Netcapital Announces Third Quarter Fiscal 2025 Financial Results
Netcapital Inc. (NASDAQ: NCPL) reported its Q3 fiscal 2025 financial results, showing significant challenges with an 85% year-over-year revenue decline to $152,682 from $1.04 million in Q3 fiscal 2024. The digital private capital markets ecosystem faced increased losses, with operating loss widening to ($1.69) million from ($1.21) million year-over-year.
The company's net loss deteriorated to ($3.01) million, compared to ($2.23) million in the same period last year, while loss per share improved to ($1.57) from ($13.60). Cash and cash equivalents stood at $614,304 as of January 31, 2025.
A notable development was the FINRA approval of their wholly-owned broker-dealer subsidiary, Netcapital Securities Inc., in November. The company secured Algernon NeuroScience Inc. as a client for a planned Regulation A offering and broker-dealer services, marking a potential new revenue stream.
Netcapital Inc. (NASDAQ: NCPL) ha riportato i risultati finanziari del terzo trimestre dell'anno fiscale 2025, evidenziando sfide significative con un calo del 85% dei ricavi rispetto all'anno precedente, passando a $152,682 da $1.04 milioni nel terzo trimestre dell'anno fiscale 2024. L'ecosistema dei mercati di capitale privato digitale ha affrontato perdite crescenti, con la perdita operativa che si è ampliata a ($1.69) milioni rispetto a ($1.21) milioni anno su anno.
La perdita netta dell'azienda è peggiorata a ($3.01) milioni, rispetto a ($2.23) milioni nello stesso periodo dell'anno scorso, mentre la perdita per azione è migliorata a ($1.57) da ($13.60). Liquidità e equivalenti di liquidità ammontavano a $614,304 al 31 gennaio 2025.
Un sviluppo notevole è stata l'approvazione da parte di FINRA della loro controllata broker-dealer, Netcapital Securities Inc., avvenuta a novembre. L'azienda ha acquisito Algernon NeuroScience Inc. come cliente per un'offerta regolamentata A e servizi di broker-dealer, segnando una potenziale nuova fonte di entrate.
Netcapital Inc. (NASDAQ: NCPL) informó sus resultados financieros del tercer trimestre del año fiscal 2025, mostrando desafíos significativos con una caída del 85% en los ingresos interanuales, pasando a $152,682 desde $1.04 millones en el tercer trimestre del año fiscal 2024. El ecosistema de los mercados de capital privado digitales enfrentó pérdidas incrementadas, con la pérdida operativa ampliándose a ($1.69) millones desde ($1.21) millones interanualmente.
La pérdida neta de la compañía se deterioró a ($3.01) millones, en comparación con ($2.23) millones en el mismo período del año pasado, mientras que la pérdida por acción mejoró a ($1.57) desde ($13.60). El efectivo y equivalentes de efectivo se situaron en $614,304 al 31 de enero de 2025.
Un desarrollo notable fue la aprobación por parte de FINRA de su subsidiaria broker-dealer de propiedad total, Netcapital Securities Inc., en noviembre. La compañía aseguró a Algernon NeuroScience Inc. como cliente para una oferta planificada de Regulación A y servicios de broker-dealer, marcando una posible nueva fuente de ingresos.
넷캐피탈 Inc. (NASDAQ: NCPL)는 2025 회계연도 3분기 재무 결과를 발표하며, 2024 회계연도 3분기 $1.04백만에서 $152,682로 85%의 연간 수익 감소라는 심각한 도전에 직면했다고 보고했습니다. 디지털 민간 자본 시장 생태계는 손실이 증가하여 운영 손실이 전년 대비 ($1.21)백만에서 ($1.69)백만으로 확대되었습니다.
회사의 순손실은 지난해 같은 기간의 ($2.23)백만에 비해 ($3.01)백만으로 악화되었으며, 주당 손실은 ($13.60)에서 ($1.57)로 개선되었습니다. 2025년 1월 31일 기준 현금 및 현금성 자산은 $614,304로 나타났습니다.
