Sep 28, 2026 earnings call — Transcend platform growth and upgrades
NetSol reported record full-year net revenues of $74.4 million, above its $73 million guidance, and set fiscal 27 revenue growth guidance of 13% to 16%.
Revenue $0.0B (est $0.0B) · EPS $0.32 (est $0.07)
Key quotes
"Earlier this month, we announced that BMO has signed a contract to upgrade from our legacy platform to Transcend Finance BMO is 1 of the largest banks in North America."
"From a services and licensed business and a platform business recurring subscription and support revenue now represents approximately half of our total revenue."
"During the year, we introduced various product functionalities in the AI enabled credit decisioning areas automating valiant tasks, manual tasks, accelerating decision time, and otherwise improving underwriting accuracy."
Analyst Q&A 3
Gross margin guidance and Transcend move
Q (Greg Burns · Sidoti and Company): He asked why 2027 gross margin guidance is slightly lower and what drives it. He also asked about benefits of moving LeasePak to Transcend, how many LeasePak customers, the Transcend Retail pipeline, and which region will grow most.
A: Management said the 50% gross margin guidance is stable and they expect at least 50% or better and will monitor and upgrade it over time. They said the move to Transcend gives a huge uplift to subscription revenue and LeasePak has about 7 customers. For Transcend Retail they won 3 dealers that are part of larger groups (each group has more than 15 dealerships), are focused on tier 1 OEM rollouts including the 350, and see the potential of adding 35 to 20 dealers average as customers go live.
"We believe that the guidance that we have given of 50% is a stable guidance." — Sardar Mohammad Abubakr (CFO)
Cash use, M&A plans, analyst coverage
Q (Todd Felte · StoneX): He asked how the company will use the cash position and whether M&A or buying NetSol Pakistan is possible, and if there are any share buybacks. He also asked about plans to get analyst coverage.
A: They said they are pleased with the cash position and are actively evaluating M&A and structural options for NetSol Pakistan. They are focused on growing the U.S. market via Transcend Finance and Transcend Retail and will use cash to grow the core business, invest in product innovation and AI, and pursue inorganic opportunities. They also said they have finalized discussions with a reputed research analyst firm and that coverage will start after this earnings call.
"We are actively evaluating structural options when it comes to NetSol Pakistan." — Sardar Mohammad Abubakr (CFO)
Timing for financials and 10-K release
Q (Peter Sidoti · Sidoti and Company): He asked when the actual financial numbers and the 10-K will be available, since the release did not include them and the 10-K was not filed yet.
A: Management said the press release and the 10-K should be available later today.
"So the press release should be available and the 10-K should be available later today." — Sardar Mohammad Abubakr (CFO)