MDwerks Reports Revenue Decline and Increased Costs for Fiscal Year Ending December 31, 2025

MDwerks, Inc. reported a decline in revenue for the fiscal year ending December 31, 2025, generating $2.21 million compared to $2.36 million in 2024. The revenue from its Two Trees Distilling subsidiary increased slightly to $1.35 million from $1.32 million, primarily due to the introduction of its "Whiskey-as-a-Service" (WaaS) model, which contributed $222,300 in revenue. However, the RF Specialties segment saw a significant drop in revenue, falling to $864,428 from $1.04 million, largely due to a lack of non-recurring service revenue that had bolstered the previous year's figures.

The company's financial performance was impacted by increased costs, with total cost of sales rising to $2.56 million from $1.49 million in the prior year. This increase was driven by higher input costs and an inventory impairment of $140,067. Consequently, MDwerks reported a gross loss of $350,315, a stark contrast to the gross profit of $874,029 in 2024. Operating expenses also surged to $3.39 million from $2.38 million, primarily due to increased salaries and legal fees associated with its public company reporting obligations.

Strategically, MDwerks made significant moves in 2025, including the acquisition of RF Specialties and Two Trees Beverage Co. in December 2023, which are expected to enhance its operational capabilities. The company launched its WaaS model, allowing customers to utilize its proprietary Spirits Rapid Aging System (SRAS) with minimal upfront investment, thereby creating predictable revenue streams. MDwerks has signed contracts for the deployment of SRAS units, with installations expected to begin in 2026, indicating a focus on expanding its market presence.

Operationally, MDwerks reported a total employee count of 18 as of December 31, 2025, with no employees covered by collective bargaining agreements. The company is also focusing on geographic expansion, having secured agreements for SRAS deployments in three countries outside the U.S. The Two Trees brand has gained recognition, with several products winning awards, which may enhance its market share in the premium spirits sector.

Looking ahead, MDwerks faces challenges, including a substantial accumulated deficit of $6.16 million and ongoing net losses, which raise concerns about its ability to continue as a going concern without additional financing. The company plans to seek further capital to support its operations and growth initiatives. Management remains optimistic about the potential for revenue growth from its new WaaS contracts and the expansion of its product offerings, but acknowledges the inherent risks and uncertainties in achieving profitability.