NetCapital (NCPL) AI Stock Analysis

• Market Cap: $3.65M
• Dividend Yield: N/A
• Average Volume (3M): 198.45K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.86
• Revenue Growth: -53.14%
• EPS Growth: 56.40%
• Country: US
• Employees: 21
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): -0.44
• Shares Outstanding: 7,847,899
• 10 Day Avg. Volume: 467,712
• 30 Day Avg. Volume: 198,454
• PEG Ratio: <0.01
• Price to Book (P/B): 0.19
• Price to Sales (P/S): 3.22
• P/FCF Ratio: -0.52
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 3.79
• Enterprise Value/Gross Profit: -95.94
• Enterprise Value/Ebitda: -0.10
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: $0.47 ▼(-29.39% Downside)
• Action: Downgraded Date: 03/04/26
• Date: Action: Downgraded 03/04/26

The score is held down primarily by weak financial performance (deep losses and consistently negative cash flow) and bearish technicals (price below all major moving averages with negative MACD). A low-debt balance sheet and strategic repositioning provide some offset, but limited valuation support (negative P/E, no dividend) and listing-compliance risk keep overall risk elevated.

Positive Factors

Low leverage and balance-sheet flexibility

Very low debt-to-equity (~0.02) provides durable financial flexibility, reducing solvency risk and preserving optionality for funding the strategic pivot, executing acquisitions, or surviving extended losses without immediate refinancing pressure. That structural cushion supports long-term execution.

Strategic pivot to tokenization and broker-dealer capabilities

Management’s shift toward tokenized assets and leveraging a licensed broker-dealer represents a structural business-model change. It positions the firm to capture emerging, higher-margin services (token issuance, servicing, and Reg A offerings) and diversifies revenue beyond legacy portal fees over the medium term.

Targeted M&A to acquire tech, IP, and talent

Acquisitions bringing AI design IP and blockchain cybersecurity assets embed technical capabilities and specialist talent into the platform. These durable assets can accelerate productization of tokenized offerings, improve investor-facing materials, and form a differentiated, harder-to-replicate feature set.

Negative Factors

Persistent negative operating cash flow

Consistent negative operating cash flow (roughly -$8.7M TTM) is a structural concern: it erodes reserves, forces reliance on external financing, and limits ability to fund product development or scale go-to-market. Over months this elevates continuity and dilution risk if revenue recovery lags.

Declining revenue and deeply negative margins

A shrinking revenue base and severe negative net margin indicate poor cost absorption and an unstable earnings profile. Without sustained revenue growth, negative margins will continue to consume capital and impede the company’s ability to demonstrate unit economics or scale sustainably over the next several quarters.

Nasdaq minimum bid noncompliance and listing risk

A Nasdaq minimum-bid deficiency is a material structural overhang: potential delisting or a reverse split could reduce liquidity, impair capital-raising options, and distract management. Restoration requirements create execution pressure over months and raise the probability of governance or structural remediation.

NetCapital Business Overview & Revenue Model

Company Description

Netcapital Inc. operates as a fintech company. It offers Netcapital.com, an SEC-registered funding portal that enables private companies to raise capital online, as well as allows investors to invest from anywhere in the world. It also provides various services, including a fully automated onboarding process; automated filing of required regulatory documents; compliance review; custom-built offering page on its portal website; third party transfer agent and custodial services; email marketing to its proprietary list of investors; rolling closes, which provide potential access to liquidity before final close date of offering; assistance with annual filings; and ongoing support services. In addition, the company offers advisory services, such as incubation of technology start-ups; investor introduction; digital marketing; website design, software, and software development; message crafting, including pitch decks, offering pages, and ad creation; strategic advice; and technology consulting services. Further, it provides business valuations; fairness and solvency opinions; ESOP feasibility and valuation; non-cash charitable contributions; economic analysis of damages; intellectual property appraisals; and compensation studies. Netcapital Inc. was incorporated in 1984 and is based in Boston, Massachusetts. Netcapital Inc. is a subsidiary of NetCapital Systems LLC.

How the Company Makes Money

NetCapital makes money through transaction fees and service charges on its platform. The company earns revenue by charging a percentage fee on the total capital raised by startups using its platform to conduct equity crowdfunding campaigns. Additionally, NetCapital may offer premium services or support to entrepreneurs for a fee, enhancing their campaigns' visibility and success. The company's revenue model is reliant on the volume and success rate of the campaigns hosted on its platform, as well as the overall growth and interest in equity crowdfunding as an alternative investment and fundraising method.

NetCapital Financial Statement Overview

Summary

Income statement and cash flow are the major drags: revenue is declining and profitability is deeply negative (net margin -36.8%), with persistent negative operating and free cash flow (TTM operating cash flow about -$8.7M). The main offset is low leverage (debt-to-equity ~0.02), but ROE is meaningfully negative, indicating ongoing value erosion while losses persist.

Income Statement

TTM (Trailing-Twelve-Months) results show deep losses and worsening operating performance: revenue declined (-13.0%) and margins are severely negative (gross margin -3.9% and net margin -36.8%). Annual results highlight a sharp deterioration from profitability in 2022–2023 to heavy losses in 2024–2025, indicating an unstable earnings profile and weak cost absorption at the current revenue scale.

Balance Sheet

Leverage is low in TTM (Trailing-Twelve-Months) with debt-to-equity around 0.02, which limits balance-sheet risk and provides flexibility. However, shareholder returns are meaningfully negative (TTM return on equity about -1.24), reflecting that the capital base is not currently generating profits; equity has also declined versus prior years, signaling ongoing value erosion if losses persist.