주목할 만한 발전은 11월에 FINRA의 전액 출자된 중개인-딜러 자회사인 넷캐피탈 증권 Inc.의 승인입니다. 회사는 계획된 규제 A 공모 및 중개인-딜러 서비스에 대해 Algernon NeuroScience Inc.를 고객으로 확보하여 잠재적인 새로운 수익원을 확보했습니다.
Netcapital Inc. (NASDAQ: NCPL) a annoncé ses résultats financiers du troisième trimestre de l'exercice 2025, montrant des défis significatifs avec une baisse de 85 % des revenus par rapport à l'année précédente, tombant à 152 682 $ contre 1,04 million $ au troisième trimestre de l'exercice 2024. L'écosystème des marchés de capitaux privés numériques a subi des pertes accrues, avec une perte opérationnelle élargie à 1,69 million $ contre 1,21 million $ d'une année sur l'autre.
La perte nette de la société s'est détériorée à 3,01 millions $, contre 2,23 millions $ au cours de la même période l'année dernière, tandis que la perte par action s'est améliorée à 1,57 $ contre 13,60 $. La trésorerie et les équivalents de trésorerie s'élevaient à 614 304 $ au 31 janvier 2025.
Un développement notable a été l'approbation par la FINRA de leur filiale de courtage entièrement détenue, Netcapital Securities Inc., en novembre. L'entreprise a sécurisé Algernon NeuroScience Inc. en tant que client pour une offre de Régulation A prévue et des services de courtage, marquant une nouvelle source de revenus potentielle.
Netcapital Inc. (NASDAQ: NCPL) hat die finanziellen Ergebnisse des dritten Quartals des Geschäftsjahres 2025 veröffentlicht und erhebliche Herausforderungen mit einem Rückgang der Einnahmen um 85% im Jahresvergleich auf $152,682 von $1,04 Millionen im dritten Quartal des Geschäftsjahres 2024 aufgezeigt. Das digitale private Kapitalmarktesystem sah sich erhöhten Verlusten gegenüber, wobei der operative Verlust auf ($1,69) Millionen von ($1,21) Millionen im Jahresvergleich anstieg.
Der Nettoverlust des Unternehmens verschlechterte sich auf ($3,01) Millionen, verglichen mit ($2,23) Millionen im gleichen Zeitraum des Vorjahres, während der Verlust pro Aktie sich auf ($1,57) von ($13,60) verbesserte. Cash und Zahlungsmitteläquivalente beliefen sich zum 31. Januar 2025 auf $614,304.
Eine bemerkenswerte Entwicklung war die Genehmigung von FINRA für ihre vollständig im Besitz befindliche Broker-Dealer-Tochtergesellschaft, Netcapital Securities Inc., im November. Das Unternehmen sicherte sich Algernon NeuroScience Inc. als Kunden für ein geplantes Regulation A-Angebot und Broker-Dealer-Dienstleistungen, was eine potenzielle neue Einnahmequelle darstellt.
- FINRA approval of broker-dealer subsidiary Netcapital Securities Inc. opens new revenue streams
- Secured new client Algernon NeuroScience for Regulation A offering services
- Improved loss per share to ($1.57) from ($13.60) year-over-year
- Revenue declined 85% year-over-year to $152,682
- Operating loss increased to ($1.69M) from ($1.21M)
- Net loss widened to ($3.01M) from ($2.23M)
- Low cash position of $614,304 may indicate potential liquidity concerns
Insights
Netcapital's Q3 fiscal 2025 results reveal significant financial deterioration. Revenue plummeted
The company's losses have substantially deepened. Operating loss widened to
Liquidity is becoming a critical concern. With cash and equivalents of only
Management's pivot to establish Netcapital Securities, their broker-dealer subsidiary approved by FINRA in November, represents an attempt to find new revenue streams. The engagement with Algernon NeuroScience for a Regulation A offering marks their first client, but this nascent business line remains unproven and unlikely to offset immediate financial challenges.
