Netsol Technologies Inc key statistics and ratios

In fiscal 2026, Netsol Technologies Inc had return on equity of 7.4%, an operating margin of 8.9%, debt equal to 20.2% of equity and a current ratio of 2.06. Each ratio below is calculated from the figures on its income statement, balance sheet and cash flow pages.

Financial ratios

US$ thousands unless shown otherwise. Fiscal years, plus the last twelve months (LTM) when newer.

Netsol Technologies Inc: financial ratios, annual
Fiscal year	2011Jun 2011	2012Jun 2012	2013Jun 2013	2014Jun 2014	2015Jun 2015	2016Jun 2016	2017Jun 2017	2018Jun 2018	2019Jun 2019	2020Jun 2020	2021Jun 2021	2022Jun 2022	2023Jun 2023	2024Jun 2024	2025Jun 2025	2026Jun 2026
Gross margin	59.5%	54.0%	59.3%	23.8%	34.2%	47.7%	43.5%	47.9%	51.4%	47.8%	48.0%	41.5%	32.3%	45.4%	44.6%	50.1%
Operating margin	—	—	27.0%	−36.0%	−10.1%	9.8%	−1.5%	5.0%	10.1%	1.9%	5.0%	−1.9%	−16.8%	5.4%	4.8%	8.9%
Net margin	15.7%	6.2%	15.8%	−31.2%	−10.9%	5.3%	−7.6%	7.1%	12.7%	1.7%	3.2%	−1.5%	−10.0%	1.1%	4.0%	3.8%
Free-cash-flow margin	13.2%	8.0%	9.8%	14.8%	3.0%	−2.6%	−2.7%	21.8%	3.3%	4.6%	24.0%	0.8%	0.7%	3.7%	−1.3%	15.2%
Return on equity	10.9%	4.4%	11.9%	−16.9%	−9.1%	5.5%	−7.8%	7.2%	14.9%	1.6%	3.1%	−1.7%	−13.2%	2.0%	8.0%	7.4%
Return on assets	6.7%	2.8%	8.1%	−11.5%	−6.0%	3.7%	−5.2%	4.5%	9.6%	1.1%	2.0%	−1.1%	−8.0%	1.1%	4.6%	4.2%
Asset turnover	0.43	0.45	0.51	0.37	0.56	0.71	0.68	0.64	0.76	0.64	0.63	0.72	0.80	1.05	1.15	1.11
Current ratio	1.73	2.72	3.54	1.84	2.11	2.66	2.10	2.20	2.49	2.58	2.37	2.37	2.00	1.99	2.35	2.06
Debt to equity	14.3%	10.9%	9.3%	11.7%	7.3%	7.6%	16.7%	0.6%	12.9%	3.2%	3.3%	19.9%	17.6%	18.3%	22.1%	20.2%
Interest cover (operating income ÷ interest)	—	—	20.3x	n/m	n/m	23.8x	n/m	7.2x	21.9x	3.1x	6.9x	n/m	n/m	3.1x	—	—
Effective tax rate	1.2%	0.8%	3.2%	—	—	11.4%	—	10.9%	8.1%	48.9%	31.2%	47.3%	—	35.5%	24.4%	22.6%
R&D as % of revenue	—	—	0.3%	0.7%	0.6%	0.8%	0.6%	1.4%	2.9%	2.6%	1.2%	2.3%	3.1%	2.2%	1.7%	1.0%
SG&A as % of revenue	—	—	—	—	—	—	—	—	—	—	—	—	—	37.8%	38.0%	40.2%
Capital spending as % of revenue	24.9%	12.4%	18.0%	36.4%	7.0%	5.2%	3.4%	4.0%	4.0%	2.4%	4.6%	4.6%	3.1%	0.8%	1.9%	2.6%
Free cash flow ÷ net income	84.4%	130.8%	62.1%	—	—	−49.3%	—	308.0%	25.7%	277.0%	740.9%	—	—	350.1%	−32.0%	402.6%
Dividends ÷ net income	22.5%	14.0%	4.9%	—	—	29.5%	—	9.7%	6.6%	205.0%	—	—	—	—	—	—
Dividends and buybacks ÷ free cash flow	26.7%	11.3%	8.0%	18.7%	53.1%	—	—	8.8%	37.0%	74.0%	17.9%	22.2%	16.5%	—	—	—

US$ thousands unless shown otherwise. Fiscal quarters.

