Netcapital Announces Full Year Fiscal 2025 Financial Results - Updated
Netcapital (Nasdaq: NCPL), a digital private capital markets ecosystem, reported its fiscal year 2025 financial results, showing significant revenue decline and increased losses. The company's revenue dropped to $869,460 from $4.95 million in FY2024, while operating loss widened to ($8.32 million) from ($3.44 million).
The company recorded a substantial impairment loss of $19.9 million in fiscal year 2025, though net loss per share improved to ($20.39) from ($28.83) in the previous year. CEO Martin Kay highlighted a strategic shift focused on building a stronger foundation, noting the securing of a broker-dealer license as a key milestone for serving a broader market base.
Netcapital (Nasdaq: NCPL), un ecosistema digitale per i mercati di capitale privati, ha reso noti i risultati fiscali dell'anno 2025, registrando un marcato calo dei ricavi e perdite più ampie. I ricavi sono diminuiti a $869,460 da $4.95 million nel FY2024, mentre la perdita operativa si è ampliata a ($8.32 million) da ($3.44 million).
L'azienda ha rilevato un consistente accantonamento per svalutazione di $19.9 million nell'esercizio 2025, sebbene la perdita netta per azione sia migliorata a ($20.39) rispetto a ($28.83) dell'anno precedente. Il CEO Martin Kay ha sottolineato lo spostamento strategico verso il rafforzamento delle fondamenta aziendali, evidenziando l'ottenimento della licenza da broker-dealer come tappa chiave per servire un mercato più ampio.
Netcapital (Nasdaq: NCPL), un ecosistema digital para mercados de capital privado, informó sus resultados fiscales del año 2025, mostrando una importante caída de ingresos y mayores pérdidas. Los ingresos cayeron a $869,460 desde $4.95 million en el FY2024, mientras que la pérdida operativa se amplió a ($8.32 million) desde ($3.44 million).
La compañía registró una significativa Pérdida por deterioro de $19.9 million en el ejercicio 2025, aunque la pérdida neta por acción mejoró a ($20.39) desde ($28.83) el año anterior. El CEO Martin Kay destacó un cambio estratégico orientado a construir una base más sólida, señalando la obtención de la licencia de broker-dealer como un hito clave para atender a un mercado más amplio.
Netcapital (Nasdaq: NCPL)은 디지털 사모 자본 시장 생태계로서 2025 회계연도 실적을 발표하며 매출이 크게 감소하고 손실이 확대되었다고 밝혔습니다. 매출은 FY2024의 $4.95 million에서 $869,460로 줄었고, 영업손실은 ($8.32 million)으로 확대되었습니다.
회사는 2025 회계연도에 $19.9 million의 대규모 손상차손을 인식했으나 주당 순손실은 ($28.83)에서 ($20.39)로 개선되었습니다. CEO 마틴 케이(Martin Kay)는 회사의 기반을 강화하는 데 중점을 둔 전략적 전환을 강조하면서 브로커-딜러 라이선스 확보를 더 넓은 시장에 서비스를 제공하기 위한 중요한 이정표로 언급했습니다.
Netcapital (Nasdaq: NCPL), un écosystème numérique pour les marchés privés de capitaux, a publié ses résultats financiers pour l'exercice 2025, faisant état d'une forte baisse du chiffre d'affaires et d'une augmentation des pertes. Le chiffre d'affaires est tombé à $869,460 contre $4.95 million sur l'exercice 2024, tandis que la perte d'exploitation s'est creusée à ($8.32 million) contre ($3.44 million).
La société a enregistré une importante charge de dépréciation de $19.9 million pour l'exercice 2025, bien que la perte nette par action se soit améliorée à ($20.39) contre ($28.83) l'année précédente. Le PDG Martin Kay a souligné une réorientation stratégique visant à consolider les bases, citant l'obtention d'une licence de broker-dealer comme un jalon clé pour desservir un marché plus large.
