374Water (SCWO) AI Stock Analysis

184 Followers

374Water

(NASDAQ:SCWO)

Select Model

Rating:41Neutral

Price Target:$2.00▼(-2.44% Downside)

Action:reiterated

Date:11/14/26

The score is driven primarily by severe financial weakness, including sustained losses, heavy cash burn, rising leverage, and equity erosion. Weak technical momentum and an unhelpful negative P/E further limit the outlook, while the governance and share-authorization changes provide only modest support.

Positive Factors

Revenue reboundThe sharp TTM revenue rebound indicates improved commercialization activity and customer adoption of 374Water’s offerings. If sustained, higher sales can provide a broader base for absorbing fixed costs, supporting investment in deployments, and moving the business closer to operating scale.

Negative Factors

Persistent unprofitabilityNegative gross profit and very large operating and net losses show that the current business model has not yet reached economic scale. Continued losses can consume capital, limit reinvestment, and make the revenue rebound less durable unless pricing, project economics, or cost absorption improves.

374Water (SCWO) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $36.13M
Dividend Yield: ―
Average Volume (3M): 42.19K
Price to Earnings (P/E): -1.6
Beta (1Y): 0.44
Revenue Growth: ―
EPS Growth: ―
Country: US
Employees: 48
Sector: Industrials
Sector Strength: 63
Industry: Industrial - Pollution & Treatment Controls

374Water Business Overview & Revenue Model

Company Description

374Water Inc. provides a technology that transforms wet wastes into recoverable resources in the United States. The company transforms wet wastes, including sewage sludge, biosolids, food waste, hazardous and non-hazardous waste, and forever chemical...

How the Company Makes Money

374Water’s revenue model is based on commercializing its SCWO technology through a combination of (a) sale of treatment systems and associated engineering/integration work, (b) recurring service revenue tied to operating, maintaining, and supporting...

374Water Earnings Call Summary

Earnings Call Date:Nov 12, 2025(Q3-2025)|% Change Since:-43.06%|Next Earnings Date:May 14, 2026

Earnings Call SentimentNeutral

The earnings call highlighted significant revenue growth, successful partnerships, and future revenue projections, indicating a positive trajectory. However, these were tempered by increased operating expenses, net loss, and Nasdaq compliance issues, creating a balance between positive progress and financial challenges.

Positive Updates

Revenue Growth

Revenue for Q3 2025 increased to $760,000 compared to $81,000 in the prior year, primarily from waste destruction services.

Negative Updates

Increased Operating Expenses

Total operating expenses increased 64% to $4.6 million in Q3 2025 compared to $2.8 million in the prior year.

Company Guidance

During the 374Water Third Quarter 2025 financial results conference call, the company provided guidance indicating a promising outlook for 2026 with expected revenues between $6 to $8 million, reflecting a 50% to 100% increase over anticipated 2025 revenues. The company is focusing on waste destruction services, capital sales of equipment, and leasing options to drive growth. They reported a significant revenue increase in Q3 2025 to $760,000, up from $81,000 in the prior year, primarily due to a rise in service revenues. Operating expenses rose by 64% to $4.6 million, leading to a net loss of $4.3 million for the quarter. The company also highlighted its cash position, with cash and cash equivalents at $900,000 as of September 30, 2025, bolstered by a $7 million raise from an ATM facility, sustaining operations into Q2 2026. 374Water is actively pursuing additional capital to support strategic growth initiatives and aims for a potential breakeven in operating income by 2027, contingent on the pace of market expansion and deal execution.

374Water Financial Statement Overview

Summary

Revenue growth is strong, but persistent negative margins, large operating losses, approximately $9 million of TTM operating cash burn, rising debt, and declining equity indicate severe financial risk.

Income Statement

18Very Negative

Balance Sheet

42Neutral

Cash Flow

20Very Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.89M	215.04K	445.44K	743.95K	3.02M	48.10K
Gross Profit	-2.61M	-2.35M	-912.71K	-1.11M	336.50K	48.10K
EBITDA	-18.82M	-20.18M	-12.60M	-8.02M	-4.62M	-3.12M
Net Income	-19.96M	-20.98M	-12.43M	-8.10M	-4.69M	-3.16M
Balance Sheet
Total Assets	13.00M	11.41M	19.18M	16.12M	9.92M	12.41M
Cash, Cash Equivalents and Short-Term Investments	1.78M	3.20M	10.65M	10.45M	5.99M	11.13M
Total Debt	4.06M	1.22M	652.70K	0	0	0
Total Liabilities	10.01M	4.68M	3.71M	1.37M	1.66M	86.37K
Stockholders Equity	2.99M	6.72M	15.47M	14.75M	8.25M	12.33M
Cash Flow
Free Cash Flow	-11.25M	-16.22M	-11.24M	-9.15M	-5.15M	-1.84M
Operating Cash Flow	-9.00M	-14.33M	-10.59M	-9.03M	-4.95M	-1.84M
Investing Cash Flow	-2.25M	-1.90M	-653.54K	1.85M	-2.16M	28.34K
Financing Cash Flow	10.88M	8.77M	11.45M	13.58M	25.05K	12.87M

374Water Technical Analysis

Technical Analysis SentimentNegative

Last Price2.05

Price Trends

50DMA2.72Negative

100DMA2.50Negative

200DMA2.58Negative

Market Momentum

MACD-0.11Positive

RSI26.04Positive

STOCH9.89Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SCWO, the sentiment is Negative. The current price of 2.05 is below the 20-day moving average (MA) of 2.39, below the 50-day MA of 2.72, and below the 200-day MA of 2.58, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 26.04 is Positive, neither overbought nor oversold. The STOCH value of 9.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SCWO.

374Water Risk Analysis

374Water disclosed 1 risk factors in its most recent earnings report. 374Water reported the most risks in the "Legal & Regulatory" category.

Legal & Regulatory - Litigation, compliance, new legislation, and taxation risks

Latest Risks Added

0 New Risks

374Water Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

SCWO against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TOMZ	51Neutral	$18.73M	-4.92	-326.60%	―	11.42%	13.68%
FTEK	48Neutral	$42.45M	-9.91	-10.59%	―	15.28%	-32.86%
CLWT	46Neutral	$8.52M	59.22	1.01%	―	-13.77%	-78.34%
CLIR	42Neutral	$15.38M	-2.50	-58.08%	―	82.74%	17.79%
LIQT	42Neutral	$9.34M	-0.35	-59.53%	―	-4.56%	26.50%
SCWO	41Neutral	$38.95M	-1.63	-401.94%	―	―	―

* Industrials Sector Average

Performance Comparison

SCWO and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
SCWO	374Water Inc	2.05	-0.51	-19.92%
CLWT	Euro Tech	1.22	0.04	3.39%
FTEK	Fuel Tech Inc	1.31	-0.48	-26.82%
CLIR	ClearSign Combustion	2.30	-6.03	-72.40%
LIQT	Liqtech International	0.26	-1.65	-86.18%
TOMZ	Tomi Environmental Solutions, Inc.	2.54	0.29	12.89%

374Water Corporate Events

Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and ComplianceShareholder Meetings

374Water Implements Major Share Authorization and Governance Changes

Positive

Sep 30, 2026

On September 25, 2026, 374Water Inc. reconvened its 2026 virtual Annual Meeting of Stockholders after an initial session on September 18 lacked a quorum, ultimately securing sufficient shareholder participation to vote on director elections and key g...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 14, 2026

374Water AI Stock Analysis