The cleantech firm posted a 38-percentage-point year-over-year gross margin improvement despite a wider net loss.
374Water reported Q1 revenue of $551,155, up slightly from $543,100 in the same period last year. Gross margin surged to 63%, or $348,412, compared with 25% in Q1 2025, driven by operational efficiencies and cost controls.
The company’s net loss widened to $4,571,623 from $3,698,414 a year earlier. Management attributed the increase to investments in commercial infrastructure and non-recurring expenses, including $184,000 in capitalized offering costs and $158,000 in Delaware franchise tax.
No immediate market reaction was disclosed in the release.