374Water (SCWO) Q2 2026 earnings summary

Executive summary

• Revenue for Q2 2026 rose over 280% year-over-year to $2.26 million, driven by OC San contract revenue recognition and commercial milestones, including the Factory Acceptance Test.

• Net loss for Q2 2026 narrowed to $2.7 million from $4.6 million in Q2 2025, primarily due to higher revenues and reduced operating expenses.

• The company transitioned to positive gross profit and margin, reflecting successful commercialization of SCWO technology.

• Advanced strategic partnerships and expanded operational footprint, notably in Orlando and with Arcadis.

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

Financial highlights

• Q2 2026 revenue: $2.26 million (up from $0.59–$0.6 million in Q2 2025); six-month revenue: $2.81 million (up from $1.14 million year-over-year).

• Gross margin for Q2 2026 was 87%, compared to a negative margin in Q2 2025.

• Net loss for Q2 2026: $2.7 million ($0.15/share); six-month net loss: $7.3 million.

• Cash used in operations for H1 2026 was $2.3 million, a significant improvement from $7.6 million in the prior year.

• Cash balance at June 30, 2026: $1.78–$1.8 million; working capital: $2.42 million.

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.

• Focused on scaling Waste Destruction Services and prioritizing capital allocation to revenue-generating opportunities.

• Anticipates further revenue from remaining OC San contract milestones and new municipal deployments.

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