📊 NTWK Key Takeaways
Is NTWK a Good Investment? Thesis Analysis
NetSol Technologies demonstrates weak operational profitability with negative operating and net margins despite 10.6% revenue growth, indicating efficiency challenges in scaling operations. The company's negative free cash flow of -$301.4K, despite positive operating cash flow, signals that capital expenditures exceed operational earnings, limiting financial flexibility and raising sustainability concerns.
Why Buy NTWK? Key Strengths
- Strong revenue growth of 10.6% YoY shows market demand and business expansion
- Solid liquidity position with current ratio of 2.32x and $18.1M cash provides runway for operations
- Minimal leverage with 0.01x debt-to-equity ratio reduces financial risk and bankruptcy concerns
NTWK Investment Risks to Consider
- Negative operating margin of -1.5% and net margin of -5.8% indicate unprofitable core operations despite gross profit
- Negative free cash flow of -$301.4K despite positive operating cash flow suggests unsustainable capital spending relative to operational generation
- Persistent net losses with ROE of -5.9% and ROA of -3.4% demonstrate value destruction for shareholders
Key Metrics to Watch
- Operating margin trajectory - critical to determine if negative margins narrow with scale
- Free cash flow generation - must turn positive to validate business model sustainability
- Revenue growth retention - ensure 10.6% growth continues while managing cost structure
NTWK Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 2.32x current ratio provides a solid financial cushion.
NTWK Profitability Ratios
NTWK vs Technology Sector
How NETSOL TECHNOLOGIES INC compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is NTWK Overvalued or Undervalued?
Based on fundamental analysis, NETSOL TECHNOLOGIES INC has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
NTWK Balance Sheet & Liquidity
NTWK 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: NETSOL TECHNOLOGIES INC's revenue has grown significantly by 17% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.06 reflects profitable operations.
NTWK Growth Metrics (YoY)
NTWK Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $15.5M | $246.8K | $0.02 |
| Q1 2026 | $14.6M | $70.8K | $0.01 |
| Q3 2025 | $15.5M | $327.5K | $0.03 |
| Q2 2025 | $15.2M | $408.3K | $0.04 |
| Q1 2025 | $14.2M | $30.9K | $0.00 |
| Q3 2024 | $13.5M | -$169.0K | $-0.01 |
| Q2 2024 | $12.4M | $408.3K | $0.04 |
| Q3 2023 | $13.5M | -$169.0K | $-0.01 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
NTWK Capital Allocation
NTWK SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for NETSOL TECHNOLOGIES INC (CIK: 0001039280)
📋 Recent SEC Filings
❓ Frequently Asked Questions about NTWK
What is the AI rating for NTWK?
NETSOL TECHNOLOGIES INC (NTWK) has an AI rating of SELL with 75% confidence, based on fundamental analysis of SEC EDGAR filings.
What are NTWK's key strengths?
Claude: Strong revenue growth of 10.6% YoY shows market demand and business expansion. Solid liquidity position with current ratio of 2.32x and $18.1M cash provides runway for operations.
What are the risks of investing in NTWK?
Claude: Negative operating margin of -1.5% and net margin of -5.8% indicate unprofitable core operations despite gross profit. Negative free cash flow of -$301.4K despite positive operating cash flow suggests unsustainable capital spending relative to operational generation.
What is NTWK's revenue and growth?
NETSOL TECHNOLOGIES INC reported revenue of $36.1M.
Does NTWK pay dividends?
NETSOL TECHNOLOGIES INC pays dividends, with $1.9M distributed to shareholders in the trailing twelve months.
Where can I find NTWK SEC filings?
Official SEC filings for NETSOL TECHNOLOGIES INC (CIK: 0001039280) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is NTWK's EPS?
NETSOL TECHNOLOGIES INC has a diluted EPS of $-0.18.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is NTWK a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, NETSOL TECHNOLOGIES INC has a SELL rating with 75% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is NTWK stock overvalued or undervalued?
Valuation metrics for NTWK: ROE of -5.9% (sector avg: 22%), net margin of -5.8% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy NTWK stock in 2026?
Our dual AI analysis gives NETSOL TECHNOLOGIES INC a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is NTWK's free cash flow?
NETSOL TECHNOLOGIES INC's operating cash flow is $554.9K, with capital expenditures of $856.3K. FCF margin is -0.8%.
How does NTWK compare to other Technology stocks?
Vs Technology sector averages: Net margin -5.8% (avg: 18%), ROE -5.9% (avg: 22%), current ratio 2.32 (avg: 2.5).