374Water Reports Second Quarter 2025 Financial Results

Ongoing Deployments and Successful Waste Destruction Demonstrations Showcase AirSCWO Technology Across Municipal, Federal and Industrial Market Verticals

DURHAM, N.C., Aug. 12, 2025 (GLOBE NEWSWIRE) -- 374Water Inc. (NASDAQ: SCWO) ("374Water" or the "Company"), a global leader in waste destruction technology for the municipal, federal, and industrial markets, today reported its financial and operational results for the second quarter ended June 30, 2025.

“The second quarter of 2025 was highlighted by strong momentum for our AirSCWO (“AS”) System’s trajectory with ongoing project deployments” said Chris Gannon, President and CEO of 374Water. “We began our biosolids destruction project in Orlando, which upon the successful completion we believe will lead to increased scope of work. We continued to make progress on manufacturing of the AS6 System during the quarter for the expected deployment to Orange County Sanitation (“OC San”) in the second half of the year.”

“We signed a Waste Destruction Services (“WDS”) term sheet with a leading provider of specialized environmental and waste management solutions, to conduct waste destruction operations at their RCRA Part B TSDF facility.

“We successfully mobilized and delivered an AS6 System to Clean Earth’s Detroit, MI RCRA Part B TSDF facility as part of a previously announced Department of Defense (“DoD”) project. This highly anticipated DoD project, led by the Defense Innovation Unit (“DIU”), is evaluating solutions to destroy per- and polyfluoroalkyl (“PFAS”) contaminated wastes. We are now working on installation and commissioning activities for configuration, with initial waste destruction campaigns beginning in mid-August.

“We also successfully deployed our AS technology to a Colorado School of Mines and DoD Environmental Security Technology Certification Program ("ESTCP”) project aimed at comparing technology solutions to destroy PFAS contaminated wastes. The program prioritizes common sense, cost-effective solutions that support operational effectiveness and reduce regulatory burdens at military installations. We believe this initiative will, once again, demonstrate our ability to destroy PFAS-impacted waste streams as a treatment option for DoD installations impacted by PFAS.

“During the quarter we continued to build our leadership and advisory team to support rollout and operational execution. Stephen Jones, one of our newest independent Board directors, has extensive experience in corporate leadership including as CEO of Covanta, board roles, and expertise in environmental services and industrial gases and chemicals. His appointment has added critical and valuable components to the board with his decades of industry experience and his key relationships in our industry. We also welcomed James Pawloski as an independent Board director. As the former CEO of Regeneration and Recovery Solutions at Veolia North America, his perspective and extensive experience in waste, wastewater, and environmental solutions will support our growth.

“We recently completed the successful waste destruction of PFAS in biosolids utilizing our AirSCWO system, producing effluent with PFAS concentrations at non-detectable levels. With destruction across a wide variety of solid and liquid waste streams, we believe our technology is well positioned to generate demand across market verticals in municipal, federal, and industrial waste destruction. We have made significant progress ruggedizing and optimizing our AS system and are continuing to improve our AS technology. In the second half of 2025, we anticipate completing the manufacturing of an AS1 system, deploying an AS6 system to OC San, and making progress toward the launch of our initial WDS operations. We look forward to additional milestones and announcements in the months ahead,” concluded Gannon.

Recent Highlights

• Successfully completed the first phase of a biosolids destruction demonstration at Orlando’s Iron Bridge Water Reclamation Facility, producing effluent with PFAS concentrations at non-detectable levels.
• Completed system manufacturing of OC San’s AS6 system and progress towards FAT and delivery.
• Successfully mobilized and delivered an AS6 System to Clean Earth’s Detroit, Michigan RCRA Part B TSDF facility as part of a previously announced Department of Defense (“DoD”) project.
• Deployed our AS technology in a Colorado School of Mines and DoD Environmental Security Technology Certification Program ("ESTCP”) project aimed at comparing technology solutions to destroy per- and polyfluoroalkyl (“PFAS”) contaminated wastes.
• Signed a Waste Destruction Services term sheet with a leading provider of specialized environmental and waste management solutions, to conduct waste destruction operations at their RCRA Part B TSDF facility.
• Significant progress made in further ruggedizing and optimizing AS, pre-treatment, and post-treatment systems.
• Conducted numerous destruction demonstrations on a wide variety of organic waste streams with waste destruction results at or above 99.99%, and often at non-detect levels.
• The U.S. EPA announced major actions to combat per- and PFAS contamination, underscoring the federal government’s commitment to safeguard public health through preventing PFAS from entering drinking water systems and holding polluters accountable.
• Appointed Stephen J. Jones to the Board of Directors, the former CEO of Covanta Holding Corporation and veteran industrial executive to help advance the commercial rollout of AS Technology to Municipal, Federal, and Industrial Waste Destruction markets.
• Appointed James Pawloski to the Board of Directors, bringing significant leadership experience, most recently serving as the President & CEO of Regeneration and Recovery Solutions at Veolia North America.
  
