Powerdyne International Reports Revenue Decline and Increased Net Loss for Fiscal Year 2025

Powerdyne International, Inc. reported a decrease in revenue for the fiscal year ending December 31, 2025, generating $1.16 million compared to $1.25 million in 2024. This decline of approximately 7.2% is attributed to reduced demand amid tariff uncertainties affecting the semiconductor manufacturing sector, particularly impacting sales from Creative Motion Technology, LLC (CM Tech), which specializes in industrial servomotors. Despite the revenue drop, the company achieved a gross profit of $378,427, reflecting a gross profit margin of 32.6%, an increase from 29.2% in the previous year.

Operating expenses rose by 6.1% to $629,837, primarily due to costs associated with changing auditors and preparing for a capital raise. Consequently, Powerdyne reported a net loss of $251,410 for 2025, compared to a loss of $179,497 in 2024. The company's working capital deficit also widened to $504,955 from $253,544 the previous year, indicating ongoing financial challenges exacerbated by decreased orders from a major client.

In terms of strategic developments, Powerdyne completed the acquisition of CM Tech in March 2022, which has been integral to its operations. CM Tech focuses on manufacturing motors for industrial robotics, particularly in the semiconductor industry, and has been a key contributor to Powerdyne's product offerings. The company also operates Frame One, a custom picture framing business, which adds to its service portfolio. As of December 31, 2025, Powerdyne employed nine full-time staff and five consultants, maintaining a lean operational structure.

Powerdyne's international sales accounted for 58% of total sales in 2025, down from 82% in 2024, highlighting a shift in market dynamics. The company has been actively seeking new customers to offset the decline in orders from existing clients. In 2026, Powerdyne reported acquiring two new customers, which it hopes will stabilize and potentially increase revenue streams. The company is also in the process of filing a Form S-1 to raise additional capital, although it acknowledges the uncertainty surrounding the success of this initiative.

Looking ahead, Powerdyne remains focused on improving its financial position through increased customer acquisition and operational efficiency. The management believes that with the anticipated growth in revenues, cash flow from operations will improve, allowing the company to address its working capital needs. However, the company cautions that its ability to continue as a going concern is contingent upon securing additional financing and successfully navigating the challenges posed by market conditions and tariff impacts.