In the second quarter of fiscal 2025, Netcapital recorded revenue of $170,528, a 92% drop from approximately $2.04 million in the prior-year period following its decision to discontinue equity-based consulting contracts. This contraction drove an operating loss of $2.2 million, compared with an operating profit of $52,220 a year earlier, and a net loss of $2,220,501, reversing from net income of $339,616. Net loss per share was $2.34, versus EPS of $2.52 in Q2 2024. At quarter end, the company held $1,346,739 in cash and cash equivalents against 1.8 million shares outstanding, and reported portfolio equity positions with a net asset value just over $25 million.

On November 22, 2024, the Financial Industry Regulatory Authority granted FINRA membership to Netcapital Securities, Inc., the company’s broker-dealer subsidiary. Management highlighted that this approval positions Netcapital to underwrite private placements under Regulation A and Regulation D, support larger syndications and share in transaction fees. With over 115,000 active investor accounts and nearly 300 successful platform raises to date, the company expects these capabilities to generate diversified revenue, although no projections or timelines have been disclosed.

Despite completing the technical and product build-out for secondary trading on the Templum Alternative Trading System, Netcapital deferred its public launch due to unresolved regulatory framework issues. Management offered no timeline or confidence level for when trading functionalities will go live, underscoring ongoing uncertainty in the regulatory environment for private securities marketplaces.