374Water Reports Third Quarter 2025 Financial Results
Third Quarter Revenues Increased to $0.8 Million Due to Higher Service Revenues and Expects 2025 Full Year Revenues of Approximately $4 Million
Fortified Balance Sheet Including $7.0 Million ATM Facility Extends Cash Runway into Q2 2026
Management to Host Webcast and Conference Call Today at 4:30 p.m. ET
DURHAM, N.C., Nov. 12, 2025 (GLOBE NEWSWIRE) -- 374Water Inc. (NASDAQ: SCWO) ("374Water" or the "Company"), a global leader in organic waste destruction technology and services for the industrial, municipal, and federal markets, today reported its financial and operational results for the third quarter ended September 30, 2025.
“The third quarter of 2025 was underscored by ongoing service deployments and the continued commercialization of our Super Critical Water Oxidation (“SCWO”) technology,” said Stephen J. Jones, Interim President and Chief Executive Officer of 374Water. “For example, we successfully completed a commercial-scale waste destruction service project at Clean Earth’s Detroit, MI facility as part of a Department of Defense (“DoD”) project. For six weeks we executed per- and polyfluoroalkyl (“PFAS”) destruction of multiple concentrated waste streams at commercial Treatment, Storage, and Disposal Facilities (“TSDF”) using our AirSCWO 6 System. We also successfully deployed our AirSCWO technology to a Colorado School of Mines and DoD Environmental Security Technology Certification Program project aimed at comparing technology solutions to destroy PFAS contaminated wastes. Both efforts demonstrated our ability to destroy PFAS-impacted waste streams as a treatment option for DoD installations impacted by PFAS.
“During the quarter we signed a waste destruction services (“WDS”) collaboration agreement focused on PFAS destruction with Crystal Clean, a leading provider of environmental and waste management solutions. Crystal Clean is an ideal partner to enable our WDS business to scale rapidly and support growing demand across a wide array of market verticals and waste streams. We intend to grow the WDS business over the next several years, establishing multiple WDS operations at TSDF partner facilities across North America. WDS will generate recurring revenues with customers demanding total waste treatment with our AirSCWO technology.
“Most recently, we secured an order from the City of Olathe, KS ("Olathe") for the sale and deployment of an AirSCWO 6 system and a related pre-treatment and dewatering system. Olathe will utilize the AirSCWO process at its wastewater treatment facility to assess its potential as a sustainable alternative to traditional sludge management practices and disposal methods. We also recently began processing our award by the State of North Carolina for WDS to destroy AFFF utilizing AirSCWO technology. In the first phase of this waste destruction service project, we will treat 1,000 gallons of AFFF. If selected for the second phase, we could treat up to an additional 28,000 gallons of AFFF.
“On the financial front, we have strengthened our balance sheet, utilizing our at-the-market facility which generated proceeds of approximately $7.0 million, extending our anticipated cash runway into the second quarter of 2026.
“Looking ahead, we are focused on successful waste destruction of PFAS and other waste streams utilizing our AirSCWO system at current project deployments and accelerating the conversion of a growing pipeline of opportunities. With the recent announcements of revenue generating service and capital equipment sales, we are projecting 2026 revenue to be in the $6-8 million range. We look forward to additional milestones and announcements in the months ahead,” concluded Jones.
Third Quarter 2025 Financial Summary
- For the third quarter of 2025, revenue totaled $760,000 compared to $81,000 in the prior year. The company’s business has been focused on the development and commercialization of its AirSCWO systems to fulfill current projects and prepare for additional revenue growth. The approximate $679,000 increase in revenues was primarily due to an increase in our service revenues of approximately $643,000 from the completion of waste destruction service projects, and $36,000 in capital equipment sale revenues.
- Total operating expenses increased 64% to $4.6 million for the three months ended September 30, 2025, compared to $2.8 million in the prior year period. The increase was primarily owed to expanded operations including a $0.9 million increase in compensation and related expenses, an increase of $0.3 million in research and development, and an increase of $0.8 million in general and administrative expenses.
- Net loss for the three months ended September 30, 2025, was $4.3 million, as compared to$2.7 million in the prior year. Net loss increased due to continued investment in commercialization and increased operational costs.
- Revenue for 2025 calendar year is projected to be approximately $4 million based upon current expectation of deliverables for the fourth quarter.
