Mitesco Reports Significant Q3 Revenue Decline and Net Loss Amid Strategic Shift

Mitesco, Inc. reported a significant decline in financial performance for the third quarter of 2025, with revenues dropping to $3,000 compared to $23,500 in the same period last year. For the nine months ended September 30, 2025, total revenues increased to $38,700 from $29,500 in the prior year. The company attributed the revenue decline in the third quarter primarily to a strategic shift in focus towards software development projects under its new subsidiary, Centcore, LLC, which provides data center services. Operating expenses surged to $1,014,422 for the quarter, up from $239,742 in the previous year, largely due to increased costs associated with establishing new business operations and stock-based compensation.

The company’s net loss for the third quarter was $3,202,971, a stark contrast to a net income of $2,077,028 in the same quarter of 2024. This loss was influenced by higher interest expenses, which rose to $386,699 from $50,979, and a loss on legal settlements amounting to $500,000. For the nine-month period, Mitesco reported a net income of $159,981, down from $1,711,107 in the prior year, reflecting ongoing challenges in managing operational costs and legal liabilities.

Mitesco has been actively restructuring its operations, including the formation of two new wholly owned subsidiaries: Centcore, LLC, focused on data center services, and Vero Technology Ventures, LLC, which seeks investment opportunities in cloud computing. The company has also engaged in significant debt restructuring, converting over $25 million of obligations into common stock and Series A Preferred shares. As of September 30, 2025, Mitesco's total liabilities stood at approximately $23.95 million, down from $26.61 million at the end of 2024, while stockholders' equity improved to a deficit of $23.79 million from a deficit of $26.42 million.

Operationally, Mitesco's cash and cash equivalents decreased to $321 from $3,402 at the end of 2024, indicating liquidity challenges. The company reported a net cash used in operating activities of $308,963 for the nine months ended September 30, 2025, an improvement from $399,775 in the same period of 2024. The company is currently exploring additional funding options to support its operations, as it faces substantial doubt about its ability to continue as a going concern without securing further capital.

Looking ahead, Mitesco plans to continue its focus on software development and cloud computing solutions, with expectations for the initial rollout of its "Robo Agent" application in the fourth quarter of fiscal 2025. However, the company acknowledges the need for additional funding to sustain its operations and execute its business plan effectively. The ongoing restructuring efforts and strategic pivots are aimed at stabilizing the company’s financial position and enhancing its market presence in the evolving technology landscape.