Netcapital (NCPL) Q2 2026 earnings summary

Executive summary

• Q2 FY26 revenues dropped to $51,076 from $170,528 year-over-year, mainly due to lower portal fees and fewer new issuers launching offerings.

• Operating loss was $2,119,457, a slight improvement from $2,202,431 in the prior year; loss per share narrowed to $0.44 from $2.34.

• The company is pivoting to focus on its core fintech platform, leveraging its broker-dealer license, and expanding into blockchain and tokenized asset markets.

• Strategic acquisitions, including Rivetz and Horizon, are intended to support a shift toward tokenized asset markets and blockchain-enabled solutions.

• CEO transition with Rich Wheeless appointed, and new General Counsel, as part of a broader strategic shift.

Financial highlights

• Q2 FY26 revenue was $51,076, down from $170,528 year-over-year; gross profit for the quarter was $1,877.

• Operating loss improved to $2,119,457 from $2,202,431; net loss per share improved to $(0.44) from $(2.34).

• Cash and cash equivalents stood at $1,684,188 as of October 31, 2025; negative working capital of $1,500,153.

• Weighted average shares outstanding increased to 4,810,381 from 947,459 year-over-year.

• Total assets rose to $25,439,398 and total liabilities to $5,995,767 as of October 31, 2025.

Outlook and guidance

• Management is optimistic about the regulatory environment for tokenized assets and expects future revenue from broker-dealer and digital asset activities.

• Plans to grow platform volume, leverage broker-dealer capabilities, and expand into digital assets and tokenization.

• Anticipates high-margin revenue streams from compliant utility token sales and single large transactions.

• Management expresses substantial doubt about the company's ability to continue as a going concern due to recurring losses and negative cash flow.

• The company plans to seek additional capital and operate with lower fixed overhead.