Filing Flows › Netsol Technologies (NTWK) › Q3 FY25
Netsol Technologies (NTWK) Q3 FY25 earnings results (third quarter fiscal 2025)
10-Q filed May 14, 2025
Netsol Technologies (NTWK) reported revenue of $20.5M for the third quarter fiscal 2025 (Q3 FY25), +33% from a year earlier and +15% from the quarter before. Operating margin was 7.6%, net earnings $1.4M (6.9% of revenue).
Netsol Technologies, Q3 FY25: revenue $20.5M (+33% year over year), operating margin 7.6%, net earnings $1.4M, operating cash flow −$363K. The chart follows the revenue to costs, profit and cash.
| Q3 FY25 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $20.5M | +15% | +33% |
| Gross profit | $8.7M | +26% | +17% |
| Operating profit | $1.6M | — | +18% |
| Net earnings | $1.4M | — | +335% |
| Operating cash flow | −$363K | — | — |
What changed
Revenue was $20.5M in Q3 FY25, up 33% year over year and up 15% from the previous quarter.
Gross margin was 42.6%, down 5.7 points from a year earlier. Operating profit was $1.6M, a 7.6% margin (down 1.0 points year over year). Of the extra revenue versus a year earlier, 5% reached operating profit, below the 9% margin then. Operating expenses grew 17% against revenue growth of 33%. Net earnings were $1.4M, up 335% year over year. The effective tax rate was 7.6%. Non-operating items added $432K, 22% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was −$363K. Non-cash charges added back $364K of depreciation and $40K of share-based compensation. Working capital and other items used $2.6M. Capital expenditures of $330K exceeded it, leaving free cash flow of −$693K.
Questions
What was Netsol Technologies' revenue in the third quarter fiscal 2025?
Netsol Technologies (NTWK) reported revenue of $20.5M for the third quarter fiscal 2025 (Q3 FY25), +33% from a year earlier and +15% from the quarter before.
Was Netsol Technologies profitable in the third quarter fiscal 2025?
Operating profit was $1.6M (7.6% of revenue) and net earnings $1.4M.