Friday, November 13, 2026
Jacob Mutchler, Research Analyst, Noble Capital Markets, Inc.
George Proost, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Q1 Operating Results. The company reported Q1 revenue of $16.4 million, up 9.3% year over year and in line with our $16.5 million estimate, driven by higher subscription, services, and license revenue. Gross margin expanded to 50.5%, helped by lower staffing costs and $1.0 million of capitalized development. Furthermore, consolidated adjusted EBITDA of $0.89 million modestly beat our estimate of $0.42 million and improved from a $1.35 million loss in the prior-year period.
Underlying Business Trends. Subscription and support revenue and services revenue each grew approximately 6%, reaching $9.5 million and $6.4 million, respectively. Additionally, BMO began migrating to Transcend Finance, two U.S. dealerships launched Transcend Retail, and Mercedes-Benz USA subsequently approved NETSOL as a digital retail provider. In our view, these developments strengthen its position in the U.S. market and should support recurring revenue growth.
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This Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.