NetSol Technologies Releases Q2 Fiscal 2025 Results

NetSol Technologies, Inc., a leading global provider of business services and asset finance solutions, recently disclosed its financial performance for the quarter ending December 31, 2024. In a press release issued on February 13, 2025, the company highlighted several key financial indicators that demonstrated growth and strategic investment in its operations.

Significant financial highlights for the second fiscal quarter included double-digit growth in subscription and support revenues, a 26% increase in total service revenue, and the maintenance of a healthy 45% gross margin. Cash and cash equivalents for the quarter stood at $21.3 million, reflecting a solid financial position for the company.

Najeeb Ghauri, Co-Founder, CEO, and Chairman of NetSol Technologies, remarked on the firm’s focus on recurring revenues, stating that strategic investments during the quarter positioned the company for long-term growth. Despite short-term impacts on profitability, particularly from investments in artificial intelligence, Ghauri expressed confidence in the company’s ability to leverage its expertise and market presence for positive results in the full fiscal year.

The operating results for the second quarter saw total net revenues increasing by 2% to $15.5 million, with growth driven by rises in subscription and support revenues and services revenues. Gross profit for the quarter was reported at $6.9 million, representing 45% of net revenues.

Operating expenses for the quarter stood at $7.4 million, reflecting a percentage of sales at 48% as the company continues investing in growth opportunities. Consequently, NetSol experienced a loss from operations of $(487,000) for the period.

Net losses attributable to NetSol in accordance with GAAP standards reached $(1.1 million) for the quarter, compared to a net income of $408,000 in the prior year period. Non-GAAP EBITDA and adjusted EBITDA for the quarter were reported as $(775,000) and $(789,000), respectively.

Looking at the results for the six months ended December 31, 2024, total net revenues were $30.1 million, up from $29.5 million in the preceding year period. Total services revenues grew by 11%, showing a positive trend in the company’s offerings.

Cash and cash equivalents stood at $21.3 million as of the end of the quarter. The company’s CEO emphasized the commitment to AI product development and the expansion of its suite of asset finance and leasing solutions as key initiatives supporting future growth.

NetSol Technologies’ management will be hosting a conference call on February 13, 2025, to provide further insights into its financial results and outlook moving forward.

The Company’s stock, listed under the symbol NTWK on the NASDAQ, may see movement in response to these financial results and ongoing strategic developments.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read NetSol Technologies’s 8K filing here.

About NetSol Technologies

NetSol Technologies, Inc designs, develops, markets, and exports enterprise software solutions to the automobile financing and leasing, banking, and financial services industries worldwide. The company offers NFS Ascent, a suite of financial applications for businesses in the finance and leasing industry.