Cadiz 2025 Q3 Earnings Revenue Surpasses Expectations Despite Expanded Losses

Cadiz (CDZI) reported fiscal 2025 Q3 earnings on Nov 13, 2025, showing a 28.7% revenue increase to $4.15 million compared to $3.22 million in 2024 Q3. The stock price gained 6.18% in the latest trading day but fell 13.33% month-to-date. The company narrowed its per-share loss to $0.10 from $0.12, though net losses widened to $7.07 million.

Revenue

Cadiz’s total revenue rose to $4.15 million in Q3 2025, driven by a 28.7% year-over-year increase. The Water Filtration Technology segment contributed $4.03 million, while Land and Water Resources added $115,000. This performance exceeded expectations despite the company’s prolonged history of unprofitability.

Earnings/Net Income

The company reduced its per-share loss to $0.10 from $0.12, marking a 16.7% improvement. However, net losses expanded to $7.07 million, a 4.1% increase from $6.79 million in 2024 Q3. The EPS improvement was offset by a broader net loss, underscoring ongoing financial challenges.

Post-Earnings Price Action Review

The strategy of buying CDZI on revenue beats and holding for 30 days has historically underperformed. Recent results showed a $0.10 loss per share, worse than the expected $0.09, marking the third consecutive quarter of EPS misses. While revenue beat estimates, annual revenue is projected to decline 3.8%. The stock’s 30-day performance was lackluster, and market sentiment remains bearish, with a “Sell” rating. Dividends on preferred stock exist, but common stockholders see no benefits. Strategic partnerships, like the Hoku Energy collaboration, have not driven positive momentum.

Additional News

1. M&A Activity: Cadiz secured a $51 million investment from Lytton Rancheria for its Mojave Groundwater Bank, part of a $400 million equity financing plan.

2. Strategic Partnerships: ATEC Water Systems partnered with Hoku Energy to develop a clean energy campus in California, focusing on green hydrogen and solar projects.

3. Dividend Announcement: The company declared a $0.55 dividend per depositary share for its Series A Cumulative Perpetual Preferred Stock, payable on October 15, 2025.

Guidance

Cadiz’s CEO highlighted ongoing challenges in reducing losses while expanding revenue streams. The company aims to leverage partnerships and infrastructure projects to improve cash flow but acknowledged the need for cost optimization. Forward-looking guidance emphasized cautious optimism, with a focus on securing additional financing and advancing groundwater storage initiatives.

CEO Commentary

CEO Susan Kennedy emphasized progress in key projects, including the Mojave Groundwater Bank and hydrogen development, while acknowledging the need to address persistent net losses. She outlined plans to enhance operational efficiency and explore new revenue avenues, though long-term profitability remains uncertain.

Conclusion

Cadiz’s Q3 results reflect mixed performance, with revenue growth contrasting against expanded losses. While strategic partnerships and financing efforts offer hope, investors must weigh these against a bearish market outlook and underwhelming stock performance.