374Water Reports Full Year 2025 Results
Rhea-AI Summary
374Water (NASDAQ:SCWO) reported full-year 2025 results under new CEO Danny Bogar, emphasizing cost control, product scaling, and capital discipline. Revenue was $0.2M versus $0.4M in 2024; total operating expenses rose to $18.8M (+58%). Net loss was $21.0M. Cash totaled $3.2M and working capital $1.7M at year-end. Operational milestones include multiple PFAS destruction demonstrations (DIU/ESTCP), a mobile lab deployment, a biosolids campaign in Orlando, a system sale to Olathe, and establishment of a Waste Destruction Services hub in Orlando. Company plans 2026 system scaling, additional demonstrations, and disciplined capital raises tied to milestones.
Positive
- Service revenue increased by approximately $1.7M in 2025
- Completed multiple PFAS destruction demonstrations with DIU and ESTCP
- Established WDS hub at Orlando Iron Bridge facility
- Signed sale agreement with the City of Olathe for system and services
Negative
- Revenue declined to $0.2M from $0.4M (2025)
- Operating expenses rose 58% to $18.8M (2025)
- Net loss increased to $21.0M in 2025
- Cash declined to $3.2M from $10.7M (year-end)
Key Figures
Market Reality Check
Peers on Argus
SCWO fell 6.94% while momentum peers were mixed (e.g., TOMZ down 4.63%, ADUR up 1.53%). Broader sector peers also showed both gains (CLIR up 18.07%, LIQT up 3.8%) and losses (RAIN down 6.45%), pointing to a stock-specific reaction to the earnings update rather than a uniform sector move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 12 | Q3 2025 earnings | Negative | -21.6% | Revenue growth but higher expenses, net loss and new ATM financing highlighted. |
| Aug 12 | Q2 2025 earnings | Negative | -2.7% | Revenue up but net loss widened and cash position declined year-over-year. |
| May 15 | Q1 2025 earnings | Negative | +11.3% | Higher revenue with significantly higher operating expenses and larger net loss. |
| Mar 27 | FY 2024 results | Negative | -6.3% | Full-year revenue decline and larger net loss alongside increased operating costs. |
| Nov 13 | Q3 2024 results | Negative | -1.8% | Nine‑month revenue down, higher expenses and planned equity offering disclosed. |
Earnings updates have often been followed by negative price reactions, especially when losses widened or capital needs were highlighted.
Across the last five earnings-related releases from Nov 2024 through Nov 2025, 374Water repeatedly combined commercialization progress with rising operating expenses and widening net losses. Revenues grew quarter-over-quarter in 2025, but cash levels declined and capital raises, including an ATM and registered offerings, featured prominently. These full-year 2025 results continue that pattern, with lower annual revenue and higher losses versus 2024, reinforcing the historical link between earnings reports and cautious market responses.
Historical Comparison
Over the past five earnings releases, SCWO moved on average -4.23%. Today’s -6.94% reaction to full-year 2025 results is somewhat more negative but still broadly consistent with prior earnings-day behavior.
Earlier 2025 earnings guided to $4.0M full‑year revenue, while these results report $0.2M, underscoring a sizable shortfall versus prior expectations despite ongoing operational milestones.
Regulatory & Risk Context
An effective S-3/A shelf dated Dec 12, 2025 registers up to $100,000,000 of securities, including an at‑the‑market program of up to $50,000,000 of common stock through Lake Street Capital Markets. The filing notes high risk, going concern uncertainty, competition, and dependence on future funding and government or infrastructure spending.
Market Pulse Summary
This announcement details full-year 2025 financials alongside a strategic reset under new leadership. Revenue of $0.2 million contrasts with higher operating expenses of $18.8 million and a net loss of $21.0 million, while cash stands at $3.2 million. The update emphasizes PFAS destruction deployments, the Orlando WDS hub, and 2026 priorities. Investors tracking this story may focus on revenue conversion from recent contracts, operating cost discipline, funding drawn under the $100,000,000 shelf, and progress toward the stated execution milestones.
Key Terms
pfas medical
aqueous film forming foam technical
AI-generated analysis. Not financial advice.
Provides Business Update Highlighting New Leadership, Execution Strategy, and Capital Management
MORRISVILLE, NC / ACCESS Newswire / March 31, 2026 / 374Water Inc. (NASDAQ:SCWO) ("374Water" or the "Company"), a cleantech environmental services company focused on the destruction of organic waste through its proprietary AirSCWO™ technology, today reported financial results for the full year ended December 31, 2025, and provided a comprehensive business update under recently appointed Chief Executive Officer, Danny Bogar.
