Netcapital's Q3 Performance: Revenue Challenges Ahead

Netcapital Inc. Reports Q3 Financial Results

Netcapital Inc. (NASDAQ: NCPL, NCPLW), a leading innovator in the realm of digital private capital markets, has recently shared its financial outcomes for the third quarter of fiscal year 2025, which wrapped up on January 31, 2025. This evaluation reveals both the challenges faced and optimistic projections as the company moves forward.

Management Insights on Q3 Performance

In addressing the current financial condition, Martin Kay, the CEO of Netcapital Inc., emphasized the company's strategic shift towards establishing a wholly-owned broker-dealer subsidiary, Netcapital Securities Inc., which successfully gained approval from FINRA in November. He remarked, "This significant achievement is anticipated to unlock new revenue streams for the company in the future." Despite a challenging market environment during this quarter, there is a positive note as Algernon NeuroScience Inc. engaged Netcapital Securities for a planned Regulation A offering, indicating confidence in their services.

Third Quarter Financial Metrics

The key financial metrics for the third quarter of fiscal 2025 provide a snapshot of the company's performance:

• Revenue decreased by approximately 85% year-over-year, landing at $152,682, down from $1,042,793 in the same quarter last year.
• The operating loss reached ($1,687,692), a decline compared to a loss of ($1,205,157) from the previous fiscal year.
• Net loss was reported at ($3,006,537), compared to a loss of ($2,227,542) in the prior year.
• Loss per share stood at ($1.57), down from ($13.60) earlier.
• The company had cash and cash equivalents totaling $614,304 as of the reporting date.

Looking Ahead: Conference Call and Business Strategies

Netcapital is set to host an investor conference call to discuss these results in further detail. This call is scheduled to take place on March 19, 2025, at 10:00 a.m. ET. Investors can access the call by dialing 844-985-2012 or 973-528-0138, using the conference entry code 165756.

The Future of Netcapital Inc.

As Netcapital continues to navigate the complexities of the current financial landscape and refine its operational models, management remains dedicated to ensuring robust stakeholder engagement and transparency. The development of their funding portal aims to bolster private companies in raising capital, enhancing overall investment opportunities. The company's commitment to innovation and adaptability remains crucial as it faces the fluctuating market dynamics.

About Netcapital Inc.

Netcapital Inc. is a fintech trailblazer focused on revolutionizing capital raising through its scalable technology platform. It empowers private companies to facilitate capital raising effectively while providing investors with unique equity opportunities. The Netcapital Advisors division furthers this mission by offering strategic marketing insights and taking equity positions in promising organizations.

Investor Relations Information

For more details, investors are encouraged to reach out through the following contact channels:

• Phone: 800-460-0815
• Email: ir@netcapital.com

Frequently Asked Questions

What are the key financial highlights from Netcapital's Q3 report?

The key highlights include an 85% decline in revenue, a net loss of $3,006,537, and a significant operating loss.

When is Netcapital's earnings call scheduled?

The earnings call is scheduled for March 19, 2025, at 10:00 a.m. ET.

What is Netcapital's plan for overcoming the current challenges?

Management is focusing on expanding its broker-dealer subsidiary, which is expected to open new revenue streams.

How does Netcapital aim to support private companies?

Netcapital provides innovative solutions through its technology platform, enabling private companies to raise capital effectively.

What services does Netcapital offer to investors?

Netcapital offers private equity investment opportunities through its funding portal, providing investors with unique access to emerging companies.

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