SCWO · 374Water, Inc.

374Water's first quarter 2026 results reflect a company in transition, scaling its Waste Destruction Services (WDS) platform while investing in commercial infrastructure. Revenue edged up slightly to $551,155 from $543,100 in the prior year, but the standout metric was gross margin, which expanded 38 percentage points to 63%, driven by higher-margin service revenue from the Orlando demonstration and improved operational efficiency. The net loss widened to $4.57 million from $3.70 million, impacted by $184,000 in capitalized offering costs expensed due to a strategic shift to convertible debt financing and $158,000 in Delaware franchise tax related to an increase in authorized shares. Excluding these non-recurring items, the underlying loss would have been approximately $4.23 million. Cash used in operations improved 28% year-over-year to $2.51 million, reflecting management's focus on overhead reduction. The company strengthened its balance sheet with $800,000 in financing as of March 31 and an additional $1.1 million post-quarter. Management highlighted several operational milestones: a $2.2 million milestone payment from Garney Construction for the Olathe contract, deployment of the mobile AirSCWO system to St. Cloud, MN, and progress on the Orlando WDS facility buildout. The company also noted active discussions with strategic partners for co-investment and expansion. CEO Danny Bogar emphasized the recurring revenue platform taking shape, with expectations for the WDS facility to generate $100,000 to $200,000 in monthly revenue initially, scaling to over $400,000 monthly by late 2027. The company's forward-looking statements caution that actual results may differ materially due to risks outlined in its SEC filings.