10-Q: Nomadar Corp. Q1 2026 Financial Results and Outlook

Nomadar Corp. reports Q1 2026 financial results, highlighting revenue growth alongside a significant net loss and ongoing going concern uncertainties.

Summary

• Reported revenue of $403,800 for the three months ended March 31, 2026, compared to $186,937 in the same period of 2025.
• Net loss for the first quarter of 2026 was $1,586,954, compared to a net loss of $291,319 in the first quarter of 2025.
• Operating loss for the quarter was $778,765.
• Cash position as of March 31, 2026, was $1,962,060, with a working capital deficit of $4,733,516.
• Accumulated deficit reached $5,766,825 as of March 31, 2026.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a high-risk situation due to the explicit going concern warning, significant net losses, and identified material weaknesses in internal controls, despite the revenue growth.

Positives

• Revenue increased by 116% year-over-year to $403,800.
• Successfully secured $10 million in total funding under a capital contribution agreement with Sportech.
• Completed two tranches of a subscription agreement, raising $3,770,278 in proceeds.
• Commenced new revenue streams, including educational services ($253,725) and naming rights ($48,739).

Negatives

• Net loss widened significantly to $1,586,954 from $291,319 in the prior year period.
• Operating expenses rose by 282% to $1,134,709.
• Reported a working capital deficit of $4,733,516.
• Management identified material weaknesses in internal control over financial reporting.

Risks

• Substantial doubt exists regarding the ability to continue as a going concern.
• Dependence on continued financial support from stockholders and debt holders.
• Material weaknesses in internal control over financial reporting.
• No assurance that planned future debt and equity financings will be successful.
• Exposure to foreign currency exchange rate fluctuations.

Future Outlook

The company expects to continue incurring significant costs in pursuit of its financing and acquisition plans and remains dependent on obtaining future debt and equity financings to continue operations.

Management Comments

• Management acknowledges substantial doubt about the company's ability to continue as a going concern.
• Management is in the process of designing, implementing, and documenting an internal control framework to remediate identified material weaknesses.

Industry Context

StockSavvy.ai notes that Nomadar operates in the niche sports technology and event management sector, heavily reliant on its relationship with Cdiz CF. The company's reliance on external capital and related-party support is typical for early-stage, growth-oriented sports ventures, but the identified material weaknesses in financial reporting controls present a significant governance risk compared to established industry peers.

Comparison to Industry Standards

• The company's reliance on related-party funding (Sportech) is common in early-stage sports ventures but creates concentration risk.
• Revenue growth is positive, but the high operating expense ratio relative to revenue is typical of pre-profitability growth-stage companies.

Corporate Governance

Legal Proceedings

• The company is not a party to any material litigation as of the date of the filing.

Related Party Transactions

• Significant funding and operational support from Sport City Cdiz, S.L. (Sportech).
• Exclusive licensing agreements with Cdiz CF for HPT and Mgico Gonzlez brand.
• Stadium agreement with Cdiz CF for use of JP Financial Stadium.
• Remunerated private investment agreements with entities owned by an investor.

Stakeholder Impact

• Shareholders face dilution risk from ongoing capital raises and convertible note conversions.
• Creditors and investors are exposed to the company's going concern risk.

Next Steps

• Continue efforts to obtain necessary equity or debt financing.
• Remediate identified material weaknesses in internal control over financial reporting.
• Continue construction planning for Sportech City project.
• Launch Mgico Gonzlez brand in the U.S. in the second half of 2026.

Key Dates

Recommendation

The combination of a going concern warning, significant net losses, and material weaknesses in internal controls makes this a high-risk investment that would likely be avoided by institutional investors until financial stability and control remediation are demonstrated.

Keywords

Nomadar, NOMA, Sportech, Soccer Academy, High Performance Training, JP Financial Stadium, SEC Filing, 10-Q