Netcapital Inc. Q3 FY2026 earnings call

• CEO Rich Neelis joined NetCapital and focused on strengthening technology foundation, improving operational efficiency, and supporting growth initiatives like platform architecture planning, regulatory tooling, etc.
• Funding portal is a technology business with fixed cost structure; Net Capital Securities helps in larger Reg A transactions. Company is expanding into blockchain-enabled solutions.
• In Q3 2026, revenue increased from Q2 2026 but still in transition period; focused on achieving scale for model economics.
• Strategic initiatives: Partnered with Horizon and Silicon Prairie to integrate primary issuance with blockchain tech; announced first tokenized asset issuer engagement with PureWave Hydrogen; acquired Iverson Run's assets for AI-driven design capabilities; developed proprietary tool for ICC agri-filings; implemented automated workflow for investor newsletter campaigns; evaluating product analytics tools.

For the three months ended January 31, 2026, revenues were approximately $94,000, down from approximately $153,000 in the same period of 2025, primarily due to a decrease in funding portal fees. Operating loss was approximately $2.2 million in 2026 compared to $1.7 million in 2025. Loss per share was $0.32 in 2026 vs. $1.57 in 2025. As of January 31, 2026, cash and cash equivalents were approximately $715,000.

• Still in transition period, underlying economics will be realized at sufficient scale.
• Laser-focused on achieving scale to grow platform volume, leverage broker-dealer for more transactions, and benefit from digital assets and tokenization.

• Management's discussion includes forward-looking statements which involve known and unknown risks, uncertainties, and other factors that may cause actual results to be materially different from future results expressed or implied.