Netcapital Inc (NCPLW) Q1 2025 Earnings Report

Netcapital Inc (NCPLW) reported a material top-line decline in QQ1 2025, with revenue of $142,227, down 93.03% year-over-year and 59.03% quarter-over-quarter. Despite a high gross margin of 92.8% driven by a relatively small cost of revenue ($10,220), the company generated a substantial operating loss of $2.508 million and a net loss of $2.528 million, resulting in an EPS of -$5.10 for the quarter. EBITDA stood negative at $2.508 million, and EBITDA margin remained deeply negative at approximately -17.63%. These results culminated in negative free cash flow and a challenging liquidity position, underscored by a current ratio of 0.27 and cash on hand of $855 thousand at period end.