The combination of rapidly shrinking revenue, expanding losses, and cash reserves creates a precarious financial position that demands immediate strategic action.
- Management to Host Earnings Call on March 19, 2025 at 10:00 a.m. ET
BOSTON, MA, March 17, 2025 (GLOBE NEWSWIRE) -- Netcapital Inc. (Nasdaq: NCPL, NCPLW) (the “Company”), a digital private capital markets ecosystem, today announced financial results for the third quarter of fiscal year 2025 ended January 31, 2025.
“During the fiscal year, management shifted its focus to establishing the company’s wholly-owned broker-dealer subsidiary, Netcapital Securities Inc., which was approved by FINRA in November. We believe this major milestone will provide additional sources of revenue going forward,” said Martin Kay, CEO of Netcapital Inc. “We did face a tough quarter during an uncertain market environment. Looking forward, however, we are pleased that Algernon NeuroScience Inc. recently engaged Netcapital Securities for a planned Regulation A (Reg A) offering and to provide broker-dealer and administrative services.”
Third Quarter Fiscal 2025 Financial Results
- Revenue decreased approximately
85% year-over-year to$152,682 , compared to revenue of$1,042,793 million in the third quarter of fiscal year 2024 - Operating loss was (
$1,687,692) in the third quarter fiscal 2025, compared to ($1,205,157) for the third quarter fiscal 2024 - Net loss was (
$3,006,537) in the third quarter fiscal 2025, compared to net loss of ($2,227,542) for the same period in the prior year - Loss per share was (
$1.57) in the third quarter fiscal 2025, compared to loss per share of ($13.60) for the same period in the prior year - As of January 31, 2025, the Company had cash and cash equivalents of
$614,304
Conference Call Information
The Company will host an investor conference call on Wednesday, March 19, 2025, at 10 a.m. ET.
Participant access: 844-985-2012 or 973-528-0138
Conference entry code: 165756
For additional disclosure regarding Netcapital’s operating results, please refer to the Quarterly Report on Form 10-Q for the three-month period ended January 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
| January 31, 2025 (Unaudited) | April 30, 2024 (Audited) | |||||||
| Assets: | ||||||||
| Cash and cash equivalents | $ | 614,304 | $ | 863,182 | ||||
| Accounts receivable net | - | 134,849 | ||||||
| Other receivables | 2,400 | 1,200 | ||||||
| Note receivable | 20,000 | 20,000 | ||||||
| Prepaid expenses | 36,115 | 23,304 | ||||||
| Total current assets | 672,819 | 1,042,535 | ||||||
| Deposits | 6,300 | 6,300 | ||||||
| Notes receivable - related parties | 202,000 | 202,000 | ||||||
| Purchased technology, net | 14,706,398 | 14,733,005 | ||||||
| Investment in affiliate | 240,080 | 240,080 | ||||||
| Equity securities | 24,073,080 | 25,333,386 | ||||||
| Total assets | $ | 39,900,677 | $ | 41,557,306 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 2,160,727 | $ | 793,325 | ||||
| Accrued expenses | 250,983 | 310,300 | ||||||
| Deferred revenue | 360 | 466 | ||||||
| Interest payable | 98,218 | 92,483 | ||||||
| Current portion of SBA loans | 1,885,800 | 1,885,800 | ||||||
| Loan payable - bank | 34,324 | 34,324 | ||||||
| Total current liabilities | 4,430,412 | 3,116,698 | ||||||
| Long-term liabilities: | ||||||||
