Overview

* NETSOL fiscal Q1 2026 revenue grows 2.8% yr/yr, driven by subscription and support growth

* Company reports GAAP net loss of $2.4 mln for fiscal Q1 2026 vs year-ago profit

* Loss from operations for fiscal Q1 2026 was $1.8 mln, up from $0.76 mln last year

Outlook

* Company did not provide specific financial guidance for future periods

Result Drivers

* SUBSCRIPTION GROWTH - Co reports 9.4% increase in subscription and support revenues, indicating traction in recurring revenue model

* OPERATING EXPENSES - Higher operating expenses impacted profitability, with expenses rising to $7.8 mln from $7.3 mln

* GROSS MARGIN COMPRESSION - Gross profit margin decreased to 39.4% from 45% due to increased costs

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q1 $15 mln

Revenue

Q1 EPS -$0.20

Q1 Net -$2.40

Income mln

Q1 -$1.80

Adjusted mln

EBITDA

Q1 Gross $5.90

Profit mln

Q1 $7.80

Operatin mln

g

Expenses

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)