Tekcapital full-year 2025 results explained: big paper losses, but portfolio trading momentum is real
Tekcapital’s 2025 results are a classic case of the headline looking rough while the underlying portfolio story looks a lot better. The group swung to a loss after tax of US$17.1 million, compared with a profit after tax of US$19.2 million in 2024, mainly because the value of its investment portfolio fell on paper.
That matters because Tekcapital is essentially an IP investment company. If the market value of its holdings drops, its net asset value, or NAV, falls too. NAV is simply the value of assets minus liabilities, and for an investment company it is one of the key numbers investors watch.
| Key number | 2025 | 2024 |
|---|---|---|
| Net assets | US$55.1 million | US$70.1 million |
| NAV per share | US$0.23 | US$0.33 |
| Portfolio valuation | US$46.9 million | US$61.5 million |
| Loss after tax | US$17.1 million | Profit of US$19.2 million |
| Cash and cash equivalents | US$529,193 | US$786,290 |
| Total annual expenses | US$1.88 million | US$2.03 million |
Why Tekcapital’s net asset reduction was mostly a valuation issue, not a trading collapse
The central point in this RNS is that the damage was mostly unrealised depreciation. That means paper losses – the investments were marked down, but not necessarily sold at those lower values. Tekcapital said the portfolio suffered US$16.2 million of unrealised depreciation, with most of that driven by the fall in MicroSalt plc shares.
That distinction is important. A paper loss can reverse if portfolio company share prices recover, and Tekcapital explicitly said MicroSalt has recovered a portion of its value after the year end. So while the accounting result is ugly, it does not automatically mean the commercial progress has disappeared.
Still, let’s not sugar-coat it. A fall in net assets from US$70.1 million to US$55.1 million is significant, and NAV per share dropping from US$0.33 to US$0.23 is not what shareholders want to see. For an investment company, valuation pain is real pain.
Portfolio company revenue growth in 2025 was strong and that is the bull case
This is where the results get more interesting. Tekcapital’s core portfolio companies posted some eye-catching growth numbers in 2025:
- Innovative Eyewear revenue up 69%
- MicroSalt revenue up 187%
- GenIP revenue up 330%
- Guident revenue up 862%
Those are not small improvements. They suggest several holdings are moving from promise into proper commercial traction, which is exactly what Tekcapital needs if it wants future monetisations, higher valuations and eventually special dividends.
MicroSalt is the biggest holding and therefore the biggest swing factor. Tekcapital owned 58.26% at the year end, and the holding was valued at US$22.2 million. MicroSalt reported 2025 sales of US$2.14 million, ahead of the board’s original US$2.0 million expectation, and is projecting US$7.0 million for 2026 and more than US$15.0 million for 2027.
If those numbers are delivered, today’s valuation pain could look temporary. If they are missed, the market will not be forgiving.
Guident IPO progress, GenIP traction and Innovative Eyewear momentum give Tekcapital multiple shots on goal
Guident is another major piece of the puzzle. Tekcapital owned about 91% of Guident Corp and carried it at US$22.9 million at year end. The company has filed paperwork for a proposed US IPO and added customers both in autonomous shuttle monitoring and robotic security services.
That said, Guident remains a higher-risk asset because its valuation uses a revenue multiple approach rather than a live quoted market price. In plain English, it is worth what management and comparable market data suggest it may be worth, not what the market is currently paying every day. That can work brilliantly on the way up, but it adds uncertainty.
GenIP also looks to be building nicely. Tekcapital owned 53.86%, and GenIP delivered US$408,000 of revenue for the 10 months to 31 October 2025, up from US$126,000 in H1 2025, with gross margin improving to 27% from 18%. It is still small, but at least the direction of travel is right.
Innovative Eyewear, where Tekcapital had about a 5% stake, remains an interesting side-bet on smart glasses. Full-year 2025 sales were approximately US$2.7 million, up about 69%, and post period-end Q1 2026 sales rose around 70% to US$0.77 million. Again, small base, strong momentum.
Belluscura write-off shows the downside risk in Tekcapital’s model
The bad news was not limited to market volatility. Belluscura was effectively a blow-up. Following the Chapter 7 bankruptcy filing of its US operating subsidiary and subsequent events, Belluscura plc announced its intention to appoint an administrator, its AIM quotation was cancelled, and Tekcapital wrote its remaining 8,378,057 shares down to £nil.
To be fair, Tekcapital said it had invested about US$2.0 million and had already monetised about US$2.5 million over roughly five years, representing about a 25% return on invested capital. So it was not a total disaster financially. But it is a sharp reminder that early-stage investing is never a smooth ride.
Tekcapital cash, costs and fundraising: disciplined, but still something investors should watch
One genuinely encouraging part of this update is cost control. Total annual expenses fell to US$1.88 million from US$2.03 million, marking the third straight year of reductions. Since 2023, Tekcapital says annual expenses have been cut by 34%.
That is helpful because cash at year end was only US$529,193. For a group with multiple portfolio companies and an active investment strategy, that is not a huge cushion. The company did raise US$2.05 million or £1.5 million before expenses in February 2026, which eases the pressure.
Tekcapital also points to expected repayments of outstanding convertible loan notes over the next three years as a source of cash inflows. That sounds sensible, but the timing and certainty of those repayments will matter. Until cash actually lands, investors should treat that as supportive rather than guaranteed.
What the new Vesari investment means for Tekcapital shareholders
After the year end, Tekcapital secured a 51% stake in Vesari for no cash consideration. Vesari is focused on geothermal-powered hyperscale data centres, which is certainly ambitious and very much tied to the AI infrastructure theme.
My view is that this is strategically interesting, but it is early and speculative. There is no financial contribution disclosed yet, and the patent applications had not yet been formally filed at the time of the announcement. So it adds excitement, but not immediate proof.
My verdict on Tekcapital’s 2025 results for retail investors
This was a mixed set of results. On the negative side, the drop in NAV, the swing to a large loss, the Belluscura write-off and the still-thin cash position all matter. Those are not footnotes.
On the positive side, the portfolio companies appear to be growing fast, costs are under control, MicroSalt and Innovative Eyewear have decent operating momentum, and a Guident IPO could become a major catalyst if it gets over the line. For me, the key takeaway is simple: Tekcapital’s commercial engine looks healthier than its reported profit figure suggests, but investors are still taking valuation risk in exchange for that upside.
If you already own the shares, 2026 will likely be all about three things – MicroSalt delivering on its sales guidance, Guident progressing its IPO, and whether Tekcapital can turn portfolio progress into hard cash rather than just hopeful valuation marks. That is where the real verdict will come from.
