NETSOL swings to Q1 net loss as cost rise

Reuters
11/12
NETSOL swings to Q1 net loss as cost rise 

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/Miss

Actual

Consensus Estimate

Q1 Revenue

$15 mln

Q1 EPS

-$0.20

Q1 Net Income

-$2.40 mln

Q1 Adjusted EBITDA

-$1.80 mln

Q1 Gross Profit

$5.90 mln

Q1 Operating Expenses

$7.80 mln

Press Release: ID:nGNX3grrqF

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(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.)

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