"We are in a new chapter for 374Water," said Danny Bogar, 374Water's Chief Executive Officer. "We have focused the Company on clear operating principles: execute with discipline, allocate capital to high-impact initiatives, and deliver measurable results."
"Since I've stepped into the CEO role, our management team has taken actions to reduce costs, align our team, and sharpen our focus on what matters most - advancing our AirSCWO™ technology by continuing to improve throughput, durability, automation, and scalability in collaboration with our development partners; deploying our systems; generating revenue; and building long-term shareholder value."
"In mid-March, we held a multi-day executive strategy session at our Orlando, FL waste destruction facility, where our team reviewed progress and aligned on execution priorities. We continue to build out our presence at the Orlando Iron Bridge Regional Water Reclamation Facility as a key operational hub for the Company where potential clients and partners from around the world can see our technology and product roadmap, understand our capabilities today and our plans for growth, and collaborate on new ways to deliver AirSCWO to the markets that need it most."
"During this session, our R&D team presented preliminary 3D designs of our larger AirSCWO systems that we are advancing with multiple client partners. This work reflects our continued focus on scaling the platform to meet growing customer demand and to achieve higher throughput and better cost efficiency. As we continue to execute, strengthen our operational foundation, and advance our commercial efforts, we believe our technology and business model will generate significant value for customers, partners, and shareholders."
2025 and Recent Business Highlights and Progress
Deployed an AirSCWO system and team to Clean Earth's Detroit, MI facility for a six-week Department of Defense destruction demonstration of six PFAS-impacted waste streams, led by the Defense Innovation Unit ("DIU") in collaboration with the Environmental Security Technology Certification Program ("ESTCP").
Deployed the mobile AirSCWO lab to Peterson Space Force Base in Colorado and tested various PFAS waste streams, also in collaboration with ESTCP.
Commenced destruction of 1,000 gallons of Aqueous Film Forming Foam ("AFFF") under a contract awarded by the University of North Carolina at Chapel Hill Collaboratory.
Executed a collaboration agreement with Crystal Clean to locate 374Water's AirSCWO technology at one of its RCRA-permitted facilities to destroy various PFAS waste streams.
Completed a biosolids destruction campaign for the City of Orlando, FL at the Iron Bridge Water Reclamation Facility.
Signed an agreement with the City of Olathe, KS for the sale of an AirSCWO system and pre-treatment equipment with an associated service agreement for the treatment of PFAS-impacted wastewater and other waste streams.
Established Waste Destruction Services ("WDS") hub at the City of Orlando's Iron Bridge Water Reclamation Facility for the destruction of PFAS wastes including AFFF, GAC & IX, and foam fractionate.
Technology Validation and Continuous Improvement
"Over the past several years, we have remained committed to continuous improvement. The systems being deployed today reflect not where we started, but where we believe we are going - more efficient, more scalable, and more commercially viable," Bogar shared.
"We believe our technology delivers and performs at an impressive level both in terms of throughput, feedstock versatility, and destruction efficiency. Every system incorporates years of experience, testing, and validation. Our partners and customers demand excellence - and we aim to deliver."
Commercial Momentum and Market Opportunity
374Water has strong demand for its AirSCWO technology in numerous applications:
PFAS destruction
Biosolids management
Industrial waste streams
Emerging contaminants and environmental liabilities
"The world has a massive and ever-growing waste problem - and increasingly, stakeholders are demanding true destruction, not disposal, because of growing liabilities. Destruction is the right thing to do for society," said Bogar.
Strategic Priorities for 2026
Deploy our team to Orange County Sanitation District ("OC San") in Fountain Valley, CA with the most advanced and high-performing generation of AirSCWO.
Build out our WDS hub at the City of Orlando's Iron Bridge Water Reclamation Facility and begin to receive and destroy significant volumes of PFAS wastes.
Deploy the mobile AirSCWO system to St. Cloud, MN to demonstrate its effectiveness in destroying PFAS-laden biosolids and other PFAS wastes.
Design and scale our AirSCWO systems to handle higher volumes of slurries and liquid wastes.
Engage with strategic partners, including industrial and infrastructure organizations to accelerate deployment of our AirSCWO technology across targeted verticals, value-added applications, and defined geographic markets.
