NCPL Q2 2026 Earnings Analysis
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Key Highlights
- Revenue and earnings analysis for Q2 2026
- Key financial metrics and performance indicators
- Management guidance and outlook commentary
- Market position and competitive analysis
- AI-generated insights and analysis
Transcript
// Full episode scriptBETA FINCH PODCAST SCRIPT
Welcome to Beta Finch, your AI-powered earnings breakdown where we decode the latest corporate calls so you don't have to. I'm Alex.
And I'm Jordan. Today we're diving into Netcapital's Q2 2026 earnings call, and wow - this was quite the interesting listen.
Before we jump in, I need to mention that this podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.
Absolutely. So Alex, Netcapital - ticker NCPL - this is a fintech company that operates in the private capital markets space, helping small businesses raise money from retail investors. But this earnings call was really more about their strategic pivot than their current numbers.
Right, and those current numbers tell quite a story. Revenue dropped pretty dramatically - from $170,000 in Q2 2025 down to just $51,000 this quarter. That's a 70% decline year-over-year.
Ouch. Though the CFO, Coreen Kraysler, did mention their revenues can be "lumpy" quarter-to-quarter based on when large client funding events happen. Still, $51,000 in quarterly revenue is... pretty minimal for a public company.
Especially when you consider they're burning over $2 million per quarter in operating losses. Though that did improve slightly from $2.2 million last year. The loss per share was $0.44 versus $2.34 last year, so there's that improvement.
And they've got about $1.7 million in cash as of October 31st. With that burn rate, that's not a lot of runway. But here's where it gets interesting - they have a new CEO, Rich Wheeless, and he's completely pivoting the company's strategy.
Right, this was his first earnings call, and he's betting big on tokenized assets and crypto. He's got experience in the blockchain space - mentioned his previous company Taal where they made ASIC chips for crypto miners and had some success there.
The strategy shift is fascinating. They're moving away from what he called a "consulting for equity model" that wasn't scalable, and focusing on their fintech platform and their newly licensed broker-dealer subsidiary called Netcapital Securities.
That broker-dealer license is key here. It allows them to participate in Regulation A capital raises, which are typically much larger than the Regulation CF offerings they've been doing. And here's something interesting - when asked if they'd generated any revenue from the broker-dealer yet, the CFO cryptically said "it wouldn't surprise me if you saw revenues from the broker-dealer" in the next quarter.
That was such a carefully worded non-answer! But it suggests they might have some deals in the pipeline. Wheeless is also really excited about what he sees as a new category emerging - U.S.-compliant utility token sales. He pointed to Coinbase's MONA token sale that raised $269 million from 86,000 buyers in less than 24 hours.
The tokenization angle makes some sense given their existing platform. They already have 100,000 U.S. investors in their network and have successfully funded over 300 companies. So there's an existing infrastructure they could potentially leverage.
But here's where the Q&A got really spicy. Investors were not happy about some recent acquisitions, particularly one called Rivetz where they gave up about 20% of outstanding shares for what one caller described as a "defunct software business."
Yeah, that was uncomfortable. The caller, Emily, was pretty direct about questioning how management justified giving away such a large percentage of the company for technology from a company that's apparently been defunct since 2021.
Management's defense was that both Rivetz and a previous acquisition called Horizon are critical to their tokenized asset strategy. The CFO said Rivetz brings "expertise and code plus the system platform and technology stack to produce tokenized assets in a safe and secure manner."
But investors clearly weren't buying it. Another caller, John Davis, pressed them on how they'd justify these acquisitions to auditors and NASDAQ given the valuations. The responses were pretty vague - lots of "it fits our strategy" without much concrete detail.
What struck me was the tension between the cash burn, minimal revenue, and these big strategic bets. One caller pointed out they have about 20 employees generating just $51,000 in quarterly revenue, which is... not great math.
When pressed on potentially reducing headcount, management basically said "you can't cost cut your way to growth" and that they're focused on execution rather than workforce reduction. That's either confident or concerning, depending on how you look at it.
The timing aspect is interesting though. With the recent election results and what many see as a more crypto-friendly regulatory environment coming, Wheeless might be positioning for the right moment. He specifically mentioned the regulatory environment for tokenized assets appearing "favorable right now."
True, but they're also racing against time with that cash balance. They need to start generating meaningful revenue from this new strategy pretty quickly, or they'll need to raise more capital - which could mean more dilution for existing shareholders.
The broker-dealer revenue hint for next quarter will be crucial to watch. If they can start booking some larger Reg A deals, that could provide the breathing room they need to execute on the tokenization strategy.
Looking ahead, this feels like a classic pivot story - a company with a struggling core business betting everything on an emerging opportunity. The tokenized asset market could be huge, but execution is everything, and investors seem pretty skeptical right now.
Exactly. They've got the regulatory infrastructure with the broker-dealer license and the existing investor network, but they need to prove they can actually monetize this new direction. The next couple quarters will be make-or-break.
For investors, this is definitely a high-risk, high-reward situation. If the tokenization bet pays off and the regulatory environment stays favorable, there could be significant upside. But with the cash burn and execution risks, there's also a real downside scenario here.
Everything discussed today is AI-generated analysis for educational purposes. Past performance doesn't guarantee future results. Please do your own due diligence.
That's a wrap on Netcapital's Q2 2026 earnings. We'll be watching to see if that broker-dealer revenue materializes next quarter and whether this tokenization pivot can gain traction. Thanks for listening to Beta Finch, and we'll catch you on the next earnings breakdown.
Until next time, keep those portfolios diversified! [END]