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NetCapital (NCPL) AI Stock Analysis
NetCapital
(NASDAQ:NCPL)
The score is held down primarily by weakening fundamentals (shrinking revenue, large TTM losses, and sustained negative free cash flow). Technicals are a partial offset due to strong momentum, but indicators look overextended. Corporate events add incremental risk given reliance on structured/high-cost financing and potential dilution from preferred stock issuance, while valuation remains challenged due to ongoing losses.
NetCapital (NCPL) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $12.48M
- Dividend Yield
- ―
- Average Volume (3M)
- 25.12M
- Price to Earnings (P/E)
- -0.1
- Beta (1Y)
- 2.21
- Revenue Growth
- -9.00%
- EPS Growth
- 32.87%
- Country
- US
- Employees
- 23
- Sector
- Financial
- Sector Strength
- 68
- Industry
- Financial - Capital Markets
NetCapital Business Overview & Revenue Model
Company Description
Netcapital Inc. is a financial technology firm primarily known for its SEC-registered funding platform, Netcapital.com. This online portal facilitates capital raising for private enterprises while simultaneously providing a global investment avenue f...
How the Company Makes Money
NetCapital’s revenue model is tied to operating an online private-capital-market platform that facilitates securities offerings and investment activity. It can generate revenue from fees associated with hosting or facilitating offerings on its portal...
NetCapital Earnings Call Summary
The call highlighted a strategic shift towards blockchain and tokenized assets, which could drive future growth. However, there were significant concerns about the current revenue decline, operating losses, and the justification for recent strategic decisions and acquisitions.
Q2-2026 Updates
Positive Updates
Negative Updates
Company Guidance
During Netcapital Inc.'s earnings call for the second quarter of fiscal year 2026, the company reported a significant decline in revenues, totaling approximately $51,000 compared to $170,000 in the same period the previous year, primarily due to a decrease in portal fees. Despite the reduced revenue, the company managed to slightly reduce its operating loss to approximately $2.1 million, down from $2.2 million in fiscal year 2025. Additionally, the loss per share improved notably from $2.34 to $0.44. As of October 31, 2025, Netcapital held cash and cash equivalents of around $1.7 million. The newly appointed CEO, Rich Wheeless, emphasized a strategic pivot towards leveraging blockchain technology and tokenized assets, highlighting their potential for high-margin revenue streams. He also mentioned the company's focus on expanding its offerings through Reg A transactions via its broker-dealer subsidiary, which has not yet generated revenue but is expected to contribute in the future.
NetCapital Financial Statement Overview
Summary
Financial performance is pressured: revenue is down TTM and profitability deteriorated sharply with gross profit turning negative and net margin around -38%. Cash flow is consistently negative with TTM free cash flow about -$8.4M, implying continued cash burn. The main offset is a low-debt balance sheet (debt-to-equity ~0.02), but deeply negative returns (ROE ~-1.39) keep the score low.
Income Statement
18Very NegativeBalance Sheet
64PositiveCash Flow
22Negative| Breakdown | TTM | Jul 2025 | Apr 2024 | Apr 2023 | Jul 2022 | Jul 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 739.50K | 869.46K | 4.95M | 8.49M | 5.48M | 4.72M |
| Gross Profit | -84.51K | 829.12K | 4.84M | 8.41M | 5.37M | 3.96M |
| EBITDA | -27.65M | -28.22M | -7.19M | 4.00M | 5.18M | 2.57M |
| Net Income | -28.13M | -28.30M | -4.99M | 2.95M | 3.50M | 1.47M |
Balance Sheet | ||||||
| Total Assets | 26.06M | 20.90M | 41.56M | 41.82M | 31.76M | 25.72M |
| Cash, Cash Equivalents and Short-Term Investments | 715.44K | 289.43K | 863.18K | 569.44K | 473.93K | 2.47M |
| Total Debt | 2.42M | 2.68M | 2.42M | 2.79M | 4.14M | 5.33M |
| Total Liabilities | 4.46M | 6.00M | 3.62M | 5.66M | 6.52M | 11.54M |
| Stockholders Equity | 21.60M | 14.91M | 37.94M | 36.16M | 25.24M | 14.18M |
Cash Flow | ||||||
| Free Cash Flow | -8.39M | -5.34M | -4.88M | -4.62M | -3.01M | -3.25M |
| Operating Cash Flow | -8.39M | -5.34M | -4.88M | -4.62M | -3.01M | -3.25M |
| Investing Cash Flow | -100.00K | 0 | -20.00K | 200.00K | -319.17K | 242.03K |
| Financing Cash Flow | 8.59M | 4.77M | 5.19M | 4.51M | 1.33M | 5.47M |
NetCapital Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NCPL, the sentiment is Positive. The current price of 1.59 is above the 20-day moving average (MA) of 1.55, above the 50-day MA of 1.08, and above the 200-day MA of 0.67, indicating a bullish trend. The MACD of 0.12 indicates Positive momentum. The RSI at 52.31 is Neutral, neither overbought nor oversold. The STOCH value of 27.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NCPL.
