Netcapital Inc. Reports Significant Revenue Decline and Increased Losses for Three and Nine Months Ended January 31, 2026

Netcapital Inc. reported a significant decline in financial performance for the three and nine months ended January 31, 2026, as detailed in its latest 10-Q filing. The company generated revenue of $94,347 for the three months, a decrease of approximately 38% from $152,682 in the same period the previous year. For the nine months, revenue fell to $335,481, down 28% from $465,437. The gross profit for the nine-month period was $324,372, compared to $428,281 in the prior year. The decline in revenue was attributed to a reduced number of issuers utilizing the funding portal services, with only eight new issuers launching campaigns in the latest quarter compared to 27 in the previous year.

Netcapital's operating loss for the three months ended January 31, 2026, was $2,174,335, compared to a loss of $1,687,692 in the same period last year. The nine-month operating loss also increased to $7,579,440 from $6,398,360. The company reported a net loss of $1,812,844 for the latest quarter, which is an improvement from the $3,006,537 loss in the prior year. The basic loss per share for the three months was $(0.32), compared to $(1.57) in the previous year.

In terms of operational developments, Netcapital has made strategic acquisitions, including the purchase of Rivetz Corp.'s assets related to its Rivetz Network for $1,040,120, which included 950,000 shares of common stock and $100,000 in cash. Additionally, the company acquired assets from Iverson Design in January 2026, further expanding its capabilities in digital design services. The company also appointed Rich Wheeless as the new CEO and Kevin Kilduff as General Counsel following the resignation of former CEO Martin Kay.

The company’s cash and cash equivalents increased to $715,443 as of January 31, 2026, up from $289,428 at the end of the previous fiscal year. However, Netcapital reported negative working capital of $2,922,843, indicating ongoing liquidity challenges. The company has been actively seeking to raise capital through various means, including public offerings and private placements, to support its operations and growth initiatives. Despite these efforts, management expressed substantial doubt about the company's ability to continue as a going concern without additional financing.

Looking ahead, Netcapital aims to enhance its platform to support blockchain-based digital assets, reflecting a growing interest in tokenized securities. However, the company acknowledges that achieving revenue from these new capabilities will require significant development and compliance efforts, which may necessitate further capital investment. The ongoing investigations by the SEC and FINRA also pose potential risks to the company's operations and financial stability.