10-Q · May 14, 2026
374Water Inc. reported a slight increase in revenue to $551,155 for Q4 2026, reflecting a 1% growth from $543,100 in the prior year. However, the company's earnings per share worsened to -$0.496 from -$0.48 in the…
Earnings analysis · 10-Q
SCWO earnings analysis
Filed August 14, 2026 · Our reading of the company's report
The latest report
374Water reported Q2 2026 revenue above $2.2 million versus $594,967 a year earlier, driven largely by approximately $2.0 million recognized after the OC San Factory Acceptance Test; first-half revenue was approximately…
Read full summary
374Water reported Q2 2026 revenue above $2.2 million versus $594,967 a year earlier, driven largely by approximately $2.0 million recognized after the OC San Factory Acceptance Test; first-half revenue was approximately $2.8 million versus $1.1 million. The filing does not disclose EPS, margins, free cash flow, or segment results in the provided financial information. Liquidity was supported by $2,960,000 of convertible notes, but the financing carries 10% interest and potential dilution, while disclosure controls remain ineffective because of a material weakness in finance and accounting resources.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
What stood out
-
Revenue more than tripled year over year
Q2 2026 revenue was above $2.2 million, versus $594,967 in Q2 2025, representing growth of more than 3.7x year over year. Approximately $2.0 million was recognized following the OC San Factory Acceptance Test.
-
First-half revenue more than doubled
First-half 2026 revenue reached approximately $2.8 million, compared with approximately $1.1 million in the first half of 2025, an increase of roughly $1.7 million.
-
Convertible financing added liquidity
The company issued $2,960,000 of convertible notes during the three and six months ended June 30, 2026, receiving cash proceeds of the same amount to support working capital.
-
Funding supports operations
The convertible notes carry a 10% interest rate, mature in 3 years, and are convertible at $3.00 per share, providing near-term funding but with potential future equity issuance.
-
Remediation plan addresses controls
Management identified a material weakness in internal controls because of a lack of full-time finance and accounting resources and said remediation includes hiring additional full-time personnel.
-
Warrant coverage expands financing flexibility
The company issued 986,667 common-stock warrants with the convertible notes; the warrants are exercisable for 3 years at $4.50 per share, potentially supporting future capital formation.
What to watch
-
Milestone-dependent revenue
Revenue remains milestone-dependent: approximately $2.0 million of the more than $2.2 million Q2 revenue followed the OC San Factory Acceptance Test. This concentration makes quarterly results vulnerable to project timing and acceptance delays.
-
Higher interest and cash obligations
The $2,960,000 convertible-note financing carries 10% interest and requires semi-annual interest payments beginning September 30, 2026, increasing cash obligations while the company remains loss-making.
-
Potential shareholder dilution
The notes are convertible at $3.00 per share and include 986,667 warrants exercisable at $4.50 per share for 3 years, creating potential dilution to existing shareholders.
-
Material weakness in controls
Disclosure controls were deemed ineffective due to a material weakness tied to insufficient full-time finance and accounting resources. Management stated that remediation is still being implemented through additional hiring.
-
Existing risk profile remains
The filing states there have been no material changes to the risk factors disclosed in the 2025 Form 10-K, so previously disclosed commercialization, financing, execution, and liquidity risks remain applicable.
Management's outlook
No quantitative revenue or EPS guidance was provided in the 10-Q. Management discussed second-half priorities, including expanding Orlando capacity, developing partnerships, and commercializing AFFF waste-destruction services.
Earlier filings 4
10-K · April 30, 2026
374Water Inc. (SCWO) reported continued challenges in its financial performance for fiscal year 2025, culminating in a Q4 2025 loss of $2 million in revenue with a gross margin of 144.1%. The company is navigating…
10-K · March 31, 2026
374Water reports meaningful commercial progress in 2025—establishing a Waste Destruction Services (WDS) hub in Orlando, completing DoD field demonstrations in Detroit, and winning a contract to destroy 1,000 gallons of…
10-Q · August 12, 2025
Revenue accelerated to $594,967 in Q2 2025 (vs. $36,821 in Q2 2024), driven by equipment and demonstration service activity, but the company remains unprofitable with a Q2 net loss of $4,580,448 (EPS $(0.03)). Cash…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.