Netcapital Reports Third Quarter Fiscal 2026 Financial Results and Provides Corporate Update
MWN-AI** Summary
Netcapital Inc. (Nasdaq: NCPL, NCPLW) has announced its third-quarter financial results for fiscal 2026, which ended on January 31, 2026. The highlights include a strategic acquisition of Iverson Design, enhancing the company's technological capabilities, and signing PureWave Hydrogen as its first tokenization client. Management will provide a corporate update during a conference call scheduled for March 20, 2026, at 10:00 a.m. ET.
CEO Rich Wheeless emphasized the importance of recent transactions, particularly the partnership with Silicon Prairie Holdings Inc., which supports the secondary trading of securities. The acquisition of Iverson Design brings proprietary AI-powered design technology to Netcapital, with Michael Iverson appointed as Chief Design Director. These moves are integral to Netcapital's evolution into a digital asset platform, enabling new revenue channels through real-world asset tokenization.
Despite a revenue decline to $94,347 from $152,682 compared to the same quarter last year, the company reported a consistent gross margin above 90%. The operating loss increased to $2,174,335 from $1,687,692 in the previous year. However, the net loss per share improved to $0.32 from a loss of $1.57 a year earlier. The cash position has strengthened, rising to $715,443, compared to $289,428 in April 2025.
With plans to increase client engagement through their broker-dealer platform, which gained four new clients in the quarter, Netcapital aims to enhance revenue streams and improve its bottom line. The company is focused on leveraging its growing technological capabilities and market presence to drive future growth. Investors can access further details in the quarterly report filed with the SEC.
MWN-AI** Analysis
In analyzing Netcapital Inc.'s third quarter fiscal 2026 financial results, several key takeaways emerge that may interest investors looking for growth opportunities in the fintech and digital asset space.
Firstly, the acquisition of Iverson Design signals a strategic pivot towards enhancing the company’s tokenization capabilities, potentially increasing its value proposition in a rapidly evolving digital asset market. This acquisition provides proprietary AI technologies that could streamline design and visualization processes, enhancing client presentations and engagement. With the addition of Michael Iverson as Chief Design Director, Netcapital may leverage advanced digital tools to attract more clients, notably in investor relations and fundraising.
Additionally, the onboarding of PureWave Hydrogen as the first tokenization client marks a significant milestone. This partnership not only expands Netcapital's revenue streams but also underscores its commitment to tapping into real-world asset tokenization, which is expected to gain momentum as businesses seek innovative financing alternatives. As regulatory frameworks evolve, Netcapital’s role in enabling these transactions could position it favorably in the market.
Despite experiencing a drop in revenues to $94,347 compared to the previous year, management highlighted improved cash position and margin resilience, maintaining gross margins above 90%. This suggests operational efficiency and a focus on cost control, necessary for navigating the current market volatility.
However, the increased operating losses signal continued investment needs and expansion challenges. Investors should monitor how successfully management can convert growth strategies into tangible profitability. The upcoming conference call on March 20, 2026, presents an opportunity for stakeholders to gain further insights from management and clarify future growth prospects.
In summary, while the current financials reveal challenges, the strategic initiatives undertaken—particularly regarding acquisitions and client partnerships—may indicate a robust long-term growth trajectory. Investors should weigh these developments against ongoing financial losses and market conditions as they consider their positions in Netcapital.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
- Key milestones include acquisition of Iverson Design and signing PureWave Hydrogen as first tokenization client
- Management to host business update conference call tomorrow at 10:00 am ET
BOSTON, MA, March 19, 2026 (GLOBE NEWSWIRE) -- Netcapital Inc. (Nasdaq: NCPL, NCPLW, Netcapital) (the “Company”), a digital private capital markets ecosystem, today announced financial results and provided corporate highlights for the third quarter of fiscal 2026 ended January 31, 2026. In addition, management plans to host a business update conference call tomorrow, March 20, 2026, at 10:00 a.m. ET.
“We completed several key transactions in fiscal Q3 2026,” said Rich Wheeless, Netcapital’s Chief Executive Officer.
- “We partnered with Silicon Prairie Holdings Inc., which provides critical regulatory infrastructure in support of secondary trading of securities previously sold under various exemptions.
