Picture supply: The Motley Idiot.
Tuesday, December 16, 2025 at 10 a.m. ET
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Chief Govt Officer — Wealthy Wheeless
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Chief Monetary Officer — Coreen Kraysler
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Founder — Jason Frishman
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Coreen Kraysler: Thanks, Holly. Good morning, everybody, and thanks for becoming a member of Netcapital’s Second Quarter Fiscal 2026 Monetary Outcomes Convention Name. I am Coreen Kraysler, CFO of Netcapital Inc. I’ll start by reviewing our monetary outcomes after which our Chief Govt Officer, Wealthy Wheeless, will share his ready remarks earlier than we open the Q&A portion of our name. Earlier than we start, I would prefer to remind everybody of the protected harbor disclosure relating to forward-looking data. Administration’s dialogue might embody forward-looking statements.
These statements relate to future occasions or future monetary efficiency and contain identified and unknown dangers, uncertainties and different components that will trigger precise outcomes to be materially totally different from any future outcomes ranges of exercise, efficiency or achievements expressed or implied by these forward-looking statements. Any forward-looking statements mirror administration’s present views with respect to operations, outcomes of operations, progress methods, liquidity and future occasions. Netcapital assumes no obligation to publicly replace or revise these forward-looking statements for any cause or to replace the explanations precise outcomes might differ materially from these anticipated in these forward-looking statements, even when new data turns into accessible sooner or later.
With that mentioned, I would prefer to now flip to our monetary outcomes for the second quarter fiscal 2026. We reported revenues of roughly $51,000 for the three months ended October 31, 2025, and as in comparison with roughly $170,000 throughout the 3 months ended October 31, 2024. The lower in revenues was primarily attributed to a lower in portal charges throughout the quarter. I am going to add that our revenues might be lumpy quarter-over-quarter, because the timing of huge shopper funding occasions can have an outsized impression on outcomes. We reported an working lack of roughly $2.1 million in comparison with an working lack of roughly $2.2 million for the second quarter of fiscal 12 months 2025.
We reported a loss per share of $0.44 in comparison with a loss per share of $2.34 for the second quarter of fiscal 12 months 2025. As of October 31, 2025, the corporate had money and money equivalents of roughly $1.7 million. I am going to now flip the decision over to our CEO, Wealthy Wheeless.
Wealthy Wheeless: Thanks very a lot, Coreen, and thanks, everyone, for becoming a member of the decision as we speak. This marks my first name with traders, and I need to begin by emphasizing how excited I’m to affix Netcapital at this pivotal second in our evolution. All through my profession, I have been drawing to companies that use know-how to open doorways that had been beforehand closed and Netcapital’s mission to democratize entry to personal investments suits up completely. I have been concerned within the blockchain and crypto trade for quite a few years and have had success going again to one in all my prior corporations, Taal, which we made the ASIC chips for cryptominers.
For instance, in 2018, we had been capable of increase $33 million in executed on our technique, which led to a 120% improve in our share value in a 4-month time-frame. So given the market dimension, anticipated progress within the tokenized asset market in addition to expertise of our workforce, I do imagine that we’re very properly positioned to have the ability to achieve success with our new technique and drive worth for all shareholders. Fairly merely, Netcapital has vital alternative for income enhancement by serving to total small companies combine crypto and blockchain into their financing and capital market technique. The corporate already has a confirmed regulated platform that connects entrepreneurs with traders in a easy, clear means.
And I see this as an incredible alternative for us to construct upon that basis as we broaden into new asset lessons and blockchain enablement options. I am actually trying ahead to working alongside this workforce and with our issuer and investor communities to make internet capital a number one digital ecosystem for founders searching for progress capital and traders trying to take part within the subsequent technology of progressive corporations. So I need to spend a couple of minutes placing our latest ends in the context strolling by how our technique has developed after which speaking about the place we’re centered going ahead in rising market drivers that could be the wind at our backs.
We’re in a transition interval, and our second quarter fiscal 2026 revenues proceed to be impacted by the truth that we have exited a consorting for fairness mannequin that whereas it is generated income simply was not scalable in money phrases, it made it more durable for traders to see the underlying economics of our enterprise. In opposition to that backdrop, we made the strategic resolution to reset of the corporate round our core fintech platform and our just lately licensed dealer supplier. Our funding portal is basically a know-how enterprise. We now have a usually fastened price platform and a comparatively small worker base.
So once we add extra choices to extra quantity, these incremental values — I am sorry, incremental revenues will comply with with enticing incremental margins. That’s the form of working leverage that we need to see in a fintech mannequin. In parallel, our wholly owned subsidiary Netcapital securities permits us to take part in Reg A capital raises, that are usually bigger than Reg CF choices and a doubtlessly expands the bottom of issuers and traders we will serve.
