374Water Q1 Gross Margin Soars to 63% as PFAS Projects Advance
374Water posted Q1 revenue of $551,155, up from $543,100, while gross margin soared to 63% from 25%, boosting gross profit to $348,412. The company expanded its AirSCWO waste destruction services with a five-year Orlando contract, a $2.2 million milestone payment and mobile PFAS campaigns exceeding 99.9% destruction rates.
1. Q1 Financial Results
374Water posted Q1 revenue of $551,155 versus $543,100 a year earlier, with gross margin rising to 63% from 25%, driving gross profit to $348,412. Net loss widened to $4.57 million from $3.70 million due to commercial investments and financing costs, while operating cash outflows improved 28% to $2.51 million.
2. Expansion of Waste Destruction Services
The company deployed its mobile AirSCWO system in St. Cloud, Minnesota for PFAS-contaminated biosolids treatment and continues to scale municipal, industrial and federal operations. Third-party testing under Department of Defense programs showed PFAS destruction rates often exceeding 99.9%.
3. Key Contracts and Milestones
374Water signed a five-year agreement with the City of Orlando, including two five-year extension options, to build a waste destruction facility set to generate $100,000–$200,000 in monthly revenue. The company also received a $2.2 million milestone payment on an over $4.5 million contract with Garney Construction and the City of Olathe, Kansas.
4. Outlook and Infrastructure Scaling
Management is adding tankage and commercial infrastructure at its Orlando facility and exploring strategic partnerships to accelerate AirSCWO commercial pathways. The company expects to showcase expanded operations later this year and boost recurring service revenues.