Why did NCPL's EPS fall short of forecasts in Q4 2024?

Netcapital's EPS fell short of forecasts in Q4 2024 due to a combination of factors:

1. Revenue Decline: The most significant factor contributing to the EPS shortfall was the substantial decline in consulting services for equity securities, which led to a 42% decrease in revenues. This decline in revenues had a direct impact on the company's profitability, as the estimated revenue for the quarter was $1.13 million, but it fell to $4.95 million for the full fiscal year, missing the forecast.
2. Operating Loss: Netcapital reported an operating loss of $3.44 million and a net loss of $4.98 million for fiscal 2024. This indicates that the company was not only unprofitable in the quarter but also for the full year, which would naturally result in an EPS that is lower than expected.
3. Cost Management: The company's cost management strategies may not have been effective enough to offset the revenue decline. For instance, the launch of a beta version of a secondary trading platform and the application for a broker-dealer license, which are highlighted as part of the company's long-term growth strategy, may not have had an immediate positive impact on profitability.

In summary, Netcapital's EPS fell short of forecasts due to a combination of a significant revenue decline and operational losses. These factors, coupled with the company's strategic initiatives that may take time to yield results, contributed to the EPS falling short of expectations.