Netcapital (Nasdaq: NCPL), ein digitales Ökosystem für private Kapitalmärkte, veröffentlichte seine Finanzergebnisse für das Geschäftsjahr 2025 und verzeichnete einen deutlichen Umsatzrückgang sowie gestiegene Verluste. Der Umsatz sank auf $869,460 gegenüber $4.95 million im Geschäftsjahr 2024, während der operative Verlust auf ($8.32 million) anwuchs gegenüber ($3.44 million).
Das Unternehmen verbuchte im Geschäftsjahr 2025 einen erheblichen Wertminderungsaufwand von $19.9 million, wobei der Verlust je Aktie sich jedoch von ($28.83) auf ($20.39) verbesserte. CEO Martin Kay hob die strategische Neuausrichtung zur Stärkung der Basis hervor und nannte die Erlangung einer Broker-Dealer-Lizenz einen wichtigen Meilenstein, um einen breiteren Markt bedienen zu können.
- Secured broker-dealer license, expanding market opportunities
- Net loss per share improved to ($20.39) from ($28.83) year-over-year
- Strategic shift towards building stronger, more scalable foundation
- Revenue declined 82% to $869,460 from $4.95 million in FY2024
- Operating loss increased to $8.32 million from $3.44 million year-over-year
- Recorded significant impairment loss of $19.9 million
- Substantial decrease in consulting services revenue
- Management to Host Earnings Call on August 13, 2025 at 9 a.m. ET
BOSTON, MA, Aug. 12, 2025 (GLOBE NEWSWIRE) -- Netcapital Inc. (Nasdaq: NCPL, NCPLW) (the “Company”), a digital private capital markets ecosystem, today announced financial results for the full fiscal year 2025 ended April 30, 2025.
“In 2025, we made an important shift in strategy to focus on building a stronger, more scalable foundation for the future,” said Martin Kay, CEO of Netcapital Inc. “With our broker-dealer license secured, we believe we are well positioned to serve a broader base of issuers and investors and deepen our impact on democratizing access to private markets—our core mission. We remain deeply committed to disciplined execution, product innovation, and long-term value creation.”
Fiscal Year 2025 Financial Results
- Reported revenues of
$869,460 vs.$4,951,435 in fiscal year 2024, primarily due to a decrease in consulting services - Operating loss of (
$8,321,317) vs. ($3,442,388) for fiscal year 2024 - Recorded impairment loss of
$19.9 million in fiscal year 2025 - Net loss per share of (
$20.39) vs. ($28.83) for fiscal year 2024
Conference Call Information
The Company will host an investor conference call on August 13, 2025, at 9 a.m. ET.
Participant access: 844-985-2012 or 973-528-0138
Conference entry code: 310637
For additional disclosure regarding Netcapital’s operating results, please refer to the Annual Report on Form 10-K for the period ended April 30, 2025, which has been filed with the Securities and Exchange Commission.
About Netcapital Inc.
Netcapital Inc. is a fintech company with a scalable technology platform that allows private companies to raise capital online and provides private equity investment opportunities to investors. The Company's consulting group, Netcapital Advisors, provides marketing and strategic advice and takes equity positions in select companies. The Company’s funding portal, Netcapital Funding Portal Inc. is registered with the U.S. Securities & Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority (FINRA), a registered national securities association. The Company’s broker-dealer, Netcapital Securities Inc., is also registered with the SEC and is a member of FINRA.
Forward Looking Statements
The information contained herein includes forward-looking statements. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
Investor Contact
800-460-0815
ir@netcapital.com
NETCAPITAL INC.
