captive client drove a significant portion of the quarter’s revenue spike.
2. Strategic Initiatives
The unified Transcend platform underpinned growth, with successful go-lives at Northridge Finance in the UK and Ford China. Management is embedding AI into credit decisioning workflows and targeting deployment of the Transcend Retail solution across 350 US BMW dealerships over two years.
3. Outlook and Risks
NetSol reaffirmed full-year FY26 revenue guidance of $73–74 million and expects continued double-digit organic growth while evaluating M&A to accelerate US expansion. Gross margins improved to 55.6% thanks to a higher license fee mix, though a one-time $400,000 Pakistan tax charge and working capital timing remain considerations.