NETSOL TECHNOLOGIES INC Earnings Per Share Disclosure
Basic earnings per share are computed based on the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding stock options and stock awards.
| For the year ended June 30, 2025 | ||||||||||||
| Net Income | Shares | Per Share | ||||||||||
| Basic income per share: | ||||||||||||
| Net income | $ | 2,923,233 | 11,576,287 | $ | 0.25 | |||||||
| Effect of dilutive securities | ||||||||||||
| Stock options | - | - | ||||||||||
| Diluted income per share | $ | 2,923,233 | 11,576,287 | $ | 0.25 | |||||||
| For the year ended June 30, 2024 | ||||||||||||
| Net Income | Shares | Per Share | ||||||||||
| Basic income per share: | ||||||||||||
| Net income | $ | 683,873 | 11,378,595 | $ | 0.06 | |||||||
| Effect of dilutive securities | ||||||||||||
| Stock options | - | 43,345 | - | |||||||||
| Diluted income per share | $ | 683,873 | 11,421,940 | $ | 0.06 | |||||||
As of June 30, 2025, options were outstanding. These options were not included in the computation of diluted earnings per share because their exercise price exceeded the average market price of the Company’s common stock during the period and, therefore, their effect would have been anti-dilutive.
As of June 30, 2024, options were outstanding. The effect of these options on diluted earnings per share was incremental shares, calculated using the treasury stock method.
NETSOL TECHNOLOGIES, INC.
Notes to Consolidated Financial Statements
June 30, 2025 and 2024
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Sep 29, 2025 | Showing above |
| 2024 | Sep 30, 2024 | |
| 2022 | Sep 27, 2022 | |
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.