Netcapital (NCPL) 17 Dec 242025 Q2 Earnings call transcript

Good day, everyone, and welcome to the Netcapital Inc.

Second Quarter Fiscal 2025 Conference Call. [Operator Instructions] It is now my pleasure to turn the floor over to your host, Coreen Kraysler, CFO of Netcapital Inc. Ma'am, the floor is yours.

Thank you, Matthew. thank Results joining Conference and Fiscal Second everyone, Financial XXXX Call. morning, you Netcapital's for Quarter Good I'm Coreen Kraysler, CFO of Netcapital Inc. I results and Martin reviewing Q&A portion our Chief up call. we by his Officer, our before share Kay, will Executive will the remarks open of then begin our prepared financial

uncertainties materially in operations, in financial reasons like results, risks, known remind statements future. With could to that with those of discussion achievements cause statements. statements relate information like activity, broker-dealer publicly or said, lack approximately XXXX the revenue to driven QX unknown available QX these include the million revenue we obligation may other for Revenues any $X.X was no results for of and XXXX operations, securities harbor views consulting in fiscal disclosure by our subsidiary, QX decline the may Before forward-looking the October involve as in XXXX. forward. for to for for begin, received safe events -- different We service XXXX. I'm the profit XXXX. focus was a or performance reflect or by from which reported to results report Netcapital to an actual these future our for factors quarter materially $X.X XXXX, be if revenues forward-looking approximately forward-looking from results even future revenue for as growth fiscal in to to pleased XXXX, future to and we will actual new I'd financial the statements XXXX current that and respect fiscal these QX company consulting statements. Any of compared attributed approval equity million strategy, differ forward-looking November approximately $XXX,XXX expressed for to events. fiscal FINRA I'd that revise performance operating the of million approximately and levels to or of services implied information. Management's turn $XX,XXX XXXX. everyone XX% the approximately XX, compared quarter be liquidity compared any forward-looking and regarding management's period forward-looking statements, quarter or second for second future for $XX,XXX consulting These operating The to of assumes the update for decreased to to loss becomes results moving in second of reason, update fiscal XX, as as from million or to $X.XX now anticipated of $X.X an ended

XXXX We net for $X.XX year. same prior for period the the approximately year. loss for for $X.XX second per same approximately quarter $X,XXX,XXX profit of as quarter loss was share the the Our net $XXX,XXX a period October a compared earnings reported the of to share second XX, to in XXXX, prior the in per compared fiscal ended of

$X,XXX,XXX. I'll of XXXX, XX, had Martin call company October cash equivalents turn cash to now Kay. CEO, our of As the the and over

I'd Coreen. like call you, interest of Netcapital. support your thank on being everyone and today Thank this for to also and for

primarily consulting service due we noncash during primarily in from As Coreen mentioned, shift a saw the decrease away is quarter, revenue, the what revenue. to

potential area. And we subsidiary, equity-based that as revenue added broker-dealer significant and believe member to believe the we We marks and become by that and a broker-dealer. This see our subsidiary, hosting Netcapital to by broker-dealer, in Netcapital or base as expand it we begins a been revenue generating having pleased achievement approval our received streams. it company's to range had mentioned, Securities, announce with Industry wholly support investment additional could So potentially focus Regulatory A and that greater fees more fundraises contracts. Authority, owned revenue Coreen Inc. Reg from to company new Financial FINRA its for platform. expand were Securities, This the offerings FINRA, to such, the the create larger pursuing available we've positions of not open value that Recently, will new on Reg opportunities from and investor opportunities D on as the opportunities registered Netcapital base. company Inc. to the for the

support broker-dealers of Reg as securities A license to and your Regulation broker-dealer raising mentioned, ready conduct to capital broker-dealers. fee Reg of partner forward Thank look as of continued interest other with fees for our us you we Regulation charge raised deals; Our business, other we're syndicate with companies capital, under on and support equity and allows agreements sharing placements under and D private referral I and keeping for into A well progress. Operator, Netcapital, enter to informed as D; questions. you

Malhi BullRun from first Instructions] is Kal from [Operator Capital. question Your coming

this? is Who Hello.

our and Kay, Kraysler, You CFO. the Coreen have Martin CEO;

have. know you've trade provide an got what you on Martin, and Can that you. what what Hey funding you -- do it limited investor, Okay. but so, also a curious says is? have online, I'm at number guys shares, I'm crazy and a start-ups capital I'm more is volumes of crowd I look lot an on I what update But or kind based structure? of your structure we see you to of

