DSwiss Inc. Reports 112% Revenue Growth but Declining Net Income in Q1 2025

DSwiss Inc. reported significant financial performance for the first quarter of 2025, with revenues reaching $1,001,186, a substantial increase of 112% compared to $471,377 in the same period of 2024. Despite this growth in revenue, the company's net income decreased to $138,736 from $177,665 year-over-year, attributed to a rise in the cost of revenue, which surged to $738,139 from $201,492. The gross profit for the quarter was $263,047, slightly down from $269,885 in the previous year, reflecting the impact of increased operational costs.

The company's balance sheet as of March 31, 2025, showed total assets of $855,176, a notable increase from $635,830 at the end of 2024. This growth was primarily driven by a rise in current assets, particularly in other receivables, prepaid expenses, and deposits, which jumped to $192,944 from $22,188. However, total liabilities also increased to $642,064 from $561,794, indicating a rise in both current and non-current liabilities, including accounts payable and finance lease liabilities.

Strategically, DSwiss has continued to expand its operations, particularly in the ASEAN region, focusing on the biotechnology and nutraceutical sectors. The company has made significant investments in research and development, aiming to enhance its product offerings in health supplements and skincare solutions. Additionally, DSwiss has adopted a new lease accounting standard, ASC 842, which has resulted in the recognition of operating lease right-of-use assets and liabilities on its balance sheet.

Operationally, DSwiss reported a decrease in cash flow from operating activities, with a net cash outflow of $84,751 for the quarter, compared to a cash inflow of $62,517 in the prior year. The company maintained cash and cash equivalents of $304,637, slightly down from $304,885 at the end of 2024. The total employee headcount remained stable at 206,904, reflecting the company's commitment to maintaining its workforce amid ongoing operational challenges.

Looking ahead, DSwiss anticipates continued growth driven by its strategic initiatives in product development and market expansion. The company plans to leverage social media marketing to enhance brand awareness and customer engagement, aiming to solidify its presence in both existing and new markets. However, management has expressed concerns regarding its ability to sustain operations due to an accumulated deficit of $1,249,194, emphasizing the need for improved profitability and potential external financing to support ongoing operations.