NetCapital (NCPL) AI Stock Analysis

• Market Cap: $5.34M
• Dividend Yield: N/A
• Average Volume (3M): 198.45K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.70
• 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: 6,867,899
• 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: 0.46
• Enterprise Value/Revenue: 3.07
• Enterprise Value/Gross Profit: -77.62
• Enterprise Value/Ebitda: -0.08
• 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: 41 Neutral
• Price Target: $0.71 ▲(6.82% Upside)

NCPL scores poorly primarily due to deteriorating operating performance and persistently negative cash flow, with bearish technicals reinforcing the downside risk. Valuation is constrained by losses (negative P/E, no dividend), while the earnings call provided only limited offset from modest loss improvement amid steep revenue decline and execution questions around the strategic pivot and acquisitions.

Positive Factors

Low leverage / balance-sheet flexibility

Very low debt-to-equity gives Netcapital structural financial flexibility, lowering bankruptcy and interest-rate vulnerability. This durable buffer supports continued investment in strategic pivots or acquisitions without immediate refinancing pressure, prolonging runway versus highly leveraged peers.

Strategic pivot to tokenization and broker-dealer

Shifting toward tokenized assets and using a licensed broker-dealer targets higher-margin, structural revenue streams and expands addressable market beyond portal fees. If executed, this diversifies business model and aligns with growing institutional and retail interest in digitized private securities.

Acquisition adds AI/visualization IP

Bringing AI-driven design and 3D visualization IP strengthens product differentiation for issuer/investor UX. Durable improvement in content tooling can increase platform adoption, reduce manual costs, and improve conversion on private offerings over multiple quarters.

Negative Factors

Steep revenue decline

A sustained collapse in portal fee revenue indicates weak demand or loss of product-market fit, harming scale economics. Lower topline impairs margin recovery, reduces ability to invest in growth initiatives, and makes profitability and funding self-sufficiency materially harder to achieve.

Persistent negative operating cash flow

Consistent negative operating cash flow erodes cash reserves and forces reliance on external financing. This structurally increases dilution or debt risk, constrains product investment cadence, and threatens continuity if capital markets tighten or fundraising terms deteriorate.

Acquisition execution and dilution concerns

Large share-based acquisitions and investor pushback signal governance and execution risk. Structurally, issuing equity for technology can dilute shareholders and may not create sustainable revenue if integrations fail, compounding losses and eroding long-term investor confidence.

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

Overall financial quality is weak: the income statement shows sharp deterioration with falling revenue and deeply negative margins, and cash flow remains persistently negative (operating and free cash flow). The main offset is low leverage (very low debt-to-equity), which reduces near-term balance-sheet risk but does not solve the profitability and funding challenges.

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

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 0.73, below the 50-day MA of 0.89, and below the 200-day MA of 2.29, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 44.11 is Neutral, neither overbought nor oversold. The STOCH value of 80.70 is Negative, 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
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
COHN	63 Neutral	$36.67M	7.58	9.56%	6.45%	214.07%	-40.88%
ABTS	49 Neutral	$10.57M	-8.32	-11.74%	―	31.69%	86.25%
MEGL	43 Neutral	$6.13M	-4.74	-7.67%	―	-33.80%	-1609.52%
NCPL	41 Neutral	$5.34M	-0.06	-99.67%	―	-53.14%	56.40%
LGHL	40 Underperform	$348.89K	>-0.01	-164.77%	―	-200.22%	76.90%

NetCapital Corporate Events

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.