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• Total Net Revenues: Increased 13% to $17.5 million compared to $15.5 million in Q3 fiscal 2024.

• Services Revenue: Increased 24% to $9.7 million compared to $7.8 million in Q3 of last year.

• Subscription, SaaS, and Cloud Revenue: Increased 10% to $7.9 million compared to $7.1 million in the prior year period.

• Gross Profit: $8.7 million, or 50% of total revenues, compared with $7.5 million or 48% in Q3 fiscal 2024.

• Operating Expenses: $7.2 million or 41% of sales compared to $6.2 million or 40% of sales in Q3 fiscal 2024.

• GAAP Net Income: $1.4 million or $0.12 per diluted share compared to $320,000 or $0.03 per diluted share in Q3 fiscal 2024.

• Non-GAAP EBITDA: $2.2 million or $0.19 per diluted share compared with $767,000 or $0.07 per diluted share in the prior year period.

• Non-GAAP Adjusted EBITDA: $1.8 million or $0.15 per diluted share compared with $810,000 or $0.07 per diluted share in Q3 fiscal 2024.

• Cash and Cash Equivalents: $18.8 million as of March 31, 2025, compared to $19.1 million at June 30, 2024.

• Working Capital: $23.7 million as of March 31, 2025, compared to $23.6 million at June 30, 2024.

• Warning! GuruFocus has detected 5 Warning Signs with NTWK.

Release Date: May 14, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• NETSOL Technologies Inc (NASDAQ:NTWK) reported a 13% increase in total net revenues for Q3 fiscal year 2025, reaching $17.5 million compared to $15.5 million in the same quarter of the previous year.

• Services revenue saw a significant growth of 24%, amounting to $9.7 million, driven by a cumulative catch-up related to a contract amendment.

• The company successfully completed a major deployment of its Transcend finance platform for a financial institution in Australia, enhancing its partnership and technology usage.

• NETSOL signed two new multi-million dollar contracts with financial services providers in Oman and Indonesia, expanding its footprint in these regions.

• The launch of Transcend AI labs and the appointment of a new Vice President of Artificial Intelligence position NETSOL to lead in AI-driven solutions for the asset finance and leasing sectors.

Negative Points

• Operating expenses increased to $7.2 million, representing 41% of sales, up from $6.2 million or 40% of sales in the previous year, indicating rising costs.

• The company's cash and cash equivalents slightly decreased to $18.8 million as of March 31, 2025, compared to $19.1 million at June 30, 2024.

• Foreign currency exchange fluctuations pose a risk, as changes in exchange rates can impact revenues and expenses due to the company's global operations.

• Despite the positive financial performance, the company did not provide specific revenue and earnings guidance for the next fiscal year.

• The reliance on in-house investor relations services may limit the company's exposure and engagement with the broader investor community.