NetCapital (NCPL)
NASDAQ:NCPL
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NetCapital
(NASDAQ:NCPL)
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Rating:47Neutral
Price Target:
$0.89
▲(34.39% Upside)
Action:Reiterated
Date:05/29/26
The score is held down primarily by weakening fundamentals (shrinking revenue, large TTM losses, and sustained negative free cash flow). Technicals are a partial offset due to strong momentum, but indicators look overextended. Corporate events add incremental risk given reliance on structured/high-cost financing and potential dilution from preferred stock issuance, while valuation remains challenged due to ongoing losses.
Positive Factors
Conservative capital structure
Netcapital's very low debt-to-equity (~0.02) gives the company structural balance-sheet flexibility. With minimal fixed interest burdens, management can prioritize strategic investments or acquisitions and has greater optionality when raising capital, which helps absorb ongoing cash burn without immediate solvency pressure.
Negative Factors
Persistent negative cash flow
Consistent negative operating and free cash flow (TTM ≈ -$8.4M) is a structural weakness: it forces reliance on external capital, limits reinvestment in product and sales, and increases refinancing risk. Over 2–6 months this will pressure liquidity and could force dilutive financing or asset divestitures if not reversed.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative capital structure
Netcapital's very low debt-to-equity (~0.02) gives the company structural balance-sheet flexibility. With minimal fixed interest burdens, management can prioritize strategic investments or acquisitions and has greater optionality when raising capital, which helps absorb ongoing cash burn without immediate solvency pressure.
Read all positive factors
NetCapital (NCPL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.99M
Dividend YieldN/A
Average Volume (3M)198.45K
Price to Earnings (P/E)―
Beta (1Y)2.43
Revenue Growth-9.00%
EPS Growth32.87%
CountryUS
Employees21
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)-11.40
Shares Outstanding7,847,899
10 Day Avg. Volume467,712
30 Day Avg. Volume198,454
Financial Highlights & Ratios
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 Cap0.85
Enterprise Value/Revenue6.86
Enterprise Value/Gross Profit-26.28
Enterprise Value/Ebitda-0.18
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
NetCapital Business Overview & Revenue Model
Company Description
Netcapital Inc. is a financial technology firm primarily known for its SEC-registered funding platform, Netcapital.com. This online portal facilitates capital raising for private enterprises while simultaneously providing a global investment avenu...
How the Company Makes Money
NetCapital’s revenue model is tied to operating an online private-capital-market platform that facilitates securities offerings and investment activity. It can generate revenue from fees associated with hosting or facilitating offerings on its por...
NetCapital Earnings Call Summary
Earnings Call Date:Dec 15, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 18, 2026
Earnings Call Sentiment Neutral
The call highlighted a strategic shift towards blockchain and tokenized assets, which could drive future growth. However, there were significant concerns about the current revenue decline, operating losses, and the justification for recent strategic decisions and acquisitions.Positive Updates
Positive Shift in Strategic Direction
Netcapital has made a strategic pivot focusing on its core fintech platform and a licensed broker-dealer, positioning itself for growth in tokenized assets and blockchain integration.
Negative Updates
Significant Revenue Decline
Revenue decreased from approximately $170,000 in Q2 FY2025 to approximately $51,000 in Q2 FY2026, primarily due to a decrease in portal fees.
Read all updates
Q2-2026 Updates
Positive
Negative
Positive Shift in Strategic Direction
Netcapital has made a strategic pivot focusing on its core fintech platform and a licensed broker-dealer, positioning itself for growth in tokenized assets and blockchain integration.