- Cash and cash equivalents as of September 30, 2025, was $0.9 million, as compared to $10.7 million as of December 31, 2024. As of September 30, 2025, working capital was $1.9 million, compared to $4.5 million as of September 30, 2024.
- Based upon our current cash position, including the $7.0 million raised from the at-the-market facility, and expected billings and related collections, we project to have adequate cash to support our business plans into Q2 2026.
Third Quarter 2025 Results Conference Call
374Water Interim President and Chief Executive Officer Stephen J. Jones and CFO Russell Kline will host the conference call, followed by a question-and-answer period. The conference call will be accompanied by a presentation, which can be viewed during the webcast or accessed following the call via the investor relations section of the Company’s website here.
To access the call, please use the following information:
| Date: | Wednesday, November 12, 2025 |
| Time: | 4:30 p.m. Eastern time (1:30 p.m. Pacific time) |
| Dial-in: | 1-877-423-9813 |
| International Dial-in: | 1-201-689-8573 |
| Conference Code: | 13756490 |
| Webcast: | SCWO Q3 2025 Financial Results Conference Call |
A telephone replay will be available approximately three hours after the call and will run through November 26, 2025, by dialing 1-844-512-2921 from the U.S., or 1-412-317-6671 from international locations, and entering replay pin number: 13756490. The replay can also be viewed through the webcast link above and the presentation utilized during the call will be available in the Company’s investor relations section here.
About 374Water
374Water Inc. (NASDAQ: SCWO) is a global industrial technology and services company providing innovative solutions addressing wastewater treatment and waste management issues within the industrial, municipal, and federal markets. 374Water's AirSCWO technology is designed to efficiently destroy and mineralize a broad spectrum of non-hazardous and hazardous organic wastes, producing safe dischargeable water streams, safe mineral effluent, safe vent gas, and recoverable heat energy. 374Water's AirSCWO technology has the potential to assist its customers to meet discharge requirements, reduce or eliminate disposal costs, remove bottlenecks, and reduce litigation and other risks. 374Water continues to be a leader in innovative waste treatment solutions, dedicated to creating a greener future and eradicating harmful pollutants. Learn more by visiting www.374water.com and follow us on LinkedIn.
Cautionary Language on Forward-Looking Statements
Certain statements in this communication are "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, as amended. Words such as "anticipate," "believe," “could," "estimate," "expect," "intend," "may," “plan," "predict," "project," "potential," or other comparable terminology are intended to identify forward-looking statements. These statements include those related to 374Water’s revenue guidance and cash runway, 374Water’s ability to scale its operations, including its WDS operations by expanding WDS operations to TSDFs and being awarded additional AFFF to process from the State of North Carolina or others, whether 374Water will be successful in obtaining federal, municipal and industrial waste destruction contracts, demand for 374Water’s solutions, and 374Water’s ability to destroy PFAS at scale, and 374Water’s future prospects and involve known and unknown risks, uncertainties, and other factors that may cause 374Water’s actual results, levels of activity, performance, or 374Water’s achievements or those of its industry to be materially different from those expressed or implied by any forward-looking statements. 374Water has based these forward-looking statements on its current expectations, assumptions, estimates, beliefs, and projections. While 374Water believes these expectations, assumptions, estimates, and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which involve factors or circumstances that are beyond the 374Water’s control. These forward-looking statements are subject to risks and uncertainties, including those discussed under "Risk Factors" in 374Water’s Form 10-Q for the quarter ended September 30, 2025, and in 374Water’s subsequent filings and reports with the SEC. The forward-looking statements herein are made only as of the date they were first issued, and unless otherwise required by laws, 374Water disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Investor Relations and Media Contact
