OriginClear Reports Q2 2025 Revenue Decline and Significant Gross Loss

OriginClear, Inc. reported its financial results for the second quarter of 2025, revealing a revenue of $941,800, a decrease of 10% from $1,050,541 in the same period last year. For the first half of 2025, the company generated $2,346,471 in revenue, an 18% increase compared to $1,993,978 in the first half of 2024. Despite this growth in revenue for the six-month period, the company faced significant challenges, with a gross loss of $153,348 compared to a gross profit of $529,918 in the prior year, primarily due to a substantial increase in the cost of goods sold, which rose to $2,499,819 from $1,464,060.

The company's operational performance was impacted by a notable rise in costs, particularly in the second quarter, where cost of revenue surged to $1,599,802, up 292% from $408,120 in the previous year. This led to a gross loss of $658,002 for the quarter, contrasting sharply with a gross profit of $642,421 in Q2 2024. Selling and marketing expenses decreased by 49% to $328,038, while general and administrative expenses also fell by 39% to $728,002, reflecting cost-cutting measures amid ongoing financial pressures.

Strategically, OriginClear has undergone significant organizational changes, including the wind-down of its Modular Water Systems (MWS) business unit, which was approved by the board on May 8, 2025. This decision was made to streamline operations and focus on the core business of Water On Demand, Inc. (WODI), which is now the primary revenue-generating entity following the merger with Progressive Water Treatment, Inc. (PWT). The company is also pivoting towards developing a financial technology infrastructure fund aimed at financing decentralized water treatment systems in underserved communities.

As of June 30, 2025, OriginClear's total assets were reported at $3,147,609, a significant decrease from $4,990,539 at the end of 2024. Current liabilities also saw a dramatic reduction, falling to $24,467,702 from $52,290,405, largely due to the retirement of convertible promissory notes and other debt restructuring efforts. The company reported a net loss of $8,030,421 for the quarter, a stark contrast to a net income of $2,816,084 in Q2 2024, driven by lower gross profits and significant losses on debt conversions.

Looking ahead, OriginClear's management expressed cautious optimism, indicating that revenue growth is expected to be supported by PWT's backlog. However, the company acknowledged the critical need for additional capital to sustain operations and execute its decentralized water-finance strategy. The ongoing efforts to raise funds through convertible notes and equity offerings will be essential for the company's future viability, especially given the substantial liquidity constraints highlighted in the financial statements.