MDwerks Reports 55% Revenue Increase but Faces Significant Gross Loss in Q2 2025

MDwerks, Inc. reported its financial results for the second quarter of 2025, revealing a revenue of $420,609 for the three months ended June 30, 2025, compared to $271,894 for the same period in 2024, marking a 55% increase. However, the company experienced a gross loss of $281,297 during the quarter, a significant decline from the gross loss of $71,514 reported in the prior year. For the first half of 2025, total revenue was $934,539, slightly down from $956,554 in the first half of 2024. The net loss for the second quarter was $1,336,892, compared to a net loss of $764,115 in the same quarter of the previous year.

The financial performance reflects substantial changes in operational costs, particularly in general and administrative expenses, which rose to $589,362 from $538,733 year-over-year. Salaries and wages also saw a significant increase, climbing to $375,265 from just $16,147 in the prior year, indicating a strategic decision to expand the workforce. Total operating expenses for the second quarter reached $1,043,215, up from $630,044 in the same quarter of 2024. This increase in expenses contributed to the overall net loss for the period.

MDwerks has been actively pursuing strategic developments, including the acquisition of Two Trees Beverage Co. and RF Specialties, LLC, which were completed in late 2023. These acquisitions are expected to enhance the company's product offerings and market presence in the beverage and sustainable technology sectors. The company reported a significant increase in inventory, which rose to $1,172,214 as of June 30, 2025, compared to $236,863 at the end of 2024, reflecting the integration of Two Trees' product lines.

Operationally, MDwerks has seen a rise in customer engagement, with one customer accounting for 28% of total revenue in the second quarter. The company has also expanded its geographic footprint through the acquisition of Two Trees, which produces a variety of alcoholic beverages using innovative aging technology. The total employee headcount has increased as part of the company's growth strategy, although specific figures were not disclosed in the filing.

Looking ahead, MDwerks anticipates continued challenges due to market conditions and operational costs. The company has expressed its intention to secure additional financing to support its growth plans and address liquidity needs. However, management has acknowledged that there are substantial risks and uncertainties that could impact future performance, including economic conditions and competition in the beverage industry. The company remains committed to executing its business strategy while navigating these challenges.