Netcapital Inc (NCPLW) Q4 2024 Earnings Report

Netcapital Inc (NCPLW) reported a challenging QQ4 2024 with material top-line contraction and negative profitability. Revenue of $347,175 declined 77.16% year-over-year and 66.71% quarter-over-quarter, producing a negative gross profit of $-553,938 and an EBITDA of $-2,588,861. The company posted a net loss of $2,606,736 and basic EPS of $-0.22 for the quarter. Operating cash flow deteriorated to $-1,313,885, contributing to a cash balance of $863,182 at period-end and a negative free cash flow of $-1,313,885. This combination underscores a liquidity-sensitive position, with a current ratio of 0.335 and a net debt position of $1.556 million despite a substantial equity base of $37.94 million.

From a balance sheet perspective, Netcapital carries modest near-term liabilities ($3.62 million total liabilities, including $2.42 million in total debt) against sizable non-cash assets: intangible assets amounting to $14.73 million and long-term investments aggregating $25.78 million. The resulting asset base supports a substantial equity cushion but elevated impairment and realization risk in the near term if the funding portal’s volumes fail to rebound. Management commentary is not captured in the provided transcript dataset, limiting direct quotes to anchor management tone. In sum, the QQ4 2024 results highlight a pivotal inflection risk: sustained funding portal demand and cost discipline are prerequisites for turning operating losses into sustainable profitability. Investors should monitor liquidity initiatives, platform adoption metrics, and any forward-looking guidance in subsequent filings or calls.