OriginClear Reports 43% Revenue Growth to $2M in Q1 2026 Despite Increased Net Loss

OriginClear, Inc. reported a revenue of $2,002,880 for the first quarter of 2026, marking a 43% increase from $1,404,671 in the same period of 2025. The growth was primarily driven by higher sales from equipment contracts and pump stations. However, the cost of revenue also rose significantly, increasing to $1,448,752 from $900,017, resulting in a gross profit of $554,128, slightly up from $504,654 a year earlier. Despite the increase in revenue, the company recorded a net loss of $2,073,530, compared to a loss of $767,034 in the prior year, largely due to increased derivative losses and expenses related to debt conversions.

In terms of operational changes, OriginClear has undergone significant restructuring. The Modular Water Systems (MWS) division was fully deactivated in 2025, allowing the company to streamline its focus on its primary subsidiary, Water On Demand, Inc. (WODI), which specializes in custom-engineered water treatment solutions. The company has also entered into several joint ventures, including partnerships with Block40X Inc. and Bitmern Investments LLC, aimed at developing Bitcoin mining facilities and digital infrastructure, respectively. These ventures are still in their early stages and had no material impact on the financial results as of March 31, 2026.

The company’s financial position showed a decrease in total assets to $5,065,164 from $5,746,408 at the end of 2025. Current liabilities increased to $26,423,989, up from $24,213,298, reflecting higher accounts payable and accrued expenses. The shareholders' deficit widened to $29,566,468, compared to $28,382,938 at the end of the previous fiscal year. The increase in liabilities and the ongoing losses have raised concerns about the company's ability to continue as a going concern, prompting management to seek additional financing through convertible notes and preferred stock offerings.

As of March 31, 2026, OriginClear had cash and cash equivalents of $3,310,171, a significant increase from $828,007 at the end of 2025. The company reported net cash used in operating activities of $1,512,492, contrasting with a cash inflow of $221,342 in the same quarter of 2025. The company’s management anticipates that revenue growth will continue to be driven by the backlog of projects at PWT, while the elimination of the MWS division is expected to enhance operational efficiency and redirect resources towards financing activities.

Looking ahead, OriginClear's management remains focused on raising capital to support its decentralized water finance strategy and operational needs. The company is actively pursuing various financing avenues while navigating the challenges posed by its current financial condition. The outlook for the remainder of 2026 will depend on the successful execution of its strategic initiatives and the ability to secure necessary funding.