  

Anticipated Upcoming Events

• Complete Orlando bio-sludge destruction demonstration.
• Complete AS6 system FAT, installation, and begin biosolids destruction operations at OC San in Fountain Valley, CA.
• Complete manufacturing of an AS1 system and deploy the unit to immediately complete contracted Waste Destruction Service projects.
• Complete the Department of Defense (“DoD”) project in Detroit, Michigan, with Arcadis and Clean Earth, aimed at identifying commercial-scale technology solutions to destroy PFAS contaminated wastes.
• Sign one or more definitive partnership agreements with RCRA Part B TSDF market participants to establish Waste Destruction Services (WDS) operations.
• Construct and launch our first WDS operation at RCRA Part B TSDF partner facility.
  
  

Second Quarter 2025 Financial Summary

• For the second quarter of 2025, revenue totaled $600,000 compared to $37,000 in the prior year. The company’s business has been focused on the development and commercialization of its supercritical water oxidation (SCWO) systems to fulfill current projects and prepare for additional revenue growth. Revenue generated was primarily from equipment manufacturing services and other services, specifically a full-scale demonstration and various treatability studies. The approximate $560 thousand increase in revenues is primarily due an increase in waste destruction service revenues for the first phase of the Orlando customer contract resulting in approximately $271,000 of revenues, an increase in equipment revenues of approximately $85,000 and an increase in bench scale treatability studies of approximately $202,000 during the three months ended June 30, 2025.
• Total operating expenses increased 45% to $4.4 million for the three months ended June 30, 2025, compared to $3.0 million in the prior year period. The increase was primarily due to an increase of $1.0 million in compensation and related expenses, and an increase of $0.4 million in general and administrative expenses.
  • The increase in compensation and related expenses was primarily related to an increase in headcount for manufacturing and deployment operations as part of fulfilling current projects and to prepare for expected business growth. In addition, we added a Chief Technology Officer to our executive team for the continued development of AirSCWO technology and an increase in stock-based compensation.
  • The increase in general and administrative expenses was primarily related to an increase in depreciation expense, an increase in travel related expenses due to expanded operations, and an increase in general administrative expenses.
• Net loss for the three months ended June 30, 2025, was $4.6 million, as compared with $2.9 million in the prior year.
• Cash and cash equivalents as of June 30, 2025, was $2.1 million, as compared to $10.7 million as of December 31, 2024. As of June 30, 2025, working capital was $4.6 million, compared to $7.3 million as of June 30, 2024.
• Based upon our current cash position and expected billings and related collection, we project to have adequate cash to support our 2025 business plans. To supplement operating cash needs, we established a new at-the-market facility.
  
  

Second Quarter 2025 Results Conference Call

374Water CEO Chris Gannon and CFO Russell Kline will host the conference call, followed by a question-and-answer period. The conference call will be accompanied by a presentation, which can be viewed during the webcast or accessed following the call via the investor relations section of the Company’s website here.

To access the call, please use the following information:

A telephone replay will be available approximately three hours after the call and will run through August 26, 2025, by dialing 1-844-512-2921 from the U.S., or 1-412-317-6671 from international locations, and entering replay pin number: 13755247. The replay can also be viewed through the webcast link above and the presentation utilized during the call will be available in the Company’s investor relations section here.

About 374Water

374Water Inc. (NASDAQ: SCWO) is a global industrial technology and services company providing innovative solutions addressing wastewater treatment and waste management issues within the municipal, federal and industrial markets. 374Water's AirSCWO technology is designed to efficiently destroy and mineralize a broad spectrum of non-hazardous and hazardous organic wastes, producing safe dischargeable water streams, safe mineral effluent, safe vent gas, and recoverable heat energy. 374Water's AirSCWO technology has the potential to assist its customers to meet discharge requirements, reduce or eliminate disposal costs, remove bottlenecks, and reduce litigation and other risks. 374Water continues to be a leader in innovative waste treatment solutions, dedicated to creating a greener future and eradicating harmful pollutants. Learn more by visiting www.374water.com and follow us on LinkedIn.

Cautionary Language on Forward-Looking Statements

Certain statements in this communication are "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, as amended. These statements relate to future events or our future financial performance, including statements relating to the timing to manufacture and deploy AirSCWO systems, including our deployment to OC San and completing manufacturing of an AS1 system, our ability to execute on our strategic plan, our ability to process a range of waste and contaminants at scale, our progress toward commercialization, the timing to complete our demonstration in Orlando, the timing and success of our Waste Destruction Services offering, whether we will be successful in converting our pipeline to revenue, the regulatory environment, and our future prospects and involve known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance, or our achievements or those of our industry to be materially different from those expressed or implied by any forward-looking statements. In some cases, forward-looking statements may be identified by the use of words like "may," "will," "could," "would," "should," "expect," "plan," "anticipate," "intend," "believe," "estimate," "project," "consider," "predict," "potential," "feel," or other comparable terminology. The Company has based these forward-looking statements on its current expectations, assumptions, estimates, beliefs, and projections. While the Company believes these expectations, assumptions, estimates, and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which involve factors or circumstances that are beyond the Company's control. These and other important factors, including those discussed under "Risk Factors" in our Annual Report on Form 10-Q for the year quarter June 30, 2025, as well as the Company's subsequent filings with the SEC, may cause actual results, performance, or achievements to differ materially from those expressed or implied by these forward-looking statements. The forward-looking statements herein are made only as of the date they were first issued, and unless otherwise required by applicable securities laws, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Investor Relations and Media Contact
Chris Tyson
Executive Vice President
MZ North America
Direct: 949-491-8235
SCWO@mzgroup.us
www.mzgroup.us