Quarterly report [Sections 13 or 15(d)]

OPERATING SEGMENTS (Tables)

v3.26.1
OPERATING SEGMENTS (Tables)
 9 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
SCHEDULE OF FINANCIAL INFORMATION BY REPORTABLE SEGMENT

The following tables present financial information by reportable segment for the three months ended March 31, 2026:

 

 

    North America     Europe     Asia - Pacific     Total  
    For the Three Months Ended  
    March 31, 2026  
    North America     Europe     Asia - Pacific     Total  
Revenues                                
License   $ -     $ 72,223     $ 4,656,188     $ 4,728,411  
Subscription and support     1,277,238       1,235,332       6,297,545       8,810,115  
Services     952,909       2,749,412       2,591,796       6,294,117  
Intersegment revenues                     1,462,892       1,462,892  
Total revenue from reportable segments     2,230,147       4,056,967       15,008,421       21,295,535  
Elimination of intersegment revenues     -        -        -        (1,462,892 )
Total consolidated revenues                           $ 19,832,643  
                                 
Revenues from reportable segments     2,230,147       4,056,967       15,008,421       21,295,535  
                                 
Salaries and consultants     362,061       980,168       4,992,420       6,334,649  
Travel     55,091       64,850       694,640       814,581  
Depreciation     -       -       192,897       192,897  
Other (a)     699,177       1,156,131       1,069,458       2,924,766  
Gross Profit     1,113,818       1,855,818       8,059,006       11,028,642  
                                 
Selling and marketing     667,481       345,085       1,699,301       2,711,867  
Depreciation     1,922       43,002       69,598       114,522  
General and administrative     207,338       891,295       2,636,021       3,734,654  
Income (loss) from operations - reportable segments   $ 237,077     $ 576,436     $ 3,654,086     $ 4,467,599  
                                 
Reconciliation:                                
Income (loss) from operations - reportable segments                           $ 4,467,599  
Corporate operating expenses                             (1,461,448 )
Interest expense                             (151,537 )
Interest income                             208,232  
Gain (loss) on foreign currency exchange transactions                             (76,178 )
Other income (expense)                             109,203  
Net income (loss) before income taxes                           $ 3,095,871  

 

 

NETSOL TECHNOLOGIES, INC.

Notes to Condensed Consolidated Financial Statements

March 31, 2026

(Unaudited)

 

The following tables present financial information by reportable segment for the nine months ended March 31, 2026:

 

    North America     Europe     Asia - Pacific     Total  
    For the Nine Months Ended  
    March 31, 2026  
    North America     Europe     Asia - Pacific     Total  
Revenues                                
License   $ -     $ 145,710     $ 4,772,408     $ 4,918,118  
Subscription and support     4,130,268       4,267,844       18,452,341       26,850,453  
Services     2,957,910       6,213,528       12,713,035       21,884,473  
Intersegment revenues     -       -       3,767,724       3,767,724  
Total revenue from reportable segments   $ 7,088,178     $ 10,627,082     $ 39,705,508     $ 57,420,768  
Elimination of intersegment revenues     -        -        -        (3,767,724 )
Total consolidated revenues                           $ 53,653,044  
                                 
Revenues from reportable segments   $ 7,088,178     $ 10,627,082     $ 39,705,508     $ 57,420,768  
                                 
Salaries and consultants     1,375,584       3,218,227       15,788,258       20,382,069  
Travel     335,749       234,912       1,771,533       2,342,194  
Depreciation     -       -       591,694       591,694  
Other (a)     1,963,155       2,912,187       3,259,745       8,135,087  
Gross Profit     3,413,690       4,261,756       18,294,278       25,969,724  
                                 
Selling and marketing     2,048,625       1,124,952       5,326,761       8,500,338  
Depreciation     5,438       131,735       202,904       340,077  
General and administrative     717,513       2,619,287       7,360,501       10,697,301  
Income (loss) from operations - reportable segments   $ 642,114     $ 385,782     $ 5,404,112     $ 6,432,008  
                                 
Reconciliation:                                
Income (loss) from operations - reportable segments                           $ 6,432,008  
Corporate operating expenses                             (3,964,831 )
Interest expense                             (502,421 )
Interest income                             697,981  
Gain (loss) on foreign currency exchange transactions                             (317,021 )
Other income (expense)                             190,798  
Net income (loss) before income taxes                           $ 2,536,514  

 

 

NETSOL TECHNOLOGIES, INC.

Notes to Condensed Consolidated Financial Statements

March 31, 2026

(Unaudited)

 

    North America     Europe     Asia - Pacific     Total  
    As of  
    March 31, 2026  
  North America     Europe     Asia - Pacific     Total  
Segment assets:                        
Cash   $ 281,565     $ 1,386,707     $ 12,779,045     $ 14,447,317  
Accounts receivable, net of allowance     1,754,448       1,348,836       13,543,015       16,646,299  
Revenue in excess of billings, net of allowance     779,211       3,520,414       16,688,180       20,987,805  
Other segment assets (b)     174,331       1,090,773       8,637,092       9,902,196  
Total segment assets   $ 2,989,555     $ 7,346,730     $ 51,647,332     $ 61,983,617  
                                 
Asset Reconciliation                                
Total assets for reportable segments                             61,983,617  
Corporate assets                             637,235  
Goodwill not allocated to segments                             9,302,524  
Consolidated total                           $ 71,923,376  

 

    North America     Europe     Asia - Pacific     Total  
    For the Nine Months ended March 31, 2026  
    North America     Europe     Asia - Pacific     Total  
                                 
 Expenditures for property, plant and equipment   $ 21,100     $ 118,565     $ 1,239,597     $ 1,379,262  

 

 

NETSOL TECHNOLOGIES, INC.