In order we glance forward, the technique is simple: develop quantity on a platform that’s now structurally extra scalable, absolutely leverage our dealer supplier to unlock bigger transactions and a broader product set and place the corporate for rising alternatives from digital belongings and tokenization, which we view as a logical extension of our itemizing enterprise. We plan to give attention to the place blockchain usually provides worth, which might embody how safety is recorded, how they traded or how liquidity mechanisms are structured. And we all the time consider every alternative with a long-term lens. How does it create sturdy worth for the corporate and for shareholders?
And may it’s executed in a means that’s constant throughout the requisite regulatory framework? Lastly, I am going to contact on the macro atmosphere and why I am very excited concerning the timeliness of our push in our place for achievement. There may be an rising new class for U.S.-compliant utility token gross sales that we imagine is decentralizing token possession and seeding long-term community progress. For instance, Coinbase MONA token sale final month in November demonstrated robust pent-up demand for U.S. retail tech affected person and utility to open choices. $269 million was raised from 86,000 consumers and fewer than 24 hours. This was not only a hypothesis, but it surely was slightly it was a transparent market sign.
With our place as a broker-dealer and deep regulatory experience, we’ve got a compliant bridge between international token to methods and U.S. retail traders. This new class has a possible for high-margin income streams on prime of our present enterprise. And a single profitable token sale might generate income low cost to dozens of our common conventional Reg CF choices with an identical compliance raise however larger margins. As well as, with 100,000 U.S. traders in our community and over 300 corporations that we efficiently funded. We now have the inspiration and a monitor file to reach this market. And with all that being mentioned, we’ll open the decision up for Q&A.
Operator: [Operator Instructions]. Your first query for as we speak is from Todd Oberle with Perception Investments.
Todd Oberle: Hi there. Are you able to hear me, Wealthy?
Wealthy Wheeless: Sure.
Todd Oberle: So relating to this previous quarter, I do know you are newly employed CEO, however there was $51,000 in revenues throughout what I imagine is 20-something staff. I’ve seen that 20-something reference up to now. And — so perhaps give me your outlook on what’s the precise worker rely contemplating there’s virtually 0 revenues on this firm and never perceive how they justified so many staff for thus lengthy when there’s the income being generated. So a query on — and the second query is just like that, and there is been a issued a broker-dealer license for, I believe, round a 12 months for the corporate? And has there been any income in any respect from Reg A choices so far?
Wealthy Wheeless: Sure, I can — sure. So when it comes to the primary one, we’re centered on the pivot we’ve got. The regulatory market may be very constructive proper now, and we are going to look to execute on this new technique that we have laid out. I am not too frightened about what’s actually occurred up to now, the businesses now in an excellent place and really excited for the place we might be. So I am not so centered. I am not frightened about the place we had been prior is as properly as a result of we have made a little bit of a pivot in while you make pivots — within the brief time period, income will form of wrestle in we’ll do this.
Coreen Kraysler: I will bounce in right here. That is Coreen Kraysler, I am the CFO. Relating to your query concerning the broker-dealer I might level to — I believe it’s best to take a look at the quarter that we’ll report subsequent and it would not shock me should you noticed revenues from the broker-dealer in that quarter.
Todd Oberle: Okay. So there’s been no revenues so far? Is that how I can take it from a dealer supplier?
Coreen Kraysler: I will reiterate the reply that I simply gave you.
Todd Oberle: After which I assume when it comes to the worker rely, so I assume the takeaway is worker form of goes to remain the identical? I do know that previous is up to now, however going ahead, what’s the proper quantity contemplating the scale of the corporate, the money steadiness, the money burn?
Coreen Kraysler: So I am at the moment — reiterate what Wealthy mentioned, which is we’re very a lot centered on our new technique in producing revenues. You possibly can’t price reduce your technique to progress. So our focus — we’re very excited concerning the new mannequin. And as Wealthy talked about, the regulatory atmosphere for tokenized belongings is seems to be favorable proper now. So we’re enthusiastic about that. We would additionally ask individuals within the queue for questions. So please restrict your query to 1 query plus one follow-up. Operator, can we transfer to the subsequent particular person in queue, please?
Operator: Definitely. Your subsequent query is from Emily McAllen, a personal investor.
Unknown Attendee: I would really like this query to the brand new CEO, Wealthy. And I’m simply curious how it’s justified to offer away 20% of the excellent share rely for a defunct software program enterprise. I am just a bit puzzled right here. I would like Wealthy to reply that.
Wealthy Wheeless: Briefly, look, it helps. I admire the query. This helps together with our new technique with the tokenized asset mannequin to assist us to have the ability to execute on that technique. We might not have carried out this if it didn’t make sense for our total plan. So I might ask — give us a little bit little bit of time and admire everybody’s endurance on this and there’s a plan and path ahead that we plan on executing, and I sit up for executing.
