374Water (SCWO) Q2 2026 earnings summary

Executive summary

• Revenue for Q2 2026 rose 280% year-over-year to $2.26M, driven by recognition of previously constrained OC San contract revenue and offset by lower service revenues.

• Net loss for Q2 2026 narrowed to $2.7M from $4.6M in Q2 2025, primarily due to higher revenues and reduced operating expenses, despite increased other expenses from debt extinguishment.

• The company continues to focus on commercializing its SCWO technology for waste destruction, with significant contracts in place and ongoing cost management initiatives.

Financial highlights

• Q2 2026 revenue: $2.26M (up from $0.59M in Q2 2025); six-month revenue: $2.81M (up from $1.14M year-over-year).

• Gross margin for Q2 2026 was $0.28M, compared to a negative margin in Q2 2025.

• Net loss for Q2 2026: $2.7M (Q2 2025: $4.6M); six-month net loss: $7.3M (2025: $8.3M).

• Cash used in operations for the first half of 2026 was $2.3M, a significant improvement from $7.6M in the prior year.

• Cash balance at June 30, 2026: $1.78M; working capital: $2.42M.

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.

• Only $3.7M remains available for sale under the current ATM program due to regulatory limits.