Netcapital Announces First Quarter Fiscal 2026 Financial Results

Rhea-AI Summary

Netcapital (NASDAQ:NCPL) reported its Q1 fiscal 2026 financial results, showcasing revenue growth of 34% year-over-year to $190,058. The company recorded an operating loss of ($3.29 million), compared to ($2.51 million) in the same period last year, with a loss per share of ($1.27) versus ($5.10) in Q1 fiscal 2025.

During the quarter, Netcapital established a Crypto Advisory Board to guide its integration of blockchain, digital assets, and crypto with traditional finance, positioning the company for opportunities in decentralized finance (DeFi). The company maintained a strong cash position of $4.56 million as of July 31, 2025.

Positive

• Revenue growth of 34% year-over-year to $190,058
• Significant improvement in loss per share from ($5.10) to ($1.27)
• Strong cash position of $4.56 million
• Strategic expansion into blockchain and DeFi through new Crypto Advisory Board

Negative

• Operating loss increased to ($3.29 million) from ($2.51 million) year-over-year
• Continued net losses despite revenue growth

Insights

Financial Analyst

Netcapital shows strong revenue growth but widening operational losses amid strategic shift into blockchain and DeFi.

Netcapital's Q1 fiscal 2026 results present a mixed financial picture. While the 34% year-over-year revenue growth to $190,058 demonstrates positive momentum in their digital private capital markets business, this growth comes alongside a concerning expansion of operational losses to $3,285,648, up from $2,508,237 in the comparable quarter.

The significant disparity between revenue growth and operating losses suggests Netcapital is heavily investing in its strategic pivot, particularly toward blockchain integration and DeFi opportunities through their newly established Crypto Advisory Board. This strategic shift appears to be capital-intensive in its early stages.

The improved loss per share ($1.27 versus $5.10 year-over-year) despite wider absolute losses indicates a larger outstanding share count, likely from capital raising activities. The company maintains a reasonable cash position of $4,562,491, providing some runway for their strategic initiatives.

The fundamental challenge facing Netcapital remains scaling revenue significantly enough to offset operational expenses. Their current quarterly revenue run rate of under $200,000 is minimal compared to their quarterly operating losses exceeding $3 million, creating a substantial gap that requires either dramatic revenue acceleration, significant cost reductions, or continued external funding to sustain operations.

• Management to Host Earnings Call on September 23, 2025 at 10 a.m. ET

BOSTON, MA, Sept. 22, 2025 (GLOBE NEWSWIRE) -- Netcapital Inc. (Nasdaq: NCPL, NCPLW) (the “Company”), a digital private capital markets ecosystem, today announced financial results for the first quarter of fiscal year 2026 ended July 31, 2025.

“We are pleased to report that we began our fiscal year 2026 with revenue growth of more than 30% for the first quarter. In fiscal year 2025, we shifted our strategy to focus on building a stronger and more scalable business, and we are encouraged to see our vision taking shape,” said Martin Kay, CEO of Netcapital Inc.

“We achieved several significant milestones during the quarter, including establishing a Crypto Advisory Board, composed of accomplished industry leaders to guide our efforts in integrating blockchain, digital assets and crypto with traditional finance,” added Mr, Kay. “We believe that this initiative positions us well to play a larger role in the fintech space and explore opportunities in decentralized finance, or DeFi.”

First Quarter Fiscal 2026 Financial Results

• Revenue increased approximately 34% year-over-year to $190,058, as compared to $142,227 in the first quarter of fiscal year 2025.
• The company posted an operating loss of ($3,285,648), compared to operating loss of ($2,508,237) for the first quarter of fiscal year 2025.
• Loss per share was ($1.27), compared to a loss per share of ($5.10) for the first quarter of fiscal year 2025.
• As of July 31, 2025, the Company had cash and cash equivalents of $4,562,491.

Conference Call Information

The Company will host an investor conference call on Tuesday, September 23, 2025, at 10 a.m. ET.

