NTRP — Q2 2026 Financial Report Analysis

NextTrip, a small Florida-based travel booking and travel-TV company, took in $0.55 million of revenue in the three months to August 31, 2026, 28% less than a year earlier, while its net loss widened 28% to $3.72 million. Its operating expenses were about 6.4 times its revenue. The company's own filing says there is "substantial doubt" that it can keep operating for another year without raising more money. Since the quarter ended it has been paying its bills with new borrowing and share sales.

NextTrip's fiscal year ends on the last day of February, so the company calls this the second quarter of fiscal 2027. We file it under calendar 2026 because that is when the quarter ended.

At a glance

• $546,687 of revenue, down 28%. Travel bookings fell 36% to $479,156. Management says it chose to focus on rebuilding its products over chasing near-term sales.
• $1.15 million of cash against $4.8 million burned in six months. Day-to-day operations used about $800,000 a month. Management says it needs at least $5.5 million over the next 12 months just to fund current operations.
• Loss per share improved from $0.39 to $0.25, but only because the share count almost doubled. The weighted share count rose 87% to 14.8 million while the dollar loss grew. Each share now carries a smaller slice of a bigger loss.

What NextTrip actually sells

The 10-Q describes two businesses:

• Travel (88% of this quarter's revenue). Bookings for hotels, cruises, vacation packages and group trips through its own booking engine (NXT2.0) and acquired brands: Five Star Alliance (luxury hotels and cruises, bought April 2025) and NextTrip Groups (formerly TA Pipeline, bought August 2025, for weddings, conferences and other group travel). It earns commissions, markups and service fees. When it acts as the "merchant of record", meaning it takes the customer's full payment and pays the hotel or cruise line itself, the whole booking value counts as revenue and the supplier's cost counts as cost of revenue. That makes revenue look bigger but margins thinner than on commission-only bookings.
• Media (12%). JOURNY TV, a free, ad-supported travel streaming channel on smart-TV platforms such as Samsung TV Plus and LG Channels, which now includes the GoUSA TV content library bought from Brand USA in February 2026, plus the TravelMagazine.com website. It earns advertising and sponsorship money and is also meant to send viewers to the booking sites.

Q2 FY2027 results (quarter ended August 31, 2026)

Figures are in dollars, not millions, because the company is very small. Operating margin is operating profit or loss as a share of revenue: what is left from sales after running the business, before interest and tax. At -607%, total costs (including the cost of the trips themselves) were roughly seven times revenue.

Why revenue fell

The Travel segment caused the whole decline. The 10-Q attributes the 28% drop to "a decision to take the time needed to build a stronger foundation for future growth, prioritizing enhancements to NextTrip Pro and the consolidation of JOURNY TV and GoUSA TV over maximizing near-term revenue." It says those projects "were substantially completed after quarter-end." In the segment discussion, management also blames "decreased group and commission revenues" for the Travel loss.

Two other details in the filing are relevant:

• The quarter fell sharply from the previous one. Six-month revenue was $1,998,422, so the first quarter (March–May 2026) brought in about $1.45 million. That was about 2.7 times this quarter. Group travel is lumpy, because one large wedding or conference can make a quarter, so a single quarter shows little about the trend.
• NextTrip is in a dispute with the people it bought its group-travel business from. The former owners of TA Pipeline have started arbitration seeking at least $497,005 (a share buy-back obligation plus an earn-out "milestone payment"). NextTrip's counterclaim alleges that one of them caused his own company, "a significant customer of TA," to "divert business opportunities away from TA." That is NextTrip's allegation and has not been proven. Even so, it suggests that some of the drop in group revenue may come from losing a customer, not only from choosing to focus on product work. NextTrip has accrued $500,000 for the two claims.

Gross margin improved for a mix reason. The share of revenue left after paying suppliers rose to 32% from 22%. Most of that comes from Media's ad revenue, which the company books with no cost of revenue and which grew to 12% of sales from under 1%. Travel's own gross margin rose only modestly, to 23% from 21%. Over six months the picture reverses: Travel gross margin fell to 15% from 22%, because more bookings were recorded on the full-value merchant basis after the acquisitions.

Costs barely moved. Salaries and benefits rose 41% to $982,542 after seven new hires. That increase was mostly offset by a $374,005 drop in "organization costs" (last year's figure included stock options granted to former directors). The largest single expense line was professional service fees of $1,472,791, about 2.7 times revenue. Half of that ($736,057) was paid in stock rather than cash.

Takeaway: NextTrip's revenue is shrinking while it pays for itself with a stream of small, increasingly expensive financings, from convertible notes to related-party loans to share sales at falling prices. The 36% drop in loss per share is a share-count effect, not an improvement. Whether the company survives in its current form depends on raising about $5.5 million in the next year, not on what it earns from operations.

