NetCapital (NCPL) AI Stock Analysis

• Market Cap: $3.99M
• Dividend Yield: N/A
• Average Volume (3M): 198.45K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.87
• 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: 0.84
• Enterprise Value/Revenue: 4.22
• Enterprise Value/Gross Profit: -106.77
• Enterprise Value/Ebitda: -0.12
• 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: 43 Neutral
• Price Target: $0.49 ▼(-25.45% Downside)
• Action: Upgraded Date: 03/17/26
• Date: Action: Upgraded 03/17/26

The score is primarily weighed down by weak financial performance—falling revenue, steep losses, and persistently negative cash flow—despite low leverage. Technicals remain bearish with the stock far below longer-term moving averages and negative MACD, while valuation offers limited support given losses and no dividend. The earnings call and corporate events add incremental risk: revenue contraction and ongoing losses alongside a Nasdaq bid-price deficiency, partially balanced by strategic pivots and capability-building acquisitions.

Positive Factors

Low leverage / balance-sheet flexibility

Netcapital’s very low debt-to-equity (~0.02) provides durable balance-sheet flexibility, lowering immediate solvency risk and giving management time to execute strategic pivots or raise equity without large interest burdens. This structural strength supports runway and optionality over months.

Strategic pivot to tokenization and broker-dealer capabilities

Management’s pivot toward blockchain and tokenized assets, coupled with an in-house broker-dealer pathway (Reg A capability), represents a structural shift to higher-margin, platform-based issuance services. If executed, this can create recurring fee opportunities and differentiated product depth over the medium term.

Acquisition adds AI/IP and product capability

The Iverson Design asset purchase brings proprietary AI design and visualization IP plus a dedicated Head of AI Experience, strengthening product differentiation. Enhanced investor-facing content and visualization capabilities can improve issuer onboarding and platform stickiness, a durable competitive edge for deal flow.

Negative Factors

Falling revenue and deeply negative margins

Sustained revenue contraction and large negative margins reflect weak demand and poor operating leverage at current scale. This structural earnings weakness limits internal reinvestment, makes profitable scaling harder, and increases reliance on external capital to sustain operations if revenue recovery stalls.

Persistent negative operating cash flow

Consistent negative OCF and FCF indicate the business is consuming cash to fund operations. Over several months this elevates liquidity and continuity risk, forcing recurring financing or dilution and constraining the company’s ability to invest in product milestones needed to realize its strategic pivot.

Nasdaq minimum-bid noncompliance / listing risk

A Nasdaq deficiency notice creates a structural governance and access-to-capital risk: management may need to undertake reverse splits or other actions that can dilute or deter investors. Listing uncertainty can hamper new capital raises and strategic partnerships over the coming months.

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’s revenue model is tied to providing a technology-enabled platform for private company fundraising and related services. It may generate revenue from fees associated with facilitating capital raises (for example, issuer-side platform or service fees tied to offerings conducted on or through its platform) and from other service fees connected to supporting issuers and investors during the fundraising and equity management process. Specific, itemized revenue streams (e.g., exact fee types, percentages, recurring subscription components, or material named partnerships) are null because they are not provided in the prompt and cannot be verified here without additional sourced information. Key revenue streams: null Significant partnerships or material earnings drivers: null

NetCapital Financial Statement Overview

Summary

Income statement and cash flow are very weak: TTM revenue fell (-13%) with deeply negative margins (net margin -36.8%) and persistent negative operating/free cash flow (TTM OCF about -$8.7M). The balance sheet shows low leverage (debt-to-equity ~0.02), but negative ROE (~-1.24) and declining equity indicate ongoing value erosion if losses continue.

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: Neutral
• 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 Neutral. The current price of 0.66 is above the 20-day moving average (MA) of 0.50, above the 50-day MA of 0.61, and below the 200-day MA of 2.06, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 46.56 is Neutral, neither overbought nor oversold. The STOCH value of 47.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NCPL.

NetCapital Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COHN	74 Outperform	$40.96M	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	$6.42M	-6.36	-12.18%	―	31.69%	86.25%
NCPL	43 Neutral	$3.99M	-1.23	-124.21%	―	-53.14%	56.40%
MEGL	43 Neutral	$5.47M	-3.38	-7.67%	―	-33.80%	-1609.52%
LGHL	40 Underperform	$270.53K	-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.