Participant access: 844-985-2012 or 973-528-0138
Conference entry code: 972602

For additional disclosure regarding Netcapital’s operating results, please refer to the Quarterly Report on Form 10-Q for the three-month period ended July 31, 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.
CONDENSED CONSOLIDATED BALANCE SHEETS

		July 31, 2025 (Unaudited)				April 30, 2025 (Audited)
Assets:
Cash and cash equivalents		$	4,562,491			$	289,428
Accounts receivable, net			20,000				78,649
Prepaid expenses			409,661				31,535
Total current assets			4,992,152				399,612
Deposits			6,300				6,300
Notes receivable - related parties			50,000				50,000
Intangible assets			17,528,660				14,697,529
Equity securities			5,855,190				5,748,050
Total assets		$	28,432,302			$	20,901,491
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable		$	1,934,537			$	2,941,108
Accrued expenses			235,448				269,971
Short-term promissory notes			600,000				263,437
Deferred revenue			315				330
Interest payable			114,962				100,797
Current portion of SBA loans			1,885,800				1,885,800
Loan payable - bank			34,324				34,324
Total current liabilities			4,805,386				5,495,767
Long-term liabilities:
Long-term SBA loans, less current portion			500,000				500,000
Total liabilities			5,305,386				5,995,767
Commitments and contingencies			-				-
Stockholders’ equity:
Common stock, $.001 par value; 900,000,000 shares authorized, 4,720,066 and 2,192,226 shares issued and outstanding			4,720				2,192
Shares to be issued			-				200,000
Capital in excess of par value			54,586,010				42,525,294
Retained earnings (deficit)			(31,463,814	)			(27,821,762	)
Total stockholders’ equity			23,126,916				14,905,724
Total liabilities and stockholders’ equity		$	28,432,302			$	20,901,491

 
NETCAPITAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)

		Three Months Ended				Three Months Ended
		July 31, 2025				July 31, 2024
Revenues		$	190,058			$	142,227
Costs of services			7,409				10,220
Gross profit			182,649				132,007
Costs and expenses:
Consulting expense			72,051				97,381
Marketing			11,438				6,898
Rent			22,852				19,116
Payroll and payroll related expenses			1,793,450				1,136,593
General and administrative costs			1,568,506				1,380,256
Total costs and expenses			3,468,297				2,640,244
Operating loss			(3,285,648	)			(2,508,237	)
Other income (expense):
Interest expense			(36,067	)			(10,464	)
Interest income			-				400
Amortization of intangible assets			(8,869	)			(8,869	)
Unrealized gain (loss) on equity securities			44,945				-
Accretion on short-term notes			(356,413	)			-
Total other income (expense)			(356,404	)			(18,933	)
Net loss before taxes			(3,642,052	)			(2,527,170	)
Income tax expense			-				-
Net loss		$	(3,642,052	)		$	(2,527,170	)
Basic loss per share		$	(1.27	)		$	(5.10	)
Diluted loss per share		$	(1.27	)		$	(5.10	)
Weighted average number of common shares outstanding:
Basic			2,873,379				495,319
Diluted			2,873,379				495,319

FAQ

What were Netcapital's (NCPL) Q1 fiscal 2026 earnings results?

Netcapital reported revenue of $190,058, up 34% year-over-year, with an operating loss of ($3.29 million) and loss per share of ($1.27).

How much cash does Netcapital (NCPL) have on its balance sheet?

As of July 31, 2025, Netcapital maintained cash and cash equivalents of $4.56 million.

What strategic initiatives did Netcapital (NCPL) announce in Q1 2026?

Netcapital established a Crypto Advisory Board to guide its integration of blockchain, digital assets, and crypto with traditional finance, focusing on DeFi opportunities.

How did Netcapital's (NCPL) operating loss change in Q1 2026?

The operating loss increased to ($3.29 million) from ($2.51 million) in the same quarter of the previous year.

When is Netcapital's (NCPL) Q1 2026 earnings call?

Netcapital will host its earnings conference call on Tuesday, September 23, 2025, at 10:00 AM ET.