Netcapital reports FY25 results, focuses on scalable foundation.

• Netcapital announces FY25 financial results • Focus on building a stronger, more scalable foundation • Broker-dealer license secured • Broadened access to private markets • Committed to disciplined execution and innovation • Mission to democratize access to private markets

Netcapital Inc. (NCPL) has announced its FY25 financial results, highlighting a significant shift in strategy aimed at building a stronger, more scalable foundation for its business. The company reported a steep decline in revenue and an increased net loss, but it is pivoting towards technology-driven services and blockchain integration to create long-term value for shareholders.

Revenue dropped sharply to $869,460 in FY2025 from $4.9 million in FY2024. Net loss widened to $28.3 million, up from $4.9 million the previous year. Despite these setbacks, Netcapital is focusing on scalable, technology-driven services and blockchain integration. The company discontinued equity-based consulting services to streamline operations. Regulatory challenges continue to pose a significant hurdle in the fintech sector.

Key Takeaways:
- Revenue declined by over 80% to $869,460 in FY2025 from $4.9 million in FY2024.
- Net loss widened to $28.3 million, up from $4.9 million.
- Netcapital is shifting focus to scalable, technology-driven services and blockchain integration.
- The company discontinued equity-based consulting services to streamline operations.

Looking ahead, Netcapital is expanding its Reg A offerings and exploring further integration of blockchain technologies. The company aims to scale its funding portal, which now charges a 1% fee payable in securities, as part of its strategy to create long-term value for shareholders.

Netcapital's strategic focus on innovation and technology may offer growth opportunities, but the company faces significant hurdles in achieving its long-term objectives. The company's CEO, Martin Kay, emphasized the company’s mission to democratize access to private capital markets, stating, "We’re about democratizing access to capital in the private capital markets." He also highlighted the regulatory challenges, noting, "We spend a lot of time and energy and money, frankly, educating the regulators on what we do and why we do it."

Netcapital's FY25 financial results underscore the company's commitment to disciplined execution and innovation in the face of regulatory uncertainty and a challenging macroeconomic environment. As the company continues to pivot towards technology-driven services and blockchain integration, investors will be closely watching its progress and the impact of these strategic shifts on its financial performance.

References:
[1] https://za.investing.com/news/transcripts/earnings-call-transcript-netcapital-q4-2025-sees-revenue-plunge-strategic-pivot-93CH-3836946