Netcapital Inc recorded a sharp revenue contraction in Q3 2025, with revenues of 152,682 USD, down 85% year over year from 1.04 million USD in Q3 2024, driven by the absence of consulting revenue for equity securities in Q3 2025. The quarter showed an impairment-related drag and a widened net loss of approximately 3.01 million USD, versus about 2.2 million USD in the prior-year period. A key strategic development is the FINRA approval in November 2024 for Netcapital Securities, Inc. (NSI), the company’s broker-dealer subsidiary, which creates optionality to pursue private placements, Reg A/Reg D offerings, and third-party broker-dealer partnerships, potentially diversifying revenue beyond its traditional consulting workflow. Management underscored cautious optimism about NSI’s revenue generation potential, highlighting GenOn Neuroscience’s engagement as an early indicative success amidst an uncertain market environment. On the balance sheet, liquidity remains tight with a current ratio of 0.152 and cash balance of 614k USD at period-end, while intangible assets (14.7 million USD) and long-term investments (24.3 million USD) weigh on resilience and impairment risk. The company carries a modest long-term debt load (500k USD) and a net debt position of approximately 1.81 million USD. The near-term investment thesis hinges on NSI momentum, continued cost discipline, and eventual revenue contribution from Reg A/D activities, balanced against a challenging macro backdrop and ongoing burn. Investors should monitor NSI revenue progress, pipeline quality, regulatory costs, and any portfolio impairments that could affect carrying values.