- We acquired Iverson Design, contributing proprietary AI-powered design and visualization technologies and marking an important step in our transformation into a tokenization and digital asset platform. In conjunction with this transaction, Michael Iverson came on board as Chief Design Director and Head of AI Experience, adding in-house capabilities spanning motion graphics, 3D visualization, real-time rendering, and investor presentation design.
- In addition, PureWave Hydrogen became our first tokenization client, expanding our potential revenue streams into real-world asset tokenization.”
“We believe the strength of our platform and these and other investments position us for renewed growth, and to that end, I’m pleased to report fiscal Q3 2026 revenues increased from fiscal Q2 2026. We also gained traction at our broker-dealer, which signed four new clients during the quarter. With the business carrying gross margins consistently above 90% and highly scalable infrastructure in place, I’m laser-focused on driving increasing and new revenue streams with the goal of improving our bottom-line results in the coming quarters,” added Wheeless.
Third Quarter Fiscal 2026 Financial Highlights:
- Total revenues were $94,347 compared to $152,682 in the prior-year quarter, primarily reflecting lower funding portal activity.
- Operating loss was $2,174,335, compared to an operating loss of $1,687,692 in the year ago period.
- Net loss was ($0.32) per basic and diluted share, compared to a net loss of ($1.57) per basic and diluted share in the year ago period.
- Cash and cash equivalents at January 31, 2026 of $715,443, up from $289,428 at April 30, 2025.
Conference Call Information
The Company will host an investor conference call on March 20, 2026, at 10:00 a.m. ET.
Participant access: 844-985-2012 or 973-528-0138
Conference entry code: 430260
For additional disclosure regarding Netcapital’s operating results, please refer to the Quarterly Report on Form 10-Q for the three-month period ended January 31, 2026, which has been filed with the Securities and Exchange Commission.
About Netcapital Inc.
Netcapital Inc. is a fintech company with a scalable technology platform that allows private companies to raise capital online and provides private equity investment opportunities to investors. The Company’s funding portal, Netcapital Funding Portal, Inc. is registered with the U.S. Securities & Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority (FINRA), a registered national securities association. The Company’s broker-dealer, Netcapital Securities Inc., is also registered with the SEC and is a member of FINRA.
Forward Looking Statements
The information contained herein includes forward-looking statements. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
Investor Contact
800-460-0815
ir@netcapital.com
NETCAPITAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
| January 31, 2026 (Unaudited) | April 30, 2025 (Audited) | |||||||
| Assets: | ||||||||
| Cash and cash equivalents | $ | 715,443 | $ | 289,428 | ||||
| Accounts receivable, net | 1,231 | 78,649 | ||||||
| Other receivables | 11,671 | - | ||||||
| Prepaid expenses | 313,576 | 31,535 | ||||||
| Total current assets | 1,041,921 | 399,612 | ||||||
| Deposits | 6,300 | 6,300 | ||||||
| Notes receivable - related parties | 50,000 | 50,000 | ||||||
| Purchased technology, net | 19,151,139 | 14,697,529 | ||||||
| Equity securities at fair value | 5,810,495 | 5,748,050 | ||||||
| Total assets | $ | 26,059,855 | $ | 20,901,491 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 1,667,240 | $ | 2,941,108 | ||||
| Accrued expenses | 262,271 | 269,971 | ||||||
| Deferred revenue | 270 | 330 | ||||||
| Interest payable | 107,302 | 100,797 | ||||||
| Short-term promissory notes | - | 263,437 | ||||||
| Current portion of SBA loans | 1,893,357 | 1,885,800 | ||||||
| Loan payable - bank | 34,324 | 34,324 | ||||||
| Total current liabilities | 3,964,764 | 5,495,767 | ||||||
| Long-term liabilities: | ||||||||
