374Water Reports Second Quarter 2025 Financial Results

Rhea-AI Summary

374Water (NASDAQ: SCWO) reported Q2 2025 financial results, highlighting significant progress in its AirSCWO waste destruction technology deployments. Revenue reached $600,000, up from $37,000 in Q2 2024, primarily driven by equipment manufacturing and waste destruction services. However, net loss widened to $4.6 million from $2.9 million year-over-year.

Key operational highlights include successful PFAS destruction demonstrations in Orlando, system delivery to Clean Earth's Detroit facility for a DoD project, and progress on the OC San AS6 system deployment. The company strengthened its board with two key appointments and signed a Waste Destruction Services term sheet for RCRA Part B TSDF operations. Cash position stood at $2.1 million as of June 30, 2025, down from $10.7 million at end-2024.

Positive

• Revenue increased significantly to $600,000 from $37,000 year-over-year
• Successful PFAS destruction demonstration with non-detectable levels in effluent
• Strategic board appointments with industry veterans from Covanta and Veolia
• Multiple successful system deployments and demonstrations with 99.99% waste destruction efficiency
• New Waste Destruction Services term sheet signed for RCRA Part B TSDF operations

Negative

• Net loss increased to $4.6 million from $2.9 million year-over-year
• Operating expenses rose 45% to $4.4 million
• Cash position declined to $2.1 million from $10.7 million in December 2024
• Working capital decreased to $4.6 million from $7.3 million year-over-year

Insights

Financial Analyst

374Water shows strong operational progress but widening losses with $600K revenue vs $4.6M net loss; cash position declined significantly to $2.1M.

The Q2 2025 results for 374Water reflect a company in early commercialization with promising momentum but significant financial challenges. Revenue increased substantially to $600,000 from just $37,000 in the prior year period, representing a 1,521% year-over-year growth. This revenue primarily came from waste destruction services in Orlando ($271,000), equipment revenue ($85,000), and treatability studies ($202,000).

However, the company's operating expenses jumped 45% to $4.4 million, driven by increased headcount for manufacturing and operations ($1.0 million higher compensation expenses) and $0.4 million in additional general and administrative costs. This resulted in a net loss of $4.6 million, compared to $2.9 million a year ago, representing a 59% wider loss.

The most concerning metric is the rapid cash burn. Cash and equivalents declined to $2.1 million as of June 30, 2025, down from $10.7 million at the end of 2024 - a 80% reduction in just six months. Working capital contracted to $4.6 million from $7.3 million a year earlier. The company has established a new at-the-market facility to supplement operating cash needs, signaling potential equity dilution ahead.

The company appears to be executing its operational strategy well with multiple deployments, demonstrations, and new partnerships. Its AirSCWO technology shows technical success in PFAS destruction, a growing regulatory focus area. The recent board additions bring valuable waste management industry expertise. However, with the current burn rate, financial sustainability remains a critical concern despite management's assertion that cash is adequate for 2025 plans.

Environmental Technology Expert

374Water demonstrates technical success destroying PFAS contaminants to non-detectable levels as regulatory pressure intensifies, creating market opportunity.

374Water's AirSCWO technology is showing significant technical validation through multiple real-world applications. The system's ability to destroy PFAS to non-detectable levels in biosolids is particularly noteworthy given the escalating regulatory focus on these "forever chemicals." The EPA's announcement of major actions to combat PFAS contamination creates substantial market tailwinds as municipalities, federal agencies, and industrial waste handlers face increasing compliance requirements.

The company's strategic positioning across multiple market verticals is evident in their deployment progress. The Orlando biosolids project, OC San deployment, Department of Defense work through both DIU and ESTCP programs, and industrial partnerships with RCRA Part B TSDF facilities demonstrate cross-sector application. The reported 99.99% destruction efficiency across various waste streams suggests the technology offers superior performance compared to conventional treatment methods that often merely concentrate or transfer contaminants.

From a technical development perspective, the company appears to be simultaneously advancing full-scale commercial units (AS6) while also developing smaller-scale systems (AS1) that may offer more flexible deployment options. The mention of "ruggedizing and optimizing" systems indicates ongoing engineering refinements to improve field reliability - a critical factor for widespread adoption.

