Netcapital Inc (NCPLW) Q3 2025 Earnings Report

Netcapital Inc (NCPLW) reported a material revenue contraction in QQ3 2025, with revenue of 152,682 USD, down 10.5% sequentially and 85.4% year-over-year. The combination of a small top line and outsized operating expenses produced a negative EBITDA of -2.99 million and an operating loss of -1.69 million, culminating in a net loss of -3.01 million and an EPS of -1.57. The company maintains a very lean gross profit (gross margin ≈ 95.3%), driven by a minimal cost of revenue base, but this is not sufficient to offset elevated G&A and SG&A, other expenses, and interest burden. Liquidity remains a key challenge: current and quick ratios are both 0.152, and cash on hand sits at 0.614 million against total current liabilities of 4.430 million, yielding a tight liquidity backdrop and negative free cash flow of -1.164 million for QQ3. The balance sheet shows a sizable investment in intangible assets (≈14.706 million) and long-term investments (≈24.313 million), offset by modest cash and a net debt position of roughly 1.81 million. While the business model (fintech funding portal and related advisory/services) has strategic merit, the QQ3 2025 results underscored a need for scale, operating discipline, and improved working capital management to achieve profitability and sustainable cash generation.