CONSOLIDATED BALANCE SHEETS
| April 30, 2025 | April 30, 2024 | |||||||
| Assets: | ||||||||
| Cash and cash equivalents | $ | 289,428 | $ | 863,182 | ||||
| Accounts receivable net | 78,649 | 134,849 | ||||||
| Note receivable | - | 20,000 | ||||||
| Other receivables | - | 1,200 | ||||||
| Prepaid expenses | 31,535 | 23,304 | ||||||
| Total current assets | 399,612 | 1,042,535 | ||||||
| Deposits | 6,300 | 6,300 | ||||||
| Notes receivable - related parties | 50,000 | 202,000 | ||||||
| Purchased technology, net | 14,697,529 | 14,733,005 | ||||||
| Investment in affiliate | - | 240,080 | ||||||
| Equity securities | 5,748,050 | 25,333,386 | ||||||
| Total assets | $ | 20,901,491 | $ | 41,557,306 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 2,941,108 | $ | 793,325 | ||||
| Accrued expenses | 269,971 | 310,300 | ||||||
| Short-term promissory notes | 263,437 | - | ||||||
| Deferred revenue | 330 | 466 | ||||||
| Interest payable | 100,797 | 92,483 | ||||||
| Current portion of SBA loans | 1,885,800 | 1,885,800 | ||||||
| Loan payable - bank | 34,324 | 34,324 | ||||||
| Total current liabilities | 5,495,767 | 3,116,698 | ||||||
| Long-term liabilities: | ||||||||
| Long-term SBA loans, less current portion | 500,000 | 500,000 | ||||||
| Total liabilities | 5,995,767 | 3,616,698 | ||||||
| Commitments and contingencies | - | - | ||||||
| Stockholders’ equity: | ||||||||
| Common stock, $.001 par value; 900,000,000 shares authorized, 2,192,226 and 326,867 shares issued and outstanding | 2,192 | 327 | ||||||
| Shares to be issued | 200,000 | 122,124 | ||||||
| Capital in excess of par value | 42,525,294 | 37,338,594 | ||||||
| Retained earnings | (27,821,762 | ) | 479,563 | |||||
| Total stockholders’ equity | 14,905,724 | 37,940,608 | ||||||
| Total liabilities and stockholders’ equity | $ | 20,901,491 | $ | 41,557,306 | ||||
NETCAPITAL INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
| Year Ended | Year Ended | |||||||
| April 30, 2025 | April 30, 2024 | |||||||
| Revenues | $ | 869,460 | $ | 4,951,435 | ||||
| Costs of services | 40,344 | 108,060 | ||||||
| Gross profit | 829,116 | 4,843,375 | ||||||
| Costs and expenses: | ||||||||
| Consulting expense | 314,947 | 610,209 | ||||||
| Marketing | 37,699 | 333,771 | ||||||
| Rent | 79,568 | 76,117 | ||||||
| Payroll and payroll related expenses | 3,502,166 | 3,838,640 | ||||||
| General and administrative costs | 5,216,053 | 3,427,026 | ||||||
| Total costs and expenses | 9,150,433 | 8,285,763 | ||||||
| Operating loss | (8,321,317 | ) | (3,442,388 | ) | ||||
| Other income (expense): | ||||||||
| Interest expense | (41,289 | ) | (45,990 | ) | ||||
| Amortization of intangible assets | (35,476 | ) | (93,862 | ) | ||||
| Impairment expense | (19,915,556 | ) | (1,048,430 | ) | ||||
| Other income | 1,200 | 1,200 | ||||||
| Unrealized gain (loss) on equity securities | 18,050 | (2,696,135 | ) | |||||
| Accretion on short-term notes | (6,937 | ) | - | |||||
| Total other income (expense) | (19,980,008 | ) | (3,883,217 | ) | ||||
| Net loss before taxes | (28,301,325 | ) | (7,325,605 | ) | ||||
| Income tax expense (benefit) | - | (2,339,288 | ) | |||||
| Net loss | $ | (28,301,325 | ) | $ | (4,986,317 | ) | ||
| Basic loss per share | $ | (20.39 | ) | $ | (28.83 | ) | ||
| Diluted loss per share | $ | (20.39 | ) | $ | (28.83 | ) | ||
| Weighted average number of common shares outstanding: | ||||||||
| Basic | 1,387,666 | 172,937 | ||||||
| Diluted | 1,387,666 | 172,937 | ||||||
FAQ
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