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374Water (SCWO)
NASDAQ:SCWO
US Market

374Water (SCWO) AI Stock Analysis

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SCWO

374Water

(NASDAQ:SCWO)

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Neutral 48 (OpenAI - 5.2)
Rating:48Neutral
Price Target:
$2.50
▲(42.05% Upside)
The score is primarily held back by heavy losses and sustained negative free cash flow despite strong recent revenue growth, implying continued reliance on external funding. Technically, the stock remains in a weak trend (below key moving averages with negative MACD). Guidance and partnerships improve the growth narrative, but rising expenses, low cash, and listing/financing risks keep the overall profile below average.
Positive Factors
Validated commercial technology
Successful commercial-scale demonstrations, including a DoD-linked deployment, provide durable technical validation of AirSCWO. Demonstrated effectiveness and scalability reduce adoption risk, strengthen credibility with federal and municipal customers, and support hub-based and mobile deployment strategies over the next 2–6 months.
Service-based recurring revenue potential
The Waste Destruction Services (WDS) collaboration and planned hub/mobile offerings shift revenue mix toward recurring service fees. A service model lowers customer capex barriers, improves uptake of AirSCWO, and creates recurring cash flow that can support scale and unit economics if deployments and utilization expand as planned.
Sharply improving revenue trend
A 55% TTM revenue rebound and large YoY Q3 jump signal accelerating commercial traction from waste destruction services and equipment orders. While from a small base, sustained revenue growth over multiple quarters would improve operating leverage and provide a foundation for margin improvements and capacity investments over the medium term.
Negative Factors
Acute cash burn and limited runway
Cash down to ~$0.9M despite a $7M ATM raise highlights continued negative operating cash flow and reliance on capital markets. Persistent cash burn constrains investments in deployments and WDS expansion, creating execution risk and near-term dependence on additional financing or partnerships to sustain growth beyond Q2 2026.
Negative unit economics and margins
Negative gross profit and deeply negative operating/net margins indicate the company has yet to prove profitable unit economics. Without improved yields, lower costs, or higher-margin service mix, scaling deployments risks magnifying losses and delays achieving the stated operating breakeven target in 2027.
Listing, governance and financing risk
Board changes, a reverse stock split and large financing initiatives (shelf/ATM) show heavy reliance on external capital and governance actions to maintain listing. This raises dilution risk, potential management distraction, and operational uncertainty that could undermine long-term execution if capital access becomes constrained.

374Water (SCWO) vs. SPDR S&P 500 ETF (SPY)

374Water Business Overview & Revenue Model

Company Description374Water, Inc. focuses on providing a technology that addresses environmental pollution challenges. It develops a waste stream treatment system based on supercritical water oxidation technology. The company's AirSCWO systems are used to treat various hazardous and non-hazardous waste streams. Its clients include channel partners, such as engineering-procurement and construction companies, technology integrators, waste service providers, operations service providers, and NGOs; and end-users, which include utilities, industrial manufacturing facilities, waste management and environmental remediation companies, agricultural companies, and governmental entities. The company is based in Durham, North Carolina.
How the Company Makes Money374Water makes money primarily through the sale and lease of its SCWO systems to municipalities, industries, and waste management companies. The company also generates revenue from providing maintenance, support, and operational services for its systems. Additionally, 374Water may engage in partnerships with governments and private entities to expand its reach and application of SCWO technology. These collaborations can lead to joint projects and shared revenue streams that enhance the company's financial performance.

