Netcapital Inc.

Netcapital reported second-quarter fiscal 2026 revenue of approximately $51,000 for the three months ended October 31, 2025, down from approximately $170,000 a year ago. Operating loss was approximately $2.1 million versus approximately $2.2 million in the prior-year quarter, and loss per share was $0.44 versus $2.34. Cash and cash equivalents were approximately $1.7 million as of October 31, 2025. Management did not provide full-year numeric guidance, but said the next reported quarter could include revenues from the broker-dealer and that the company is focused on building toward profitability through a more scalable funding portal plus broker-dealer model.

CEO Rich Wheeless said this is a transition period and that the company is repositioning around a more scalable fintech platform, its broker-dealer, and opportunities in digital assets and tokenization. He repeatedly tied the strategy to regulatory compliance, larger transaction sizes, and higher-margin revenue potential, saying the company is “doubling down” on tokenized assets and using existing infrastructure to support that pivot. His tone was confident and forward-looking, but he gave few specifics beyond strategic direction and said the company would share more in the coming days.

CFO Coreen Kraysler led with the quarter’s reported figures: revenue of about $51,000, operating loss of about $2.1 million, loss per share of $0.44, and cash of about $1.7 million. She said the revenue decline was primarily due to lower portal fees and reminded investors that revenues can be lumpy because funding timing can have an outsized effect. On capital allocation and expense discipline, she rejected the idea that the company should simply cut costs to growth, emphasizing that management is focused on executing the new strategy and that the broker-dealer could begin contributing revenue as soon as the next reported quarter.

Analysts and investors pressed management on low revenue versus employee count, whether the broker-dealer had produced any revenue yet, and whether the company was justified in using a large equity stake for acquisitions tied to a defunct software business. Management did not directly answer every question, but said the company is prioritizing the strategic pivot, that broker-dealer revenue could appear in the next quarter, and that the acquisitions brought technology, code, and expertise needed for tokenized assets. They also said the total cash paid was “not that much money,” while Jason Frishman added that the company’s small market cap makes larger equity-based transactions difficult to avoid.