374Water Reports Second Quarter 2026 Financial Results; Revenue Increases More Than 280% Year-Over-Year
Rhea-AI Summary
374Water (NASDAQ:SCWO) reported second quarter 2026 revenue of $2.26 million, up about 280% from roughly $0.6 million in Q2 2025, mainly from completing project milestones including the Orange County Sanitation District Factory Acceptance Test. First-half 2026 revenue was $2.8 million versus $1.1 million a year earlier.
Q2 2026 gross profit was $1.98 million with an 87% gross margin, compared with a gross deficit of about $0.3 million and a negative margin in Q2 2025. Operating expenses fell to $3.6 million from $4.3 million, reducing operating loss to $1.6 million and net loss to $2.7 million ($0.15/share) from $4.6 million ($0.32/share). Cash used in operations for the first half improved to $(2.3) million from $(7.6) million, with cash and equivalents of $1.8 million at June 30, 2026.
According to 374Water, it cut annualized operating costs by about $3.2 million, advanced its Waste Destruction Services strategy, secured a long-term Orlando WDS facility agreement, progressed municipal deployments in California, Minnesota, and Kansas, and reported >99.9% PFAS destruction in U.S. Department of Defense testing of its AirSCWO technology.
Positive
- Q2 2026 revenue $2.26M, about 280% higher than ~$0.6M in Q2 2025
- Gross margin 87% in Q2 2026 versus approximately -46% in Q2 2025
- Operating expenses $3.6M, down from $4.3M in Q2 2025
- Net loss $2.7M versus $4.6M in Q2 2025, loss per share cut from $0.32 to $0.15
- Cash used in operations $(2.3)M first half 2026, improved from $(7.6)M in 2025 period
- Annualized cost reductions ~$3.2M while prioritizing commercial deployments and revenue opportunities
Negative
- Net loss $2.7M in Q2 2026 despite strong revenue growth
- Operating loss $1.6M in Q2 2026, indicating operations are not yet profitable
- Cash and equivalents $1.8M as of June 30, 2026, a relatively low balance
- First-half cash used in operations $(2.3)M, continuing negative operating cash flow
- Remaining OC San contract $2.6M depends on achieving additional contractual milestones
- Ongoing deployment commitments in St. Cloud (~$600k) and Olathe ($4.8M) require continued execution and funding
News Explained
The completed OC San test unlocks invoicing of $2.6 million, but that value remains tied to additional contractual milestones.
374Water reports that the OC San Factory Acceptance Test is complete, enabling recognition of approximately
The other named deployments remain at different stages: St. Cloud's approximately
The next concrete checkpoints are OC San delivery scheduled for
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Aug 11 | Preliminary earnings update | Positive | +7.4% | Preliminary Q2 revenue exceeded $2.2 million and commercial milestones advanced. |
| Mar 31 | Full-year earnings report | Negative | +1.8% | Revenue declined and net loss widened despite commercialization and operational milestones. |
| Nov 12 | Third-quarter earnings report | Negative | -21.6% | Net loss and operating expenses increased despite higher revenue and positive guidance. |
| Aug 12 | Second-quarter earnings report | Negative | -2.7% | Net loss widened and cash declined despite higher revenue and deployment progress. |
| May 15 | First-quarter earnings report | Negative | +11.3% | Net loss and operating expenses increased despite revenue growth and commercialization progress. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-specific earnings reactions were mixed, with 3 aligned events and 2 divergences and an average move of -0.76%.
Key Terms
supercritical water oxidation technical
pfas technical
factory acceptance test technical
biosolids technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
Quarterly revenue exceeds
MORRISVILLE, NC / ACCESS Newswire / August 18, 2026 / 374Water Inc. (NASDAQ:SCWO) ("374Water" or the "Company"), a leading cleantech and environmental services company deploying supercritical water oxidation technology for the destruction of PFAS and other organic waste streams, today reported financial results for the second quarter ended June 30, 2026.
