374Water scales PFAS destruction technology as revenue climbs in Q2

374Water scales PFAS destruction technology as revenue climbs in Q2

Tue, August 18, 2026 at 3:51 PM GMT+3 2 min read

• SCWO -0.40%

374Water Inc (NASDAQ:SCWO, FRA:8LL) reported second-quarter revenue of $2.26 million, up roughly 280% from a year earlier, as the company advances plans to scale its supercritical water oxidation technology for destroying PFAS and other organic waste streams across the US.

The increase was driven by the completion of project milestones, most notably the Factory Acceptance Test for the company's system at the Orange County Sanitation District in California.

Gross profit for the quarter came in at $1.98 million, representing an 87% margin, compared with a gross deficit in the same period last year.

Net loss narrowed to $2.7 million, or $0.15 per share, from $4.6 million, or $0.32 per share, a year earlier. Cash used in operations for the first six months of the year fell to $2.3 million from $7.6 million in the comparable 2025 period.

"The second quarter marked an important achievement for 374Water, driven by our successful completion of the OC San Factory Acceptance Test, which enabled us to recognize approximately $2 million in revenue and demonstrate meaningful commercial progress," said Danny Bogar, CEO of 374Water.

"This milestone allows us to begin invoicing the remaining $2.6 million of the OC San contract as we achieve additional contractual milestones and, more broadly, demonstrates that AirSCWO is ready to address the massive and growing biosolids challenge starting in California and extending across the United States."

Looking ahead, delivery of the OC San system to Orange County is scheduled for October, which is expected to unlock the remaining $2.6 million of contract value along with anticipated follow-on installations.

The company's roughly $600,000 deployment in St. Cloud, Minnesota, is nearing completion, with its demonstration program set to wrap up in September.

In Olathe, Kansas, 374Water continues to advance its contracted $4.8 million deployment ahead of launch.

The company also pointed to its expanded relationship with the City of Orlando, where it is building out a Waste Destruction Services facility alongside expanded machine shop, fabrication, electrical panel, and research and development capabilities intended to serve as an engineering hub for future deployments.

"We are simultaneously delivering for our existing commitments, expanding our WDS business to reach more customers, creating durable partnerships that open business pipelines and meet growing demand, and building the infrastructure and capabilities to scale our AirSCWO technology, our services, and our business," Bogar added.

374Water said it has reduced operating costs by approximately $3.2 million on an annualized basis as it prioritizes capital toward commercial deployments and revenue-generating opportunities, while continuing to build out its recurring Waste Destruction Services business model.