Cadiz 2025 Q3 Earnings Revenue Rises 28.7% as EPS Loss Narrows 16.7%

Cadiz (CDZI) reported its fiscal 2025 Q3 earnings on Nov 13th, 2025, delivering a 28.7% year-over-year revenue increase to $4.15 million. However, the company’s net loss widened to $7.07 million, and while the EPS loss narrowed to $0.10 from $0.12, it fell short of the Zacks Consensus Estimate of a $0.09 loss, reflecting persistent unprofitability.

Revenue

The total revenue surged by 28.7% to $4.15 million in 2025 Q3, driven by strong performance in the Water Filtration Technology segment, which contributed $4.03 million. The Land and Water Resources segment added $115,000 to the top line, underscoring diversified growth despite ongoing operational challenges.

Earnings/Net Income

Cadiz narrowed its per-share loss to $0.10 in 2025 Q3, a 16.7% improvement from the prior year. However, the net loss expanded to $7.07 million, marking a 4.1% year-over-year increase. The company has sustained losses for over two decades, highlighting structural profitability issues. Despite a narrower EPS loss, the company’s net loss widened by 4.1% year-over-year, indicating ongoing profitability challenges.

Post-Earnings Price Action Review

The strategy of buying Cadiz Inc. (CDZI) on revenue beats and holding for 30 days has historically yielded disappointing results. Consistent underperformance in meeting EPS estimates, a recent quarterly loss of $0.10 (vs. $0.09 expected), and a four-quarter streak of negative surprises undermine the approach. Quantitative analysis shows stocks like CDZI, rated Sell, have averaged 20% annual declines over the past decade. Within the Utilities sector, CDZI’s inferior profitability and overpricing weaken its case for short-term gains. Strategic initiatives, including partnerships and dividend declarations, have not translated into meaningful financial improvements, reinforcing the need for a longer-term perspective.

Additional News

1. M&A Activity: Cadiz signed a second Memorandum of Understanding (MOU) with UK-based Hoku Energy Limited to develop a clean energy campus at Cadiz Ranch, granting a three-year exclusive option for green hydrogen production on over 10,000 acres.

2. Strategic Investment: Lytton Rancheria committed $51 million to the Mojave Groundwater Bank, marking the first tranche of project financing for this critical water storage initiative.

3. Dividend Announcement: The company declared a quarterly cash dividend of $550 per share for its Series A Cumulative Perpetual Preferred Stock, payable on Oct 15, 2025, to shareholders of record as of Oct 4, 2025.

Guidance

Cadiz’s forward-looking guidance for Q4 2025 includes maintaining its focus on water infrastructure development and strategic partnerships, though specific quantitative targets were not disclosed. The company emphasized its intent to leverage its 2.5 million acre-feet of water supply and 220-mile pipeline network to drive long-term value, despite current profitability hurdles.

CEO Commentary

In a recent investor update, CEO Susan Kennedy highlighted progress in the Mojave Groundwater Bank and ATEC’s revenue growth, stating, “Our ability to secure $51 million in equity for the Mojave project underscores the value of our water assets.” She also noted ATEC’s year-to-date revenue of $10.1 million, driven by advancements in water filtration technology. However, Kennedy acknowledged the need for “prudent capital allocation” amid ongoing operational cash outflows, with Q3 cash used in operations reaching $12 million.

Conclusion

While Cadiz’s Q3 revenue growth and strategic partnerships offer glimmers of optimism, the company’s sustained losses and weak EPS performance underscore the risks of short-term investment. Investors are advised to prioritize long-term fundamentals and monitor progress in key initiatives like the Mojave Groundwater Bank and hydrogen-solar developments.