Revenue for the second quarter of 2026 was
Gross profit for the quarter was
"The second quarter marked an important achievement for 374Water, driven by our successful completion of the OC San Factory Acceptance Test, which enabled us to recognize approximately
Second Quarter 2026 Financial Highlights
Revenue:
$2.26 million , an increase of approximately280% from$0.6 million in Q2 2025.Gross profit:
$1.98 , compared with a gross deficit of approximately$0.3 million in Q2 2025.Gross margin:
87% , compared with approximately -46% in Q2 2025.Operating expenses:
$3.6 million , compared with$4.3 million in Q2 2025.Operating loss:
$1.6 million , compared with$4.6 million in Q2 2025.Net loss:
$2.7 million , or$0.15 per share, compared with$4.6 million , or$0.32 per share, in Q2 2025.Cash used in operations:
$(2.3) million for the six months ended June 30, 2026, compared with$(7.6) million during the comparable 2025 period.Cash and cash equivalents:
$1.8 million as of June 30, 2026.
Financial Position and Outlook
During the first half of 2026, 374Water continued to focus on strengthening its financial position while advancing the commercialization of AirSCWO™ and the development of its recurring Waste Destruction Services ("WDS") business model.
The Company has also taken action to reduce its operating costs by approximately
Operational Accomplishments
Our team has been intensely focused on one objective: turning AirSCWO into a scalable Waste Destruction Services business while executing our projects. In just the last several months our team has achieved a series of milestones that solidify the foundation for that business:
Secured our Orlando WDS facility through a long-term agreement with the City of Orlando, establishing an attractive operating location and the foundation of a significant regional waste destruction hub network.
Expanded our relationship with the City of Orlando, creating the framework to grow our WDS operations and processing additional difficult waste streams using AirSCWO.
Achieved >
99.9% PFAS destruction in U.S. Department of Defense testing, providing important third-party validation of AirSCWO for a Federal priority and one of the most pressing human health and environmental challenges.Executed a strategic collaboration agreement with Arcadis, bringing together 374Water's destruction technology with one of the world's leading environmental engineering and consulting organizations to jointly execute commercial and government opportunities.
Received additional validation from the U.S. Army Corps of Engineers, further demonstrating our ability to destroy PFAS and other recalcitrant compounds.
Earned the coveted DIU Success Memo - "Golden Ticket" - through our partnership with Arcadis, establishing an important contracting pathway for AirSCWO to access and address the millions of gallons of AFFF stockpiles across all branches of the Department of Defense and elsewhere in the Federal Government.
Taken together, these represent the building blocks of our WDS business and Company as a whole: mounting demand, contract mechanisms, world-class partners, technology validation, government approval, established facilities, and pathways to revenue.
We Continue to Execute and Build the Infrastructure to Scale
While advancing our WDS strategy, which is critical for growth and market penetration, our team has continued to execute on our existing municipal commitments and expanding the capabilities needed to support the next stage of 374Water's growth:
OC San, California: Successfully completed the Factory Acceptance Test for our AirSCWO system, a major contractual and technical milestone, with delivery to Orange County, California scheduled for October and unlocking an additional
St. Cloud, Minnesota: Our approximately
Olathe, Kansas: Advancing our contracted
Orlando Infrastructure: On the back of our expanded relationship with the City of Orlando, we are building much more than a WDS facility. Orlando is becoming an operational center for 374Water, with expanded machine shop, fabrication, electrical panel, R&D and testing capabilities, as well as an engineering hub to support our systems and future deployments.
"We have accomplished a tremendous amount in a very short period of time-and there is much more ahead," concluded Bogar. "We are simultaneously delivering for our existing commitments, expanding our WDS business to reach more customers, creating durable partnerships that open business pipelines and meet growing demand, and building the infrastructure and capabilities to scale our AirSCWO technology, our services, and our business."
374Water provided a comprehensive update on its recent commercial accomplishments and strategic initiatives on August 11, 2026.
Second Quarter 2026 Financial Results
About 374Water
374Water Inc. (NASDAQ:SCWO) is a cleantech and environmental services company deploying supercritical water oxidation technology for the destruction of organic waste streams 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 "anticipate," "believe," "confidence," "could," "design," "estimate," "expect," "intend," "may," "plan," "predict," "project," "potential," 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. 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
SOURCE: 374Water Inc.
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