374Water Earnings Call Summary

Earnings Call Date:Nov 12, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Mar 27, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted significant revenue growth, successful partnerships, and future revenue projections, indicating a positive trajectory. However, these were tempered by increased operating expenses, net loss, and Nasdaq compliance issues, creating a balance between positive progress and financial challenges.
Q3-2025 Updates
Positive Updates
Revenue Growth
Revenue for Q3 2025 increased to $760,000 compared to $81,000 in the prior year, primarily from waste destruction services.
Partnership with Crystal Clean
Signed a waste destruction services collaboration agreement with Crystal Clean in Ohio, marking a significant step in expanding TSDF partnerships.
Successful Deployments and Projects
Successful deployment of AIRSPRO technology and completion of commercial scale field demonstrations at Clean Harbors' Detroit facility and the Colorado School of Mines.
New Orders and Contracts
Secured an order from the city of Olathe, Kansas, for an Airscope six unit and began waste destruction services for North Carolina's AFFF.
Future Revenue Projections
Projected 2026 revenue in the range of $6 to $8 million, a 50% to 100% increase over expected 2025 revenues.
Balance Sheet Strengthening
Raised approximately $7 million from an ATM facility, extending cash runway into 2026.
Negative Updates
Increased Operating Expenses
Total operating expenses increased 64% to $4.6 million in Q3 2025 compared to $2.8 million in the prior year.
Net Loss
Net loss for Q3 2025 was $4.3 million compared to $2.7 million in the prior year.
Nasdaq Compliance Issue
Company's stock has been trading below $1 per share, risking non-compliance with Nasdaq listing rules, potentially requiring a reverse stock split.
Cash and Working Capital Decrease
Cash and cash equivalents decreased to $900,000 as of 09/30/2025 from $10.7 million as of 12/31/2024, with working capital also decreasing.
Company Guidance
During the 374Water Third Quarter 2025 financial results conference call, the company provided guidance indicating a promising outlook for 2026 with expected revenues between $6 to $8 million, reflecting a 50% to 100% increase over anticipated 2025 revenues. The company is focusing on waste destruction services, capital sales of equipment, and leasing options to drive growth. They reported a significant revenue increase in Q3 2025 to $760,000, up from $81,000 in the prior year, primarily due to a rise in service revenues. Operating expenses rose by 64% to $4.6 million, leading to a net loss of $4.3 million for the quarter. The company also highlighted its cash position, with cash and cash equivalents at $900,000 as of September 30, 2025, bolstered by a $7 million raise from an ATM facility, sustaining operations into Q2 2026. 374Water is actively pursuing additional capital to support strategic growth initiatives and aims for a potential breakeven in operating income by 2027, contingent on the pace of market expansion and deal execution.

374Water Financial Statement Overview

Summary
374Water faces severe financial challenges, with negative gross profit and net income, unstable revenue, and consistent cash flow issues. Despite high cash reserves and low debt, the financial outlook remains weak due to persistent losses and cash burn.
Income Statement
374Water's income statement reveals a challenging financial situation. The company has exhibited negative gross profit and net income across recent years, indicating persistent losses. EBIT and EBITDA margins are negative, reflecting operational inefficiencies. Revenue growth is unstable, with significant fluctuations and a recent decline. These factors contribute to a low income statement score.
Balance Sheet
The balance sheet shows a mixed picture with high cash reserves and a very low debt level, which is a positive aspect. However, the equity ratio is low due to significant accumulated losses, and the company has struggled with negative stockholders' equity in the past. The debt-to-equity ratio is not applicable due to negative equity in earlier years. Overall, the balance sheet suggests some financial resilience but with underlying weaknesses.
Cash Flow
The cash flow analysis highlights significant challenges. Operating cash flow has consistently been negative, indicating cash burn. Free cash flow growth is difficult to assess but remains negative, showing issues with cash generation. The company relies on financing activities for liquidity, which poses sustainability risks. These concerns lead to a low cash flow score.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.91M445.44K743.95K3.02M48.10K86.57K
Gross Profit-568.50K-912.71K-1.11M336.50K48.10K72.33K
EBITDA-16.94M-12.60M-8.56M-4.69M-3.12M-10.75K
Net Income-17.40M-12.43M-8.10M-4.69M-3.16M40.34K
Balance Sheet
Total Assets11.36M19.18M16.12M9.92M12.41M103.81K
Cash, Cash Equivalents and Short-Term Investments933.33K10.65M10.45M5.99M11.13M71.80K
Total Debt1.39M652.70K0.000.000.00515.99K
Total Liabilities4.87M3.71M1.37M1.66M86.37K92.56K
Stockholders Equity6.50M15.47M14.75M8.25M12.33M11.25K
Cash Flow
Free Cash Flow-14.30M-11.24M-9.15M-5.15M-1.84M64.76K
Operating Cash Flow-13.30M-10.59M-9.03M-4.95M-1.84M64.76K
Investing Cash Flow-1.01M-653.54K1.85M-2.16M28.34K-275.00
Financing Cash Flow13.28M11.45M13.58M25.05K12.87M2.05K

374Water Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.76
Price Trends
50DMA
2.78
Negative
100DMA
3.30
Negative
200DMA
3.14
Negative
Market Momentum
MACD
-0.05
Negative
RSI
50.74
Neutral
STOCH
52.71
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SCWO, the sentiment is Positive. The current price of 1.76 is below the 20-day moving average (MA) of 2.36, below the 50-day MA of 2.78, and below the 200-day MA of 3.14, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 50.74 is Neutral, neither overbought nor oversold. The STOCH value of 52.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SCWO.

