SCWorx Corp. reported a decline in revenue for the fiscal year ending December 31, 2025, with total revenues of $2.88 million, down from $2.99 million in 2024, marking a decrease of approximately 4%. The company also experienced a significant increase in net loss, which rose to $4.44 million compared to a loss of $1.14 million in the previous year. This increase in losses was attributed to a combination of factors, including a non-cash interest expense and amortization of debt discounts totaling approximately $2.99 million, as well as a non-cash warrant modification expense of $565,000.
In terms of operational changes, SCWorx made strategic adjustments to its workforce, hiring a Chief Technology Officer to enhance its IT infrastructure. This contributed to an increase in salaries and wages by $245,000. The company also reported a decrease in operating expenses overall, which fell to $1.88 million from $2.01 million in 2024, primarily due to reduced legal and professional fees. The company’s gross profit improved by approximately 23% due to a reduction in costs of revenues, which decreased to $1.96 million from $2.24 million.
SCWorx's customer base remains concentrated, with a few clients contributing significantly to its revenue. The company reported that Customer A and Customer C each represented 15% and 19% of total revenue, respectively, for 2025. The company continues to focus on expanding its client base and enhancing its product offerings, particularly in data normalization and interoperability solutions for healthcare providers. As of December 31, 2025, SCWorx had nine employees and primarily relied on independent contractors for software maintenance and customer installations.
Looking ahead, SCWorx expressed intentions to utilize its cash reserves, which totaled approximately $1.64 million at year-end, to pursue growth opportunities and potentially achieve positive cash flows by the end of 2026. However, the company acknowledged the challenges it faces, including the need for additional capital to support its business strategy and the potential impact of market conditions on its operations. The company is also under scrutiny from Nasdaq for not meeting the minimum bid price requirement for its common stock, which could lead to a reverse stock split if compliance is not regained by April 2026.
About SCWorx Corp.
SCWorx provides healthcare data management solutions that enhance interoperability, data normalization, and analytics for hospitals and health systems. Its software improves clinical, supply chain, and financial systems, enabling cost reductions, faster billing, and better decision-making. Serving U.S. healthcare providers, SCWorx leverages SaaS delivery, big data analytics, and data warehousing to optimize healthcare operations and drive revenue cycle management.
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