Powerdyne International Reports 37% Revenue Decline and Increased Net Loss in Q1 2026

Powerdyne International, Inc. reported a significant decline in financial performance for the first quarter of 2026 compared to the same period in 2025. The company generated revenues of $171,025, a decrease of approximately 37% from $271,056 in the prior year. This decline is attributed to economic uncertainties and the threat of tariffs impacting sales, particularly for its subsidiary, Creative Motion Technology, LLC (CM Tech). The cost of revenues also decreased to $131,752 from $209,417, resulting in a gross profit of $39,273, down from $61,639 in the previous year. The net loss for the quarter was $120,246, compared to a loss of $55,134 in the first quarter of 2025.

In terms of operational changes, Powerdyne's total operating expenses rose to $159,520 from $116,773, primarily due to costs associated with financing agreements. The company’s accumulated deficit increased to $5,628,543 as of March 31, 2026, from $5,508,297 at the end of 2025. The total liabilities decreased slightly to $825,852 from $846,876, while stockholders’ deficit stood at $507,700, reflecting a marginal increase from $504,954.

Powerdyne continues to navigate challenges in its operational landscape, including reliance on a limited customer base, with two major customers accounting for approximately 90% of its revenues. The company has also engaged in strategic initiatives, such as hiring a firm for corporate relations and market awareness, issuing 25 million restricted shares for consulting services, and entering into a line of credit agreement to bolster its working capital. As of March 31, 2026, the company had drawn $219,750 from a $220,000 line of credit, which is secured against its assets.

Looking ahead, Powerdyne's management remains cautiously optimistic about revenue growth, particularly for CM Tech, as they anticipate an increase in sales through the remainder of 2026. However, the company acknowledges the ongoing economic uncertainties and the potential need for additional financing to sustain operations. The recent passing of CEO Jim O’Rourke has raised questions about leadership continuity, and the company is in the process of implementing its succession plan while evaluating its impact on operations and financial results.