| Long-term SBA loans, less current portion | 500,000 | 500,000 | ||||||
| Total liabilities | 4,930,412 | 3,616,698 | ||||||
| Commitments and contingencies | - | - | ||||||
| Stockholders’ equity: | ||||||||
| Common stock, $.001 par value; 900,000,000 shares authorized, 2,112,488 and 326,867 shares issued and outstanding | 2,113 | 327 | ||||||
| Shares to be issued | 122,124 | 122,124 | ||||||
| Capital in excess of par value | 42,120,673 | 37,338,594 | ||||||
| Retained earnings (deficit) | (7,274,645 | ) | 479,563 | |||||
| Total stockholders’ equity | 34,970,265 | 37,940,608 | ||||||
| Total liabilities and stockholders’ equity | $ | 39,900,677 | $ | 41,557,306 | ||||
NETCAPITAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
| Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | |||||||||||||
| January 31, 2025 | January 31, 2024 | January 31, 2025 | January 31, 2024 | |||||||||||||
| Revenues | $ | 152,682 | $ | 1,042,793 | $ | 465,437 | $ | 4,604,260 | ||||||||
| Costs of services | 7,155 | 58,875 | 37,156 | 97,062 | ||||||||||||
| Gross profit | 145,527 | 983,918 | 428,281 | 4,507,198 | ||||||||||||
| Costs and expenses: | ||||||||||||||||
| Consulting expense | 63,555 | 175,357 | 240,581 | 544,033 | ||||||||||||
| Marketing | 12,887 | 32,198 | 31,993 | 320,817 | ||||||||||||
| Rent | 20,178 | 19,544 | 58,736 | 57,533 | ||||||||||||
| Payroll and payroll related expenses | 815,024 | 869,517 | 2,701,318 | 2,957,394 | ||||||||||||
| General and administrative costs | 921,575 | 1,092,459 | 3,794,013 | 2,529,378 | ||||||||||||
| Total costs and expenses | 1,833,219 | 2,189,075 | 6,826,641 | 6,409,155 | ||||||||||||
| Operating income (loss) | (1,687,692 | ) | (1,205,157 | ) | (6,398,360 | ) | (1,901,957 | ) | ||||||||
| Other income (expense): | ||||||||||||||||
| Interest expense | (10,376 | ) | (11,918 | ) | (30,441 | ) | (35,784 | ) | ||||||||
| Interest income | 400 | - | 1,200 | - | ||||||||||||
| Impairment expense | (1,300,000 | ) | - | (1,300,000 | ) | - | ||||||||||
| Amortization of intangible assets | (8,869 | ) | (28,331 | ) | (26,607 | ) | (84,993 | ) | ||||||||
| Unrealized loss on equity securities | - | (2,696,135 | ) | - | (2,696,135 | ) | ||||||||||
| Total other income (expense) | (1,318,845 | ) | (2,736,384 | ) | (1,355,848 | ) | (2,816,912 | ) | ||||||||
| Net income (loss) before taxes | (3,006,537 | ) | (3,941,541 | ) | (7,754,208 | ) | (4,718,869 | ) | ||||||||
| Income tax expense (benefit) | - | (1,713,999 | ) | - | (2,339,288 | ) | ||||||||||
| Net income (loss) | $ | (3,006,537 | ) | $ | (2,227,542 | ) | $ | (7,754,208 | ) | $ | (2,379,581 | ) | ||||
| Basic earnings (loss) per share | $ | (1.57 | ) | $ | (13.60 | ) | $ | (6.93 | ) | $ | (17.61 | ) | ||||
| Diluted earnings (loss) per share | $ | (1.57 | ) | $ | (13.60 | ) | $ | (6.93 | ) | $ | (17.61 | ) | ||||
| Weighted average number of common shares outstanding: | ||||||||||||||||
| Basic | 1,915,367 | 163,807 | 1,119,479 | 135,111 | ||||||||||||
| Diluted | 1,915,367 | 163,807 | 1,119,479 | 135,111 | ||||||||||||
FAQ
What caused Netcapital's (NCPL) 85% revenue decline in Q3 2025?
How much did NCPL's net loss increase in Q3 fiscal 2025?
When did Netcapital Securities receive FINRA approval?
What is Netcapital's (NCPL) cash position as of January 2025?
What new business opportunity has NCPL secured with Algernon NeuroScience?