Jim Siccardi
Senior Vice President
Direct: 984-374-1222
Jim.Siccardi@374water.com
www.374Water.com
Chris Tyson
Executive Vice President
MZ North America
Direct: 949-491-8235
SCWO@mzgroup.us
www.mzgroup.us
| 374Water Inc. and Subsidiaries Condensed Consolidated Balance Sheets September 30, 2025 (Unaudited) and December 31, 2024 | ||||||||
|
September 30, 2025 |
December 31, 2024 |
|||||||
| Assets | ||||||||
| Current Assets: | ||||||||
| Cash | $ | 933,328 | $ | 10,651,644 | ||||
| Accounts receivable, net of credit allowance | 643,585 | 269,733 | ||||||
| Unbilled accounts receivable | 2,155,622 | 1,653,007 | ||||||
| Stock subscription receivables | 5,041 | - | ||||||
| Other receivables | 11,851 | 43,886 | ||||||
| Inventory, net | 1,897,544 | 1,701,474 | ||||||
| Contract assets | 151,493 | 136,651 | ||||||
| Prepaid expenses | 439,324 | 431,412 | ||||||
| Total Current Assets | 6,237,788 | 14,887,807 | ||||||
| Property and equipment, net | 3,483,957 | 2,567,571 | ||||||
| Intangible asset, net | 961,566 | 1,016,594 | ||||||
| Right-of-use asset, net | 602,713 | 691,014 | ||||||
| Other assets | 76,149 | 20,847 | ||||||
| Total Long-Term Assets | 5,124,385 | 4,296,026 | ||||||
| Total Assets | $ | 11,362,173 | $ | 19,183,833 | ||||
Liabilities and Stockholders’ Equity |
||||||||
| Current Liabilities: | ||||||||
| Accounts payable and accrued expenses | $ | 1,241,839 | $ | 906,394 | ||||
| Accrued bonuses | 270,000 | 570,000 | ||||||
| Accrued contract loss provision | 1,230,000 | 1,000,000 | ||||||
| Accrued legal settlement | 66,175 | 335,000 | ||||||
| Unearned revenue | 360,463 | 197,683 | ||||||
| Note payable | 7,347 | - | ||||||
| Secured promissory note | 600,000 | - | ||||||
| Financing liability | 171,173 | - | ||||||
| Operating lease liability | 114,866 | 101,320 | ||||||
| Other liabilities | 271,666 | 17,279 | ||||||
| Total Current Liabilities | 4,333,529 | 3,127,676 | ||||||
| Unearned revenue, less current portion | 30,000 | 30,000 | ||||||
| Note payable, less current portion | 37,735 | - | ||||||
| Operating lease liability, less current portion | 463,848 | 551,376 | ||||||
| Total Long-Term Liabilities | 531,583 | 581,376 | ||||||
| Total Liabilities | 4,865,112 | 3,709,052 | ||||||
Stockholders’ Equity |
||||||||
| Preferred stock: 50,000,000 shares authorized, par value $0.0001 per share, nil issued and outstanding at September 30, 2025 and December 31, 2024. | - | - | ||||||
| Common stock: 1,000,000,000 common shares authorized, par value $0.0001 per share, 154,261,131 and 144,301,977 shares outstanding at September 30, 2025 and December 31, 2024, respectively | 15,424 | 14,429 | ||||||
| Additional paid-in capital | 47,494,670 | 43,845,499 | ||||||
| Accumulated deficit | (41,015,504 | ) | (28,387,618 | ) | ||||
| Accumulated other comprehensive income | 2,471 | 2,471 | ||||||
| Total Stockholders’ Equity | 6,497,061 | 15,474,781 | ||||||
| Total Liabilities & Stockholders’ Equity | $ | 11,362,173 | $ | 19,183,833 | ||||
| 374Water Inc. and Subsidiaries Condensed Consolidated Statements of Operations For the Three and Nine Months Ended September 30, 2025 and 2024 (Unaudited) |
||||||||||||
|
Three Months Ended September 30, 2025 |
Nine Months Ended September 30, 2025 |
|||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||
| Revenues | $ | 760,417 | $ | 81,490 | $ | 1,898,484 | $ | 433,589 | ||||
| Cost of revenues | 547,785 | 42,404 | 1,823,935 | 703,245 | ||||||||
| Gross margin (deficit) | 212,632 |
39,086 | 74,549 | (269,656 | ) | |||||||
| Operating expenses | ||||||||||||
| Research and development | 755,944 | 424,579 | 1,820,701 | 1,526,294 | ||||||||
| Compensation and related expenses | 2,097,580 | 1,212,602 | 5,769,832 | 3,010,273 | ||||||||
| Professional fees | 257,228 | 499,010 | 1,678,467 | 1,367,702 | ||||||||
| General and administrative | 1,462,625 | 644,634 | 3,589,754 | 1,788,117 | ||||||||
