Netcapital (NCPL) Q4 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Wed, January 7, 2026 astatine 9:59 AM CST 14 min read

Image source: The Motley Fool.

Wednesday, Jan. 8, 2025 astatine 10 a.m. ET

• Chief Executive Officer — Martin Kay

• Chief Financial Officer — Coreen Kraysler

With that said, I'd similar to present crook to our fiscal results for the afloat twelvemonth fiscal 2025. We reported revenues of $869,460 with outgo of services of $40,344 oregon a gross nett of $829,116 successful fiscal twelvemonth 2025. This compares to revenues of astir $4.9 cardinal with outgo of services of astir $108,000 and gross nett of astir $4.8 cardinal successful fiscal twelvemonth 2024. In enactment with our displacement successful concern strategy successful fiscal twelvemonth 2025, we discontinued our consulting services to portfolio companies successful speech for equity, which accounted for the largest information of our gross diminution year-over-year. However, our backing portal did complaint a 1% interest payable successful securities to each issuer that closed an offering.

The dollar worth of that interest amounted to $72,090 and $97,700 for the years ended April 30, 2025 and 2024, respectively. In fiscal 2025, we evaluated our equity investments successful aggregate issuers for impairment successful accordance with ASC 321-10-35-3. The just worth of respective investments had declined beneath their carrying amounts, which were different than temporary. Qualitative indicators included the resignation of cardinal personnel, discontinuation of concern operations, termination of fundraising efforts and different adverse developments. As a result, we had -- we wrote disconnected respective investments, resulting successful an impairment disbursal of astir $19.9 million.

We reported an operating nonaccomplishment of astir $8.3 cardinal for afloat twelvemonth fiscal 2025 arsenic compared to an operating nonaccomplishment of astir $3.4 cardinal for afloat twelvemonth fiscal 2024. The nett nonaccomplishment for afloat twelvemonth fiscal 2025 was astir $28.3 cardinal arsenic compared to astir $4.9 cardinal for fiscal 2024. We reported a nonaccomplishment per stock of $20.39 arsenic compared to a nonaccomplishment per stock of $28.83 for fiscal twelvemonth 2024. I volition present crook the telephone implicit to our CEO, Martin Kay.

Martin Kay: Thank you, Coreen, and convey you to each our shareholders for being connected this telephone contiguous and for your continued enactment and involvement successful the company. As you heard from Coreen, revenues did decline, but fiscal 2025 marked a pivotal displacement successful our strategy arsenic we transitioned distant from equity-based consulting gross to absorption connected gathering a stronger, much scalable instauration for aboriginal growth. While this realignment brought immoderate near-term volatility, and contempt the challenges of macroeconomic headwinds and uncertainty successful the fiscal markets, we remained connected task to fortify the halfway of our concern and laic the instauration for semipermanent growth. During fiscal 2025, our wholly-owned subsidiary, Netcapital Securities, received its broker-dealer license.