NetCapital Risk Analysis
NetCapital disclosed 13 risk factors in its most recent earnings report. NetCapital reported the most risks in the "Finance & Corporate" category.
Latest Risks Added
3 New RisksNetCapital Peers Comparison
Overall Rating
COHN79Outperform- NCPL47Neutral
ABTS43Neutral
MEGL43Neutral
LGHL40Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| COHN | 79Outperform | $32.16M | 1.03 | 33.24% | 37.15% | 111.47% | 762.68% |
| Sector * | 68Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
| NCPL | 47Neutral | $12.48M | -0.14 | -138.80% | ― | -9.00% | 32.87% |
| ABTS | 43Neutral | $3.83M | -0.39 | -92.29% | ― | 18.35% | -251.60% |
| MEGL | 43Neutral | $11.01M | -0.78 | -6.75% | ― | -9.70% | -75.42% |
| LGHL | 40Underperform | $104.75K | 0.00 | -29.57% | ― | ― | 92.58% |
* Financial Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| NCPL | Netcapital Inc | 1.59 | -0.49 | -23.56% | |
| COHN | Cohen & Company | 9.96 | 2.18 | 28.05% | |
| ABTS | Abits Group Inc | 1.19 | -5.21 | -81.41% | |
| LGHL | Lion Group Holding Ltd. | 2.27 | -1916.53 | -99.88% | |
| TOP | Zhong Yang Financial Group Ltd. | 11.11 | 5.36 | 93.22% | |
| MEGL | Magic Empire Global Ltd. | 0.16 | -1.24 | -88.43% |
NetCapital Corporate Events
NetCapital Enters Equity Purchase Agreement with Hudson Ventures
NeutralOn July 2, 2026, Netcapital Inc. closed an equity purchase agreement with Hudson Global Ventures, giving the company the right, but not the obligation, to sell up to $15 million of its common stock over a commitment period. The structure includes min...
NetCapital Announces Strategic Pivot and AI Ecosystem Vision
PositiveOn July 2, 2026, Netcapital closed a private financing with Dune Equity Holdings, issuing a $290,000 unsecured promissory note for a $250,000 purchase price, plus a warrant to buy 250,000 common shares at $0.50, resulting in net cash proceeds of $224...
Netcapital Secures Private Financing Through Note and Warrant
NeutralOn June 10, 2026, Netcapital Inc. closed a private financing with FirstFire Global Opportunities Fund, issuing a $290,000 unsecured promissory note and a warrant for 250,000 common shares at an initial exercise price of $0.50, for gross proceeds of $...
Netcapital Secures New Private Financing Through Promissory Note
NegativeOn June 4, 2026, Netcapital Inc. closed a private financing with Labrys Fund II, L.P., issuing a $145,000 unsecured promissory note and a warrant to purchase 125,000 common shares at $0.50, for gross proceeds of $125,000 and net cash of $111,250 afte...
Netcapital Secures Private Financing Through Promissory Note Agreement
NegativeOn June 5, 2026, Netcapital Inc. closed a private financing with Vanquish Funding Group Inc., issuing a $182,120 promissory note for $157,000 in gross proceeds, or $150,000 net, to support general working capital. The note, which was priced with a 13...
Netcapital Signs LOI for Resmac Mortgage Banking Acquisition
PositiveOn May 31, 2026, Netcapital Inc. entered into a non-binding letter of intent with RezyFi Inc. for a proposed $5 million all-stock acquisition by a new South Dakota subsidiary, SD Holdco, of substantially all assets and assumed liabilities of Resmac I...
Netcapital Acquires NetNudge AI Platform, Issues Preferred Stock
PositiveOn May 22, 2026, Netcapital Inc. acquired substantially all assets of Codesharp Corporation’s NetNudge AI Agent Platform, an early-stage specialized AI infrastructure and agent system designed to automate business operations, customer interacti...
Netcapital Secures Private Structured Financing to Support Operations
NegativeOn May 12, 2026, Netcapital Inc. entered into a securities purchase agreement with Labrys Fund II, L.P. and issued a $290,000 unsecured promissory note, sold for $250,000 with a $40,000 original issue discount, alongside a warrant to buy 250,000 comm...
Netcapital Raises Costly Bridge and Related-Party Debt
NegativeOn April 26, 2026, Netcapital Inc. entered into two securities purchase agreements with Vanquish Funding Group Inc., issuing a bridge note and a promissory note with an aggregate principal of $144,550 for $125,000 in proceeds, structured with origina...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: May 28, 2026