374Water Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
60
Neutral
$8.87M16.51-14.25%-59.84%
54
Neutral
$49.41M-15.82-7.10%-5.66%-397.46%
48
Neutral
$43.16M-2.13-232.63%
48
Neutral
$39.68M-6.56-53.13%-49.70%-2.72%
45
Neutral
$16.94M-1.81-73.79%10.97%44.99%
43
Neutral
$16.10M-3.00-108.76%-30.61%-111.40%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SCWO
374Water
2.58
-3.62
-58.39%
CLWT
Euro Tech Holdings Company
1.20
-0.22
-15.35%
FTEK
Fuel Tech
1.55
0.56
56.57%
CLIR
ClearSign Combustion
0.77
-0.36
-32.12%
LIQT
LiqTech International
1.82
0.03
1.68%
TOMZ
TOMI Environmental Solutions
0.78
-0.27
-25.71%

374Water Corporate Events

Business Operations and StrategyExecutive/Board ChangesPrivate Placements and Financing
374Water appoints new director following board resignation
Positive
Jan 8, 2026

On January 5, 2026, 374Water Inc. announced that director Buddie Joe Penn resigned from the Board of Directors, effective the same day, with the company stating that his departure did not stem from any disagreement over its operations, policies or practices. To fill the vacancy, the company appointed real estate executive Bradley Freels, 66, to the board and its compensation committee on January 5, 2026; Freels, who leads several Midway-branded real estate and investment entities and holds business degrees from Texas A&M University, has been working with management on potential financing opportunities and may invest personally in any such transactions, which are expected to exceed an aggregate of $120,000 if completed, potentially strengthening 374Water’s access to capital while aligning board composition with the terms of a prior agreement with shareholder Yaacov (Kobe) Nagar.

The most recent analyst rating on (SCWO) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on 374Water stock, see the SCWO Stock Forecast page.

Business Operations and StrategyExecutive/Board Changes
374Water Strengthens Board with Finance Veteran Appointment
Positive
Jan 5, 2026

On December 29, 2025, 374Water Inc. appointed veteran finance executive Charles Weiser, 67, to its Board of Directors and audit committee to fill an existing vacancy, formalizing his role after prior collaboration with management on potential financing initiatives. Weiser, whose background includes CFO roles at Alonti Catering Kitchens, the Johnny Carrabba Family of Restaurants, and American Green Technology, will receive standard non-employee director compensation and an indemnification agreement, and is expected to continue pursuing financing opportunities for the company as a director, with the company indicating that any successful transactions he helps arrange would be in excess of $120,000 and that he may participate as an investor, underscoring 374Water’s focus on strengthening its financial resources and governance structure.

The most recent analyst rating on (SCWO) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on 374Water stock, see the SCWO Stock Forecast page.

Shareholder MeetingsStock Split
374Water Announces Reverse Stock Split Approval
Neutral
Dec 15, 2025

On December 15, 2025, 374Water Inc. announced a 1-for-10 reverse stock split of its common stock, which will take effect on December 26, 2025. This move, approved at a special stockholders’ meeting, aims to consolidate shares and adjust the number of shares available under the company’s equity incentive plans, while maintaining the total authorized capital stock at 1,050,000,000 shares.

Executive/Board ChangesShareholder MeetingsStock Split
374Water Announces Board Changes and Reverse Stock Split
Neutral
Dec 15, 2025

On December 14, 2025, 374Water Inc. entered into an agreement with Mr. Yaacov Nagar, leading to the resignation of Ms. Deanna Rene Estes from the Board of Directors, effective after the certification of the Reverse Stock Split Proposal by the stockholders at the Special Meeting on December 15, 2025. The agreement also involves the identification of three new board candidates, resulting in the resignation of Messrs. BJ Penn and James Vanderhider, and if the Reverse Stock Split Proposal is approved, a 1-for-10 reverse stock split will be implemented. Mr. Nagar has committed to voting in alignment with the Board’s recommendations at the Special Meeting, and the agreement will remain effective until the appointment of the third board candidate or 30 days following a breach notice, subject to conditions.

Business Operations and StrategyExecutive/Board Changes
374Water Appoints Interim CEO Amid Leadership Changes
Neutral
Oct 14, 2025

On October 8, 2025, 374Water Inc. announced the departure of its President and CEO, Christian Gannon, and General Counsel, Peter Mandel. Concurrently, Stephen J. Jones, a board director, was appointed as the interim President and CEO to guide the company through its next phase of project deployments and commercialization of its super critical water oxidation technology. The company also introduced new compensatory arrangements for certain officers, granting stock options to executive officers including the CFO and COO, which will vest over the next two years.

The most recent analyst rating on (SCWO) stock is a Buy with a $2.50 price target. To see the full list of analyst forecasts on 374Water stock, see the SCWO Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jan 09, 2026