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Netsol Technologies (NTWK) Q2 FY26 earnings results (second quarter fiscal 2026)
10-Q filed Feb 12, 2026
Netsol Technologies (NTWK) reported revenue of $20.1M for the second quarter fiscal 2026 (Q2 FY26), +12% from a year earlier and +25% from the quarter before. Operating margin was 6.5%, net earnings $247K (1.2% of revenue).
Netsol Technologies, Q2 FY26: revenue $20.1M (+12% year over year), operating margin 6.5%, net earnings $247K, operating cash flow −$4.7M. The chart follows the revenue to costs, profit and cash.
| Q2 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $20.1M | +25% | +12% |
| Gross profit | $9.0M | +53% | +30% |
| Operating profit | $1.3M | — | — |
| Net earnings | $247K | — | — |
| Operating cash flow | −$4.7M | -190% | — |
What changed
Revenue was $20.1M in Q2 FY26, up 12% year over year and up 25% from the previous quarter. Asia-Pacific was the largest line at 70% of revenue. Asia-Pacific added $2.6M year over year (up 23%), 121% of the total change. North America declined 14%.
Gross margin was 45.0%, up 6.3 points from Q2 FY25. Operating profit was $1.3M, a 6.5% margin (up 9.2 points year over year). Operating expenses grew 4% against revenue growth of 12%. Net earnings were $247K. The effective tax rate was 33.3%.
Operating cash flow was −$4.7M. Non-cash charges added back $300K of depreciation and $61K of share-based compensation. Working capital and other items used $6.1M. Capital expenditures of $371K exceeded it, leaving free cash flow of −$5.1M.
Questions
What was Netsol Technologies' revenue in the second quarter fiscal 2026?
Netsol Technologies (NTWK) reported revenue of $20.1M for the second quarter fiscal 2026 (Q2 FY26), +12% from a year earlier and +25% from the quarter before.
Was Netsol Technologies profitable in the second quarter fiscal 2026?
Operating profit was $1.3M (6.5% of revenue) and net earnings $247K.