Netcapital's QQ1 2026 results show meaningful top-line momentum in portal-fee driven revenue, underpinned by a single issuer that accounted for about 73% of quarterly revenue and catalyzed a roughly $5 million raise between March and May 2025. Revenue for the quarter ended July 31, 2025 reached $190,058, up about 34% YoY per management commentary, while gross margin remained extremely robust at 96.1% (gross profit of $182,649 on $190,058 revenue). Despite the top-line strength, the company recorded a substantial operating loss of approximately $3.28 million and a net loss of about $3.64 million for the quarter, translating to an EPS of -$1.27. Cash and cash equivalents stood at roughly $4.6 million as of July 31, 2025. Management framed the results within a strategic pivot toward a scalable, tech-enabled platform with a broader fintech ecosystem play, emphasizing growth initiatives in blockchain, crypto, and digital assets, as well as a dedicated game advisory board.
Key takeaways: (1) The core business demonstrated portal-fee growth of >30% signaling scalable revenue generation, (2) The leap in gross margin suggests the revenue mix remains skewed toward low incremental-cost portal activities, but (3) continued operating losses and a modest liquidity runway create a near-term need for capital or improved operating efficiency. Management did not provide formal numerical guidance for FY2026, but signaled a strategic shift toward a more scalable, asset-light platform and new advisory initiatives in crypto/DeFi and gaming to augment long-term growth. Investors should monitor issuer diversification, the pace of non-issuer revenue mix, and the funding runway as the company executes its strategic plan.