The company's operating margin has deteriorated to -23.0% in 2026Q3, reflecting an inability to scale operations despite maintaining gross margins near 98.1%.
| Sales/Revenue | 739.5K | - | - | - | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | -84.51K | 829.12K | 4.84M | 8.41M | 5.37M | 3.96M | 1.74M | 988.41K | 87.29K | -359.55K | -452.05K |
| Gross Margin % | -11.43% | 95.36% | 97.82% | 99% | 97.99% | 83.92% | 99.37% | 97.51% | 78.52% | -1671.71% | -1007.28% |
| Gross Profit Growth % | - | -82.88% | -42.4% | 56.57% | 35.56% | 127.37% | 76.29% | 1032.39% | 124.28% | 20.46% | - |
| Operating Expenses | 9.42M | 9.11M | 8.29M | 6.14M | 6.4M | 4.36M | 595.23K | 363.98K | 279.34K | 189.49K | 255.19K |
| OpEx % of Revenue | - | 1047.79% | 167.34% | 72.25% | 116.8% | 92.42% | 33.94% | 35.91% | 251.27% | 881.03% | 568.63% |
| Selling, General & Admin | 3.84M | 5.25M | 8.29M | 6.14M | 6.4M | 4.36M | 595.23K | 357.23K | 279.34K | 189.49K | 255.19K |
| SG&A % of Revenue | - | 604.25% | 167.34% | 72.25% | 116.8% | 92.42% | 33.94% | 35.24% | 251.27% | 881.03% | 568.63% |
| Research & Development | 0 | - | - | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - | - | - |
| Operating Income | -9.5M | -8.28M | -3.44M | 2.27M | -1.03M | -401.5K | 1.15M | 624.43K | -192.05K | -549.04K | -707.24K |
| Operating Margin % | -1284.92% | -952.43% | -69.52% | 26.75% | -18.81% | -8.5% | 65.42% | 61.6% | -172.76% | -2552.74% | -1575.91% |
| Operating Income Growth % | - | -140.56% | -251.52% | 320.33% | -156.82% | -135% | 83.72% | 425.13% | 65.02% | 22.37% | - |
| EBITDA | -9.48M | -8.25M | -3.35M | 2.37M | 4.17M | 2.17M | 0 | 606.03K | 200.62K | -167.98K | -326.18K |
| EBITDA Margin % | -1281.32% | -948.35% | -67.63% | 27.88% | 76.15% | 45.96% | - | 59.79% | 180.46% | -781.03% | -726.81% |
| EBITDA Growth % | -19.89% | -146.24% | -241.39% | -43.26% | 92.35% | - | -100% | 202.08% | 219.43% | 48.5% | - |
| D&A (Non-Cash Add-back) | 26.61K | 35.48K | 93.86K | 96.41K | 0 | 0 | -1.15M | 0 | 0 | 381.06K | 381.06K |
| EBIT | -25.94M | -28.25M | -7.28M | 3.9M | 4.17M | 2.17M | 443.73K | 606.03K | 200.62K | -712.82K | -722.24K |
| Net Interest Income | -55.02K | -48.23K | -45.99K | -93.84K | -126.37K | -87.33K | -18.88K | -19.41K | -69.49K | 0 | 0 |
| Interest Income | 11.67K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 17.57K | 48.23K | 45.99K | 93.84K | 126.37K | 87.33K | 18.88K | 19.41K | 69.49K | -115.3K | -113.64K |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | -28.13M | -28.3M | -7.33M | 3.81M | 4.05M | 2.08M | 424.85K | 586.63K | 131.13K | -828.12K | -835.87K |
| Pretax Margin % | -3804.1% | -3255.05% | -147.95% | 44.84% | 73.85% | 44.11% | 24.23% | 57.87% | 117.95% | -3850.29% | -1862.55% |
| Income Tax | 0 | 0 | -2.34M | 854K | 544K | 613K | -180K | 3.75K | 0 | 0 | 0 |
| Effective Tax Rate % | 0% | 0% | 31.93% | 22.42% | 13.44% | 29.43% | -42.37% | 0.64% | 0% | 0% | 0% |
| Net Income | -28.13M | -28.3M | -4.99M | 2.95M | 3.5M | 1.47M | 604.85K | 582.88K | 131.13K | -828.12K | -835.87K |
| Net Margin % | -3804.1% | -3255.05% | -100.7% | 34.79% | 63.92% | 31.13% | 34.49% | 57.51% | 117.95% | -3850.29% | -1862.55% |
| Net Income Growth % | -171.51% | -467.58% | -268.74% | -15.66% | 138.39% | 142.98% | 3.77% | 344.51% | 115.83% | 0.93% | - |
| Net Income (Continuing) | -28.13M | -28.3M | -4.99M | 2.95M | 3.5M | 1.47M | 604.85K | 582.88K | 131.13K | -828.12K | -835.87K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -5.01 | -20.39 | -28.70 | 44.10 | 88.90 | 62.30 | 1.50 | 1.57 | 0.41 | -3.26 | -3.30 |
| EPS Growth % | -23.51% | 28.95% | -165.08% | -50.39% | 42.7% | 4053.33% | -4.46% | 282.93% | 112.58% | 1.21% | - |
| EPS (Basic) | - | -20.39 | -28.70 | 44.10 | 91.70 | 82.60 | 1.50 | 1.57 | 0.41 | -3.26 | -3.30 |
| Diluted Shares Outstanding | 5.61M | 1.39M | 172.94K | 4.68M | 2.75M | 1.65M | 402.28K | 370.86K | 318.83K | 254K | 253K |
