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- **Revenue Growth**: Q3 2025 revenue up 833% YoY to $760,000; 2026 guidance of $6-8 million (50-100% growth).
- **Strategic Focus**: Prioritizes waste destruction services (WDS) for 50%+ EBITDA margins over equipment sales.
- **Market Expansion**: Secured $7 million ATM; targeting 2026 deployment at 10+ TSDF facilities.
- **Operational Efficiency**: Investing in AirSCWO upgrades for 20%+ throughput improvements.
- **Risk Mitigation**: Proposed reverse stock split to maintain NASDAQ listing.
- **Key Wins**: Olathe, KS equipment sale; DoD PFAS destruction validation.


**【CEO Summary Section】**
- **Market Focus**: Emphasized the $450 billion waste destruction market, targeting PFAS (Forever Chemicals) and other organic waste. Highlighted the waste destruction services (WDS) model for higher margins and recurring revenue.
- **Key Projects**: 
  - Signed a collaboration with Crystal Clean for TSDF partnerships, starting in Ohio.
  - Completed DoD projects in Colorado and Detroit, demonstrating AirSCWO's effectiveness in PFAS destruction.
  - Secured a $7 million ATM facility, extending cash runway to Q2 2026.
  - Projected 2026 revenue of $6-8 million (50-100% YoY growth), driven by WDS and equipment sales.
- **Strategic Initiatives**: 
  - Upgraded AirSCWO 6 units for higher throughput and efficiency.
  - Focused on Lean Six Sigma improvements to reduce costs and increase EBITDA margins.
  - Pursuing partnerships with TSDF operators for on-site waste destruction services.

**【CFO Financial Commentary】**
- **Q3 2025 Results**: 
  - Revenue: $760,000 (vs. $81,000 YoY), driven by WDS projects and equipment sales.
  - Operating Expenses: $4.6 million (64% YoY increase), due to commercial deployments.
  - Net Loss: $4.3 million (vs. $2.7 million YoY).
  - Cash: $0.9 million (vs. $10.7 million as of Dec 2024).
- **2025 Outlook**: $4 million revenue, with $7 million raised via ATM.
- **2026 Guidance**: $6-8 million revenue, targeting WDS and equipment sales.
- **Capital Needs**: Actively pursuing additional funding for growth initiatives.
- **NASDAQ Compliance**: Proposed reverse stock split to maintain listing, with final shareholder vote on Dec 15, 2025.

**【Q&A Highlights】**
- **TSDF Pipeline**: CEO stated discussions with majority of U.S. TSDF operators, focusing on high ROI partnerships.
- **North Carolina Contract**: Phase 1 (1,000 gallons of AFFF) underway; Phase 2 (28,000 gallons) contingent on results.
- **2026 Mix**: CFO indicated ~50% WDS, 50% equipment sales, with potential for higher WDS contribution.
- **Employee Focus**: 80% of 50 employees in market-facing roles (BD, ops, R&D).
- **Breakeven Timeline**: CEO expects cash flow positive by 2027, dependent on deal pace and manufacturing scale.
- **Competitive Edge**: AirSCWO's ability to process hazardous waste at higher tipping fees (~$2 million/year for mobile units).


374Water Inc. (SCWO) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

SCWO

SCWO fundamentals

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