| Total operating expenses | 4,573,377 | 2,780,825 | 12,858,754 | 7,692,386 | ||||||||
| Loss from operations | (4,360,745 | ) | (2,741,739 | ) | (12,784,205 | ) | (7,962,042 | ) | ||||
| Other income(expense) | ||||||||||||
| Interest income | 11,088 | 36,626 | 147,153 | 215,438 | ||||||||
| Other income (expense) | 633 | 3,296 | 9,166 | 88,002 | ||||||||
| Total other income, net | 11,721 | 39,922 | 156,319 | 303,440 | ||||||||
| Net loss before income taxes | (4,349,024 | ) | (2,701,817 | ) | (12,627,886 | ) | (7,658,602 | ) | ||||
| Provision for Income Taxes | - | - | - | - | ||||||||
| Net loss | $ | (4,349,024 | ) | $ | (2,701,817 | ) | $ | (12,627,886 | ) | $ | (7,658,602 | ) |
| Net loss per share (basic and diluted) | $ | (0.03 | ) | $ | (0.02 | ) | $ | (0.09 | ) | $ | (0.06 | ) |
| Weighted average common shares outstanding-basic and diluted | 151,471,944 | 132,997,135 | 147,044,195 | 133,307,818 | ||||||||
| 374Water Inc. and Subsidiaries Condensed Consolidated Statements of Operations For the Three and Nine Months Ended September 30, 2025 and 2024 (Unaudited) |
|||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | 2025 | 2024 | |||||
| Net loss | $ | (12,627,886 | ) | $ | (7,658,602 | ) | |
| Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
| Depreciation and amortization | 545,627 | 79,040 | |||||
| Non-cash lease expense | 88,301 | - | |||||
| Issuance of common stock for services | 287,450 | 373,231 | |||||
| Stock-based compensation - options and restricted stock | 2,072,559 | 878,993 | |||||
| Gain on legal settlement | - | (22,303 | ) | ||||
| Increase in inventory reserve | - | 50,000 | |||||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable | (373,852 | ) | (223,985 | ) | |||
| Unbilled accounts receivable | (502,615 | ) | (226,594 | ) | |||
| Other receivables | 32,035 | 29,657 | |||||
| Inventory | (196,070 | ) | (936,934 | ) | |||
| Contract assets | (14,842 | ) | (99,245 | ) | |||
| Prepaid expenses | 199,619 | (73,768 | ) | ||||
| Other assets | (55,302 | ) | (22,792 | ) | |||
| Accounts payable and accrued expenses | 335,445 | 197,158 | |||||
| Accrued bonus | (300,000 | ) | - | ||||
| Accrued contract loss provision | 230,000 | 100,000 | |||||
| Accrued legal settlement | (268,825 | ) | - | ||||
| Unearned revenue | 162,780 | 72,768 | |||||
| Other liabilities | 254,387 | (14,358 | ) | ||||
| Operating lease liability | (73,982 | ) | - | ||||
| Net cash used in operating activities | (10,205,171 | ) | (7,497,734 | ) | |||
| CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
| Purchases of property and equipment | (769,801 | ) | (75,000 | ) | |||
| Purchases of equipment-in-process | (588,993 | ) | (838,410 | ) | |||
| Increase in intangible assets | - | (85,797 | ) | ||||
| Net cash used in investing activities | (1,358,794 | ) | (999,207 | ) | |||
| CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
| Repayments on note payable | (3,109 | ) | - | ||||
| Repayments on financing liability | (36,358 | ) | - | ||||
| Proceeds from the exercise of options | 24,000 | - | |||||
| Proceeds from secured promissory note | 600,000 | - | |||||
| Proceeds from the sale of common stock , net of issuance costs | 1,911,096 | 11,912 | |||||
| Warrant repurchase | (649,980 | ) | - | ||||
| Net cash provided by financing activities | 1,845,649 | 11,912 | |||||
| Net decrease in cash | (9,718,316 | ) | (8,485,029 | ) | |||
| Cash, beginning of period | 10,651,644 | 10,445,404 | |||||
| Cash, end of period | $ | 933,328 | $ | 1,960,375 | |||
| Supplemental cash flow disclosures | |||||||
| Cash paid for interest | $ | 5,362 | $ | - | |||
| Cash paid for taxes | $ | - | $ | - | |||
| Supplemental disclosure investing activities | |||||||
| Reclassification of inventory to equipment-in-process | $ | - | $ | 1,819,284 | |||
| Issuance of restricted common stock to executives | $ | 114 | $ | - | |||
| Equipment financed with a note payable | $ | 48,191 | $ | - | |||
| Cashless stock option exercise | $ | - | $ | 18 | |||
| Common stock sold with subscription receivable | $ | 5,041 | |||||
| Prepaid insurance financed | $ | 207,531 | $ | - | |||
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