Capital Strategy and Shareholder Alignment
"As we move forward, one of our highest priorities is aligning our capital strategy with the long-term interests of our shareholders," said Bogar.
"We believe 374Water represents a differentiated and highly valuable solution to some of the world's most pressing environmental challenges. Our focus is ensuring that this value is reflected in how we operate, how we execute, and how we finance the business. Moreover, we are taking a more disciplined and strategic approach to our capital allocation."
"We are committed to pursuing capital solutions that support long-term value creation and avoid unnecessary dilution wherever possible. This includes aligning capital formation with clear operational milestones, commercial traction, strategic relationships, and execution."
2025 Financial Summary
For the year ended December 31, 2025, revenue totaled
$0.2 million , compared to$0.4 million in the prior year. The$0.2 million decrease in revenue is primarily due to a decrease in equipment revenue of$1.9 million offset by an increase in service revenues of approximately$1.7 million . The increase in service revenue is from the completion of two full-scale demonstrations, a mobile bench-scale demonstration, and one month of demonstration and wastewater processing under our City of Orlando contract. The decrease in equipment revenues is due to a change in accounting estimate associated with our contract with OC San. Due to the unexpected delays that we have encountered in delivering the equipment, we reassessed the variable consideration at December 31, 2025 included in this contract. The changes in facts and circumstances resulted in the reduction of unbilled accounts receivable and a reduction in equipment revenue of approximately$1.9 million .Total operating expenses increased
58% to$18.8 million for the year ended December 31, 2025, compared to$11.9 million for the prior year. The increase was primarily due to increases in compensation and related expenses of$3.5 million (driven by headcount growth and stock-based compensation of$1.8 million ), general and administrative expenses of$2.4 million , professional fees of$0.6 million , and research and development expenses of$0.4 million .Net loss for the year ended December 31, 2025, was
$21.0 million , as compared with$12.4 million in the prior year. The increase in net loss was driven by the reasons discussed above.Cash and cash equivalents as of December 31, 2025, were
$3.2 million , compared to$10.7 million as of December 31, 2024. Working capital as of December 31, 2025 was$1.7 million , compared to$11.8 million as of December 31, 2024.
Looking Ahead
"We are working to build a company that delivers - safely, consistently, transparently, and with urgency," said Bogar.
"We expect that as we continue to execute, strengthen our balance sheet, align with strategic partners, and bring potential customers to our hub in Orlando, the market will recognize the value of 374Water."
"We believe the opportunity in front of us is significant. Our job now is to execute."
About 374Water
374Water Inc. (NASDAQ:SCWO) is a cleantech environmental 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 nonhazardous 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.
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 "aim," "anticipate," "believe," "confidence," "continue," "could," "design," "estimate," "expect," "intend," "may," "plan," "predict," "project," "potential," "will," or other comparable terminology are intended to identify forward-looking statements. 374Water has based these forward-looking statements on its current expectations, assumptions, estimates, beliefs, and projections. These statements include, without limitation, (i) 374Water advancing our AirSCWO™ technology by continuing to improve throughput, durability, automation, and scalability in collaboration with our development partners; deploying our systems; generating revenue; and building long-term shareholder value, (ii) 374Water's continued focus on scaling its AirSCWO platform to meet growing customer demand and to achieve higher throughput and better cost efficiency, (iii) 374Water's belief our technology and business model will generate significant value for customers, partners, and shareholders, (iv) 374Water's belief our AirSCWO systems are becoming more