374Water Inc.

What they do

374Water designs and sells AirSCWO systems that use supercritical water oxidation to mineralize organic waste streams, including sewage sludge, biosolids, and PFAS-contaminated materials. The company generates revenue from equipment manufacturing and services, and operates a Waste Destruction Services (WDS) hub in Orlando, Florida.

Revenue drivers

• AirSCWO equipment sales — Core revenue from selling SCWO systems, including a $4.8M order from Olathe, KS and a $600,000 pilot in St. Cloud, MN.
• OC San contract — Revenue recognized on the Orange County Sanitation District contract, including $2.0M recognized in Q2 2026 after passing a Factory Acceptance Test.
• Waste Destruction Services (Orlando) — Recurring revenue facility for processing PFAS-contaminated waste; expanded to ~88,000 gallons of storage capacity; management expects multi-million-dollar annual recurring revenue.

Recent performance

In Q2 2026, revenue was $2.26 million, up 280% from $0.59 million in Q2 2025, with a gross margin swing from -$0.28 million to +$1.98 million. Net loss improved to $2.70 million from $4.58 million in the year-ago quarter. First half 2026 revenue exceeded $2.8 million, more than double the prior year. For full-year 2025, revenue was $215,037 with a net loss of $21.0 million.

Strategy

Management is focused on converting technology development into commercial deployments, expanding the Orlando WDS hub, and securing long-term contracts. The company signed an MOU with Arcadis to pursue federal PFAS destruction opportunities and completed a DoD demonstration. It plans to commercialize AFFF waste destruction services and continues discussions on partnerships and infrastructure capital.

Risks

• Cash burn and liquidity — Operating cash flow was negative $14.3 million in 2025; cash and equivalents were $1.8 million as of June 30, 2026.
• Customer concentration — A significant portion of recent revenue came from the OC San contract; delays or issues with this or similar large contracts could hurt results.
• Technology commercialization — SCWO systems are complex and deployment may face technical or regulatory hurdles; revenue from equipment sales is lumpy.
• Limited operating history — Annual revenue has been under $1 million in most years, with substantial losses; the company's future depends on scaling untested commercial operations.

Outlook

For the second half of 2026, management plans to create additional partnerships, expand Orlando capacity, and commercialize AFFF waste destruction services. They expect to invoice approximately $2.6M in remaining OC San contract billings after the Factory Acceptance Test. Management sees a multi-billion-dollar federal market for PFAS destruction, positioning itself to compete for future projects.