Company: NTWK
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021835
Chunk: 74

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 2
Chunk 74
---
,234,551  
     63.3%
  
    Total 
    $15,011,923  
     100.0% 
    $14,598,498  
     100.0%

Revenues

License
fees

License
fees for the three months ended September 30, 2025 were $72,225 compared to $1,229 for the three months ended September 30, 2024 reflecting
an increase of $70,996 with an increase in constant currency of $68,182.

Page 35

Subscription
and support

Subscription
and support fees for the three months ended September 30, 2025 were $8,960,555 compared to $8,192,471 for the three months ended September
30, 2024 reflecting an increase of $768,084 with an increase in constant currency of $899,515. Subscription and support fees begin once
a customer has “gone live” with our product. Subscription and support fees are recurring in nature, and we anticipate these
fees to gradually increase as we implement both our NFS legacy products and NFS Ascent®.

Services

Services
income for the three months ended September 30, 2025 was $5,979,143 compared to $6,404,798 for the three months ended September 30, 2024
reflecting a decrease of $425,655, with a decrease in constant currency of $479,416. Services revenue decreased compared to the prior
quarter primarily due to the timing and composition of implementation projects.

Gross
Profit

The
gross profit was $5,911,990 for the three months ended September 30, 2025 compared with $6,564,112 for the three months ended September
30, 2024. This is a decrease of $652,122 with a decrease in constant currency of $669,534. The gross profit percentage for the three
months ended September 30, 2025 also decreased to 39.4% from 45.0% for the three months ended September 30, 2024. The cost of sales was
$9,099,933 for the three months ended September 30, 2025 compared to $8,034,386 for the three months ended September 30, 2024 for an
increase of $1,065,547 and on a constant currency basis an increase of $1,157,815. As