Netcapital Revenue Falls 38% to $94,347 as Q3 FY2026 Loss Narrows

Netcapital Inc., an equity crowdfunding platform, reported revenue of $94,347 for the three months ending January 31, 2026, down 38% from $152,682 in the same quarter a year earlier. The company posted a net loss of $1.81 million, narrowing from a loss of $3.01 million in the prior-year quarter. Read more earnings reports.

For the nine months ending January 31, 2026, revenue totaled $335,481, down 28% from $465,437 in the comparable period. The net loss for the nine-month period was $7.58 million, slightly improved from $7.75 million a year earlier.

Operating loss for the three-month period was $2.17 million compared to $1.69 million in the prior-year quarter. For the nine months, operating loss widened to $7.58 million from $6.40 million.

Labor Costs Climb Sharply

Labor and related expenses jumped 35% to $1.10 million for the three months ending January 31, up from $815,024 in the same quarter last year. For the nine-month period, labor costs rose 39% to $3.75 million from $2.70 million.

Cost of revenue for the quarter was $1,823, down from $7,155 a year earlier. Gross profit for the three months was $92,524 compared to $145,527 in the prior-year quarter.

Cash Flow and Balance Sheet

Cash from operations for the nine months ending January 31, 2026 was negative $7.66 million, compared to negative $4.61 million in the year-ago period. Cash and restricted cash stood at $715,443 as of January 31, 2026, up from $614,304 a year earlier and $289,428 at the end of the prior fiscal year.

Total assets increased to $26.06 million as of January 31, 2026, up from $20.90 million at the end of the fiscal year on April 30, 2025. Intangible assets rose to $19.15 million from $14.70 million over the same period.

The company raised $8.19 million from financing activities during the nine months ending January 31, 2026, compared to $4.37 million in the prior-year period. Total liabilities declined to $4.46 million from $6.00 million at fiscal year-end.

Equity and Share Count

Stockholders' equity rose to $21.60 million as of January 31, 2026, from $14.91 million at the end of the prior fiscal year. Common shares outstanding increased sharply to 6.85 million from 2.19 million at fiscal year-end, reflecting significant dilution.

The company reported basic and diluted loss per share of $0.32 for the three months ending January 31, 2026, compared to a loss of $1.57 per share in the year-ago quarter. For the nine-month period, loss per share was $1.71 compared to $6.93 a year earlier, with the improvement driven largely by the increased share count.

Key Financial Data