374Water Inc ((SCWO)) has held its Q3 earnings call. Read on for the main highlights of the call.
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The recent earnings call for 374Water Inc. painted a picture of both optimism and caution. While the company reported significant revenue growth and promising partnerships, these positive developments were counterbalanced by rising operating expenses, a net loss, and compliance challenges with Nasdaq. This duality reflects a company on the verge of potential growth but facing financial hurdles that need addressing.
Revenue Growth
374Water Inc. reported a substantial increase in revenue for Q3 2025, reaching $760,000 compared to $81,000 in the previous year. This growth was primarily driven by the company’s waste destruction services, showcasing a strong demand for their offerings.
Partnership with Crystal Clean
The company has taken a significant step in expanding its Treatment, Storage, and Disposal Facility (TSDF) partnerships by signing a collaboration agreement with Crystal Clean in Ohio. This partnership is expected to enhance 374Water’s market reach and service capabilities.
Successful Deployments and Projects
374Water successfully deployed its AIRSPRO technology, completing commercial-scale field demonstrations at Clean Harbors’ Detroit facility and the Colorado School of Mines. These deployments underscore the company’s technological advancements and operational capabilities.
New Orders and Contracts
The company secured a new order from the city of Olathe, Kansas, for an Airscope six unit and initiated waste destruction services for North Carolina’s AFFF. These contracts highlight the growing demand for 374Water’s solutions.
Future Revenue Projections
Looking ahead, 374Water projects its 2026 revenue to be between $6 to $8 million, representing a 50% to 100% increase over expected 2025 revenues. This optimistic forecast is driven by the company’s focus on expanding its waste destruction services and capital sales.
Balance Sheet Strengthening
The company raised approximately $7 million from an ATM facility, which has extended its cash runway into 2026. This financial move is crucial for supporting ongoing operations and strategic initiatives.
Increased Operating Expenses
Operating expenses for Q3 2025 rose by 64% to $4.6 million, compared to $2.8 million in the previous year. This increase in expenses poses a challenge to the company’s profitability.
Net Loss
374Water reported a net loss of $4.3 million for Q3 2025, up from $2.7 million in the prior year. This loss highlights the financial challenges the company faces despite its revenue growth.
Nasdaq Compliance Issue
The company’s stock has been trading below $1 per share, risking non-compliance with Nasdaq listing rules. This situation may necessitate a reverse stock split to maintain its listing status.
Cash and Working Capital Decrease
As of September 30, 2025, 374Water’s cash and cash equivalents decreased to $900,000 from $10.7 million at the end of 2024, with a corresponding decrease in working capital. This decline underscores the need for effective financial management.
Forward-Looking Guidance
The company provided a promising outlook for 2026, with expected revenues between $6 to $8 million, reflecting a significant increase over anticipated 2025 revenues. 374Water is focusing on waste destruction services, capital sales, and leasing options to drive growth. The company aims for a potential breakeven in operating income by 2027, contingent on market expansion and deal execution.
In summary, 374Water Inc.’s earnings call reveals a company at a crossroads, with promising growth prospects tempered by financial challenges. While revenue growth and strategic partnerships are encouraging, the increase in operating expenses and net loss, along with Nasdaq compliance issues, highlight areas that require careful management. The company’s forward-looking guidance suggests optimism, but achieving these goals will depend on effective execution and market conditions.