Cadiz Inc. Reports 76.3% Revenue Decline and $11.4 Million Net Loss in Q2 2026

Cadiz Inc. reported a significant decline in financial performance for the second quarter of 2026, with total revenues of $979,000, a decrease of 76.3% compared to $4.1 million in the same period of 2025. The company incurred a net loss of $11.4 million, up from a loss of $7.7 million year-over-year. For the first half of 2026, revenues totaled $2.6 million, down from $7.1 million in the prior year, primarily due to reduced sales from its water treatment technology segment, ATEC, which saw a drop in filter sales. The operating loss for the six months ended June 30, 2026, was $15.7 million, compared to $13.3 million in the same period of 2025.

The company's operational metrics reflected challenges in its business segments. ATEC's revenues fell to $0.8 million in Q2 2026 from $3.7 million in Q2 2025, largely due to a decrease in filter shipments. General and administrative expenses increased to $8.4 million in Q2 2026, driven by higher legal and consulting fees associated with the development of the Mojave Groundwater Bank. The company reported a total of 84.7 million shares outstanding as of June 30, 2026, reflecting a slight increase from the previous year.

Strategically, Cadiz has been focused on advancing its Mojave Groundwater Bank project, which aims to address water supply challenges in Southern California. The company has drawn $30 million from the Lytton Credit Agreement to fund project expenses and has plans for further capital raises to support ongoing development. In August 2026, Cadiz extended the maturity date of its existing loans to June 30, 2028, providing additional financial flexibility. The company is also exploring partnerships and financing options to support the construction and operation of the Mojave Groundwater Bank.

Looking ahead, Cadiz anticipates that the proceeds from its recent financing activities, including the Lytton Credit Agreement, will be sufficient to meet its short-term working capital needs. However, the company acknowledges the necessity of raising additional capital in the long term to finance ongoing development and operational costs. The management remains committed to pursuing various financing avenues, including equity placements and potential asset sales, to ensure liquidity and support its strategic initiatives.