Netcapital (NCPL) Q2 2026 earnings summary

Executive summary

• Q2 fiscal 2026 revenues were $51,076, down from $170,528 year-over-year, mainly due to lower portal activity and fewer new issuers launching offerings.

• Operating loss for Q2 FY26 was $2,119,457, a slight improvement from $2,202,431 in the prior year.

• Loss per share improved to $0.44 from $2.34 year-over-year.

• The company is pivoting from a consulting-for-equity model to focus on its fintech platform, broker-dealer, and blockchain-based digital assets.

• Strategic acquisition of Rivetz and Horizon aims to enhance blockchain and tokenized asset capabilities, with new leadership emphasizing digital asset growth.

Financial highlights

• Q2 FY26 revenue was $51,076, down from $170,528 in Q2 FY25; six-month revenue was $241,134, down from $312,755.

• Operating loss for Q2 FY26 was $2,119,457; net loss for six months was $5,771,541.

• Loss per share for Q2 FY26 was $0.44, improved from $2.34 year-over-year; six-month loss per share was $1.50.

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

• Gross profit for Q2 FY26 was $1,877; gross margin for six months was 96%.

Outlook and guidance

• Management is focused on scaling the fintech platform, leveraging the broker-dealer for larger Reg A transactions, and expanding into blockchain and tokenized assets.

• Anticipates revenue from broker-dealer activities and diversified streams from digital assets in the next reported quarter.

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