The waste destruction services (WDS) business model being developed with RCRA Part B TSDF partners represents a potentially scalable approach that could provide recurring revenue streams rather than just equipment sales. This model may address capital expenditure barriers for potential customers by offering treatment as a service. This business evolution shows strategic maturity as the company transitions from technology development to commercial operations.

Ongoing Deployments and Successful Waste Destruction Demonstrations Showcase AirSCWO Technology Across Municipal, Federal and Industrial Market Verticals

DURHAM, N.C., Aug. 12, 2025 (GLOBE NEWSWIRE) -- 374Water Inc. (NASDAQ: SCWO) ("374Water" or the "Company"), a global leader in waste destruction technology for the municipal, federal, and industrial markets, today reported its financial and operational results for the second quarter ended June 30, 2025.

“The second quarter of 2025 was highlighted by strong momentum for our AirSCWO (“AS”) System’s trajectory with ongoing project deployments” said Chris Gannon, President and CEO of 374Water. “We began our biosolids destruction project in Orlando, which upon the successful completion we believe will lead to increased scope of work. We continued to make progress on manufacturing of the AS6 System during the quarter for the expected deployment to Orange County Sanitation (“OC San”) in the second half of the year.”

“We signed a Waste Destruction Services (“WDS”) term sheet with a leading provider of specialized environmental and waste management solutions, to conduct waste destruction operations at their RCRA Part B TSDF facility.

“We successfully mobilized and delivered an AS6 System to Clean Earth’s Detroit, MI RCRA Part B TSDF facility as part of a previously announced Department of Defense (“DoD”) project. This highly anticipated DoD project, led by the Defense Innovation Unit (“DIU”), is evaluating solutions to destroy per- and polyfluoroalkyl (“PFAS”) contaminated wastes. We are now working on installation and commissioning activities for configuration, with initial waste destruction campaigns beginning in mid-August.

“We also successfully deployed our AS technology to a Colorado School of Mines and DoD Environmental Security Technology Certification Program ("ESTCP”) project aimed at comparing technology solutions to destroy PFAS contaminated wastes. The program prioritizes common sense, cost-effective solutions that support operational effectiveness and reduce regulatory burdens at military installations. We believe this initiative will, once again, demonstrate our ability to destroy PFAS-impacted waste streams as a treatment option for DoD installations impacted by PFAS.

“During the quarter we continued to build our leadership and advisory team to support rollout and operational execution. Stephen Jones, one of our newest independent Board directors, has extensive experience in corporate leadership including as CEO of Covanta, board roles, and expertise in environmental services and industrial gases and chemicals. His appointment has added critical and valuable components to the board with his decades of industry experience and his key relationships in our industry. We also welcomed James Pawloski as an independent Board director. As the former CEO of Regeneration and Recovery Solutions at Veolia North America, his perspective and extensive experience in waste, wastewater, and environmental solutions will support our growth.

“We recently completed the successful waste destruction of PFAS in biosolids utilizing our AirSCWO system, producing effluent with PFAS concentrations at non-detectable levels. With destruction across a wide variety of solid and liquid waste streams, we believe our technology is well positioned to generate demand across market verticals in municipal, federal, and industrial waste destruction. We have made significant progress ruggedizing and optimizing our AS system and are continuing to improve our AS technology. In the second half of 2025, we anticipate completing the manufacturing of an AS1 system, deploying an AS6 system to OC San, and making progress toward the launch of our initial WDS operations. We look forward to additional milestones and announcements in the months ahead,” concluded Gannon.