efficient, more scalable, and more commercially viable, (v) 374Water's belief our technology delivers and performs at an impressive level both in terms of throughput, feedstock versatility, and destruction efficiency, (vi) 374Water's aim to deliver the excellence our partners and customers demand, (vii) 374Water's belief we represent a differentiated and highly valuable solution to some of the world's most pressing environmental challenges, (viii) 374Water's expectation that as we continue to execute, strengthen our balance sheet, align with strategic partners, and brings potential customers to our hub in Orlando, the market will recognize the value of 374Water and (ix) 374Water's belief the opportunity in front of it is significant. 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-K for the year ended December 31, 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 Contact
Belton Copp
Vice President
Direct: 401-419-1545
Belton.Copp@374water.com
www.374Water.com
374 Water Inc. and Subsidiaries
Consolidated Balance Sheets
As of December 31, 2025 and, 2024
December 31, 2025 | December 31, 2024 | |||||||
Assets | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 3,198,682 | $ | 10,651,644 | ||||
Accounts receivable, net of credit allowance | 668,903 | 269,733 | ||||||
Other accounts receivable | 26,577 | 43,886 | ||||||
Unbilled accounts receivable | - | 1,653,007 | ||||||
Inventory, net | 1,471,893 | 1,701,474 | ||||||
Contract assets | 91,100 | 136,651 | ||||||
Prepaid expenses | 395,807 | 431,412 | ||||||
Total Current Assets | 5,852,962 | 14,887,807 | ||||||
Property and equipment, net | 3,835,318 | 2,567,571 | ||||||
Intangible asset, net | 943,224 | 1,016,594 | ||||||
Right-of-use asset, net | 571,741 | 691,014 | ||||||
Other assets | 202,103 | 20,847 | ||||||
Total Long-Term Assets | 5,552,386 | 4,296,026 | ||||||
Total Assets | $ | 11,405,348 | $ | 19,183,833 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current Liabilities: | ||||||||
Accounts payable and accrued expenses | $ | 1,250,285 | $ | 906,394 | ||||
Accrued bonuses | 80,000 | 570,000 | ||||||
Accrued contract loss provision | 1,600,000 | 1,000,000 | ||||||
Accrued legal settlement | - | 335,000 | ||||||
Unearned revenue | 312,905 | 197,683 | ||||||
Note payable | 8,270 | - | ||||||
Secured promissory note | 630,000 | - | ||||||
Financing liability | 159,342 | - | ||||||
Operating lease liabilities | 119,693 | 101,320 | ||||||
Other liabilities | 23,384 | 17,279 | ||||||
Total Current Liabilities | 4,183,879 | 3,127,676 | ||||||
Unearned revenue, less current portion | 30,000 | 30,000 | ||||||
Note payable, less current portion | 34,879 | - | ||||||
Operating lease liabilities, less current portion | 431,683 | 551,376 | ||||||
Total Long-term Liabilities | 496,562 | 581,376 | ||||||
Total Liabilities | 4,680,441 | 3,709,052 | ||||||
Stockholders' Equity | ||||||||
Preferred Stock: 50,000,000; 1,000,000 Designated as Convertible Series D preferred shares authorized; par value | - | - | ||||||
Common stock: 1,000,000,000 common shares authorized, par value | 1,715 | 1,444 | ||||||
Additional paid-in capital | 56,657,319 | 43,858,484 | ||||||
Accumulated deficit | (49,936,598 | ) | (28,387,618 | ) | ||||
Accumulated other income | 2,471 | 2,471 | ||||||
Total Stockholders' Equity | 6,724,907 | 15,474,781 | ||||||
Total Liabilities & Stockholders' Equity | $ | 11,405,348 | $ | 19,183,833 | ||||
The accompanying notes are an integral part of these consolidated financial statements.
(i) | Adjusted for the effect of a 10:1 reverse stock split that was effective December 26, 2025 (see Note 1). |
374 Water Inc. and Subsidiaries
Consolidated Statements of Operations
For the Years Ended December 31, 2025 and 2024
2025 | 2024 | |||||||
Revenues | $ | 215,037 | 445,445 | |||||
Cost of revenues | (2,566,421 | ) | (1,358,152 | ) | ||||
Gross Margin | (2,351,384 | ) | (912,707 | ) | ||||
Operating Expenses | ||||||||
Research and development | 2,524,519 | 2,143,471 | ||||||
Compensation and related expenses | 8,262,188 | 4,731,553 | ||||||
Professional fees | 2,801,024 | 2,231,005 | ||||||
General and administrative | 5,207,949 | 2,784,522 | ||||||
Total Operating Expenses | 18,795,680 | 11,890,551 | ||||||
Loss from Operations | (21,147,064 | ) | (12,803,258 | ) | ||||
Other Income (Expenses) | ||||||||
Interest income | 194,174 | 281,117 | ||||||