It's NASDAQ complex that uncommon to shareholder not all I a common mean diversified and large -- have about there's trade pretty it. and we volumes we for base on stock. trade really periodically. We're nothing

How outstanding are many shares now?

approximately but I I outstanding. it's think million X.X shares we defer -- I'll Coreen, to think

And you. that or many out? warrants there out have are What number are Okay. what warrants and cheapest a the how of you are then have

that in of know, front Coreen, you have don't if I you.

don't that I have front me. of in

of net would net is? I you your companies. investments your say what's And number Okay. value in assets now? other know What have you asset a right

equity consulting asset in value equity believe, I had balance $XX in on taking of Well, we for if you're a just equity net about about positions is disclosed securities, of equity sheet of in is, been talking of the those the little over return talked million the portfolio that we portfolio we positions. business worth and services,

And payables and or liabilities? what's your position cash

the Again, cash equivalents million. cash at the over end little $X.X of quarter, and a

And to have on the to we're this. to move after questioner next going

Chris Singular Your coming from Research. next Sakai is from question

Just to get of sense really Securities Netcapital from a wanted and idea broker-dealers. other what differentiates

the out number existing other Well, there's ability broker-dealer and versus brings platform already A the that an industry fundraising ecosystem issuers where of marketplace funding creates that we support to of an we've crowd equity is Netcapital investors a through traditional and a things. environment talked Reg about as and Obviously, built obviously a the together, to sort activities. platform, unique

Obviously, with So and -- marketing we over in few XXX,XXX the we've and words, investor relatively our right in business. the which traditional team understands unique. it's -- investors we how way already in a the other model, we to and that deal have robust competitors in have broker-dealer relationships this accounts, have this providers is and we digital internally to -- competitors right bring space, but disclosed the not

any would registration And visibility? Okay. you think? for And also, what revenue revenue this that from Can new any does how -- see that? broker-dealer revenue much does that about do streams streams, be, new you provide

revenue it not forecast. we potential we specifically certainly disclosed for do. up new we what in streams. the our as But what opens discussed That's that haven't we -- Well, remarks,

example, you up allows a XX-month in $X greater to -- exemption. to A, Reg CF million million I'm For know, period sure $XX as issuers a we versus raise Reg under amount

is fee. arrangement able of So that structure are flat that we likely a opposed much as sort that now larger raise. a to to And as fee a percentage of broker-dealer, some

obviously we So is plan to that something pursue. that

Do you that large see like coming any deals up?

platform. we marketplace haven't talking time are again, but pursuing, and gone to and we're on to in been we've Many are of have A. also raise successfully on those the raised almost Reg again, to disclosed that assume XXX candidates issuers deals all of obviously Well, that, out additional for have -- specifics of companies capital had we rounds safe the our

under So and in Reg been more we're have time capital who'd companies can exemption. CF like discussions to for active than raise some yeah, they with

next Gilliam Clear coming Capital. from Strategic from John Your is question Point

Yes, quarter still launch from a open to last there quarter, And want update I that to indicated to up exchange in launch the month. beta expected an full expected to if it's you this the get ATS Templum ended just in you the 'XX.

working capability secondary to details think, exactly with don't what we I can that and out said, is us everyone the still previously get through technical governing really or up to right. still to be make framework that to open important regulatory Well, I we're exchanges. And to the some we're of and Templum sure safe roll wanting it's the complete, what to partnership a product build-out is But in think we've I say you say mentioned, ATS. as it's

comfortable prudent again, best for regulatory still I need that that. we do to. before working on that feel the framework we're us not it's to and that within XXX% have we're a product that anything in -- we experience we have So way operating the And think we

disclosed functionality, say we I but launching transfer or really can that's haven't So secondary talked again, for timeline official all at that point. this

be like that's prior past the calendar mention into you end year the thought 'XX. the call, the feeling it the into QX? would -- kind of pushed on year you in you QX ended Well, did Are in of

I think that's right.

looking? we're do How far you think out

this confidently point. predict I at Again, don't think can I that

to session. CFO, go our Kraysler, concludes I'll That hand Coreen for ahead. back closing the Please conference Q&A remarks. now

Thank potential you, We for everyone, as appreciate shareholders you joining shareholders. and today. call really our

our wish a about season. prospects We the are excited ahead holiday and wonderful subsidiary you broker-dealer all Thank you. new for

Thank you all.

event. you Thank today's This concludes everyone.

and you disconnect a have time, at may your Thank wonderful participation. You this day. for