分组1 - Cadiz reported a quarterly loss of $0.1 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.09, representing an earnings surprise of -11.11% [1] - The company posted revenues of $4.15 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 6.39%, and showing an increase from $3.22 million year-over-year [2] - Over the last four quarters, Cadiz has not surpassed consensus EPS estimates and has topped revenue estimates only once [2] 分组2 - The stock has underperformed, losing about 11.5% since the beginning of the year, while the S&P 500 gained 16.5% [3] - The current consensus EPS estimate for the coming quarter is $0.54 on revenues of $3.9 million, and for the current fiscal year, it is $0.24 on revenues of $14.9 million [7] - The Agriculture - Operations industry, to which Cadiz belongs, is currently ranked in the bottom 21% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Core Insights - Cadiz Inc. is positioned for significant growth in 2026 following critical milestones achieved in 2025, marking it as a watershed year for the company [2][7] Financial Performance - Total revenue for Q3 2025 reached $4.0 million, a 42% increase from $2.8 million in Q3 2024 [4] - Year-to-date revenue for ATEC reached $10.1 million, compared to $3.5 million in the same period of 2024, reflecting strong growth [4] - Total company revenue for the nine months ending September 30, 2025, was $11.2 million, up 131% year-over-year [6] - Operating loss for Q3 2025 was $4.9 million, slightly higher than the $4.8 million loss in Q3 2024 [10] - Net loss for Q3 2025 was $7.1 million, compared to $6.8 million in Q3 2024 [10] - Cash used in operations for the first nine months of 2025 was $12 million, down from $15.3 million in the same period of 2024 [10] Project Developments - The Mojave Groundwater Bank Project secured its first tranche of construction financing through a $51 million investment from the Lytton Rancheria of California [4] - ATEC Water Systems has shipped 308 filtration systems year-to-date, more than double the volume achieved in 2024 [3] - A Memorandum of Understanding (MOU) was executed with EPCOR for the purchase and sale of 25,000 AFY of water supply, with capital contributions expected for the Southern Pipeline construction [4] - An MOU with the U.S. Bureau of Reclamation supports the development of the Mojave Groundwater Bank amid ongoing negotiations for water sharing rules in the Colorado River Basin [4] Operational Efficiency - Gross margin in Q3 2025 was approximately 50%, up from 32% in the prior year, indicating improved production efficiencies [4] - Q3 2025 marked the second consecutive quarter of operating profit for ATEC, confirming strong market adoption [5] Future Outlook - Cadiz is well-positioned to unlock long-term recurring cash flows and deliver sustainable shareholder value as it enters the construction phase of major water supply and storage projects [7]

Financial Performance - The company reported revenues of $4.1 million for the three months ended September 30, 2025, compared to $3.2 million for the same period in 2024, primarily driven by ATEC sales of $4.0 million in 2025 [130]. - The operating loss for the three months ended September 30, 2025, was $4.9 million, slightly higher than the $4.8 million loss in the same period of 2024, attributed to increased professional fees and improved profitability from ATEC [128]. - The company incurred a net loss of $7.1 million for the three months ended September 30, 2025, compared to a net loss of $6.8 million in the same period of 2024 [128]. - Revenue for the nine months ended September 30, 2025, was $11.2 million, up from $4.9 million in the same period of 2024, driven by ATEC sales of $10.1 million compared to $3.5 million in 2024 [138]. - Operating loss for the nine months ended September 30, 2025, was $18.2 million, compared to a loss of $16.6 million in 2024, attributed to increased professional fees and compensation costs [137]. - Cost of sales for the nine months ended September 30, 2025, was $7.8 million, up from $4.3 million in 2024, with ATEC gross margin improving to 44.1% from 31.4% [139]. - General and administrative expenses, excluding stock-based compensation, increased to $16.9 million for the nine months ended September 30, 2025, from $12.7 million in 2024, mainly due to higher legal and consulting fees [140]. ATEC Operations - ATEC's gross margin improved to 49.6% in Q3 2025 from 32.1% in Q3 2024, driven by an increase in filter sales, with 113 filters shipped in 2025 compared to 95 in 2024 [131]. - ATEC operations are expected to be funded using existing capital and cash profits generated from operations during 2025 [162]. Water Supply and Infrastructure - The company has entered into agreements for the purchase of 21,275 acre-feet per year of water supply, representing 85% of the Northern Pipeline's capacity [115]. - The company holds vested water rights allowing the withdrawal of an average of 50,000 acre-feet per year, totaling 2.5 million acre-feet over 50 years [109]. - The company is engaged in the development of the Mojave Groundwater Bank, which aims to provide long-term water supply solutions [117]. - The company has established a new business entity, Mojave Water Infrastructure Company, LLC, to finance the construction of the Mojave Groundwater Bank and associated facilities [119]. - The company expects to receive up to $450 million in equity capital investments for the Mojave Water Infrastructure Company, LLC, with a definitive agreement for $51 million from Lytton Rancheria [120]. - The company has entered into a definitive agreement for a $51 million unsecured term loan to fund the construction of the Mojave Groundwater Bank [155]. Cash Flow and Financing - Cash used in operating activities decreased to $12.0 million for the nine months ended September 30, 2025, from $15.3 million in 2024, driven by reduced working capital needs at ATEC [159]. - Cash used in investing activities increased significantly to $11.3 million for the nine months ended September 30, 2025, compared to $0.5 million in 2024, primarily for securing an option to purchase steel pipeline [160]. - Cash provided by financing activities totaled $13.0 million for the nine months ended September 30, 2025, a decrease from $14.7 million for the same period in 2024 [161]. - The company completed a direct offering in March 2025, raising approximately $20.0 million in gross proceeds from the sale of 5,715,000 shares of common stock [147]. Future Capital Needs - Future working capital needs will depend on measures pursued in the entitlement and development of water supply and storage resources [163]. - Additional capital may be needed for working capital and capital expenditures, influenced by the progress of the Mojave Groundwater Bank and MWI funding [163]. - The company is evaluating cash requirements and may raise funds through equity or debt placements, or asset sales [164]. - Equity placements will be minimized to reduce the dilutive effect on existing stockholders [164]. - Limitations on liquidity and capital raising ability may adversely affect the company [164].

Core Insights - Cadiz Inc. has entered into a definitive agreement with Lytton Rancheria for up to $51 million in capital to fund the Mojave Groundwater Bank project, which is anticipated to be the largest groundwater bank in the Southwest [1][2][3] Financing Details - The agreement follows a Letter of Intent from November 2024 and marks the first tribal investment in the project, contributing to a total equity capital raise of approximately $450 million through Mojave Water Infrastructure Company, LLC [2] - Cadiz can draw unsecured loan proceeds up to $51 million, with initial proceeds of about $15 million expected to reimburse development expenses and further draws planned for equipment deposits necessary for construction in 2026 [3][4] - In connection with the agreement, Cadiz will issue 600,000 shares of common stock as a commitment fee and 25,000 shares per $1 million funded on each draw, all under the effective Form S-3 shelf registration statement [5] Project Overview - The Mojave Groundwater Bank aims to provide a sustainable water supply and storage solution, addressing the impacts of climate change on water access [6] - The project is expected to be funded through a combination of equity investment, municipal debt, and government grants, with an additional $400 million in equity investment currently being sought [4]

Core Points - Cadiz, Inc. has declared a cash dividend of $550.00 per whole share for its 8.875% Series A Cumulative Perpetual Preferred Stock [2] - Holders of depositary shares will receive a cash dividend of $0.55 per depositary share, with the payment scheduled for October 15, 2025 [2] - The record date for the dividend payment is set for October 4, 2025 [2] Company Overview - Cadiz, Inc. is a California-based water solutions company founded in 1983, focusing on providing access to clean, reliable, and affordable water [3] - The company manages 45,000 acres of land in California and has a water supply capacity of 2.5 million acre-feet, along with 220 miles of pipeline assets [3] - Cadiz employs cost-effective water treatment filtration technology to address the impacts of climate change on clean water access [3]

Core Viewpoint - Cadiz Inc. has entered into a partnership with San Bernardino Valley Municipal Water District and Fontana Water Company to address perchlorate contamination in the Rialto-Colton Groundwater Basin, supporting the Cactus Basins Recharge Program aimed at enhancing water supply reliability and quality in San Bernardino County [2][4]. Group 1: Partnership Details - The agreement involves Cadiz providing specialized water filtration systems to Fontana Water Company for perchlorate treatment at their facilities [3]. - This initiative is part of a larger 200,000 acre-foot water supply agreement signed in 2024 between Fontana Water Company and Cadiz [3]. Group 2: Program Objectives - The Cactus Basins Recharge Program is designed to improve water supply reliability and address legacy perchlorate contamination while enhancing groundwater supply benefits for local communities [4]. - The program will utilize imported State Water Project water for recharge, although planning has faced delays due to contamination concerns [6]. Group 3: Regional Water Security Challenges - San Bernardino County is facing threats to long-term water security due to climate-related risks and variability in State Water Project deliveries, necessitating a coordinated approach to water infrastructure investment [4]. - The county aims to maximize local water reuse, recharge groundwater basins, and reduce reliance on imported water [4]. Group 4: Company Background - Cadiz, Inc. is a California water solutions company focused on providing access to clean and reliable water through various supply, storage, pipeline, and treatment solutions [9]. - The company operates the Mojave Groundwater Bank project, which is a significant groundwater storage and supply initiative in the eastern Mojave Desert [9].