Interest expense | (41,211 | ) | - | |||||
Other income | 19,049 | 88,027 | ||||||
Total Other Income, net | 172,012 | 369,144 | ||||||
Net Loss before Income Taxes | (20,975,052 | ) | (12,434,114 | ) | ||||
Provision for Income Taxes | - | - | ||||||
Net Loss | $ | (20,975,052 | ) | $ | (12,434,114 | ) | ||
Net Loss per Share - Basic and Diluted | $ | (1.38 | ) | $ | (0.92 | ) | ||
Weighted Average Common Shares Outstanding - Basic and Diluted | 15,231,134 | 13,449,135 | ||||||
(ii) | Adjusted for the effect of a 10:1 reverse stock split that was effective December 26, 2025 (see Note 1). |
374 Water Inc. and Subsidiaries
Consolidated Statements of Cash Flows
For the Years Ended December 31, 2025 and 2024
2025 | 2024 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net loss | $ | (20,975,052 | ) | $ | (12,434,114 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities | ||||||||
Depreciation and amortization | 752,026 | 226,039 | ||||||
Non-cash lease expense | 119,273 | 35,450 | ||||||
Issuance of common stock for services | 290,872 | 383,879 | ||||||
Stock-based compensation | 3,546,646 | 1,215,624 | ||||||
Gain on legal settlement | - | (22,303 | ) | |||||
Accrued interest added to secured promissory note | 30,000 | - | ||||||
Inventory reserve | - | 50,000 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (399,170 | ) | (204,941 | ) | ||||
Other accounts receivable | 17,309 | (4,137 | ) | |||||
Unbilled accounts receivable | 1,653,007 | (158,454 | ) | |||||
Inventory | 229,581 | (1,294,081 | ) | |||||
Contract assets | 45,551 | (136,651 | ) | |||||
Prepaid expenses | 301,110 | 149,673 | ||||||
Other assets | (181,256 | ) | (20,847 | ) | ||||
Accounts payable and accrued expenses | 448,891 | 215,721 | ||||||
Accrued bonuses | (490,000 | ) | 570,000 | |||||
Accrued contract loss provision | 600,000 | 500,000 | ||||||
Accrued legal settlement | (335,000 | ) | 335,000 | |||||
Unearned Revenue | 115,222 | 97,683 | ||||||
Other Liabilities | 6,105 | (19,508 | ) | |||||
Operating lease liability | (101,320 | ) | (73,768 | ) | ||||
(14,326,205 | ) | (10,589,735 | ) | |||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Purchases of property and equipment | (1,898,212 | ) | (554,942 | ) | ||||
Increase in intangible assets | - | (98,602 | ) | |||||
Net cash used in investing activities | (1,898,212 | ) | (653,544 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Repayments on note payable | (5,042 | ) | - | |||||
Repayments on financing liability | (106,163 | ) | - | |||||
Proceeds from secured promissory note | 600,000 | - | ||||||
Proceeds from the exercise of options | 24,000 | 60,000 | ||||||
Gross proceeds from the issuance of common stock | 9,312,840 | 12,291,775 | ||||||
Issuance costs related to sales of common stock | (404,200 | ) | (902,256 | ) | ||||
Warrant repurchase | (649,980 | ) | - | |||||
Net cash provided by financing activities | 8,771,455 | 11,449,519 | ||||||
Net (decrease) increase in cash | (7,452,962 | ) | 206,240 | |||||
Cash and cash equivalents, beginning of year | 10,651,644 | 10,445,404 | ||||||
Cash and cash equivalents, end of year | $ | 3,198,682 | $ | 10,651,644 | ||||
Supplemental cash flow disclosures | ||||||||
Cash paid for interest | $ | - | $ | - | ||||
Cash paid for taxes | $ | - | $ | - | ||||
Supplemental disclosure operating, investing and financing activities | ||||||||
Cashless stock option exercises | $ | 11 | $ | 100 | ||||
Equipment purchase in accounts payable | $ | - | $ | 118,376 | ||||
Initial right-of-use asset and liability | $ | - | $ | 726,464 | ||||
Reclassification of inventory to property and equipment | $ | - | $ | 1,819,284 | ||||
Issuance of restricted common stock | $ | 20 | $ | - | ||||
Equipment financed with a note payable | $ | 48,191 | $ | - | ||||
Accrued expense settled with shares of common stock | $ | 105,000 | $ | - | ||||
Prepaid insurance financed | $ | 265,505 | $ | - | ||||
Deemed dividend on warrant modification | $ | 573,928 | $ | - | ||||
SOURCE: 374Water Inc.
View the original press release on ACCESS Newswire
FAQ
What were 374Water's (SCWO) full-year 2025 financial results?
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What operational milestones did 374Water (SCWO) achieve in 2025?
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What are 374Water's (SCWO) 2026 strategic priorities and timelines?