| Basic Shares Outstanding | 5.61M | 1.39M | 172.94K | 4.68M | 2.67M | 1.25M | 402.28K | 370.86K | 318.83K | 254K | 253K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - |
Imminent liquidity and solvency risk
As reported in recent financial statements, NCPL has experienced a severe contraction in top-line performance, with quarterly revenue plummeting from $2.0 million in 2024Q2 to just $94.3K by 2026Q3, signaling a fundamental breakdown in the company's ability to attract and close new deal flow.
The precipitous decline in revenue suggests that the company's integrated advisory and portal model has lost its competitive relevance in the current venture environment. This trend indicates that the platform is struggling to maintain issuer interest, which may lead to a permanent loss of market share if the pipeline velocity does not recover immediately.
According to historical income statement data, NCPL maintains high gross margins consistently near 95%, yet this efficiency is rendered irrelevant by an operating margin that reached -952.43% in recent periods, highlighting a profound inability to scale the business relative to its fixed cost base.
While the high gross margin suggests a scalable digital infrastructure, the company's inability to generate sufficient volume to cover its overhead indicates that the business model is currently unviable. Investors should monitor whether the company can achieve a meaningful inflection in transaction volume, as the current margin structure is unsustainable.
Based on the provided financial figures, NCPL's operating expenses continue to dwarf gross profit, with SG&A costs consistently exceeding revenue by a wide margin, suggesting that the company has failed to achieve the necessary operating leverage to transition toward a self-sustaining financial profile.
The persistent gap between revenue and operating expenses implies that the company's cost structure is largely fixed and decoupled from its actual deal-closing capacity. This lack of operating leverage suggests that management may need to pursue a radical reduction in overhead to prevent further erosion of the remaining cash position.
Analysis of recent filings reveals that stock-based compensation remains a significant component of the cost structure, with $368.5K recorded in 2026Q3 alone, further complicating the path to profitability while simultaneously diluting existing shareholders during a period of extreme financial distress.
The reliance on stock-based compensation during a period of revenue contraction raises concerns regarding the alignment of management incentives with shareholder value. Investors should be wary of the impact these non-cash expenses have on the company's reported net losses, as they mask the true cash-burn requirements of the business.
While the income statement paints a picture of a failing business, a contrarian view suggests that NCPL's regulatory licenses and proprietary technology could hold residual value for a larger financial institution, potentially providing a floor for valuation that is not currently reflected in operational performance.
The primary risk to this counter-narrative is the rapid depletion of cash, which may force a fire sale or liquidation before any strategic value can be realized. Investors should weigh the potential for an M&A exit against the high probability of further dilutive financing or insolvency.
Quick answers to the most common questions about buying NCPL stock.
Netcapital Inc. (NCPL) reported a net loss of $28.3M for the fiscal year ending 2025.
Netcapital Inc. (NCPL) reported an operating income of $-8.3M, resulting in an operating profit margin of -952.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Netcapital Inc. (NCPL) generated $0.8M in gross profit for the year, representing a gross profit margin of 95.4%. This demonstrates the company's core pricing power and production efficiency.