Chronic cash burn persists, evidenced by a free cash flow margin of -9.2% in 2026Q3 and an OCF/NI ratio of 0.48, indicating a disconnect between reported earnings and actual cash generation.
| Cash from Operations | -8.39M | -5.34M | -4.88M | -4.62M | -3.01M | -3.25M | -3.6K | 30.56K | -50.16K | -14.18K | -21.73K |
| Operating CF Margin % | - | -614.08% | -98.55% | -54.36% | -54.86% | -68.86% | -0.21% | 3.01% | -45.12% | -65.92% | -48.42% |
| Operating CF Growth % | -117.76% | -9.41% | -5.69% | -53.57% | 7.51% | -90101.66% | -111.79% | 160.93% | -253.73% | 34.75% | - |
| Net Income | -28.13M | -28.3M | -4.99M | 2.95M | 3.5M | 1.47M | 604.85K | 582.88K | 131.13K | -828.12K | -835.87K |
| Depreciation & Amortization | 80.91K | 35.48K | 93.86K | 96.41K | 0 | -2.51M | 0 | 0 | 0 | 381.06K | 381.06K |
| Stock-Based Compensation | 1.36M | 757.48K | 1.32M | 269.58K | 1.18M | 680.61K | 356.25K | 65.15K | 130.2K | 157.98K | 0 |
| Deferred Taxes | 0 | 0 | -1.66M | 680K | 544K | 613K | -180K | 0 | 0 | -385.35K | 0 |
| Other Non-Cash Items | 17.58M | 20.01M | 584.37K | -9.78M | -7.49M | -2.32M | -825.49K | 29.75K | -385.82K | 988.61K | 759.26K |
| Working Capital Changes | 723.72K | 2.16M | -239.67K | 1.16M | -739.34K | -1.18M | 40.78K | -647.23K | 74.33K | 110.13K | 219.19K |
| Change in Receivables | -5.37K | 50.87K | -295.05K | 1.04M | -1.15M | -1.42M | 21K | -6K | -6.75K | 0 | 5K |
| Change in Inventory | 0 | 0 | 0 | 35.81K | 0 | 0 | 0 | -274.18K | 102.97K | 0 | 0 |
| Change in Payables | -482.2K | 2.11M | 240.23K | 88.2K | 272.41K | 184.52K | 18.68K | -235 | -21.23K | 96.27K | 211.76K |
| Cash from Investing | -100K | 0 | -20K | 200K | -319.17K | 242.03K | 0 | 0 | 0 | 0 | 0 |
| Capital Expenditures | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| CapEx % of Revenue | 0% | - | - | - | 0% | - | - | - | - | - | - |
| Acquisitions | 0 | - | - | - | - | - | - | - | - | - | - |
| Investments | 5.81M | 5.8M | 25.57M | 23.2M | 13.1M | 6.42M | 1.41M | 647.32K | 23K | 0 | 0 |
| Other Investing | -100K | 0 | -20K | 0 | 117.17K | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 8.59M | 4.77M | 5.19M | 4.51M | 1.33M | 5.47M | -4.3K | -13.1K | 48.49K | 16.66K | 17.34K |
| Debt Issued (Net) | 0 | - | - | - | - | - | - | - | - | - | - |
| Equity Issued (Net) | 8.65M | 4.51M | 5.54M | 5.57M | 0 | 0 | 0 | 5K | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 0 | 4.97K | 0 | 625.8K | 1.2M | 0 | 0 | 0 | 16.66K | 17.34K |
| Net Change in Cash | 101.14K | -573.75K | 293.74K | 95.52K | -2M | 2.46M | -7.9K | 17.45K | -1.67K | 2.48K | -4.39K |
| Free Cash Flow | -8.39M | -5.34M | -4.88M | -4.62M | -3.01M | -3.25M | -3.6K | 30.56K | -50.16K | -14.18K | -21.73K |
| FCF Margin % | -1133.99% | -614.08% | -98.55% | -54.36% | -54.86% | -68.86% | -0.21% | 3.01% | -45.12% | -65.92% | -48.42% |
| FCF Growth % | -41.45% | -9.41% | -5.69% | -53.57% | 7.51% | -90101.66% | -111.79% | 160.93% | -253.73% | 34.75% | - |
| FCF per Share | -1.49 | -3.85 | -28.22 | -0.99 | -1.09 | -1.97 | -0.01 | 0.08 | -0.16 | -0.06 | -0.09 |
| FCF Conversion (FCF/Net Income) | 0.30x | 0.19x | 0.98x | -1.56x | -0.86x | -2.21x | -0.01x | 0.05x | -0.38x | 0.02x | 0.03x |
| Interest Paid | 16.31K | 0 | 0 | 207.69K | 2.06K | 2.07K | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | -8.24K | 0 | 0 | 207.69K | 2.06K | 4.99K | 2.72K | 0 | 0 | 0 | 0 |
Imminent liquidity and solvency
As reported in recent SEC filings, NCPL's operating cash flow consistently trails net income, with the OCF/NI ratio fluctuating wildly, including a 0.48 reading in 2026Q3, which suggests that reported earnings are significantly disconnected from the actual cash-generating capacity of the underlying business model.
The persistent gap between net income and operating cash flow indicates that the company's accounting earnings are heavily influenced by non-cash items and accruals rather than realized cash inflows. Investors should monitor this divergence, as it implies that the firm's reported profitability is not translating into the liquidity required to sustain operations.
Based on the company's financial statements, NCPL has remained in a state of chronic cash burn, with free cash flow margins reaching as low as -179.3% in 2025Q4, underscoring a structural inability to generate positive cash flow from its core platform activities.
The trajectory of free cash flow suggests that the business is currently unable to cover its operating expenses, let alone fund growth initiatives. This trend warrants further investigation into whether the company can reach a cash-flow-positive state before its current liquidity reserves are fully exhausted.
According to historical data, NCPL's working capital changes have been highly erratic, swinging from a $1.9 million inflow in 2026Q3 to a $1.3 million outflow in 2026Q1, which suggests significant instability in the timing of cash collections and vendor payment obligations.
This volatility in working capital appears to be a symptom of the company's lumpy revenue recognition and reliance on transactional deal flow. Such fluctuations make it difficult to forecast short-term liquidity needs and may indicate underlying friction in the platform's cash conversion cycle.
As disclosed in recent filings, stock-based compensation remains a recurring expense, with $368.5K recorded in 2026Q3, which effectively masks the true extent of the company's cash burn by substituting equity for cash-based operational costs during periods of extreme financial distress.
While stock-based compensation preserves immediate cash, it dilutes existing shareholders and fails to address the fundamental lack of operational profitability. Analysts should interpret these figures as a sign that the company is relying on equity issuance to bridge the gap between its high fixed costs and insufficient revenue.
Quick answers to the most common questions about buying NCPL stock.
Netcapital Inc. (NCPL) generated $-5.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Netcapital Inc. (NCPL) reported negative free cash flow of $5.3M in 2025, indicating capital requirements exceeded cash from operations.
Netcapital Inc. (NCPL) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.