Read all positive updates
Company Guidance
During Netcapital Inc.'s earnings call for the second quarter of fiscal year 2026, the company reported a significant decline in revenues, totaling approximately $51,000 compared to $170,000 in the same period the previous year, primarily due to a decrease in portal fees. Despite the reduced revenue, the company managed to slightly reduce its operating loss to approximately $2.1 million, down from $2.2 million in fiscal year 2025. Additionally, the loss per share improved notably from $2.34 to $0.44. As of October 31, 2025, Netcapital held cash and cash equivalents of around $1.7 million. The newly appointed CEO, Rich Wheeless, emphasized a strategic pivot towards leveraging blockchain technology and tokenized assets, highlighting their potential for high-margin revenue streams. He also mentioned the company's focus on expanding its offerings through Reg A transactions via its broker-dealer subsidiary, which has not yet generated revenue but is expected to contribute in the future.NetCapital Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
64
Positive
Cash Flow
22
Negative
| Breakdown | TTM | Jul 2025 | Apr 2024 | Apr 2023 | Jul 2022 | Jul 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 739.50K | 869.46K | 4.95M | 8.49M | 5.48M | 4.72M |
| Gross Profit | -193.11K | 829.12K | 4.84M | 8.41M | 5.37M | 3.96M |
| EBITDA | -27.65M | -28.22M | -7.19M | 4.00M | 4.17M | 2.17M |
| Net Income | -28.13M | -28.30M | -4.99M | 2.95M | 3.50M | 1.47M |
Balance Sheet | ||||||
| Total Assets | 26.06M | 20.90M | 41.56M | 41.82M | 31.76M | 25.72M |
| Cash, Cash Equivalents and Short-Term Investments | 715.44K | 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 | 4.46M | 6.00M | 3.62M | 5.66M | 6.52M | 11.54M |
| Stockholders Equity | 21.60M | 14.91M | 37.94M | 36.16M | 25.24M | 14.18M |
Cash Flow | ||||||
| Free Cash Flow | -8.39M | -5.34M | -4.88M | -4.62M | -3.01M | -3.25M |
| Operating Cash Flow | -8.39M | -5.34M | -4.88M | -4.62M | -3.01M | -3.25M |
| Investing Cash Flow | -100.00K | 0.00 | -20.00K | 200.00K | -319.17K | 242.03K |
| Financing Cash Flow | 8.59M | 4.77M | 5.19M | 4.51M | 1.33M | 5.47M |
NetCapital Technical Analysis
Negative
0.66
Price Trends
0.61
Positive
0.57
Positive
1.10
Negative
Market Momentum
0.05
Positive
45.42
Neutral
12.03
Positive
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 below the 20-day moving average (MA) of 0.93, above the 50-day MA of 0.61, and below the 200-day MA of 1.10, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 45.42 is Neutral, neither overbought nor oversold. The STOCH value of 12.03 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NCPL.
NetCapital Risk Analysis
NetCapital disclosed 13 risk factors in its most recent earnings report. NetCapital reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
NetCapital Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
57 Neutral | $30.48M | 1.35 | 32.18% | 6.45% | 188.88% | ― | |
47 Neutral | $5.99M | -0.14 | -124.21% | ― | -9.00% | 32.87% | |
46 Neutral | $3.94M | -4.21 | -12.18% | ― | 36.02% | -215.56% | |
40 Underperform | $2.64M | -0.09 | -164.77% | ― | ― | 92.58% | |
| ― | $7.14M | -6.44 | -7.67% | ― | -9.70% | -75.42% |
* Financial Sector Average
NCPL
NetCapital
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NetCapital Corporate Events
Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
Netcapital Signs LOI for Resmac Mortgage Banking Acquisition
Positive
Jun 4, 2026
On May 31, 2026, Netcapital Inc. entered into a non-binding letter of intent with RezyFi Inc. for a proposed $5 million all-stock acquisition by a new South Dakota subsidiary, SD Holdco, of substantially all assets and assumed liabilities of Resma...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Netcapital Acquires NetNudge AI Platform, Issues Preferred Stock
Positive
May 28, 2026
On May 22, 2026, Netcapital Inc. acquired substantially all assets of Codesharp Corporation’s NetNudge AI Agent Platform, an early-stage specialized AI infrastructure and agent system designed to automate business operations, customer intera...
Business Operations and StrategyPrivate Placements and Financing
Netcapital Secures Private Structured Financing to Support Operations
Negative
May 18, 2026
On May 12, 2026, Netcapital Inc. entered into a securities purchase agreement with Labrys Fund II, L.P. and issued a $290,000 unsecured promissory note, sold for $250,000 with a $40,000 original issue discount, alongside a warrant to buy 250,000 c...
Business Operations and StrategyPrivate Placements and Financing
Netcapital Raises Costly Bridge and Related-Party Debt
Negative
May 1, 2026
On April 26, 2026, Netcapital Inc. entered into two securities purchase agreements with Vanquish Funding Group Inc., issuing a bridge note and a promissory note with an aggregate principal of $144,550 for $125,000 in proceeds, structured with orig...
Business Operations and StrategyExecutive/Board Changes
NetCapital Names Todd Violette CEO Amid Leadership Shift
Neutral
Apr 16, 2026
On April 12, 2026, Netcapital’s board voted to terminate the employment of Chief Executive Officer Rich Wheeless, effective immediately, marking a rapid leadership transition at the fintech firm. The following day, April 13, 2026, the board ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.