Cadiz Inc. Reports $8.6 Million Net Loss in Q1 2026, Revenue Declines to $1.6 Million

Cadiz Inc. reported a net loss of $8.6 million for the first quarter of 2026, a decrease from the $9.6 million loss recorded in the same period of 2025. Total revenues for the quarter were $1.6 million, down from $3.0 million year-over-year. The decline in revenue was primarily attributed to a decrease in sales from the company's water filtration technology segment, ATEC, which generated $1.3 million in sales compared to $2.4 million in the prior year. The company’s operating loss also improved slightly, totaling $6.8 million in Q1 2026 compared to $7.5 million in Q1 2025.

In terms of expenses, Cadiz Inc. reported total costs of $8.5 million for the first quarter of 2026, down from $10.5 million in the previous year. The reduction in costs was driven by lower general and administrative expenses, which amounted to $6.4 million, compared to $5.3 million in the same quarter of 2025. The company noted that the decrease in operating loss was primarily due to higher stock-based compensation costs in the previous year. Interest expenses increased to $2.5 million in Q1 2026 from $2.1 million in Q1 2025, reflecting the impact of borrowings under the Lytton Credit Agreement.

Cadiz Inc. continues to focus on the development of 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 the construction and development of this project. As of March 31, 2026, Cadiz had total assets of $146.1 million, an increase from $140.9 million at the end of 2025. The company’s cash and cash equivalents also rose to $16.5 million from $8.6 million at the end of the previous year.

The company’s operational metrics indicate a strategic focus on expanding its water supply and filtration capabilities. Cadiz has entered into long-term agreements with public water systems for the delivery of 21,275 acre-feet per year of water supply, representing approximately 85% of the capacity of its Northern Pipeline. The company is also in discussions with various parties for additional water supply contracts and storage capacity, which could further enhance its market position.

Looking ahead, Cadiz Inc. anticipates that the proceeds from the Lytton Credit Agreement, along 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 and operational expenses. Management remains focused on securing financing through various means, including equity placements and debt offerings, to support the ongoing development of its water solutions and infrastructure projects.