NetSol Technologies, Inc. (NTWK) AI Stock Analysis

NASDAQ: NTWKAI research summary: business, growth, valuation, analysts, bull and bear case.

NTWK AI stock analysis summary

AI Research

NetSol Technologies, Inc. (NTWK) develops specialized software solutions for the global automobile financing, leasing, and banking sectors. Over the five years through FY2026, revenue increased at a 6.3% CAGR to $74.4M, with net income reaching $3.0M. The company holds a solid liquidity position with $17.8M in net cash and generated $11.9M in free cash flow in FY2026.

Market cap
$74.2M
Revenue (TTM)
$74.4M
P/E
24.8x
fwd 8.8x
1Y return
37.4%
S&P 500 16.8%
Avg. target
$8.00
28.8% vs last close

Bull case

  • NetSol delivered $11.9M in free cash flow in FY2026, up from -$935,503 in FY2025.
  • The balance sheet carries $17.8M in net cash with a current ratio of 2.06 as of June 30, 2026.
  • The company's EV/EBITDA multiple of 5.3x trades below the 16.6x median of its US-listed Technology peers.

Bear case

  • NetSol's 5-year return of 35.6% significantly lagged the S&P 500 return of 83.0%.
  • Earnings history shows variability, with only 1 EPS beat recorded across the last four quarters.
  • R&D spending fell from $1.3M in FY2025 to $782,080 in FY2026.

What NetSol Technologies does

NetSol Technologies, Inc. designs, develops, markets, and exports software products tailored for the automobile financing and leasing, banking, and financial services industries. Its flagship suite, NFS Ascent, provides financial applications such as Omni Point of Sale, Contract Management System, Wholesale Finance System, and digital self-service tools. The company also offers Otoz Digital Auto-Retail, a white-labelled SaaS platform featuring an API-based architecture, Dealer Tool, and Customer App portals. Founded in 1997, NetSol serves blue chip organizations, Fortune 500 manufacturers, financial institutions, and enterprise technology providers alongside offering system integration, consulting services, and IT products.

Growth and profitability

NetSol grew revenue from $57.2M in FY2022 to $74.4M in FY2026, delivering a 5-year revenue CAGR of 6.3%. After experiencing a revenue decline of 8.5% and a net loss of -$5.2M in FY2023, the business rebounded with revenue expansion of 17.2% in FY2024, 7.6% in FY2025, and 12.5% in FY2026. Gross margin expanded steadily from 32.3% in FY2023 to 52.6% in FY2026. FY2026 net income reached $3.0M, generating an EPS of $0.25. For the trailing twelve months ended June 30, 2026, quarterly revenue growth was 12.5% year-over-year, and quarterly earnings growth was 45.6%.

NTWK income statement →

Balance sheet and cash flow

As of June 30, 2026, NetSol reported $27.1M in cash and short-term investments against $9.3M in total debt, resulting in a net cash balance of $17.8M. The company maintains a current ratio of 2.06 and a debt-to-equity ratio of 0.22 on shareholders' equity of $41.6M. Operating cash flow rose to $13.9M in FY2026, while capital expenditures were $2.0M, producing free cash flow of $11.9M. Over the past five years, the share count increased by 5.7%.

NTWK balance sheet →

Valuation and performance

NetSol carries a market cap of $74.2M and an enterprise value of $47.6M. The stock trades at a trailing P/E of 24.8x and a forward P/E of 8.8x, compared to the median of its US-listed Technology peers of 28.1x trailing and 18.8x forward. Its price-to-sales of 1.0x and EV/EBITDA of 5.3x also sit below peer medians of 2.8x and 16.6x. Over the past year, NetSol stock returned 37.4%, outperforming the S&P 500 (SPY) return of 16.8%, but its 5-year return of 35.6% trails the S&P 500 return of 83.0%.

NTWK key metrics →

What analysts expect

Analysts have established a mean price target of $8.00 for NetSol, representing a 28.8% premium over its last close of $6.21 on October 16, 2026. Over the last four quarters, the company delivered 1 EPS beat. The company's next earnings report is scheduled for November 11, 2026.

Key risks and what to watch

  • Operating margins have shown historical volatility, swinging from -16.8% in FY2023 to 9.3% in FY2026.
  • Net profit margin for the trailing twelve months stands at 4.0%, leaving limited room for operational cost overruns.
  • Share count expanded by 5.7% over the last five fiscal years.

AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer

About this NTWK AI stock analysis

This page is an AI-written research summary of NetSol Technologies, Inc. (NTWK). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: NTWK income statement, NTWK balance sheet, NTWK key metrics, NTWK chart. See the NTWK stock overview for the latest quote and news.

NTWK AI stock analysis FAQ

What was NetSol's revenue and net income in FY2026?

In FY2026, NetSol reported revenue of $74.4M, representing a 12.5% increase year-over-year, and net income of $3.0M.

What is NetSol's current cash and debt position?

As of June 30, 2026, NetSol held $27.1M in cash and short-term investments alongside $9.3M in total debt, providing $17.8M in net cash.

Does NetSol Technologies pay a dividend?

NetSol Technologies does not currently pay a dividend.

What is the consensus analyst target for NTWK?

The analyst mean price target is $8.00, which is 28.8% above the stock's closing price of $6.21 on October 16, 2026.

More Technology AI stock analysis