Cadiz 2025 Q3 Earnings Net Loss Widens Despite Revenue Beat

Cadiz (CDZI) reported mixed results for its fiscal 2025 Q3 earnings on Nov 13, 2025. The company exceeded revenue expectations but narrowed its per-share loss while reporting a wider net loss compared to the prior year. Management highlighted strategic initiatives in groundwater banking and clean energy partnerships, though prolonged unprofitability remains a challenge.

Revenue

Cadiz’s total revenue surged 28.7% year-over-year to $4.15 million in Q3 2025, surpassing the Zacks Consensus Estimate by 6.39%. The Water Filtration Technology segment drove growth, contributing $4.03 million, while Land and Water Resources added $115,000. This segmental performance underscores the company’s pivot toward high-margin filtration solutions amid ongoing development of its Mojave Desert assets.

Earnings/Net Income

Despite a 16.7% improvement in per-share losses ($-0.12 to $-0.10), Cadiz’s net loss expanded to $7.07 million in Q3 2025, a 4.1% increase from $6.79 million in the prior-year period. The company has posted losses for over two decades in this quarter, reflecting persistent operational challenges. While the EPS improvement signals progress, the widening net loss highlights structural inefficiencies in scaling profitability.

Post-Earnings Price Action Review

Shares of Cadiz experienced volatile trading post-earnings, with a 6.18% intraday gain followed by a 1.84% weekly decline. The stock has fallen 13.33% month-to-date, underscoring investor skepticism despite the revenue beat. Analysts attribute the mixed price action to concerns over long-term profitability and reliance on capital-intensive projects like the Mojave Groundwater Bank.

CEO Commentary

CEO Susan Kennedy emphasized Cadiz’s strategic focus on groundwater banking and clean energy partnerships during the earnings call. She highlighted the $51 million investment in Mojave Groundwater Bank as a pivotal step toward unlocking long-term value, alongside advancements in hydrogen and solar development. Kennedy also noted the ATEC division’s 131% year-to-date revenue growth, signaling optimism about the water filtration technology market’s potential.

Guidance

The company did not provide explicit forward-looking guidance for Q4 2025. However, management reiterated confidence in its Mojave Groundwater Bank and hydrogen-solar projects, which are expected to drive future revenue streams. The Zacks Consensus Estimate for Q4 2025 stands at $0.54 per share on $3.9 million in revenue, though revisions remain mixed.

Additional News

1. Mojave Groundwater Bank Investment: Cadiz secured a $51 million equity investment from Lytton Rancheria, marking the first tranche of project financing for its Mojave Groundwater Bank. This partnership aims to develop 400 million acre-feet of water storage capacity.

2. Perchlorate Treatment Partnership: The company signed a collaboration with San Bernardino Valley Municipal Water District and Fontana Water Company to address perchlorate contamination in the Rialto-Colton Groundwater Basin using ATEC’s filtration technology.

3. Clean Energy Campus: Cadiz inked a second MOU with Hoku Energy for a green hydrogen and solar development at Cadiz Ranch, positioning the site as a major clean energy hub in the Mojave Desert.

Cadiz’s Q3 performance reflects a delicate balance between near-term operational hurdles and long-term strategic bets. While revenue growth and per-share loss improvements offer cautious optimism, the widening net loss and mixed price action underscore the need for sustained capital investment and execution. Investors will closely monitor progress in groundwater banking and clean energy partnerships to gauge the company’s path to profitability.