Core Insights - Cadiz Inc. is featured in a segment on the public television series Empowered, highlighting the impacts of climate change on water access and the need for infrastructure modernization [1][2][3] - The segment includes insights from Cadiz's CEO Susan Kennedy, emphasizing that access to water will be a significant climate challenge in the next decade [3] - Cadiz aims to provide clean, reliable, and affordable water through innovative solutions, including repurposing idle oil and gas pipelines for water conveyance [1][4] Company Overview - Cadiz, Inc. was founded in 1983 and is dedicated to providing water solutions in California, with 45,000 acres of land and a water supply of 2.5 million acre-feet [4] - The company has 220 miles of pipeline assets and offers cost-effective water treatment filtration technology [4] - Cadiz's mission is to address the impacts of climate change on clean water access through a combination of supply, storage, pipeline, and treatment solutions [4] Media Engagement - The Empowered segment featuring Cadiz will air nationwide starting September 8, 2025, with promotional content also airing on CNBC [1][3] - A full-length version of the segment will be available on Cadiz's website and social media channels, including additional interviews and local footage [3]

Group 1 - Cadiz reported a quarterly loss of $0.11 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.09, representing an earnings surprise of -22.22% [1] - The company posted revenues of $4.13 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 1.17%, compared to revenues of $0.51 million a year ago [2] - Cadiz shares have declined approximately 31.7% since the beginning of the year, contrasting with the S&P 500's gain of 9.6% [3] Group 2 - The earnings outlook for Cadiz is uncertain, and future stock performance will depend on management's commentary during the earnings call [4] - The estimate revisions trend for Cadiz was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] - The current consensus EPS estimate for the upcoming quarter is -$0.09 on revenues of $3.91 million, and -$0.07 on revenues of $15.89 million for the current fiscal year [7] Group 3 - The Agriculture - Operations industry, to which Cadiz belongs, is currently ranked in the bottom 22% of over 250 Zacks industries, which may negatively impact stock performance [8]

PART I – FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=ITEM%201.%20Financial%20Statements) This section presents Cadiz Inc.'s unaudited condensed consolidated financial statements for Q2 and H1 2025, reporting a net loss of **$7.7 million** for Q2 and **$17.3 million** for H1, with notes on accounting policies and financial matters [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Cadiz Inc. reported **Q2 2025 revenues of $4.1 million** (up from **$0.5 million**) with a net loss of **$7.7 million**, while **H1 2025 revenues grew to $7.1 million** (from **$1.6 million**) with a net loss widening to **$17.3 million** | Metric ($ in thousands) | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | **Total revenues** | $4,126 | $513 | +704.3% | | Operating loss | $(5,777) | $(6,949) | +16.9% | | Net loss | $(7,730) | $(8,872) | +12.9% | | Net loss per common share | $(0.11) | $(0.15) | +26.7% | | Metric ($ in thousands) | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | **Total revenues** | $7,080 | $1,634 | +333.3% | | Operating loss | $(13,310) | $(11,857) | -12.3% | | Net loss | $(17,323) | $(15,722) | -10.2% | | Net loss per common share | $(0.25) | $(0.27) | +7.4% | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets increased to **$136.4 million** from **$134.5 million** at year-end 2024, with cash decreasing to **$13.2 million** and stockholders' equity rising to **$35.6 million** due to capital raising | Balance Sheet Item ($ in thousands) | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $13,205 | $17,292 | | Total current assets | $21,039 | $25,786 | | Total assets | $136,379 | $134,494 | | Long-term debt, net | $58,751 | $56,708 | | Total liabilities | $100,813 | $100,533 | | Total stockholders' equity | $35,566 | $33,961 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Cash%20Flows) Net cash used in operating activities significantly decreased to **$5.0 million** in H1 2025 from **$9.9 million** in H1 2024, while investing activities used **$10.8 million** and financing provided **$14.3 million** from stock issuance | Cash Flow Activity ($ in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(5,000) | $(9,936) | | Net