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DATE
Tuesday, September 23, 2025 at 10 a.m. ET
CALL PARTICIPANTS
Chief Executive Officer — Martin Kay
Chief Financial Officer — Coreen S. Hay
Operator
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TAKEAWAYS
Revenue— $190,000 for the three months ended July 31, 2025, a 34% increase over the same period in 2024, driven by higher portal fees and service revenues exchanged for equity securities.
Customer concentration— One issuer accounted for 73% of total revenue after raising approximately $5 million through the platform between March 24, 2025, and May 30, 2025.
Operating loss— Operating loss of approximately $3.3 million, widening from $2.5 million in the same period of fiscal year ended July 31, 2025.
Loss per share— Loss per share of $1.27, narrowing from $5.10 in the same period of fiscal year ended July 31, 2025.
Cash position— $4.6 million in cash and cash equivalents as of July 31, 2025.
Strategic shift— Management reiterated a transition away from equity-based consulting revenue to focus on scalable business growth.
New advisory boards— The company established a crypto advisory board and a game advisory board to guide integration with blockchain technologies and deepen engagement with online gaming sectors.
SUMMARY
Netcapital(NCPL 2.09%) reported a significant increase in quarterly revenue, primarily attributed to a single issuer’s fundraising success. The company continues to rely heavily on a concentrated customer base, with one issuer responsible for the majority of revenue. Management emphasized ongoing efforts to reposition the business model toward scalable core operations and highlighted the formation of new advisory boards to drive innovation in digital assets and gaming.
CEO Martin Kay stated, “This initiative positions us to play a larger role in fintech and to explore opportunities in decentralized finance, or DeFi.”
Portal and broker-dealer operations serve both issuers and investors, with management expressing intent to enhance these services through blockchain, crypto, and digital asset capabilities.
INDUSTRY GLOSSARY
DeFi (Decentralized Finance): Blockchain-based financial services that operate without traditional central intermediaries, enabling peer-to-peer transactions and programmable contracts.
Full Conference Call Transcript
With that said, I’d like to now turn to our financial results for the first quarter fiscal 2026. We reported revenues of $190,058 for the three months ended July 31, 2025, which was an increase of approximately 34% as compared to $142,227 during the three months ended July 31, 2024. The increase in revenues was primarily attributed to an increase in portal fees and an increase in revenues for the services that we provide in exchange for equity securities during the quarter. One issuer that accounted for 73% of our revenues in the three months ended July 31, 2025, was responsible for the increase. That issuer successfully raised approximately $5 million from March 24, 2025 to May 30, 2025.
We reported an operating loss of approximately $3.3 million compared to an operating loss of approximately $2.5 million for the first quarter of fiscal year 2025. We reported a loss per share of $1.27 compared to a loss per share of $5.10 for the first quarter of fiscal year 2025. As of July 31, 2025, the company had cash and cash equivalents of approximately $4.6 million. I’ll now turn the call over to our CEO, Martin Kay.
Martin Kay: Thank you, Coreen, and thank you again to all our shareholders for being on this call today and for your continued support and interest in the company. As Coreen mentioned earlier, we began the new fiscal year with encouraging results. Revenue and portal fee growth of more than 30% highlights the solid performance of our core business. On our recent fiscal 2025 year-end call, we emphasized the strategic shift in our business model, moving away from equity-based consulting revenue to focus on building a stronger, more scalable business. While fiscal 2025 presented challenges, we’re pleased to see this vision taking shape in the first quarter of fiscal 2026.
We remain committed to driving long-term growth through innovation, execution, and focus to build the best fintech ecosystem. In addition to improved financial performance, we achieved several significant milestones this quarter. We established a crypto advisory board composed of accomplished industry leaders to guide our efforts in integrating blockchain, digital assets, and crypto with traditional finance. This initiative positions us to play a larger role in fintech and to explore opportunities in decentralized finance, or DeFi. We also launched a game advisory board to advance our strategic growth initiatives and deepen engagement with the online game community. This board brings together innovative leaders whose expertise will help us expand our ecosystem and drive long-term growth.
With our Netcapital Funding Portal and our broker-dealer Netcapital Securities Inc., we already serve a broad base of issuers and investors. By enhancing our services through blockchain, crypto, and digital asset innovation, we hope to position the company to help lead the future of private market opportunities for companies raising capital and direct investment opportunities for investors. Thank you again for your support, and we look forward to continuing to share our progress in the months ahead. Operator, we’re ready for questions.
Operator: Certainly. Everyone at this time will be conducting a question-and-answer session. If you have any questions or comments, please press star one on your phone at this time. We do ask that while posing your question, please pick up your handset if you’re listening on speakerphone to provide optimum sound quality. Once again, if you have any questions or comments, please press star one on your phone at this time. Please hold while we poll for questions. Thank you. Once again, everyone, if you have any questions or comments, please press star then one on your phone. Please hold while we poll for questions. Thank you. That concludes our Q&A session.
I’ll now hand the conference back to Martin Kay, CEO, for closing remarks. Please go ahead.
Martin Kay: Thank you. Once again, thanks to all who joined today. We appreciate your continued interest and support of Netcapital. Have a good day.
Operator: Thank you. Everyone, this concludes today’s event. You may disconnect at this time and have a wonderful day. Thank you for your participation.
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