NCPL Netcapital Inc.

Overview and Growth

In fiscal 2025, Netcapital Inc. recorded $869.46K of revenue, net loss of $28.30M, and an operating cash outflow of $5.34M. At $869.46K, the top line establishes the operating scale supporting the company’s profit and cash-flow profile. The top line contracted 82.4% from $4.95M in fiscal 2024; this top-line contraction left the company with a smaller revenue base. The company reported diluted EPS of -$20.39, adding a shareholder-level measure to the absolute income figures considered below. A diluted share base of 1.39M links the aggregate earnings figure to diluted EPS and helps frame the per-share comparison. The diluted share count was 702.4% higher than fiscal 2024, when diluted shares averaged 172.94K, adding context to the EPS comparison. Total assets stood at $20.90M, showing the scale of resources supporting revenue, earnings, liquidity, and financing. The revenue-to-assets relationship was 0.04x, showing the sales generated relative to the resources carried on the balance sheet.

Profitability

After reported cost of revenue, the company retained $829.12K as gross profit before recognizing operating expenses and other items. Gross margin was 95.4%, so that share of each revenue unit remained after the cost of revenue reported for the period. The reported operating result was an operating loss of $8.32M, reflecting costs that exceeded gross profit. An operating margin of -957.1% reflected costs exceeding revenue-level gross profit by 957.1% of sales. The company ended the period with a net loss of $28.30M, extending the operating result through all remaining items. Before income taxes, the company recorded a loss of $28.30M, bridging the operating result to the final net loss. Relative to period-end equity, the net loss represented 189.9%. Relative to total assets, the net loss represented 135.4%. The bottom-line deficit increased from $4.99M in fiscal 2024 to $28.30M.

Liquidity and Capital Structure

Total assets were $20.90M, supported by $6.00M of liabilities and $14.91M of shareholder equity. At period end, current assets of $399.61K compared with current liabilities of $5.50M, defining the company’s short-term resource position. Current assets covered only 0.07x of current liabilities, so current liabilities exceeded current assets at period end. Reported cash and equivalents were $289.43K, separating immediately recognizable cash resources from the rest of the current-asset base. Measured only with cash and equivalents, coverage of current liabilities was 5.3%, excluding receivables and other current assets. The company carried $3.18M of total debt at period end, which frames its leverage and debt-service burden. The debt-to-equity relationship was 0.21x, showing how much debt the company carried for each unit of book equity. Debt represented 15.2% of total assets, placing borrowing in the context of the company’s full resource base. Book equity represented 71.3% of total assets, quantifying the balance-sheet share supported by shareholder capital. Liabilities represented 28.7% of total assets, quantifying the liability-funded share of the company’s resource base. Measured against total assets, cash and equivalents represented 1.4%, a balance-sheet composition measure rather than a liquidity forecast. The asset base changed 49.7% from $41.56M in fiscal 2024, leaving current total assets lower year over year. Reported equity changed 60.7% from $37.94M in fiscal 2024, placing the current capital base lower year over year. Cash and equivalents were 66.5% lower than fiscal 2024 cash of $863.18K, showing the year-over-year change in liquid resources.

Cash Flow and Earnings Quality

Operating activities used $5.34M of cash, resulting in an operating cash outflow for the year. Compared with a $4.88M operating cash outflow in fiscal 2024, the current outflow increased to $5.34M.

Based on the annual report for the fiscal year ending Apr 30, 2025. Analysis generated Oct 21, 2026.