SCWorx Corp. Reports Revenue Increase and Improved Gross Profit for Q1 2026

SCWorx Corp. reported a revenue of $744,899 for the three months ended March 31, 2026, reflecting a 3.4% increase from $720,299 in the same period of the previous year. The company achieved a gross profit of $374,109, significantly up from $136,863 in the prior year, primarily due to a reduction in cost of revenues, which fell to $370,790 from $583,436. This decrease in costs was attributed to lower labor and cloud hosting expenses, resulting in a gross profit margin improvement of approximately 173%.

The company's operating expenses rose to $509,923, an increase of $39,063 compared to $470,860 in the first quarter of 2025. This rise was mainly driven by higher salaries and wages, which increased by approximately $56,000, and non-cash stock compensation expenses of $12,000. However, this was partially offset by a decrease in legal and professional fees. SCWorx reported a net loss of $173,767 for the quarter, a notable improvement from a net loss of $476,303 in the same quarter of the previous year, indicating a reduction in losses by approximately 63%.

In terms of operational metrics, SCWorx's total assets decreased slightly to $7,776,392 as of March 31, 2026, down from $7,896,088 at the end of 2025. The company’s cash position also declined, with cash and cash equivalents at $1,341,779 compared to $1,644,439 at the end of the previous fiscal year. The company’s accounts receivable remained relatively stable, increasing marginally to $314,550 from $313,350. SCWorx's employee headcount and customer engagement metrics were not disclosed in the filing.

Strategically, SCWorx implemented a 1-for-15 reverse stock split effective April 10, 2026, aimed at regaining compliance with Nasdaq's minimum bid price requirement. The company has faced challenges in maintaining its listing on the Nasdaq Capital Market, having received notification of potential delisting due to failure to meet the minimum bid price requirement. SCWorx has filed an appeal against this decision, seeking to maintain its listing.

Looking ahead, SCWorx management anticipates that operating expenses will remain relatively flat for the remainder of 2026, with the exception of potential increases in marketing and advertising expenditures. The company continues to focus on enhancing its healthcare data solutions and expanding its customer base, while also navigating the complexities of its financial and operational landscape.