Netsol Technologies (NS9B) AI Stock Analysis

Netsol Technologies

(Frankfurt:NS9B)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Revenue and Profitability ExpansionSustained revenue growth alongside sharply higher operating income indicates improving scale and execution, not merely expansion without profits. The stronger margin profile can support reinvestment, strengthen competitiveness, and improve earnings durability over the next several quarters.

Negative Factors

Volatile Historical Cash GenerationThe sharp swing from weak or negative cash generation in 2025 to a strong 2026 rebound shows that reported profitability has not yet translated into consistently predictable cash flow. Working-capital and investment timing effects could continue to complicate planning and reduce confidence in steady conversion.

Netsol Technologies (NS9B) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 91.80M
Dividend Yield: ―
Average Volume (3M): 795
Price to Earnings (P/E): 30.6
Beta (1Y): -0.05
Revenue Growth: 4.96%
EPS Growth: -3.76%
Country: Germany
Employees: 1,370
Sector: Technology
Sector Strength: 61
Industry: Software - Application

Netsol Technologies Business Overview & Revenue Model

Company Description

NetSol Technologies, Inc., established in 1997 and headquartered in Calabasas, California, is a global developer and exporter of specialized software solutions tailored for the automotive finance and leasing, banking, and broader financial services i...

Netsol Technologies Earnings Call Summary

Earnings Call Date:Nov 04, 2026(Q1-2027)|Next Earnings Date:Nov 12, 2024

Earnings Call SentimentPositive

The call was strongly positive overall. Management reported record fiscal-year revenue, substantial operating and EBITDA growth, expanded margins, improved cash generation, multiple Transcend Finance and Transcend Retail wins, continued recurring-revenue growth, and fiscal 2027 revenue and EBITDA growth guidance. The main challenges were flat net income attributable to NetSol, lower other income, increased noncontrolling interests, quarter-to-quarter variability, a recurring-revenue mix percentage below the prior year, and unresolved structural and portfolio reviews.

Positive Updates

Record Fiscal Year Revenue and Profitability

Fiscal 2026 was described as NetSol's strongest financial year in its history. Total net revenue reached $74.4 million, up 12.5% year over year and above the $73 million guidance. Non-GAAP EBITDA grew almost 23%, while income from operations nearly doubled.

Negative Updates

Recurring Revenue Mix Declined Slightly

Although subscription and support revenue increased 8.7% to $35.8 million, it represented 48.1% of total fiscal 2026 revenue versus 49.8% in the prior year because license revenue increased.

Company Guidance

For fiscal 27, NetSol currently expects net revenues to grow 13% to 16% over fiscal 26, gross margin of approximately 50% or better, and consolidated adjusted EBITDA growth of 15 to 25%, corresponding to approximately $10.5 million to $11.4 million; this guidance assumes continued subscription growth, execution of contracted implementations, disciplined cost management, and no material acquisitions, while the timing of agreements, implementation milestones, foreign exchange, customer decisions, and advanced billings can create variability between quarters.

Netsol Technologies Risk Analysis

Netsol Technologies disclosed 3 risk factors in its most recent earnings report. Netsol Technologies reported the most risks in the "Macro & Political" category.

Macro & Political - Risks related to catastrophic events or geopolitical conditions that may disrupt the company’s business

Latest Risks Added

1 New Risk

1.51ItemQ1, 2025

Netsol Technologies Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

DE:NS9B against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RSKD	66Neutral	$1.13B	-79.80	-5.70%	―	9.63%	55.51%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
PAR	61Neutral	$730.88M	-9.98	-8.73%	―	18.81%	25.45%
MITK	60Neutral	$815.36M	36.05	9.35%	―	11.10%	47.69%
CANG	39Underperform	$49.23M	-0.07	-179.72%	―	46.34%	42.87%

* Technology Sector Average

Performance Comparison

DE:NS9B and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:NS9B	Netsol	6.80	3.26	92.09%
MITK	Mitek Systems	18.07	8.93	97.70%
PAR	Par Technology	17.67	-17.92	-50.35%
CANG	Cango Inc	1.20	-36.10	-96.78%
RSKD	Riskified Ltd. Class A	8.57	3.81	80.04%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Netsol Technologies AI Stock Analysis