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,…
Earnings analysis · 10-Q
NCPL earnings analysis
Filed March 19, 2026 · Our reading of the company's report
The latest report
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…
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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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.32
What stood out
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Revenue Decline
Q3 2026 revenue dropped to $94,347, down 38% from $152,682 in Q3 2025.
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Rising Legal Expenses
Legal expenses rose significantly to $412,000 for Q3 2026, compared to $428,000 for Q3 2025.
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Cash Position Improvement
Cash and cash equivalents improved to $715,443 as of January 31, 2026, from $289,428 on April 30, 2025.
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Increased Payroll Expenses
Payroll expenses increased by 35%, reaching $1,097,998 for Q3 2026, from $815,024 in Q3 2025.
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Loss from Operations
Operating loss for the nine months ended January 31, 2026, was $7,579,440, reflecting continued financial struggles.
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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.
What to watch
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SEC Investigation
The ongoing SEC investigation could divert management’s focus and result in substantial investigation expenses.
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Negative Working Capital
Negative working capital reached $2,922,843, raising concerns about the company's liquidity and ability to continue operations.
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High Customer Concentration
A single customer contributed 43% of revenue for the nine months ending January 31, 2026, heightening revenue risk.
Management's outlook
Management did not provide quantitative forward guidance in the filing.
Earlier filings 3
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 itself. Analysis can contain errors; check the source document for full context.