MedWellAI Reports Revenue Growth to $618,676 Despite Net Loss in Latest Quarter

MedWellAI, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending March 31, 2026. The company generated total revenue of $618,676 for the three months ended March 31, 2026, a substantial increase from $281,318 in the same period last year. For the nine months ended March 31, 2026, revenue reached $1,694,482, compared to $425,327 for the same period in 2025. The increase was primarily driven by a shift in focus to product sales, which amounted to $596,176 in the latest quarter, up from zero in the prior year, and $1,622,679 for the nine-month period, also up from zero.

Despite the revenue growth, MedWellAI reported a net loss attributable to shareholders of $240,237 for the three months ended March 31, 2026, compared to a loss of $588,630 in the same quarter of 2025. For the nine months, the net loss was $1,179,634, a decrease from $2,478,588 in the previous year. The company’s operational expenses decreased significantly, with general and administrative expenses dropping to $364,539 for the latest quarter from $1,129,360 a year earlier, reflecting reduced stock-based compensation and other costs.

Strategically, MedWellAI has undergone notable changes, including the acquisition of a 51% interest in Healthy Lifestyle USA LLC in August 2024, which has contributed to its revenue streams. The company has also consolidated its Series C and D preferred stock into a single series of convertible preferred stock, which was executed on August 1, 2025. This restructuring included the retirement of $2,133,081 in accrued and unpaid dividends, indicating a strategic move to streamline its capital structure.

Operationally, MedWellAI has shifted its focus from online sales, which have been discontinued due to regulatory hurdles, to product sales and rental income. The company reported rental income of $22,500 for the three months ended March 31, 2026, compared to zero in the prior year. The company’s total current assets decreased to $164,614 as of March 31, 2026, from $418,773 as of June 30, 2025, while current liabilities surged to $7,777,135, resulting in a stockholders' deficit of $7,685,890.

Looking ahead, MedWellAI faces challenges as its current liabilities exceed current assets by $7,612,521, raising substantial doubt about its ability to continue as a going concern. The company plans to raise capital through debt and equity markets to fund its operations. Management has acknowledged the need for effective governance and intends to address material weaknesses in internal controls, including the establishment of an independent board and audit committee, to enhance its operational framework.