Netcapital Inc ( (NCPL) ) has released its Q4 earnings. Here is a breakdown of the information Netcapital Inc presented to its investors.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Netcapital Inc. is a fintech company that operates a scalable technology platform enabling private companies to raise capital online from both accredited and non-accredited investors, primarily through its SEC-registered funding portal and broker-dealer subsidiary. The company is based in Boston, Massachusetts, and is known for its disruptive model in the private equity investing sector, leveraging the JOBS Act to democratize access to private investments.
Netcapital Inc.’s latest earnings report for the fiscal year ended April 30, 2025, highlights a significant decline in revenue compared to the previous year. The company reported revenues of $869,460, down from $4,951,435 in the prior year, primarily due to a decrease in consulting services and a drop in portal fees and listing fees. Despite the decrease in revenue, the company continues to focus on expanding its offerings and services, including the development of a secondary trading platform and increasing its broker-dealer activities.
Key financial metrics from the report indicate a 33% decrease in portal fee revenue and a 53% decrease in listing fee revenue, attributed to a reduction in the number of new offerings and total dollars invested through the portal. The company also recognized significant impairments totaling $19.9 million, affecting its financial condition. However, Netcapital continues to hold equity positions in several portfolio companies, which it values at approximately $6 million.
Looking ahead, Netcapital’s management remains focused on expanding its investor base, increasing the number of companies on its platform, and exploring international markets. The company is also working on enhancing its technology and potentially launching a secondary trading platform to provide liquidity for investors. Despite the challenges, Netcapital aims to leverage its broker-dealer capabilities to expand its revenue base and optimize capital-raising efforts for its clients.