SCWO · 374Water, Inc.

374Water's financial results for the full year 2025 reveal a company in a transitional phase, marked by a widening net loss and diminishing cash reserves amidst strategic operational shifts. Revenue declined to $0.2 million from $0.4 million in the prior year. This decrease was primarily attributed to a $1.9 million reduction in equipment revenue, specifically resulting from a change in accounting estimate related to the Orange County Sanitation District (OC San) contract due to unexpected delivery delays. This was partially offset by an increase in service revenues of approximately $1.7 million, derived from various demonstration projects and the new City of Orlando contract.

Operating expenses escalated by 58% to $18.8 million, driven largely by a $3.5 million increase in compensation and related expenses, which included $1.8 million in stock-based compensation, alongside rises in general and administrative expenses. Consequently, the net loss expanded to $21.0 million, a significant increase from the $12.4 million loss recorded in the previous year.

The balance sheet reflects the impact of these operational dynamics. Cash and cash equivalents decreased to $3.2 million from $10.7 million year-over-year, and working capital contracted to $1.7 million from $11.8 million. Management highlighted a strategic pivot under recently appointed CEO Danny Bogar, focusing on disciplined execution, capital allocation to high-impact initiatives, and the establishment of operational hubs such as the Waste Destruction Services hub in Orlando. The company also noted recent business wins, including a sales agreement with the City of Olathe, KS, and ongoing collaborations with the Department of Defense and other partners to validate and deploy its AirSCWO technology.