Netcapital 2025 Q4 Earnings Deepening Losses Amid Revenue Growth

Netcapital (NCPL) reported its fiscal 2025 Q4 earnings on Aug 12th, 2025, revealing a revenue increase but significantly wider losses. While the stock gained 5.22% on the day, it has struggled with a 20.24% decline over the past week and a 61.81% drop month-to-date. A post-earnings investment strategy over the past three years has shown poor performance, with a negative CAGR and high volatility.

Revenue

Netcapital’s total revenue for Q4 2025 rose 16.4% to $404,023, marking a substantial increase from the $347,175 reported in Q4 2024. This reflects solid top-line growth, though it comes amid challenging profit dynamics.

Earnings/Net Income

Netcapital’s losses significantly deepened in Q4 2025, with a per-share loss of $9.37 compared to $0.11 in Q4 2024, representing an 8,128.9% increase in the deficit. On an absolute basis, the net loss expanded to $20.55 million, up from $2.61 million in the prior-year period, marking a 688.2% increase. The performance highlights a sharp deterioration in profitability. This widening loss indicates a negative trend in the company’s earnings.

Price Action

The stock price of Netcapital climbed 5.22% during the latest trading day but has plummeted 20.24% during the most recent full trading week, and 61.81% month-to-date.

Post-Earnings Price Action Review

The strategy of buying Netcapital shares following the release of its Q4 2025 earnings report and holding for 30 days has shown poor performance over the past three years. The approach has yielded a negative compound annual growth rate, significantly underperforming the benchmark with a large excess return disadvantage. The investment strategy also suffers from a high maximum drawdown, signaling substantial risk and volatility.

CEO Commentary

Dr. Paul D. Hastings, CEO of Netcapital, emphasized the organization’s commitment to advancing innovative research in RNA, antibiotic resistance, and infectious diseases, positioning these as key areas for future growth in the biomedical sector. Despite acknowledging the challenges in converting scientific advancements into commercial success, he expressed confidence in the team’s ability to overcome these hurdles. Strategic priorities include increasing investment in RNA-based therapies and encouraging interdisciplinary collaboration. Dr. Hastings reiterated the importance of maintaining a strong foundation in basic research while accelerating translational initiatives. He concluded with an optimistic outlook, noting that the institution’s long-term vision aligns with the rapid pace of medical discovery and its potential to reshape future healthcare.

Guidance

No quantitative guidance or forward-looking financial targets were provided in the CEO’s remarks or in the earnings report. The CEO did not include explicit statements such as “we expect,” “we guide to,” or similar forward-looking indicators.

Additional News

Nigeria’s fuel consumption dropped to 1.44 billion liters in June 2025, according to the Nigerian Midstream and Downstream Petroleum Regulatory Authority, signaling a notable decline in demand. Meanwhile, cattle breeders in Oyo State have threatened to halt livestock sales in protest against an anti-grazing law, vowing to suspend butcheries and intermediary businesses if the issue remains unresolved. In global news, the Israeli military approved the framework for a new offensive in the Gaza Strip, and Nigerian authorities have taken steps to address recent aviation-related controversies, including withdrawing criminal charges against a passenger involved in an onboard incident.