374Water (SCWO) Q1 2026 earnings summary

Executive summary

• Focused on commercializing supercritical water oxidation (SCWO) technology for waste destruction in municipal, federal, and industrial markets, with strategic partnerships and deployments advancing, notably with the City of Orlando, OC San, and Garney Construction.

• Completed a 1-for-10 reverse stock split effective December 26, 2025.

• Leadership transition included appointment of new CEO and board members, emphasizing operational execution and commercial partnerships.

• Completed a full-scale demonstration with the City of Orlando, generating significant service revenue.

• Entered a major equipment contract with Garney Companies for the Olathe, Kansas project.

Financial highlights

• Q1 2026 revenue was $551,155, up slightly from $543,100 in Q1 2025.

• Net loss increased to $4,571,623 from $3,698,414 year-over-year, a 24% increase.

• Gross margin rose to $348,412 (63%) from $138,283 (25%) year-over-year.

• Cash and cash equivalents at March 31, 2026 were $447,453, down from $2,406,014 at year-end 2025.

• Net cash used in operating activities for Q1 2026: $2,508,341, improved from $3,494,477 in Q1 2025.

Outlook and guidance

• Management expects continued losses and negative cash flows until commercial-scale manufacturing is achieved.

• Additional debt or equity financing will be required to fund operations for at least the next twelve months.

• WDS facility in Orlando expected to generate $100,000–$200,000 in monthly revenue initially, rising to $400,000+ by late 2027.

• Modular expansion and co-investment discussions could increase ARR potential from $5M to $15M.

• Management is focused on scaling recurring revenue and expanding into new geographies.