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.