Netsol Technologies Inc: financial ratios, quarterly
Quarter	2025 Q1Sept 2024	2025 Q2Dec 2024	2025 Q3Mar 2025	2025 Q4Jun 2025	2026 Q1Sept 2025	2026 Q2Dec 2025	2026 Q3Mar 2026	2026 Q4Jun 2026
Gross margin	43.1%	38.7%	42.6%	53.1%	36.8%	45.0%	51.8%	63.6%
Operating margin	−5.0%	−2.7%	7.6%	16.4%	−11.4%	6.5%	14.1%	21.6%
Net margin	0.5%	−6.4%	6.9%	13.2%	−14.7%	1.2%	6.1%	18.1%
Free-cash-flow margin	35.6%	−31.4%	−3.4%	−0.2%	30.0%	−25.5%	−8.7%	67.8%
Current ratio	2.08	2.15	2.26	2.35	2.15	2.32	1.94	2.06
Debt to equity	0.1%	0.2%	0.1%	0.2%	0.6%	1.1%	1.0%	0.9%
R&D as % of revenue	2.4%	1.9%	1.5%	1.4%	1.3%	1.2%	0.8%	0.7%
SG&A as % of revenue	45.8%	39.6%	33.5%	35.3%	46.9%	37.3%	36.9%	41.2%

Returns use average equity or assets over the year. Return on equity is left blank when equity is negative or so small that the ratio says nothing (above ±200%); interest cover is left blank above 200 times. Price-based ratios such as P/E are on the valuation page.

Financial health

7 of 7 checks passed · June 30, 2026

What it owns · $78m

Short-term assets $57mLonger-term assets $21m

What it owes, and who funded it · $70m

Short-term liabilities $28mLonger-term liabilities $1mShareholders' equity $42m

Short-term assets cover short-term liabilities $57m of assets due within a year against $28m of liabilities due within a year.
Short-term assets cover long-term liabilities $57m short-term assets against $641,473 of longer-dated liabilities.
More cash than debt $27m of cash against $354,169 of debt.
Debt below 40% of shareholders' equity Debt is 1% of equity.
Debt burden no higher than five years ago Debt to equity moved from 2% to 1% over five years.
A year's operating cash flow covers at least 20% of debt $14m of operating cash flow against $354,169 of debt.
Operating profit covers interest at least five times over No material interest expense reported.

From Netsol Technologies Inc's latest balance sheet as filed. Checks are fixed, documented rules (methodology), counted only where the company reports the figures — a dot means the filing doesn't break the item out. Descriptions of reported data, not advice.

Moat

23 /100

Weak moat

How hard Netsol Technologies's competitive advantage looks for rivals to wear away, judged from 10 years of its own filings: returns on capital, pricing power, profit durability, cash conversion and discipline.

Returns on capital 0 / 20

Net income has been a median 1.1% of total assets over 9 years.
Pricing power 13 / 20

Gross margin has been a median 46.6%, moving by 5.2 percentage points (standard deviation) across 10 years.
Durability 0 / 20

Operating margin has been a median 4.9%; its worst year was -16.8%.
Cash conversion 10 / 20

Free cash flow was positive in 8 of 10 years, at a median 3.5% of revenue.
Discipline 16 / 20

The diluted share count rose 2.9% over five years; stock-based pay has been a median 0.8% of revenue.

AI disruption exposure: High. In this industry, the core product is information work that AI systems increasingly perform. The score above includes a 15-point deduction for that exposure (38 before it).

A rules-based reading of reported figures, not a forecast and not investment advice. How the score is built: methodology.

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Figures from Netsol Technologies Inc's SEC filings (10-K and 10-Q), retrieved October 29, 2026. How we read and check them: methodology and data sources. Not investment advice. Back to Netsol Technologies Inc.