NCPL earnings analysis
What we found in NCPL's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Netcapital Inc. reported a significant decline in revenue for Q3 2026, with total revenue of $94,347, a 38% decrease compared to $152,682 in Q3 2025. Notably, the company also recorded an EPS of -0.32. Management pointed to a lack of new issuers signing up for funding services as a primary driver of the revenue decline, alongside increased legal expenses related to ongoing SEC investigations.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Decline
- Q3 2026 revenue dropped to $94,347, down 38% from $152,682 in Q3 2025.
- Rising Legal Expenses
- Legal expenses rose significantly to $412,000 for Q3 2026, compared to $428,000 for Q3 2025.
- Cash Position Improvement
- Cash and cash equivalents improved to $715,443 as of January 31, 2026, from $289,428 on April 30, 2025.
- Increased Payroll Expenses
- Payroll expenses increased by 35%, reaching $1,097,998 for Q3 2026, from $815,024 in Q3 2025.
- Loss from Operations
- Operating loss for the nine months ended January 31, 2026, was $7,579,440, reflecting continued financial struggles.
- Improved Gross Profit Margin
- Gross profit for the nine months ended January 31, 2026, was $324,372, slightly down from $428,281 in the same prior period.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- SEC Investigation
- The ongoing SEC investigation could divert management’s focus and result in substantial investigation expenses.
- Negative Working Capital
- Negative working capital reached $2,922,843, raising concerns about the company's liquidity and ability to continue operations.
- High Customer Concentration
- A single customer contributed 43% of revenue for the nine months ending January 31, 2026, heightening revenue risk.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.32
What they said about what is next.
Management did not provide quantitative forward guidance in the filing.
The filing reads worse than the one before it.
What came before.
- 10-Q · December 15, 2025
- Netcapital Inc. reported a significant decline in revenue and increased operating losses in its Q2 2025 10-Q filing. For the quarter ending October 31, 2025, revenues dropped 70% to $51,076 from $170,528 a year prior,…
- 10-Q · September 22, 2025
- Netcapital Inc. reported significant changes in its quarterly performance for the three months ending July 31, 2025, including a 34% increase in revenue compared to the prior year at $190,058. However, the company…
- 10-K · August 12, 2025
- Netcapital Inc. experienced a significant decline in revenue and increased losses in fiscal 2025. The Company reported revenues of $869,460, down from $4,951,435, primarily due to an absence of consulting services for…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
Read the next one first.
We read every filing NCPL makes the day it lands, and put it next to what the options market did about it. Members get both, and an alert when a filing arrives.
Cancel anytime · Month to month · Switch tiers whenever