374Water 2025 Q1 Earnings Net Loss Widens 82.7%

374Water (SCWO) reported its fiscal 2025 Q1 earnings on May 15th, 2025. The total revenue of 374Water increased by 72.3% to $543,100 in 2025 Q1, up from $315,278 in 2024 Q1. Despite the revenue increase, the company's net loss widened to $-3.70 million in 2025 Q1, representing an 82.7% increase from the $-2.02 million loss recorded in 2024 Q1. The company anticipates generating $4 million to $6 million in revenue for 2025.

The company’s net loss widened to $3.70 million, an increase of 82.7% from the $2.02 million loss recorded in the previous year's Q1. Earnings per share fell to a loss of $0.03 from a loss of $0.02, reflecting a 50% increase in loss per share.

The strategy of purchasing 374Water shares following revenue announcements and holding for 30 days has yielded moderate returns over the past five years, with a cumulative gain of 33.21%. This suggests that investors have benefitted from the positive momentum associated with the company's revenue growth expectations. However, following the recent earnings report, the stock price saw a decline of 13.97% during the latest trading day, and a 0.15% decrease month-to-date, indicating potential volatility in investor sentiment. This highlights the ongoing challenges faced by the company, despite the revenue growth.

CEO Commentary
Chris Gannon, President and CEO, emphasized 374Water's growth potential in the waste management sector, focusing on their AirSCWO system targeting a $450 billion market. The company achieved significant milestones, including a contract with the University of North Carolina for over $5 million in potential future revenues. Gannon expressed optimism about reaching $250 million to $500 million in annual revenue within five years through a diverse commercial model and strategic partnerships.

Guidance
The company expects to generate $4 million to $6 million in revenue for 2025, with plans to finalize additional TSDF agreements by year-end. Gannon highlighted the AirSCWO 30 unit's revenue potential ranging from $12 million to $20 million annually, based on the material processed. He conveyed confidence in meeting substantial growth and market leadership goals in waste destruction.

Additional News
374Water has made notable changes in its executive team to strengthen its commercial trajectory. Raj Melkote was appointed as Chief Technology Officer, bringing extensive expertise in strategy and product commercialization. The Board of Directors welcomed Stephen J. Jones, former CEO of Covanta, who brings valuable industry experience and relationships. Additionally, James Pawloski joined as an Advisor and nominee for an independent director role, providing significant leadership experience in waste, wastewater, and environmental solutions. These appointments aim to drive the company’s growth and market presence in waste destruction technology.