374Water (SCWO) AI Stock Analysis

• Market Cap: $52.64M
• Dividend Yield: N/A
• Average Volume (3M): 10.04M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.11
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 27
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): -0.30
• Shares Outstanding: 16,924,880
• 10 Day Avg. Volume: 29,012,183
• 30 Day Avg. Volume: 10,038,520
• PEG Ratio: -0.15
• Price to Book (P/B): 5.94
• Price to Sales (P/S): 206.22
• P/FCF Ratio: -8.17
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 24.48
• Enterprise Value/Gross Profit: -82.27
• Enterprise Value/Ebitda: -2.76
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: $3.00 ▲(70.45% 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

Revenue Traction

Sustained revenue rebound off a small base indicates improving product-market fit for SCWO services and equipment. Durable revenue growth supports scale economics over time if the company converts service wins into repeat contracts and ramps capital sales or leases, strengthening long-term commercial viability.

Partnerships & Deployments

Strategic alliances with established waste handlers and successful commercial demonstrations validate the technology and create distribution channels. These relationships lower commercialization risk, increase access to feedstock volumes, and support recurring service revenues—key durable drivers for scaling operations over months to years.

Near-term Financing Runway

Securing capital via an ATM facility and adding finance-focused board members improves near-term liquidity and access to investors. This strengthens the company’s ability to fund deployments and pursue commercial growth while it works toward operating leverage, reducing immediate execution risk versus having no committed funding.

Negative Factors

Negative Margins

Persistent negative gross and operating margins show the business currently cannot cover direct costs or overhead from core activities. Without meaningful margin improvement through pricing, cost reduction, or scale, the company’s model will require ongoing funding and undermines sustainable profitability over the medium term.

Cash Burn & Liquidity Risk

Significant negative operating and free cash flows plus a sub-$1M cash balance create structural dependence on external financing. This constrains investment in sales, installations, and R&D, increases dilution risk, and can limit the company’s ability to fulfill contracts or scale operations without successful, timely capital raises.

Listing & Governance Uncertainty

Listing non-compliance, a reverse split, and recent board resignations/appointments signal governance and market-cap stability issues. These structural governance events can distract management, raise investor uncertainty, and increase the likelihood of dilutive financing or restructurings that affect long-term capital stability and execution.

374Water Business Overview & Revenue Model

Company Description

374Water, 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 Money

374Water 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 Financial Statement Overview

Summary

Strong TTM revenue rebound (+55%) is outweighed by very weak profitability (negative gross profit, deeply negative operating/net margins) and significant ongoing cash burn (negative operating cash flow and free cash flow). Balance sheet leverage is modest (debt-to-equity ~0.21), but declining equity and weak returns highlight execution and funding risk.

Income Statement

TTM (Trailing-Twelve-Months) revenue rose sharply (+55%), showing improving commercial traction off a small base. However, profitability is very weak: gross profit is negative and operating and net margins are deeply negative in TTM, implying the company is still far from covering its cost structure. Results also show high volatility year-to-year (strong 2022 revenue followed by declines in 2023–2024, then a rebound in TTM), which reduces earnings quality and visibility.

Balance Sheet

Leverage remains modest with low debt relative to equity in TTM (debt-to-equity ~0.21), which helps financial flexibility for an early-stage business. The main weakness is ongoing losses driving very poor returns on equity in TTM, and equity has declined materially versus 2024, suggesting cash burn and/or valuation changes are pressuring the capital base over time.

Cash Flow

Cash generation is a major concern: operating cash flow and free cash flow are significantly negative in TTM, indicating the business is consuming cash to fund operations and investment. Free cash flow also deteriorated versus the prior period (negative growth), reinforcing that near-term self-funding is unlikely without improved margins, lower spend, or external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.91M	445.44K	743.95K	3.02M	48.10K	86.57K
Gross Profit	-568.50K	-912.71K	-1.11M	336.50K	48.10K	72.33K
EBITDA	-16.94M	-12.60M	-8.56M	-4.69M	-3.12M	-10.75K
Net Income	-17.40M	-12.43M	-8.10M	-4.69M	-3.16M	40.34K
Balance Sheet
Total Assets	11.36M	19.18M	16.12M	9.92M	12.41M	103.81K
Cash, Cash Equivalents and Short-Term Investments	933.33K	10.65M	10.45M	5.99M	11.13M	71.80K
Total Debt	1.39M	652.70K	0.00	0.00	0.00	515.99K
Total Liabilities	4.87M	3.71M	1.37M	1.66M	86.37K	92.56K
Stockholders Equity	6.50M	15.47M	14.75M	8.25M	12.33M	11.25K
Cash Flow
Free Cash Flow	-14.30M	-11.24M	-9.15M	-5.15M	-1.84M	64.76K
Operating Cash Flow	-13.30M	-10.59M	-9.03M	-4.95M	-1.84M	64.76K
Investing Cash Flow	-1.01M	-653.54K	1.85M	-2.16M	28.34K	-275.00
Financing Cash Flow	13.28M	11.45M	13.58M	25.05K	12.87M	2.05K

374Water Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.76
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 2.78, below the 50-day MA of 2.61, and below the 200-day MA of 3.13, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 59.12 is Neutral, neither overbought nor oversold. The STOCH value of 68.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SCWO.

374Water Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CLWT	60 Neutral	$9.75M	17.45	―	―	-14.25%	-59.84%
FTEK	54 Neutral	$42.26M	-14.39	-7.10%	―	-5.66%	-397.46%
SCWO	48 Neutral	$52.64M	-2.65	-232.63%	―	―	―
CLIR	48 Neutral	$32.22M	-5.12	-53.13%	―	-49.70%	-2.72%
LIQT	45 Neutral	$18.29M	-1.71	-73.79%	―	10.97%	44.99%
TOMZ	43 Neutral	$14.96M	-2.90	-108.76%	―	-30.61%	-111.40%

374Water Corporate Events

374Water director resigns as Stephen Jones refocuses leadership

On January 21, 2026, 374Water Inc. announced that Board member Stephen J. Jones resigned from the company’s Board of Directors so he could devote more time to his responsibilities as Interim Chief Executive Officer and President, as well as to strategic initiatives and his commitments on two other public company boards. The company emphasized that Jones’s resignation from the Board was not the result of any disagreement over its operations, policies, or practices, suggesting continuity in corporate governance and strategic direction despite the change in board composition.

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

374Water appoints new director following board resignation

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.

374Water Strengthens Board with Finance Veteran Appointment

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.

374Water Announces Reverse Stock Split Approval

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.

374Water Announces Board Changes and Reverse Stock Split

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.