Recent Highlights

• Successfully completed the first phase of a biosolids destruction demonstration at Orlando’s Iron Bridge Water Reclamation Facility, producing effluent with PFAS concentrations at non-detectable levels.
• Completed system manufacturing of OC San’s AS6 system and progress towards FAT and delivery.
• Successfully mobilized and delivered an AS6 System to Clean Earth’s Detroit, Michigan RCRA Part B TSDF facility as part of a previously announced Department of Defense (“DoD”) project.
• Deployed our AS technology in a Colorado School of Mines and DoD Environmental Security Technology Certification Program ("ESTCP”) project aimed at comparing technology solutions to destroy per- and polyfluoroalkyl (“PFAS”) contaminated wastes.
• Signed a Waste Destruction Services term sheet with a leading provider of specialized environmental and waste management solutions, to conduct waste destruction operations at their RCRA Part B TSDF facility.
• Significant progress made in further ruggedizing and optimizing AS, pre-treatment, and post-treatment systems.
• Conducted numerous destruction demonstrations on a wide variety of organic waste streams with waste destruction results at or above 99.99%, and often at non-detect levels.
• The U.S. EPA announced major actions to combat per- and PFAS contamination, underscoring the federal government’s commitment to safeguard public health through preventing PFAS from entering drinking water systems and holding polluters accountable.
• Appointed Stephen J. Jones to the Board of Directors, the former CEO of Covanta Holding Corporation and veteran industrial executive to help advance the commercial rollout of AS Technology to Municipal, Federal, and Industrial Waste Destruction markets.
• Appointed James Pawloski to the Board of Directors, bringing significant leadership experience, most recently serving as the President & CEO of Regeneration and Recovery Solutions at Veolia North America.
  
  

Anticipated Upcoming Events

• Complete Orlando bio-sludge destruction demonstration.
• Complete AS6 system FAT, installation, and begin biosolids destruction operations at OC San in Fountain Valley, CA.
• Complete manufacturing of an AS1 system and deploy the unit to immediately complete contracted Waste Destruction Service projects.
• Complete the Department of Defense (“DoD”) project in Detroit, Michigan, with Arcadis and Clean Earth, aimed at identifying commercial-scale technology solutions to destroy PFAS contaminated wastes.
• Sign one or more definitive partnership agreements with RCRA Part B TSDF market participants to establish Waste Destruction Services (WDS) operations.
• Construct and launch our first WDS operation at RCRA Part B TSDF partner facility.
  
  

Second Quarter 2025 Financial Summary

• For the second quarter of 2025, revenue totaled $600,000 compared to $37,000 in the prior year. The company’s business has been focused on the development and commercialization of its supercritical water oxidation (SCWO) systems to fulfill current projects and prepare for additional revenue growth. Revenue generated was primarily from equipment manufacturing services and other services, specifically a full-scale demonstration and various treatability studies. The approximate $560 thousand increase in revenues is primarily due an increase in waste destruction service revenues for the first phase of the Orlando customer contract resulting in approximately $271,000 of revenues, an increase in equipment revenues of approximately $85,000 and an increase in bench scale treatability studies of approximately $202,000 during the three months ended June 30, 2025.
• Total operating expenses increased 45% to $4.4 million for the three months ended June 30, 2025, compared to $3.0 million in the prior year period. The increase was primarily due to an increase of $1.0 million in compensation and related expenses, and an increase of $0.4 million in general and administrative expenses.
  • The increase in compensation and related expenses was primarily related to an increase in headcount for manufacturing and deployment operations as part of fulfilling current projects and to prepare for expected business growth. In addition, we added a Chief Technology Officer to our executive team for the continued development of AirSCWO technology and an increase in stock-based compensation.
  • The increase in general and administrative expenses was primarily related to an increase in depreciation expense, an increase in travel related expenses due to expanded operations, and an increase in general administrative expenses.
• Net loss for the three months ended June 30, 2025, was $4.6 million, as compared with $2.9 million in the prior year.
• Cash and cash equivalents as of June 30, 2025, was $2.1 million, as compared to $10.7 million as of December 31, 2024. As of June 30, 2025, working capital was $4.6 million, compared to $7.3 million as of June 30, 2024.
• Based upon our current cash position and expected billings and related collection, we project to have adequate cash to support our 2025 business plans. To supplement operating cash needs, we established a new at-the-market facility.
  
