374WATER INC (NASDAQ:SCWO) Q3 2025 Earnings: Revenue Growth Overshadowed by Significant EPS and Revenue Miss

374WATER INC (NASDAQ:SCWO) reported its third-quarter 2025 financial results, revealing a quarter of significant revenue growth that was overshadowed by a substantial miss on analyst expectations and a widening net loss. The market reaction has been negative, with the stock declining in after-hours trading and over the past month, reflecting investor concern over the company's financial performance against its operational progress.

Earnings and Revenue Versus Estimates

The core financial figures from the quarter present a mixed but challenging picture. While the company demonstrated impressive year-over-year growth, it fell significantly short of the targets set by Wall Street analysts.

• Revenue: The company reported Q3 revenue of $760,000, a substantial increase from the $81,000 reported in the same quarter last year. However, this figure missed the analyst estimate of $10.71 million by a wide margin.
• Earnings Per Share (EPS): The reported non-GAAP EPS was a loss of $0.03 per share. This was notably worse than the analyst estimate, which projected a smaller loss of $0.0102 per share.
• Net Loss: The net loss for the quarter expanded to $4.3 million, compared to a net loss of $2.7 million in the prior year period.

This dual miss on both the top and bottom lines appears to be the primary driver behind the negative market sentiment. The company's operational expansion, while driving revenue growth, has also led to increased costs, resulting in a larger-than-anticipated loss.

Operational Highlights and Strategic Progress

Despite the financial shortfall, the company's press release highlighted several key operational milestones that underscore its ongoing commercialization efforts. The quarter was focused on deploying its AirSCWO technology for waste destruction services, particularly targeting per- and polyfluoroalkyl substances (PFAS).

• The company successfully completed a commercial-scale PFAS destruction project for the Department of Defense at a facility in Detroit, Michigan.
• A strategic waste destruction services collaboration agreement was signed with Crystal Clean, aimed at scaling the service business across North America.
• An order was secured from the City of Olathe, Kansas, for the sale and deployment of an AirSCWO 6 system.
• A waste destruction service project awarded by the State of North Carolina to destroy AFFF (aqueous film-forming foam) commenced during the quarter.

Management emphasized that these developments are critical for building a pipeline of future revenue and validating the commercial application of their technology.

Financial Position and Cash Runway

The company's balance sheet showed a significant reduction in cash, raising questions about its funding needs. Cash and cash equivalents fell to $0.9 million as of September 30, 2025, down from $10.7 million at the end of 2024.

To address this, the company fortified its balance sheet by raising approximately $7.0 million through an at-the-market (ATM) facility. Management projects that this, combined with expected billings and collections, provides an adequate cash runway to support business plans into the second quarter of 2026.

Forward-Looking Guidance Versus Analyst Expectations

Looking ahead, management provided its own revenue projections, which sit below current analyst forecasts for the coming year.

• The company reaffirmed its full-year 2025 revenue guidance of approximately $4 million.
• For the full year 2026, management projected revenue in the range of $6 million to $8 million.

These outlook figures contrast with the provided analyst sales estimate for the full year 2025 of $26.93 million, indicating a significant gap between internal company expectations and market analyst models. This discrepancy likely contributes to the cautious investor stance.

For a more detailed look at historical and future earnings estimates for 374Water Inc. (NASDAQ:SCWO), you can review the data here.

Disclaimer: This article is for informational purposes only and is not intended as investment advice. All investment decisions carry risk, and individuals should conduct their own research or consult with a qualified financial advisor before making any investment decisions.