Nine‑month revenue for Cadiz Inc. rose to $11.23 million, a 131% increase from $4.86 million in the same period last year, while Q3 revenue climbed to $4.15 million, up 29% from $3.20 million in Q3 2024. The earnings beat—$0.10 per share versus a consensus of $0.09—was driven by a 42% jump in ATEC Water Systems revenue, which grew to $10.10 million YTD from $3.50 million a year earlier. Gross margin for ATEC expanded to roughly 50% in Q3 2025 from 32% in Q3 2024, a lift largely attributable to production efficiencies and scale as the company shipped 308 filtration systems—more than double the 2024 volume. However, the company’s net loss widened to $7.10 million in Q3 and $24.40 million for the nine months, reflecting higher operating expenses, investment in the Mojave Groundwater Bank, and financing costs associated with the new capital raise.
ATEC’s performance was the primary engine behind the revenue surge. The segment’s shipment of 308 filters, including the largest contract to the Central Utah Water Conservancy District, drove a $4.00 million increase in Q3 revenue. The margin improvement to 50% indicates that ATEC is successfully leveraging its manufacturing scale and benefiting from favorable pricing in the water treatment market, which has been tightening due to new regulatory standards.
Progress on the Mojave Groundwater Bank has moved from planning to construction. Cadiz secured a $51 million unsecured convertible loan from Lytton Rancheria, a key tribal partner, and is now entering the construction phase of the project. The financing is a critical milestone that positions the company to generate long‑term recurring cash flows in 2026, aligning with management’s goal of turning the bank into a sustainable revenue source.
The company also advanced its green‑hydrogen ambitions at Cadiz Ranch. Supported by the One Big Beautiful Bill Act, RIC Development LLC is in the solar‑to‑hydrogen development phase, with permitting documents expected in early 2026. This initiative expands Cadiz’s portfolio into renewable energy and positions it to capture emerging market opportunities in clean hydrogen production.
CEO Susan Kennedy emphasized that 2025 has been a watershed year, citing the strong momentum in ATEC and the financing milestone for the Mojave project. She noted that the company remains focused on entering the construction phase in 2026 and that additional equity up to $400 million is under diligence to support future capital needs. While the widening net loss signals ongoing investment, the company’s trajectory suggests a strategic shift toward long‑term, recurring revenue streams.
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