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