What the headline numbers hide

• Cash burn is much larger than revenue. Operating activities used $4,803,656 in the six months to August 31, 2026, up from $470,283 a year earlier. Compare that with $1,998,422 of revenue. Last year's figure was flattered by a one-off: about $1.1 million of "other income" from a legal settlement over a NextPlay Technologies note did not recur. This half's burn was also increased by a $479,315 fall in deferred revenue (customer deposits for trips not yet taken). Fewer new deposits came in than were used up by trips taking place, so less customer money is being held in advance.
• The net loss was not inflated by unusual items this quarter, on balance. Interest expense jumped to $651,050 from $288,278. That includes $326,205 of non-cash accretion on a preferred stock that was redeemed in July, and amortization of the discount on the new Lind note. Partly offsetting those was a $296,242 non-cash gain from revaluing the Lind warrant. The year-ago quarter had $583,000 of the one-off settlement income, which is the main reason the net loss widened more (+28%) than the operating loss (+4%).
• EPS is a dilution story. Basic and diluted loss per share are the same number because extra shares would reduce the loss per share. At August 31 there were 9,257,853 potential additional shares in warrants, options, convertible preferred stock and the convertible note. That is 62% on top of the 14,989,327 shares then outstanding.
• A sizeable chunk of expenses is paid in stock. Shares issued for professional services were $1,289,008 over six months. That keeps cash costs lower but adds to dilution.
• Some of the assets are hard to value. $2.5 million of the $12.8 million balance sheet (about 20%) is minority stakes in two private companies, BlueFysh and Playbook Investors Network. Another $7.2 million is goodwill and intangible assets from acquisitions. The company has also fully written off $469,828 of advances to NextTrip Privilege, a related party, after its stock offering raised just $13,824 and was terminated in September.
• A small inconsistency in the filing. The income statement shows an $88,772 credit-loss provision for the quarter, but the "critical accounting estimates" section gives $65,561 for the quarter. The amount is immaterial, but it is worth noting in a filing this size.

The financing picture

This is the most important part of the 10-Q for a shareholder.

• Going concern. Both the auditor's opinion on the last annual report and this 10-Q state "substantial doubt" about the company's ability to continue for one year. At August 31, the working capital deficit (short-term liabilities minus short-term assets) was $3,195,601, up from $761,004 at February 28. The accumulated deficit, meaning all losses to date, was $57.5 million.
• The Lind note. On July 21 the company issued a $4.6 million senior secured convertible note to Lind Global Fund III. It received $4.0 million, and $3.49 million in cash after fees and paying off a loan. The note is secured by essentially all company assets and pays no interest. It is repaid in 14 monthly installments of $328,571 starting in November 2026. NextTrip can pay in cash at 104% of each installment or in shares priced at 90% of the average of the five lowest daily prices in the prior 20 trading days. Paying in shares as the price falls means issuing more shares each month. Lind also received a warrant for 1,030,928 shares at $3.88. Both the note and the warrant have "full-ratchet" protection: if NextTrip sells shares below $3.88, their price can be cut to match, subject to carve-outs the 10-Q does not spell out. It is not clear whether the September sale at $1.89 (below) triggered that. A default, which includes the market value of the company staying below $12.5 million for ten consecutive trading days, would make 120% of the outstanding principal due immediately.
• Insider funding. The chairman's fund (Monaco Investment Partners II) turned $3.5 million of loans plus interest into Series B preferred stock in August. The preferred pays 12% dividends and converts at $3.88. The fund then lent another $685,000 under the same credit line between September 25 and October 8. A director's company bought shares at $1.89 on September 17, and the CEO lent $45,000 in September.
• Falling share prices. The filing itself notes that private placements during the half were priced at $2.75 per share, while the September sale was at $1.89. An at-the-market program set up on August 31 lets the company sell up to $6.5 million of stock straight into the market. Through the filing date it had raised only $31,207.
• More dilution approved. On October 9 shareholders approved issuing more than 19.99% of the share count to Lind, so the cap on how many shares the note and warrant can turn into no longer applies.

Outlook

Management gives no revenue or earnings guidance. Its plan, as set out in the going-concern note, is to keep raising equity and debt, draw on related-party financing, integrate its acquisitions (TA Pipeline, Five Star Alliance, JOURNY TV, GoUSA and a 51% stake in creator-commerce firm YADA), and defer non-essential spending. It says "no commitments have been received" from new investors or lenders.

Our view: the next quarter (September–November 2026, likely filed around mid-January 2027) will be the first to carry a Lind repayment: the first $328,571 installment falls due from mid-November, with one more every month after that. Operating cash burn has been running near $800,000 a month on top of that. Things to watch in that filing:

1. Whether Travel revenue recovers now that management says the NextTrip Pro and JOURNY TV work is done. The first quarter's $1.41 million of Travel revenue shows what a good group-travel quarter can look like.
2. How the Lind installments are paid. Paying in shares at a falling price would increase the share count further.
3. Whether the media audience translates into money. Management is targeting a move from about 1 million to 50 million monthly ad impressions. Media revenue of $67,531 a quarter is far from covering the $603,626 the segment lost this quarter.

At this size and burn rate, small changes in funding matter more to shareholders than small changes in bookings.