Cadiz Inc. reported total revenue of $4.15 million for the third quarter of 2025, beating the consensus estimate of $3.90 million by $0.25 million, or roughly 6.4%. The company posted a net loss of $7.10 million, translating to an earnings‑per‑share loss of $0.10, which missed the analyst expectation of a $0.09 loss. The revenue beat was driven by a 42% increase in the ATEC Water Systems segment, while the EPS miss reflected higher operating expenses and a one‑time charge related to restructuring costs in the company’s legacy water treatment line.
The ATEC division shipped 308 filtration systems during the quarter, more than double the 2024 volume, and reported revenue of $4.03 million, up 42% from $2.80 million in Q3 2024. Gross margin for ATEC rose to 50% from 32% in the prior year, a result of improved production efficiencies, scale, and a favorable mix of high‑margin commercial contracts. The segment’s strong performance underpins Cadiz’s near‑term profitability and provides a steady revenue stream as the company moves toward construction of the Mojave Groundwater Bank.
Cadiz also announced that it has secured a $51 million investment from the Lytton Rancheria of California, the first tranche of construction financing for the Mojave Groundwater Bank. The partnership, entered into on October 27 2025, marks the transition of the project from planning to the construction phase, with water delivery slated for 2027. The financing provides a critical capital foundation for the public‑private partnership and signals confidence from a major tribal investor in the project’s long‑term viability.
In addition to water infrastructure, Cadiz is expanding its renewable energy portfolio. The company signed a memorandum of understanding with Hoku Energy on June 20 2025 to develop green hydrogen production at Cadiz Ranch, complementing an earlier agreement with RIC Energy. The “One Big Beautiful Bill Act” supports this initiative, positioning Cadiz to generate additional lease revenue and diversify its land‑use strategy.
Management reiterated confidence in the company’s trajectory. CEO Susan Kennedy described 2025 as a “watershed year,” noting that the quarter’s milestones—strong ATEC growth, secured Mojave financing, and hydrogen development—position Cadiz to end the year on track and make 2026 its biggest year yet. While the company remains in a net‑loss position, the guidance for Q4 2025 and FY 2026 reflects optimism about revenue growth and margin expansion, driven by the ATEC segment and the upcoming operational phase of the Mojave project.
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