Summary by Futu AI
Netcapital Inc. reported financial results for Q2 FY2025 ended October 31, 2024. Revenue decreased 92% YoY to $170,528, but increased 20% QoQ. The company posted an operating loss of $2.2M compared to an operating income of $52,220 in Q2 FY2024. Net loss was $2.2M, or $2.34 per share, versus a net profit of $339,616, or $2.52 per share, in the prior year period.The YoY revenue decline was primarily due to reduced consulting revenue, while the sequential increase was driven by the funding portal business. Despite challenges, CEO Martin Kay expressed optimism, highlighting the recent FINRA approval for Netcapital Securities Inc. to become a member broker-dealer, which is expected to open up new revenue channels.Looking ahead, the company plans to leverage its new broker-dealer license to support Reg A and Reg D offerings, facilitate larger fundraises, expand investment choices, and establish fee-sharing agreements with other broker-dealers. As of October 31, 2024, Netcapital had cash and cash equivalents of $1,346,739.
