374Water Inc.

For Q3 2025, revenue was $760,000, up from $81,000 in Q3 2024. Revenue growth was primarily from service revenue of about $643,000, plus $36,000 in equipment capital revenue. Total operating expenses increased 64% to $4.6 million from $2.8 million, and net loss was $4.3 million versus $2.7 million a year ago. Cash and cash equivalents were $900,000 at 09/30/2025 versus $10.7 million at 12/31/2024, and working capital was $1.9 million versus $4.5 million at 09/30/2024. The company also entered a $600,000 short-term promissory note in September, expected to be repaid in January 2026. Management said the ATM raised gross proceeds of approximately $7 million and that, combined with expected billings and collections, cash is projected to support business plans into Q2 2026. For the remainder of 2025, revenue is projected at $4 million. For calendar 2026, management expects revenue in the $6 million to $8 million range.

Steven Jones framed the company as moving from technology validation toward commercialization, with a clear preference for waste destruction services because it should create recurring revenue and higher EBITDA margins. He pointed to the Crystal Clean TSDF collaboration, the North Carolina AFFF award, the Olathe equipment sale, and the planned OCSAN deployment as evidence that the business model is taking hold. His tone was confident and operationally focused, but he also stressed the need to concentrate resources on the highest-return opportunities and improve throughput in the AIRSQUO units.

Russell Kline emphasized the three-part strategy: waste destruction services, capital equipment sales, and leasing/O&M models. He said the mobile AIRSQUO one unit could generate more than $2 million in annual revenue, while an AIRSQUO six unit could produce $3 million to $5 million in recurring annual revenue with attractive margins, though these estimates are based on non-hazardous waste tipping fees and hazardous waste could yield materially higher fees. On liquidity, he cited $900,000 of cash at quarter-end, the $7 million ATM raise, the $600,000 short-term note due in January 2026, and said current cash plus billings/collections should fund operations into Q2 2026, but additional capital will still be required. He also said the company seeks a reverse stock split if needed to regain Nasdaq bid-price compliance by 01/12/2026.

Analysts focused on the TSDF pipeline, the structure and timing of the North Carolina AFFF award, and whether 2026 revenue could translate into operating breakeven. Management said it is in discussions with many TSDF operators and sees Crystal Clean as the first of several such host-site partnerships, with the goal of placing units on customer sites and sharing in the economics through lease, revenue share, or lower-cost usage. On North Carolina, management said the first phase is 1,000 gallons of AFFF and that the state will evaluate results before deciding on the additional 28,000 gallons. On profitability, Jones said cash flow positive timing is hard to predict, but he hopes for the 2027 timeframe, depending on rollout pace and how quickly deals convert into backlog and revenue.