Netcapital Inc.

Netcapital Inc. (NCPL) reported Q3 FY2026 results with revenue of $94K, down 38% YoY from $153K, driven by lower fees from online platform services including Regulation CF, A, and 506(c) offerings. Gross profit was $93K, or 98% margin, improved from 95% YoY amid minimal cost of revenue at $2K. Operating expenses totaled $2.3M, up from $1.8M YoY, led by payroll and related expenses of $1.1M and general/administrative costs of $875K, yielding an operating loss of -$2.2M versus -$1.7M prior year. Other income of $361K, including $500K insurance recovery offsetting amortization, impairment, and unrealized losses, resulted in net loss of -$1.8M, a 40% improvement from -$3.0M YoY. Basic EPS was -$0.32 versus -$1.57, with weighted average shares of 5.6M versus 1.9M. Balance sheet grew to $26.1M total assets (up 25% from $20.9M at FY2025 end), with cash at $715K (up from $289K), supported by $8.5M proceeds from common stock sales and warrant exercises over nine months. Nine-month net loss was -$7.6M, operating cash use -$7.7M offset by $8.2M financing inflows. Negative working capital and cash burn raise going concern doubts, with focus on funding portal growth.

Key Takeaways