Netcapital (NASDAQ:NCPL) reported a third-quarter fiscal 2026 revenue decline and a wider operating loss, while management emphasized ongoing investments in platform infrastructure, automation, and blockchain-enabled capabilities aimed at scaling the business over time.
Quarterly financial results
Chief Financial Officer Coreen Kraysler said the company recorded revenue of approximately $94,000 for the three months ended Jan. 31, 2026, down from approximately $153,000 in the prior-year period. Kraysler attributed the decrease primarily to lower funding portal fees during the quarter.
Netcapital posted an operating loss of approximately $2.2 million, compared with an operating loss of approximately $1.7 million in the third quarter of fiscal 2025. The company reported a loss per share of $0.32, compared with a loss per share of $1.57 in the year-ago quarter. As of Jan. 31, 2026, Netcapital had cash and cash equivalents of approximately $715,000, Kraysler said.
CEO outlines priorities in early tenure
Chief Executive Officer Rich Wheeless said the quarter included his first two months as the company’s new CEO. He said his work since joining has focused on strengthening Netcapital’s technology foundation, improving operational efficiency, and supporting initiatives designed to position the platform for future growth.
Wheeless described the company’s funding portal as “fundamentally a technology business with a largely fixed cost structure,” adding that higher volume could drive attractive incremental margins. He also pointed to Netcapital Securities as a way to participate in larger Regulation A transactions and expand the range of issuers and investors served.
While Wheeless said third-quarter fiscal 2026 revenue increased from the second quarter of fiscal 2026, he characterized the company as being in a transition period and said the “underlying economics” of the model will be realized only when Netcapital is operating at sufficient scale. He said he is focused on achieving that goal.
Strategic initiatives: tokenization, partnerships, and design capabilities
Wheeless said Netcapital signed four new broker-dealer clients during the quarter and executed a series of initiatives intended to advance its transformation into a more scalable digital private capital markets platform, with greater exposure to tokenization, digital securities, and technology-enabled investor engagement.
- Blockchain and trading infrastructure partnerships: Wheeless said Netcapital is working through partnerships with Horizon and Silicon Prairie to integrate primary issuance capabilities with blockchain-based technology and compliant secondary trading infrastructure. He said the expanded architecture is intended to support a broader range of digital securities, tokenized real-world assets, and liquidity solutions over time, while remaining grounded in regulatory compliance.
- First tokenized asset issuer engagement: The company announced what Wheeless described as its first tokenized asset issuer engagement with PureWave Hydrogen. He said the engagement involves structuring a securities-based tokenization of hydrogen drilling assets in Kansas and “has the potential” to become Netcapital’s first revenue-generating real-world asset tokenization project. Wheeless also framed it as an initial blueprint for future asset-backed tokenization mandates, with a goal of applying a standardized technology and fee framework to support a repeatable model over time.
- Acquisition of Iverson Design assets: Wheeless said Netcapital acquired the assets of Iverson Design, adding Michael Iverson as Chief Design Director and Head of AI Experience. Wheeless said the deal also brought a proprietary suite of AI-driven design, animation, and real-time rendering technologies in-house. He said the company views these capabilities as strategically important for explaining complex investment structures clearly as tokenization adoption increases.
Product development and operational tooling
Wheeless outlined an “integrated development plan” spanning wallet infrastructure, tokenization capabilities, and issuer onboarding enhancements. He said a key focus has been aligning internal teams and external partners so initiatives move forward in a coordinated way rather than as standalone efforts.
He said the company advanced early-stage planning around digital assets and tokenization, focusing on how blockchain-based assets could integrate with Netcapital’s existing systems, regulatory workflows, and compliance architecture.
Wheeless also highlighted new tools and automation aimed at improving scalability and execution:
- EDGAR filing preparation tool: He said Netcapital developed a proprietary application intended to streamline preparation of SEC EDGAR filings by cleaning and preparing XML filing documents. Wheeless said the tool can reduce formatting issues and improve filing efficiency for issuers, and that the company has continued refining it for reliability and usability.
- Marketing workflow automation: Wheeless said Netcapital implemented an automated workflow connecting monday.com, Make, and Mailchimp to help prepare investor newsletter campaigns based on a marketing calendar, with human review prior to distribution. He described the effort as a practical example of reducing manual work and improving consistency.
- Evaluating product analytics: He said the company began evaluating product analytics tools to better understand platform usage and user behavior, with the aim of supporting more data-driven decisions over time.
Management perspective
Wheeless said the company delivered operating milestones and made progress on initiatives intended to broaden platform capabilities and deepen monetization opportunities. While describing the effort as still in its early stages, he said management believes the groundwork laid during the quarter supports Netcapital’s long-term vision at the intersection of private capital formation and digital asset innovation.
About Netcapital (NASDAQ:NCPL)
Netcapital Inc operates an SEC-registered online capital–raising platform that connects emerging companies with a broad base of individual and institutional investors. Through its web-based portal, Netcapital enables issuers to conduct equity offerings under Regulation CF, Regulation A+ and Regulation D, providing a streamlined process for startups and growth-stage businesses seeking to access private capital markets. The company’s platform incorporates digital subscription, investor accreditation checks and regulatory compliance tools designed to simplify deal execution for both issuers and backers.
For entrepreneurs and small-business owners, Netcapital offers end-to-end support that includes deal structuring, compliance workflow, and marketing assistance.
