The earnings call presents a mixed outlook. While the approval of the broker-dealer subsidiary offers promising future revenue opportunities, the company is currently facing significant revenue declines and losses. Additionally, there is uncertainty with the Templum ATS exchange launch.
Company Guidance
During the earnings call for the second quarter of fiscal year 2025, Netcapital Inc. reported a significant decrease in revenue by approximately $1.9 million, representing a 92% decline to $170,528 compared to the same quarter in fiscal 2024. This decrease was largely due to the absence of consulting service revenue, which had contributed approximately $1.5 million in equity securities and $62,000 in other consulting revenue during Q2 2024. The company also reported an operating loss of approximately $2.2 million, contrasting with an operating profit of $52,220 in the prior year. Netcapital experienced a net loss of approximately $2,220,501, with a loss per share of $2.34, compared to a net profit of $339,616 and earnings per share of $2.52 in the previous year. The company had cash and cash equivalents totaling $1,346,739 as of the end of the quarter. Importantly, Netcapital announced that their broker-dealer subsidiary received approval from FINRA, which is anticipated to open new revenue streams through Reg A and Reg D offerings, enhancing their future growth potential.
Approval for Broker-Dealer Subsidiary
Netcapital received approval from FINRA for its broker-dealer subsidiary, Netcapital Securities, Inc., marking a significant achievement and opening new opportunities for revenue streams, including Reg A and Reg D offerings.
Expansion Opportunities
The broker-dealer license allows Netcapital to conduct private placements, support companies raising equity capital, and charge fees on capital raised under Reg A and Reg D, expanding the range of investment opportunities.
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NetCapital (NCPL) Earnings, Revenues Date & History
The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
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NCPL Earnings-Related Price Changes
Report Date
Price 1 Day Before
Price 1 Day After
Percentage Change
Dec 16, 2024
$2.05
$1.76
-14.15%
Sep 16, 2024
$2.88
$2.06
-28.47%
Jul 29, 2024
$6.27
$5.81
-7.34%
Mar 18, 2024
$9.24
$8.48
-8.23%
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
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FAQ
When does NetCapital (NCPL) report earnings?
NetCapital (NCPL) is schdueled to report earning on Mar 24, 2025, TBA Not Confirmed.
What is NetCapital (NCPL) earnings time?
NetCapital (NCPL) earnings time is at Mar 24, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.