Notes to Condensed Consolidated Financial Statements

March 31, 2026

(Unaudited)

 

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

 

    North America     Europe     Asia - Pacific     Total  
    For the Three Months Ended  
    March 31, 2025  
    North America     Europe     Asia - Pacific     Total  
Revenues                        
License   $ -     $ 1,198     $ -     $ 1,198  
Subscription and support     1,340,088       1,215,438       5,332,834       7,888,360  
Services     2,529,815       4,678,504       2,446,080       9,654,399  
Intersegment revenues                     2,976,720       2,976,720  
Total revenue from reportable segments     3,869,903       5,895,140       10,755,634       20,520,677  
Elimination of intersegment revenues     -        -        -        (2,976,720 )
Total consolidated revenues                           $ 17,543,957  
                                 
Revenues from reportable segments     3,869,903       5,895,140       10,755,634       20,520,677  
                                 
Salaries and consultants     490,261       1,303,906       4,977,761       6,771,928  
Travel     36,907       23,531       391,457       451,895  
Depreciation     -       -       240,444       240,444  
Other (a)     1,189,818       2,199,263       925,556       4,314,637  
Gross Profit     2,152,917       2,368,440       4,220,416       8,741,773  
                                 
Selling and marketing     522,804       395,273       1,387,619       2,305,696  
Depreciation     824       41,357       80,878       123,059  
General and administrative     169,173       871,821       2,520,281       3,561,275  
Income (loss) from operations - reportable segments   $ 1,460,116     $ 1,059,989     $ 231,638     $ 2,751,743  
                                 
Reconciliation:                                
Income (loss) from operations - reportable segments           $ (170,786 )   $ 2,580,957     $ 2,751,743  
Corporate operating expenses                             (1,198,345 )
Interest expense                             (194,742 )
Interest income                             294,655  
Gain (loss) on foreign currency exchange transactions                             321,622  
Other income (expense)                             10,831  
Net income (loss) before income taxes                           $ 1,985,764  

 

 

NETSOL TECHNOLOGIES, INC.

Notes to Condensed Consolidated Financial Statements

March 31, 2026

(Unaudited)

 

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

 

    North America     Europe     Asia - Pacific     Total  
    For the Nine Months Ended  
    March 31, 2025  
    North America     Europe     Asia - Pacific     Total  
Revenues                        
License   $ -     $ 75,115     $ -     $ 75,115  
Subscription and support     4,208,995       3,311,068       17,203,397       24,723,460  
Services     5,736,842       8,265,423       8,878,276       22,880,541  
Intersegment revenues     -       -       5,924,850       5,924,850  
Total revenue from reportable segments   $ 9,945,837     $ 11,651,606     $ 32,006,523     $ 53,603,966  
Elimination of intersegment revenues     -        -        -        (5,924,850 )
Total consolidated revenues                         $ 47,679,116  
                                 
Revenues from reportable segments   $ 9,945,837     $ 11,651,606     $ 32,006,523     $ 53,603,966  
                                 
Salaries and consultants     1,607,145       3,491,899       14,591,055       19,690,099  
Travel     217,607       114,557       1,291,844       1,624,008  
Depreciation     -       -       706,876       706,876  
Other (a)     3,016,761       3,841,209       2,498,787       9,356,757  
Gross Profit     5,104,324       4,203,941       12,917,961       22,226,226  
                                 
Selling and marketing     1,664,063       1,001,807       4,389,843       7,055,713  
Depreciation     1,894       154,216       239,099       395,209  
General and administrative     544,054       2,732,908       7,171,524       10,448,486  
Income (loss) from operations - reportable segments   $ 2,894,313     $ 315,010     $ 1,117,495     $ 4,326,818  
                                 
Reconciliation:                                
Income (loss) from operations - reportable segments                           $ 4,326,818  
Corporate operating expenses                             (4,020,528 )
Interest expense                             (689,347 )
Interest income                             1,593,594  
Gain (loss) on foreign currency exchange transactions                             165,741  
Other income (expense)                             202,420  
Net income (loss) before income taxes                           $ 1,578,698  

 

 

NETSOL TECHNOLOGIES, INC.

Notes to Condensed Consolidated Financial Statements

March 31, 2026

(Unaudited)

 

    North America     Europe     Asia - Pacific     Total  
    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  

 

    North America     Europe     Asia - Pacific     Total  
   

For the Nine Months ended

March 31, 2025

  
    North America     Europe     Asia - Pacific     Total  
                                 
Expenditures for property, plant and equipment   $ 17,331     $ 72,551     $ 807,861     $ 897,743  

 

(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, internally developed software cost, advances, deposits, and prepayments.