Netcapital Inc. (NASDAQ: NCPL) reported its second‑quarter fiscal 2026 financial results for the period ended October 31 2025. The company posted total revenue of $51,076, a 70 % decline from the $170,528 reported in the same quarter a year earlier. The drop is largely attributable to a sharp contraction in funding‑portal activity, the core source of the company’s Reg CF platform revenue.
Netcapital’s earnings per share fell to a non‑GAAP loss of $0.44, widening the loss from $2.34 a share a year earlier and from the analyst consensus estimate of a $0.306 loss. The miss reflects both the revenue shortfall and higher operating expenses, including a one‑time legal and regulatory compliance charge related to the Rivetz acquisition.
The company’s CEO, Rich Wheeless, who took the helm on December 8, emphasized that the results are a transitional phase as Netcapital expands into cryptocurrency and blockchain financing. He noted that the December 3 acquisition of Rivetz Corp.’s assets is intended to provide compliant token‑ization capabilities and to diversify revenue streams beyond the legacy Reg CF model.
Netcapital also reiterated its partnership with Templum Markets, announced in January 2023, to launch a secondary trading platform for tokenized securities. The partnership is not a new development, but the company highlighted it as part of its broader digital‑capital‑markets strategy.
Management cautioned that the company faces a “going‑concern” risk, citing continued operating losses and cash burn. The results underscore the need for the company to accelerate growth in its new blockchain initiatives while managing the decline in its traditional funding‑portal business.
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