| Long-term SBA loans, less current portion | 492,443 | 500,000 | ||||||
| Total liabilities | 4,457,207 | 5,995,767 | ||||||
| Commitments and contingencies | - | - | ||||||
| Stockholders’ equity: | ||||||||
| Preferred stock, $0.001 par value, 10,000,000 shares authorized, 0 shares outstanding | - | - | ||||||
| Common stock, $.001 par value; 900,000,000 shares authorized, 6,847,899 and 2,192,226 shares issued and outstanding | 6,848 | 2,192 | ||||||
| Shares to be issued | - | 200,000 | ||||||
| Capital in excess of par value | 57,001,947 | 42,525,294 | ||||||
| Retained earnings (deficit) | (35,406,147 | ) | (27,821,762 | ) | ||||
| Total stockholders’ equity | 21,602,648 | 14,905,724 | ||||||
| Total liabilities and stockholders’ equity | $ | 26,059,855 | $ | 20,901,491 |
NETCAPITAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
| Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | |||||||||||||
| January 31, 2026 | January 31, 2025 | January 31, 2026 | January 31, 2025 | |||||||||||||
| Revenue | $ | 94,347 | $ | 152,682 | $ | 335,481 | $ | 465,437 | ||||||||
| Cost of revenue | 1,823 | 7,155 | 11,109 | 37,156 | ||||||||||||
| Gross profit | 92,524 | 145,527 | 324,372 | 428,281 | ||||||||||||
| Costs and expenses: | ||||||||||||||||
| Consulting expense | 268,032 | 63,555 | 428,718 | 240,581 | ||||||||||||
| Marketing | 4,984 | 12,887 | 14,839 | 31,993 | ||||||||||||
| Rent | 21,300 | 20,178 | 65,452 | 58,736 | ||||||||||||
| Payroll and payroll related expenses | 1,097,998 | 815,024 | 3,747,881 | 2,701,318 | ||||||||||||
| General and administrative costs | 874,545 | 921,575 | 3,646,922 | 3,794,013 | ||||||||||||
| Total costs and expenses | 2,266,859 | 1,833,219 | 7,903,812 | 6,826,641 | ||||||||||||
| Operating loss | (2,174,335 | ) | (1,687,692 | ) | (7,579,440 | ) | (6,398,360 | ) | ||||||||
| Other income (expense): | ||||||||||||||||
| Interest expense | (24,076 | ) | (10,376 | ) | (72,347 | ) | (30,441 | ) | ||||||||
| Interest income | 630 | 400 | 11,671 | 1,200 | ||||||||||||
| Impairment expense | - | (1,300,000 | ) | - | (1,300,000 | ) | ||||||||||
| Loss on debt conversion | (10,815 | ) | - | (10,815 | ) | - | ||||||||||
| Amortization of intangible assets | (54,298 | ) | (8,869 | ) | (72,036 | ) | (26,607 | ) | ||||||||
| Unrealized loss on equity securities, net | (49,950 | ) | - | (5,005 | ) | - | ||||||||||
| Insurance recovery | 500,000 | - | 500,000 | - | ||||||||||||
| Accretion of short-term notes | - | - | (356,413 | ) | - | |||||||||||
| Total other income (expense) | 361,491 | (1,318,845 | ) | (4,945 | ) | (1,355,848 | ) | |||||||||
| Net loss before taxes | (1,812,844 | ) | (3,006,537 | ) | (7,584,385 | ) | (7,754,208 | ) | ||||||||
| Income tax expense (benefit) | - | - | - | - | ||||||||||||
| Net loss | $ | (1,812,844 | ) | $ | (3,006,537 | ) | $ | (7,584,385 | ) | $ | (7,754,208 | ) | ||||
| Basic loss per share | $ | (0.32 | ) | $ | (1.57 | ) | $ | (1.71 | ) | $ | (6.93 | ) | ||||
| Diluted loss per share | $ | (0.32 | ) | $ | (1.57 | ) | $ | (1.71 | ) | $ | (6.93 | ) | ||||
| Weighted average number of common shares outstanding: | ||||||||||||||||
| Basic | 5,612,356 | 1,915,367 | 4,432,039 | 1,119,479 | ||||||||||||
| Diluted | 5,612,356 | 1,915,367 | 4,432,039 | 1,119,479 |
FAQ**
How does the acquisition of Iverson Design enhance Netcapital Inc.'s technological capabilities, particularly in relation to Netcapital Inc. warrants NCPLW?
What specific strategies will management implement to monetize the partnership with PureWave Hydrogen, considering Netcapital Inc. warrants NCPLW?
Can you provide more details on how the acquisition of Iverson Design aligns with Netcapital Inc.'s long-term goals, especially in relation to Netcapital Inc. warrants NCPLW?
What factors contributed to the increase in total revenues in fiscal Q3 2026, and how do they impact Netcapital Inc. warrants NCPLW?
**MWN-AI FAQ is based on asking OpenAI questions about Netcapital Inc. (NASDAQ: NCPL).
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