374Water Inc. Reports 223% Revenue Increase but Faces Significant Net Loss in Q2 2025

374Water Inc. reported significant financial developments in its latest 10-Q filing for the second quarter of 2025, revealing a substantial increase in revenue and ongoing operational challenges. The company generated $594,967 in revenue for the three months ended June 30, 2025, a remarkable increase from $36,821 in the same period last year. For the first half of 2025, total revenues reached $1,138,067, compared to $352,099 in the first half of 2024, marking a 223% increase. Despite this growth, the company reported a net loss of $4,580,448 for the quarter, up 56% from a loss of $2,932,320 in the prior year, and a total net loss of $8,278,862 for the six-month period, compared to $4,956,785 in 2024.

The increase in revenue was primarily driven by heightened service revenues, particularly from full-scale demonstrations and treatability studies, which contributed approximately $873,000 to the total. However, the cost of revenues also surged, totaling $1,276,150 for the first half of 2025, a 93% increase from $660,841 in the previous year. This rise in costs was attributed to direct material, labor, and subcontractor expenses, as well as a $230,000 increase in the estimated accrued loss provision on an equipment contract.

Operationally, 374Water has made strides in its product offerings, particularly with its proprietary AirSCWO system, which addresses organic waste management. The company completed a full-scale demonstration at the City of Orlando's facility, generating approximately $271,000 in revenue during the quarter. Additionally, the company has expanded its workforce, leading to a significant rise in compensation and related expenses, which reached $3,672,252 for the first half of 2025, up 104% from the previous year. This increase reflects both higher payroll costs and stock-based compensation.

As of June 30, 2025, 374Water's total assets were reported at $12,358,804, a decrease from $19,183,833 at the end of 2024, largely due to a reduction in cash reserves, which fell to $2,149,015 from $10,651,644. The company also noted a working capital of $4,643,965 and an accumulated deficit of $36,666,480. The management expressed concerns regarding the company's ability to continue as a going concern, indicating a need for additional financing to meet operational obligations over the next twelve months.

Looking ahead, 374Water is focused on securing further funding through various avenues, including equity offerings and potential collaborations. The company has an "at-the-market" equity offering that allows it to issue up to $15.1 million in common stock, with approximately $14.6 million remaining available. The management anticipates continued losses and negative cash flows, emphasizing the importance of obtaining additional capital to sustain operations and support future growth initiatives.