Unknown Attendee: What’s the plan? Please elaborate. That was fairly obscure.
Wealthy Wheeless: Sure, we will get extra within the coming days, however there’s a technique laid out that we’re doubling down on the tokenized asset market, which I had talked about and alluded to earlier within the name and using our present platform that we do have the group funding platform in our broker-dealer as properly. And we proceed to search for present applied sciences and items that slot in place to execute on that technique.
Unknown Attendee: So making a gift of 100% of the shares is for — a justified for a defunct enterprise?
Coreen Kraysler: Excuse me, Emily, I will reply your query for you and comply with on to what Wealthy mentioned. So I am assuming that you just’re referring to Rivetz and what Rivetz brings to the desk…
Unknown Attendee: Right.
Coreen Kraysler: Sure. Okay. So what Rivetz brings to the desk is each experience and code plus the system platform and know-how stack to supply tokenized belongings in a protected and safe method in a protected and safe method. So that’s the reason we purchased Rivetz. We really feel that it is very key to our skill to execute our technique shift to tokenizes belongings shifting ahead.
Unknown Attendee: So what was Horizon buy for the? As a result of I believed that was related.
Coreen Kraysler: I am sorry, I could not hear your query.
Unknown Attendee: I mentioned, so what was the Horizon software program buy for them as a result of I believed that was the aim of Horizon and also you guys gave away 20% of the excellent shares at the moment again in June.
Coreen Kraysler: Jason, do you will have a response to that?
Jason Frishman: Sure. My understanding is that each Horizon and Rivetz will work collectively as a part of this pivot, however I might defer to Wealthy on that. And I might additionally level out that I perceive that roughly 20% of the inventory is a big quantity but additionally while you perceive the market cap of the corporate and the corporate has recognized acquisitions that the corporate believes is crucial to the long run. The market cap of the corporate is — makes it tough to do these transactions with out a bigger p.c of the corporate.
Operator: There aren’t any additional questions in queue. We do have a query from John Davis.
Unknown Attendee: Simply curious how — going again to, I believe, what the earlier particular person requested is the auditors should justify this acquisition and likewise NASDAQ flags is, which is possible. You additionally should justify that and the others should justify that. Are you able to stroll us by the way you justify the defunct 2021 firm in buying this as a result of it ought to have — since it has been defunct since 2021, they need to have been extremely cheap. As a result of there was clearly no bidders on it. So how did the auditors justify this from a GAAP accounting and you could current to NASDAQ to show that it was price its worth.
Wealthy Wheeless: So let me simply add in there, it suits some with our total technique with what we’re trying to do. I am trying ahead to the place we will go along with this firm going ahead, and I really like the know-how personally. I am briefed — I perceive how this suits in with our total plan. And generally you bought to pay a little bit bit for an excellent know-how, and there is — and it suits in with what we’re trying to do. That is the very best I can reply that when it comes to — I do know it would not precisely handle what you are saying when it comes to the auditors now that items associated to that.
Coreen Kraysler: I might simply add that this know-how is kind of crucial to our technique shifting ahead. And when it comes to complete {dollars} paid, it was not that a lot cash.
Operator: There aren’t any additional questions in queue.
Coreen Kraysler: Wealthy, do you need to sum up, please?
Wealthy Wheeless: Sure, certain. Sure. So thanks — that concludes our — sorry about that — thanks, operator. To sum it up, based mostly that our mission has not modified. We’re right here to democratize entry to personal capital markets for points on internet progress capital and for traders who need entry to alternatives which have traditionally been arduous to achieve. the whole lot that we’re doing from product innovation to selective blockchain integration to the pursuit of bigger rig at transactions is geared toward constructing a extra opening, environment friendly and scalable personal market ecosystem. We now have made investments within the important infrastructure and workforce to execute a robust progress plan in calendar 12 months 2026 and past.
We now have already repositioned that capital round a extra scalable mixture of a funding portal and a broker-dealer, we’re laser-focused on leveraging these benefits in the direction of profitability. I sit up for work with traders, shoppers, staff and authorities to create worth, and drive the corporate’s future course and updating you on our progress within the coming months and on our subsequent name in March. And as soon as once more, thanks to everybody who’s joined as we speak. We admire your continued curiosity and help of Netcapital. Have an incredible day.
Operator: Thanks. This concludes as we speak’s convention name. It’s possible you’ll disconnect your cellphone strains at the moment, and have an exquisite day. Thanks in your participation.
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Netcapital (NCPL) Q2 2026 Earnings Name Transcript was initially revealed by The Motley Idiot
