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NetClass Technology Inc Class A
(NASDAQ:NTCL)
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Rating:39Underperform
Price Target:
$2.50
▲(575.68% Upside)
Action:Reiterated
Date:07/31/26
The score is driven primarily by materially deteriorating financial performance, with steep losses and heavy negative operating/free cash flow in 2024–2025. Technicals are also weak with the stock below major moving averages. Valuation provides limited support because the negative P/E reflects unprofitable operations and no dividend yield is available in the data.
Positive Factors
Revenue Growth
Sustained top-line growth over the six-month period signals improving market traction and product adoption. Durable revenue expansion supports scaling economics and provides a base to invest in product development and sales channels over the next several quarters if margins and cash conversion improve.
Negative Factors
Cash generation weakness
The company is burning operating cash and producing deeply negative free cash flow, implying it cannot self-fund growth or operating needs. Over the medium term this increases reliance on external financing, raises dilution/refinancing risk, and constrains ability to invest in scaling product and sales channels.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Sustained top-line growth over the six-month period signals improving market traction and product adoption. Durable revenue expansion supports scaling economics and provides a base to invest in product development and sales channels over the next several quarters if margins and cash conversion improve.
Read all positive factors
NetClass Technology Inc Class A (NTCL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.44M
Dividend YieldN/A
Average Volume (3M)94.10K
Price to Earnings (P/E)―
Beta (1Y)-1.64
Revenue Growth25.23%
EPS Growth-144.16%
CountryUS
Employees46
SectorGeneral
Sector StrengthN/A
IndustrySoftware - Application
Share Statistics
EPS (TTM)N/A
Shares Outstanding1,280,000
10 Day Avg. Volume157,756
30 Day Avg. Volume94,096
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)4.27
Price to Sales (P/S)2.52
P/FCF Ratio-3.08
Enterprise Value/Market Cap1.21
Enterprise Value/Revenue0.33
Enterprise Value/Gross Profit2.14
Enterprise Value/Ebitda-0.52
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
NetClass Technology Inc Class A Business Overview & Revenue Model
Company Description
NetClass Technology Inc, operating through its subsidiaries, provides an online platform for professional education and accompanying courseware. Its services span the People's Republic of China, Hong Kong, Singapore, and the Cayman Islands. The co...
How the Company Makes Money
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NetClass Technology Inc Class A Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
44
Neutral
Cash Flow
14
Very Negative
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.51M | 9.81M | 10.10M | 11.09M | 9.26M | 11.56M |
| Gross Profit | 1.94M | 2.24M | 2.31M | 2.36M | 3.04M | 3.98M |
| EBITDA | -8.02M | -9.11M | -1.28M | 482.83K | 166.93K | 1.34M |
| Net Income | -11.89M | -10.82M | -1.48M | 162.23K | 132.69K | 1.07M |
Balance Sheet | ||||||
| Total Assets | 15.93M | 13.81M | 7.23M | 6.54M | 4.35M | 4.22M |
| Cash, Cash Equivalents and Short-Term Investments | 1.70M | 1.76M | 410.72K | 524.60K | 208.21K | 1.04M |
| Total Debt | 3.07M | 2.71M | 13.12K | 54.36K | 130.94K | 98.55K |
| Total Liabilities | 11.21M | 7.83M | 4.17M | 2.10M | 1.94M | 1.69M |
| Stockholders Equity | 4.60M | 5.78M | 2.97M | 4.44M | 2.41M | 2.53M |
Cash Flow | ||||||
| Free Cash Flow | -10.55M | -8.03M | -135.66K | 391.88K | -571.45K | 742.32K |
| Operating Cash Flow | -8.25M | -5.72M | -135.66K | 391.88K | -571.45K | 745.80K |
| Investing Cash Flow | -2.54M | -2.29M | 0.00 | 0.00 | 0.00 | 19.57K |
| Financing Cash Flow | 12.07M | 9.36M | 10.87K | -152.91K | -125.58K | -30.23K |
NetClass Technology Inc Class A Risk Analysis
NetClass Technology Inc Class A disclosed 54 risk factors in its most recent earnings report. NetClass Technology Inc Class A 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 1 New Risks
1.
The market price of our Class A Ordinary Shares has recently declined significantly, and our Class A Ordinary Shares could be delisted from the Nasdaq or trading could be suspended. Q3, 2025
NetClass Technology Inc Class A Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
48 Neutral | $15.01M | -0.91 | -137.61% | ― | 9.71% | 95.35% | |
47 Neutral | $123.84M | -1.29 | -164.91% | ― | 43.04% | 59.79% | |
42 Neutral | $4.86M | -0.36 | -120.34% | ― | 202.57% | -5.36% | |
39 Underperform | $3.44M | -0.09 | -228.97% | ― | 25.23% | -144.16% |
* General Sector Average
NTCL
NetClass Technology Inc Class A
2.60
-91.40
-97.23%
IDAI
T Stamp, Inc. Class A
3.12
0.15
5.05%
SPPL
Simpple Ltd.
3.53
0.58
19.66%
RYDE
Ryde Group Limited Class A
0.83
0.51
162.54%
CSAI
Cloudastructure, Inc. Class A
3.94
-54.56
-93.26%
WETO
Webus International Limited
5.33
-178.67
-97.10%
NetClass Technology Inc Class A Corporate Events
NetClass Technology Taps Share-Based Deals for Shanghai Advertising and AI Product Support
Jul 30, 2026
On July 20, 2026, NetClass Technology Inc entered into three year-long service agreements with unaffiliated providers, effective from July 21, 2026, to support its marketing and product development efforts. The company is paying for these services...
NetClass Technology Files Interim Results and Details July Reverse Stock Split
Jul 22, 2026
NetClass Technology Inc. filed a Form 6-K for July 2026, furnishing unaudited interim condensed consolidated financial statements and related management discussion for the six months ended March 31, 2026. The filing, signed on July 21, 2026, also ...
NetClass Technology Regains Nasdaq Compliance After 50-for-1 Reverse Stock Split
Jul 22, 2026
On January 27, 2026, NetClass Technology Inc. disclosed it had fallen below Nasdaq’s $1.00 minimum closing bid price requirement for its Class A ordinary shares for 30 consecutive business days, triggering a 180-day grace period to restore c...
NetClass Technology Enacts 1-for-50 Reverse Split to Safeguard Nasdaq Listing
Jul 7, 2026
On February 13, 2026, NetClass Technology shareholders approved a framework allowing one or more share consolidations over two years, with the board empowered to set ratios up to 1-for-2000 and adjust governing documents accordingly. Acting under ...
NetClass Technology Issues Shares for AI and LLM App Development Agreements
Jun 18, 2026
On May 6, 2026, NetClass Technology Inc. signed a technical development service agreement with independent developer Bangyuan Liu to design and support its LLM-Based Learning APP System over a 12‑month period ending May 5, 2027. As compensat...
NetClass Technology Inc Expands AI Multilingual Assessment Partnerships in Asia and Europe
Jun 11, 2026
On June 11, 2026, NetClass Technology Inc announced new milestones in its AI language proficiency assessment portfolio and academic collaborations. The company is strengthening its position in smart education technology by deepening its presence i...
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.