374Water Inc. Common Stock (SCWO)

FairStock Score: 21/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett/Graham-style investor, I start with the business and the numbers. 374Water sells AirSCWO systems that use supercritical water oxidation to treat wet wastes, including sewage sludge, biosolids, hazardous waste, and forever chemicals. The problem it addresses is real, but a real problem is not a moat. The filings show a company still seeking commercial proof: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $2.3M and net income was -$2.7M; in fiscal Q1 2026, revenue was $551,155 and net income was -$4.6M. That latest revenue is a sharp step up, but the annual record is discouraging. FY2025 revenue was $215,037 with a net loss of $21.0M; FY2024 revenue was $445,445 with a net loss of $12.4M; FY2023 revenue was $743,952 with a net loss of $8.1M. Revenue has not built a durable base. Trailing free cash flow is -$11.3M, a -24.7% FCF yield against the $45.5M market cap at the 2026-10-13 close. At that close, FairStock calculations show P/B 15.12, ROE -335.45%, ROCE -93.39%, D/E 1.38, Altman Z-Score -3.45, and a FairStock Score of 21/100. The Lynch category is none because the company lost money in each of the last four years. FairStock's Piotroski is 6/9, suggesting some accounting signals are not uniformly poor, but that does not offset the cash burn. At $2.57, the stock is priced for a success that the financials have not yet demonstrated. I would want sustained revenue, improving margins, and a credible path to positive free cash flow before seeing a margin of safety. Today, I see speculation, not value.

In plain English: 374Water sells a system that turns wet waste—such as sewage sludge, food waste and hazardous materials—into recoverable resources. The business looks weak today: it has lost money for years, revenue has been small and uneven, and it burns cash. At $2.57, the price looks expensive compared with the company's assets and cash flow, so the numbers do not yet show a bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer