NETSOL Technologies, Inc. Quarterly report [Sections 13 or 15(d)]

Quarterly report [Sections 13 or 15(d)]

OPERATING SEGMENTS (Tables)

OPERATING SEGMENTS (Tables)

6 Months Ended

Dec. 31, 2025

SCHEDULE OF FINANCIAL INFORMATION BY REPORTABLE SEGMENT

The following tables present financial information by reportable segment for the three months ended December 31, 2025:


	For the Three Months Ended
	December 31, 2025
	North America		Europe			Asia - Pacific		Total
Revenues
License	$	-	$	1,262		$	116,220	$	117,482
Subscription and support		1,366,633		1,547,866			6,165,284		9,079,783
Services		1,383,035		1,716,670			6,511,508		9,611,213
Intersegment revenues		-		-			1,243,061		1,243,061
Total revenue from reportable segments		2,749,668		3,265,798			14,036,073		20,051,539
Elimination of intersegment revenues		-		-			-		(1,243,061	)
Total consolidated revenues								$	18,808,478

Revenues from reportable segments		2,749,668		3,265,798			14,036,073		20,051,539

Salaries and consultants		520,887		1,105,058			5,456,949		7,082,894
Travel		226,924		102,702			699,815		1,029,441
Depreciation		-		-			190,066		190,066
Other (a)		762,676		838,029			1,119,341		2,720,046
Gross Profit		1,239,181		1,220,009			6,569,902		9,029,092

Selling and marketing		743,583		384,859			1,719,862		2,848,304
Depreciation		1,922		44,125			63,633		109,680
General and administrative		211,149		838,415			2,451,910		3,501,474
Income (loss) from operations - reportable segments	$	282,527	$	(47,390	)	$	2,334,497	$	2,569,634

Reconciliation:
Income (loss) from operations - reportable segments								$	2,569,634
Corporate operating expenses									(1,269,902	)
Interest expense									(176,273	)
Interest income									208,775
Gain (loss) on foreign currency exchange transactions									46,074
Other income (expense)									63,925
Net income (loss) before income taxes								$	1,442,233

NETSOL TECHNOLOGIES, INC.

Notes to Condensed Consolidated Financial Statements

December 31, 2025

(Unaudited)

The following tables present financial information by reportable segment for the six months ended December 31, 2025:


	For the Six Months Ended
	December 31, 2025
	North America		Europe			Asia - Pacific		Total
Revenues
License	$	-	$	73,487		$	116,220	$	189,707
Subscription and support		2,853,030		3,032,512			12,154,796		18,040,338
Services		2,005,001		3,464,116			10,121,239		15,590,356
Intersegment revenues		-		-			2,304,832		2,304,832
Total revenue from reportable segments	$	4,858,031	$	6,570,115		$	24,697,087	$	36,125,233
Elimination of intersegment revenues		-		-			-		(2,304,832	)
Total consolidated revenues								$	33,820,401

Revenues from reportable segments	$	4,858,031	$	6,570,115		$	24,697,087	$	36,125,233

Salaries and consultants		1,013,523		2,238,059			10,795,838		14,047,420
Travel		280,658		170,062			1,076,893		1,527,613
Depreciation		-		-			398,797		398,797
Other (a)		1,263,978		1,756,056			2,190,287		5,210,321
Gross Profit		2,299,872		2,405,938			10,235,272		14,941,082

Selling and marketing		1,381,144		779,867			3,627,460		5,788,471
Depreciation		3,516		88,733			133,306		225,555
General and administrative		510,175		1,727,992			4,724,480		6,962,647
Income (loss) from operations - reportable segments	$	405,037	$	(190,654	)	$	1,750,026	$	1,964,409

Reconciliation:
Income (loss) from operations - reportable segments								$	1,964,409
Corporate operating expenses									(2,503,383	)
Interest expense									(350,884	)
Interest income									489,749
Gain (loss) on foreign currency exchange transactions									(240,843	)
Other income (expense)									81,595
Net income (loss) before income taxes								$	(559,357	)

NETSOL TECHNOLOGIES, INC.

Notes to Condensed Consolidated Financial Statements

December 31, 2025

(Unaudited)


	As of
	December 31, 2025
	North America		Europe		Asia - Pacific		Total
Segment assets:
Cash	$	268,754	$	1,934,027	$	15,401,147	$	17,603,928
Accounts receivable, net of allowance		581,587		1,740,660		5,453,849		7,776,096
Revenue in excess of billings, net of allowance		1,936,177		2,565,384		13,342,530		17,844,091
Other segment assets (b)		214,072		1,216,615		8,052,098		9,482,785
Total segment assets	$	3,000,590	$	7,456,686	$	42,249,624	$	52,706,900

Asset Reconciliation
Total assets for reportable segments								52,706,900
Corporate assets								676,723
Goodwill not allocated to segments								9,302,524
Consolidated total							$	62,686,147


	For the Six Months ended December 31, 2025
	North America		Europe		Asia - Pacific		Total

Expenditures for property, plant and equipment	$	21,100	$	70,928	$	764,302	$	856,330

NETSOL TECHNOLOGIES, INC.

Notes to Condensed Consolidated Financial Statements

December 31, 2025

(Unaudited)

The following tables present financial information by reportable segment for the three months ended December 31, 2024:


	For the Three Months Ended
	December 31, 2024
	North America		Europe			Asia - Pacific		Total
Revenues
License	$	-	$	72,688		$	-	$	72,688
Subscription and support		1,606,262		1,202,858			5,833,509		8,642,629
Services		1,601,011		1,985,634			3,234,699		6,821,344
Intersegment revenues		-		-			2,326,738		2,326,738
Total revenue from reportable segments		3,207,273		3,261,180			11,394,946		17,863,399
Elimination of intersegment revenues		-		-			-		(2,326,738	)
Total consolidated revenues								$	15,536,661

Revenues from reportable segments		3,207,273		3,261,180			11,394,946		17,863,399

Salaries and consultants		633,275		1,186,918			4,894,244		6,714,437
Travel		40,925		76,296			484,030		601,251
Depreciation		-		-			237,882		237,882
Other (a)		1,566,498		996,022			826,968		3,389,488
Gross Profit		966,575		1,001,944			4,951,822		6,920,341

Selling and marketing		593,160		333,166			1,601,336		2,527,662
Depreciation		599		53,179			80,925		134,703
General and administrative		153,455		933,885			2,291,938		3,379,278
Income (loss) from operations - reportable segments	$	219,361	$	(318,286	)	$	977,623	$	878,698

Reconciliation:
Income (loss) from operations - reportable segments								$	878,698
Corporate operating expenses									(1,365,648	)
Interest expense									(236,386	)
Interest income									529,072
Gain (loss) on foreign currency exchange transactions									(698,426	)
Other income (expense)									38,098
Net income (loss) before income taxes								$	(854,592	)

NETSOL TECHNOLOGIES, INC.

Notes to Condensed Consolidated Financial Statements

December 31, 2025

(Unaudited)

The following tables present financial information by reportable segment for the six months ended December 31, 2024:


	For the Six Months Ended
	December 31, 2024
	North America		Europe			Asia - Pacific		Total
Revenues
License	$	-	$	73,917		$	-	$	73,917
Subscription and support		2,868,907		2,095,630			11,870,563		16,835,100
Services		3,207,027		3,586,919			6,432,196		13,226,142
Intersegment revenues		-		-			2,948,130		2,948,130
Total revenue from reportable segments	$	6,075,934	$	5,756,466		$	21,250,889	$	33,083,289
Elimination of intersegment revenues		-		-			-		(2,948,130	)
Total consolidated revenues								$	30,135,159

Revenues from reportable segments	$	6,075,934	$	5,756,466		$	21,250,889	$	33,083,289

Salaries and consultants		1,116,884		2,187,993			9,613,294		12,918,171
Travel		180,700		91,026			900,387		1,172,113
Depreciation		-		-			466,432		466,432
Other (a)		1,826,943		1,641,946			1,573,231		5,042,120
Gross Profit		2,951,407		1,835,501			8,697,545		13,484,453

Selling and marketing		1,141,259		606,534			3,002,224		4,750,017
Depreciation		1,070		112,859			158,221		272,150
General and administrative		374,881		1,861,087			4,651,243		6,887,211
Income (loss) from operations - reportable segments	$	1,434,197	$	(744,979	)	$	885,857	$	1,575,075

Reconciliation:
Income (loss) from operations - reportable segments								$	1,575,075
Corporate operating expenses									(2,822,183	)
Interest expense									(494,605	)
Interest income									1,298,939
Gain (loss) on foreign currency exchange transactions									(155,881	)
Other income (expense)									191,589
Net income (loss) before income taxes								$	(407,066	)

NETSOL TECHNOLOGIES, INC.

Notes to Condensed Consolidated Financial Statements

December 31, 2025

(Unaudited)


	As of
	June 30, 2025
	North America		Europe		Asia - Pacific		Total
Segment assets:
Cash	$	387,955	$	1,138,048	$	15,248,031	$	16,774,034
Accounts receivable, net of allowance		581,872		1,084,418		5,861,282		7,527,572
Revenue in excess of billings, net of allowance		1,967,757		3,178,780		13,987,848		19,134,385
Other segment assets (b)		243,550		1,580,534		7,066,725		8,890,809
Total segment assets	$	3,181,134	$	6,981,780	$	42,163,886	$	52,326,800

Asset Reconciliation
Total assets for reportable segments								52,326,800
Corporate assets								811,785
Goodwill not allocated to segments								9,302,524
Consolidated total							$	62,441,109


	For the Six Months ended December 31, 2024
	North America		Europe		Asia - Pacific		Total

Expenditures for property, plant and equipment	$	3,841	$	56,204	$	508,089	$	568,134

(a)

Other costs of goods sold include computer costs, third-party hardware and software costs, repair and maintenance, insurance, utilities, and communication expenses.

(b)

Other assets include property and equipment, right of use of assets, advances, deposits, and prepayments.