Cadiz 2025 Q2 Earnings Losses Narrow, Revenue Surges 704%

Cadiz (CDZI) reported its fiscal 2025 Q2 earnings on Aug 13, 2025, showing a significant jump in revenue despite continued net losses. The results exceeded expectations in terms of revenue growth, though the company remains unprofitable after more than two decades of losses. Management offered cautious optimism for the remainder of the year, highlighting strategic cost optimization and market expansion.

Cadiz’s Q2 2025 revenue surged 704.3% year-over-year to $4.13 million, driven by strong performance in its Water Filtration Technology segment, which contributed $3.69 million. The Land and Water Resources segment added $431,000, further supporting the overall revenue increase.

The company narrowed its net loss to $7.73 million for the quarter, representing a 12.9% reduction from the $8.87 million loss in Q2 2024. On a per-share basis, the loss decreased to $0.11, a 26.7% improvement from $0.15 in the prior year. Despite this progress, Cadiz has posted losses in every corresponding quarter for over 20 years, underscoring continued challenges in achieving profitability.

The stock price of Cadiz rose 0.84% during the latest trading day, gained 16.08% over the most recent full trading week, and surged 21.96% month-to-date. However, historical post-earnings performance remains poor. A strategy of buying Cadiz shares following its Q2 revenue report and holding for 30 days yielded a negative return of -25.45% over the past three years—substantially underperforming the 46.32% benchmark. This underperformance highlights ongoing investor skepticism despite revenue growth.

CEO José María de Gadir emphasized resilience in the earnings call, noting strategic investments in diversification and operational efficiency. He highlighted recent initiatives in renewable energy and port modernization as key growth drivers. De Gadir expressed confidence in the company’s ability to adapt to challenges and improve performance in Q3 and Q4 2025, with a focus on narrowing losses and boosting revenue.

In the "Additional News" section, Nigeria’s Federal Government announced plans to unlock $150 billion in dormant land capital to boost economic growth. Meanwhile, the Lagos State Assembly proposed a new tenancy bill to reduce estate agent fees to 5%. In other developments, the Eko Electricity Distribution Company denied involvement in a controversial prepaid meter initiative in Badagry. The Nigerian National Petroleum Company also partnered with the Petroleum Technology Development Fund to drive innovation in oil and renewable energy.