Cadiz Inc. Reports 164% Revenue Increase to $2.95 Million in Q1 Fiscal 2025

Cadiz Inc. reported a significant increase in revenue for the first quarter of fiscal 2025, generating $2.95 million compared to $1.12 million in the same period last year, marking a 164% increase. The revenue growth was primarily driven by higher sales from its water filtration technology segment, ATEC, which accounted for $2.39 million of total revenues. However, the company also reported a net loss of $10.86 million for the quarter, an increase from a loss of $8.12 million in the prior year, attributed to rising professional fees related to the development of the Mojave Groundwater Bank and increased stock-based compensation costs.

Total costs and expenses for the quarter rose to $10.49 million, up from $6.03 million in the previous year. The increase was largely due to higher general and administrative expenses, which reached $8.11 million, compared to $4.73 million in the prior year. The company’s operating loss also widened to $7.53 million from $4.91 million year-over-year. The increase in costs reflects ongoing investments in the company's water supply and storage projects, as well as operational expenses associated with its agricultural activities.

In terms of strategic developments, Cadiz Inc. completed a registered direct offering in March 2025, raising approximately $18.3 million through the issuance of 5.72 million shares at $3.50 per share. This follows a previous offering in November 2024, which raised $22.1 million. The proceeds from these offerings are intended to support the development of the Mojave Groundwater Bank and other capital expenditures. The company also reported a working capital of $16.6 million as of March 31, 2025, indicating a solid liquidity position to fund its ongoing projects.

Operationally, Cadiz Inc. continues to focus on its dual segments: Land and Water Resources, and Water Filtration Technology. The company has made progress in securing contracts for water supply, with agreements in place for the delivery of 21,275 acre-feet of water annually, representing 85% of the capacity of its Northern Pipeline. The company’s total assets increased to $145.58 million from $134.49 million at the end of 2024, reflecting ongoing investments in property and equipment.

Looking ahead, Cadiz Inc. anticipates that the net proceeds from its recent equity offerings, combined with existing cash reserves, will be sufficient to meet its short-term working capital needs. However, the company acknowledges the potential need for additional capital to finance future projects, particularly the Mojave Groundwater Bank, which is estimated to require approximately $800 million in total capital expenditures. The company is actively exploring various financing options, including equity and debt placements, to support its growth strategy and operational needs.