  

Second Quarter 2025 Results Conference Call

374Water CEO Chris Gannon 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:	Tuesday, August 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:	13755247
Webcast:	SCWO Q2 2025 Financial Results Conference Call

A telephone replay will be available approximately three hours after the call and will run through August 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: 13755247. 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 municipal, federal and industrial 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. These statements relate to future events or our future financial performance, including statements relating to the timing to manufacture and deploy AirSCWO systems, including our deployment to OC San and completing manufacturing of an AS1 system, our ability to execute on our strategic plan, our ability to process a range of waste and contaminants at scale, our progress toward commercialization, the timing to complete our demonstration in Orlando, the timing and success of our Waste Destruction Services offering, whether we will be successful in converting our pipeline to revenue, the regulatory environment, and our future prospects and involve known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance, or our achievements or those of our industry to be materially different from those expressed or implied by any forward-looking statements. In some cases, forward-looking statements may be identified by the use of words like "may," "will," "could," "would," "should," "expect," "plan," "anticipate," "intend," "believe," "estimate," "project," "consider," "predict," "potential," "feel," or other comparable terminology. The Company has based these forward-looking statements on its current expectations, assumptions, estimates, beliefs, and projections. While the Company 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 Company's control. These and other important factors, including those discussed under "Risk Factors" in our Annual Report on Form 10-Q for the year quarter June 30, 2025, as well as the Company's subsequent filings with the SEC, may cause actual results, performance, or achievements to differ materially from those expressed or implied by these forward-looking statements. The forward-looking statements herein are made only as of the date they were first issued, and unless otherwise required by applicable securities laws, the Company 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
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 June 30, 2025 (Unaudited) and December 31,2024
	June 30, 2025				December 31, 2024
Assets
Current Assets:
Cash	$	2,149,015			$	10,651,644
Accounts receivable, net of credit allowance		863,819				269,733
Unbilled accounts receivable		1,879,731				1,653,007
Stock subscription receivables		334,133				-
Other receivables		30,194				43,886
Inventory, net		1,821,812				1,701,474
Contract assets		151,493				136,651
Prepaid expenses		295,070				431,412
Total Current Assets		7,525,267				14,887,807
Property and equipment, net		3,204,896				2,567,571
Intangible assets, net		979,909				1,016,594
Right-of-use asset, net		632,885				691,014
Other assets		15,847				20,847
Total Long-Term Assets		4,833,537				4,296,026
Total Assets	$	12,358,804			$	19,183,833
Liabilities and Stockholders’ Equity
Current Liabilities:
Accounts payable and accrued expenses	$	1,052,529			$	906,394
Accrued bonuses		270,000				570,000
Accrued contract loss provision		1,230,000				1,000,000
Accrued legal settlement		-				335,000
Unearned revenue		194,173				197,683
Note payable		9,638				-
Operating lease liability		110,207				101,320
Other liabilities		14,755				17,279
Total Current Liabilities		2,881,302				3,127,676
Unearned revenue, less current portion		30,000				30,000
Note payable, less current portion		36,598				-
Operating lease liability, less current portion		494,191				551,376
Total Long-Term Liabilities		560,789				581,376
Total Liabilities		3,442,091				3,709,052
Stockholders’ Equity
Preferred stock: 50,000,000 shares authorized, par value $0.0001 per share, nil issued and outstanding at June 30, 2025 and December 31, 2024.		-				-
Common stock: 1,000,000,000 common shares authorized, par value $0.0001 per share, 146,482,108 and 144,301,977  shares outstanding at June 30, 2025 and December 31, 2024, respectively		14,647				14,429
Additional paid-in capital		45,566,075				43,845,499
Accumulated deficit		(36,666,480	)			(28,387,618	)
Accumulated other comprehensive income		2,471				2,471
Total Stockholders’ Equity		8,916,713				15,474,781
Total Liabilities & Stockholders’ Equity	$	12,358,804			$	19,183,833

374Water Inc. and Subsidiaries Condensed Consolidated Statements of Operations For the Three and Six Months Ended June 30, 2025 and 2024 (Unaudited)
	Three Months Ended								Six Months Ended
	June 30,								June 30,
	2025				2024				2025				2024
Revenues	$	594,967			$	36,821			$	1,138,067			$	352,099
Cost of revenues		871,333				43,543				1,276,150				660,841
Gross deficit		(276,366	)			(6,722	)			(138,083	)			(308,742	)
Operating expenses
Research and development		531,170				566,568				1,064,757				1,101,715
Compensation and related expenses		1,996,387				1,007,005				3,672,252				1,797,695
Professional fees		649,338				615,987				1,421,239				868,692
General and administrative		1,184,689				822,818				2,127,129				1,143,459
Total operating expenses		4,361,584				3,012,378				8,285,377				4,911,561
Loss from operations		(4,637,950	)			(3,019,100	)			(8,423,460	)			(5,220,303	)
Other income
Interest income		46,355				74,192				136,065				178,812
Other income		11,147				12,588				8,533				84,706
Total other income		57,502				86,780				144,598				263,518
Net loss before income taxes		(4,580,448	)			(2,932,320	)			(8,278,862	)			(4,956,785	)
Provision for income taxes		-				-				-				-
Net loss	$	(4,580,448	)		$	(2,932,320	)		$	(8,278,862	)		$	(4,956,785	)
Net loss per share - basic and diluted	$	(0.03	)		$	(0.02	)		$	(0.06	)		$	(0.04	)
Weighted average common shares outstanding - basic and diluted		145,067,430				132,801,137				144,790,199				132,735,552

374Water Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows For the Six Months Ended June 30, 2025 and 2024 (Unaudited)
	Six Months Ended
	June 30,
	2025				2024
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(8,278,862	)		$	(4,956,785	)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization		349,374				50,953
Non-cash lease expense		58,129				-
Issuance of common stock for services		105,900				342,600
Stock-based compensation - options and restricted stock		1,258,542				458,584
Gain on legal settlement		-				(22,303	)
Increase in inventory reserve		-				50,000
Changes in operating assets and liabilities:
Accounts receivable		(594,086	)			7,355
Unbilled accounts receivable		(226,724	)			(277,056	)
Other receivables		13,692				14,948
Inventory		(120,338	)			(608,838	)
Contract assets		(14,842	)			-
Prepaid expenses		136,342				(275,495	)
Other assets		5,000				(15,709	)
Accounts payable and accrued expenses		146,135				319,978
Accrued bonus		(300,000	)			-
Accrued contract loss provision		230,000				100,000
Accrued legal settlement		(335,000	)			-
Unearned revenue		(3,510	)			(97,232	)
Other liabilities		(2,524	)			(25,044	)
Operating lease liability		(48,298	)			-
Net cash used in operating activities		(7,621,070	)			(4,934,044	)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment		(312,830	)			(46,093	)
Purchases of equipment-in-process		(588,993	)			(328,778	)
Increase in intangible assets		-				(27,349	)
Net cash used in investing activities		(901,823	)			(402,220	)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments on note payable		(1,955	)			-
Proceeds from the exercise of options		24,000				-
Net proceeds (issuance costs) from the sale of common stock		(1,781	)			(25,658	)
Net cash used in financing activities		20,264				(25,658	)
Net decrease in cash		(8,502,629	)			(5,361,922	)
Cash, beginning of period		10,651,644				10,445,404
Cash, end of period	$	2,149,015			$	5,083,482
Supplemental cash flow disclosures
Cash paid for interest	$	-			$	-
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	$	42			$	-
Equipment financed with a note payable	$	48,191			$	-
Shares issued for stock subscription receivable	$	334,133			$	-

FAQ

What were 374Water's (SCWO) Q2 2025 financial results?

374Water reported Q2 2025 revenue of $600,000, up from $37,000 in Q2 2024, with a net loss of $4.6 million. Operating expenses increased 45% to $4.4 million, and cash position was $2.1 million.

How effective is 374Water's AirSCWO technology in destroying PFAS?

The technology demonstrated successful PFAS destruction in biosolids with effluent showing non-detectable PFAS levels and achieved waste destruction results at or above 99.99% across various waste streams.

What major projects is 374Water (SCWO) currently working on?

Key projects include the Orlando biosolids destruction demonstration, AS6 system deployment at OC San, Department of Defense project at Clean Earth's Detroit facility, and Colorado School of Mines PFAS destruction project.

How much cash does 374Water (SCWO) have as of Q2 2025?

As of June 30, 2025, 374Water had $2.1 million in cash and cash equivalents, down from $10.7 million at December 31, 2024, with working capital of $4.6 million.

What are 374Water's (SCWO) upcoming milestones for 2025?

The company plans to complete the Orlando bio-sludge demonstration, deploy an AS6 system to OC San, complete manufacturing of an AS1 system, finish the DoD project in Detroit, and launch its first Waste Destruction Services operation.