Cash Flow

Cash generation is weak, with negative operating cash flow and negative free cash flow in every period shown, including TTM (Trailing-Twelve-Months) (operating cash flow about -$8.7M). While free cash flow change is positive in the latest TTM period, it is improving from a very negative base and still not covering ongoing losses, keeping funding/continuity risk elevated if external capital is needed.

Breakdown	TTM	Jul 2025	Apr 2024	Apr 2023	Jul 2022	Jul 2021
Income Statement
Total Revenue	797.84K	869.46K	4.95M	8.49M	5.48M	4.72M
Gross Profit	-31.51K	829.12K	4.84M	8.41M	5.37M	3.96M
EBITDA	-28.90M	-28.22M	-7.19M	4.00M	4.17M	2.17M
Net Income	-29.33M	-28.30M	-4.99M	2.95M	3.50M	1.47M
Balance Sheet
Total Assets	25.44M	20.90M	41.56M	41.82M	31.76M	25.72M
Cash, Cash Equivalents and Short-Term Investments	1.68M	289.43K	863.18K	569.44K	473.93K	2.47M
Total Debt	2.42M	2.68M	2.42M	2.79M	4.14M	5.33M
Total Liabilities	4.00M	6.00M	3.62M	5.66M	6.52M	11.54M
Stockholders Equity	21.44M	14.91M	37.94M	36.16M	25.24M	14.18M
Cash Flow
Free Cash Flow	-8.68M	-5.34M	-4.88M	-4.62M	-3.01M	-3.25M
Operating Cash Flow	-8.68M	-5.34M	-4.88M	-4.62M	-3.01M	-3.25M
Investing Cash Flow	0.00	0.00	-20.00K	200.00K	-319.17K	242.03K
Financing Cash Flow	9.02M	4.77M	5.19M	4.51M	1.33M	5.47M

NetCapital Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.66
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NCPL, the sentiment is Negative. The current price of 0.66 is above the 20-day moving average (MA) of 0.51, above the 50-day MA of 0.63, and below the 200-day MA of 2.09, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 39.00 is Neutral, neither overbought nor oversold. The STOCH value of 48.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NCPL.

NetCapital Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COHN	74 Outperform	$41.01M	2.83	31.32%	6.45%	214.07%	-40.88%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ABTS	47 Neutral	$6.80M	-6.36	-12.18%	―	31.69%	86.25%
MEGL	43 Neutral	$5.47M	-3.38	-7.67%	―	-33.80%	-1609.52%
NCPL	40 Underperform	$3.65M	-1.23	-124.21%	―	-53.14%	56.40%
LGHL	40 Underperform	$264.08K	-0.13	-164.77%	―	-200.22%	76.90%

NetCapital Corporate Events

Netcapital Receives Nasdaq Notice for Minimum Bid Noncompliance

On February 4, 2026, Netcapital Inc. disclosed that it had received a notice from Nasdaq stating the company was no longer in compliance with the exchange’s minimum bid price requirement, after its shares traded below $1.00 for 30 consecutive business days between December 18, 2025, and February 3, 2026. The notice does not immediately affect trading of Netcapital’s stock, which will continue to trade on the Nasdaq Capital Market, but the company now has until August 3, 2026, to restore its share price to at least $1.00 for at least 10 consecutive business days, with the possibility of an additional 180-day extension if other listing criteria are met; failure to regain compliance could ultimately lead to delisting, although Netcapital may seek to cure the deficiency, including through a potential reverse stock split, and would have the right to appeal any delisting determination.

The most recent analyst rating on (NCPL) stock is a Hold with a $0.55 price target. To see the full list of analyst forecasts on NetCapital stock, see the NCPL Stock Forecast page.

NetCapital acquires Iverson Design to enhance AI capabilities

On January 2, 2026, Netcapital Inc. acquired substantially all assets of Iverson Design, LLC, a creative studio specializing in AI-powered design and visualization tools, in an all-stock transaction valued at 980,000 shares of Netcapital common stock, and formally announced the deal in a January 6, 2026 press release. The acquisition brings Iverson Design’s full intellectual property portfolio—including proprietary AI-driven design, animation, and real-time rendering technologies—into Netcapital, while founder Michael Iverson joins as Chief Design Director and Head of AI Experience, bolstering the company’s efforts to make tokenization and digital asset concepts more accessible through faster AI-assisted content creation, immersive 3D visualization, and reusable design assets aimed at enhancing investor-facing materials across its platform.

The most recent analyst rating on (NCPL) stock is a Hold with a $0.71 price target. To see the full list of analyst forecasts on NetCapital stock, see the NCPL Stock Forecast page.

NetCapital Appoints New CEO Amid Strategic Shift

On December 3, 2025, Netcapital Inc. entered into an Asset Purchase Agreement with Rivetz Corp., acquiring nearly all assets related to Rivetz’s ‘Rivetz Network,’ which integrates hardware-based cybersecurity with blockchain services. This acquisition, involving the issuance of 950,000 shares of common stock to Rivetz, aims to enhance Netcapital’s technological capabilities in cybersecurity and blockchain, potentially strengthening its market position. Additionally, on the same date, Martin Kay resigned as CEO, with Rich Wheeless appointed as his successor on December 7, 2025. Wheeless brings extensive financial leadership experience, and his appointment is part of Netcapital’s strategy to expand beyond traditional securities into crypto and blockchain-enabled investments, indicating a strategic shift that could impact stakeholders and the company’s future growth trajectory.

The most recent analyst rating on (NCPL) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on NetCapital stock, see the NCPL Stock Forecast page.