cash used in investing activities | $(10,800) | $(467) | | Net cash provided by financing activities | $14,338 | $16,003 | | Net (decrease) increase in cash | $(1,462) | $5,600 | [Condensed Consolidated Statement of Stockholders' Equity](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Stockholders%27%20Equity) Stockholders' equity increased from **$34.0 million** to **$35.6 million** in H1 2025, driven by **$18.3 million** from a direct offering and stock-based compensation, offset by a **$17.3 million** net loss and **$2.6 million** in preferred dividends - In the first half of 2025, the company issued **5,715,000 shares** through a direct offering, resulting in net proceeds of **$18.3 million**[14](index=14&type=chunk) - The accumulated deficit increased from **$(676.1) million** at the end of 2024 to **$(675.4) million** as of June 30, 2025, after accounting for a net loss of **$17.3 million**, preferred dividends, and a reclassification of prior dividends from accumulated deficit to additional paid-in capital[14](index=14&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=10&type=section&id=Unaudited%20Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies, liquidity, segment performance, debt, and stock compensation, highlighting the company's two segments and recent equity offerings to fund operations and development projects - The company incurred a net loss of **$17.3 million** for the six months ended June 30, 2025, and had working capital of **$9.4 million**; management believes it can continue as a going concern through potential equity placements, asset sales, or cost reductions[20](index=20&type=chunk)[27](index=27&type=chunk)[29](index=29&type=chunk) - In March 2025, the company raised approximately **$18.3 million** in net proceeds from a registered direct offering of **5,715,000 shares** of common stock[26](index=26&type=chunk) - The company operates in two reportable segments: Land and Water Resources, which is in a pre-revenue development phase, and Water Filtration Technology (ATEC), which provides the majority of current revenues[37](index=37&type=chunk) - In March 2024, the company entered into a Third Amended Credit Agreement with Heerema, providing a new **$20 million** senior secured convertible term loan and extending existing debt maturity to June 30, 2027[24](index=24&type=chunk)[48](index=48&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's water solutions business, highlighting significant revenue growth in the ATEC segment, which drove overall revenue increases despite a widening operating loss due to increased development costs and stock-based compensation, with ongoing reliance on debt and equity financing [Business Overview](index=25&type=section&id=Business%20Overview) Cadiz Inc. is a water solutions provider with substantial Southern California assets, focusing on developing its Mojave Groundwater Bank, securing **85%** of Northern Pipeline capacity, and establishing MWI to fund **$800 million** in construction costs with **$425 million** in potential equity - The company's asset portfolio includes **2.5 million acre-feet** of water supply, **1 million acre-feet** of groundwater storage, **220 miles** of existing pipeline, and rights for a new **43-mile** pipeline[100](index=100&type=chunk)[102](index=102&type=chunk)[103](index=103&type=chunk) - In 2024, the company entered into agreements with water providers for the purchase of **21,275 AFY** of annual water supply, representing **85%** of the Northern Pipeline's full capacity[108](index=108&type=chunk) - The company is forming Mojave Water Infrastructure Company, LLC (MWI) to fund the approximately **$800 million** construction cost of the Mojave Groundwater Bank and has non-binding letters of intent for up to **$425 million** in equity capital[112](index=112&type=chunk) [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Q2 2025 revenues rose to **$4.1 million** (from **$0.5 million**) with a narrowed operating loss of **$5.8 million**, while H1 2025 revenues grew to **$7.1 million** (from **$1.6 million**), but operating loss increased to **$13.3 million** due to higher development and compensation costs | Segment Performance (in thousands) | Q2 2025 Revenue | Q2 2024 Revenue | Q2 2025 Operating (Loss)/Income | Q2 2024 Operating Loss | | :--- | :--- | :--- | :--- | :--- | | Land and Water Resources | $431 | $350 | $(6,227) | $(6,538) | | Water Filtration Technology | $3,695 | $163 | $450 | $(411) | | Segment Performance (in thousands) | H1 2025 Revenue | H1 2024 Revenue | H1 2025 Operating (Loss)/Income | H1 2024 Operating Loss | | :--- | :--- | :--- | :--- | :--- | | Land and Water Resources | $996 | $986 | $(13,853) | $(11,324) | | Water Filtration Technology | $6,084 | $648 | $543 | $(533) | - The increase in ATEC sales in H1 2025 is attributed to the shipment of **195 filters** compared to **37 filters** in H1 2024[126](index=126&type=chunk) - General and administrative expenses for H1 2025, excluding stock-based compensation, increased to **$11.7 million** from **$8.7 million** in H1 2024, due to higher legal, consulting, and marketing costs[128](index=128&type=chunk) [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) The company relies on debt and equity financing, raising **$40.4 million** from two direct offerings for the Mojave Groundwater Bank, with cash used in operations decreasing to **$5.0 million** in H1 2025, while investing activities increased to **$10.8 million** - Completed a registered direct offering in November 2024 for net proceeds of approximately **$22.1 million**[132](index=132&type=chunk) - Completed a registered direct offering in March 2025 for net proceeds of approximately **$18.3 million**[133](index=133&type=chunk) - In March 2024, the company amended its credit agreement, securing a new **$20 million** convertible term loan and extending the maturity of existing debt to June 30, 2027[139](index=139&type=chunk) - Cash used in operating activities decreased to **$5.0 million** in H1 2025 from **$9.9 million** in H1 2024, driven by lower working capital needs at ATEC[144](index=144&type=chunk) [Outlook](index=34&type=section&id=Outlook) The company has sufficient short-term working capital from recent equity offerings and cash on hand, but requires additional long-term capital for the Mojave Groundwater Bank and other projects, potentially through equity, debt, or asset dispositions - The company has sufficient funds for short-term working capital needs following the March 2025 Direct Offering[147](index=147&type=chunk) - Long-term capital will be needed to finance the Mojave Groundwater Bank, with the timing dependent on MWI funding and reimbursement of development costs[148](index=148&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=35&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) As a smaller reporting company, Cadiz Inc. is not required to provide quantitative and qualitative disclosures about market risk - As a smaller reporting company, the registrant is not required to provide quantitative and qualitative disclosures about market risk[152](index=152&type=chunk) [Controls and Procedures](index=35&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the last fiscal quarter - The Principal Executive Officer and Principal Financial Officer concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[153](index=153&type=chunk) - No material changes to the company's internal control over financial reporting were identified during the last fiscal quarter[154](index=154&type=chunk) PART II – OTHER INFORMATION [Legal Proceedings](index=37&type=section&id=ITEM%201.%20Legal%20Proceedings) No material changes to legal proceedings have occurred since the Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes to legal proceedings have occurred since the last annual report[157](index=157&type=chunk) [Risk Factors](index=37&type=section&id=ITEM%201A.%20Risk%20Factors) No material changes to risk factors have occurred since the Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes to risk factors have occurred since the last annual report[158](index=158&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=37&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This item is not applicable for the current reporting period - Not applicable[159](index=159&type=chunk) [Other Information](index=37&type=section&id=ITEM%205.%20Other%20Information) The company reported no Form 8-K information or nomination process modifications, and no director or officer adopted or terminated a Rule 10b5-1 trading arrangement during H1 2025 - During the six months ended June 30, 2025, no director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement[162](index=162&type=chunk) [Exhibits](index=38&type=section&id=ITEM%206.%20Exhibits) This section lists exhibits filed with the Quarterly Report on Form 10-Q, including CEO and CFO certifications under Sarbanes-Oxley and Inline XBRL financial data files - The report includes certifications from the CEO and CFO as required by Sections 302 and 906 of the Sarbanes-Oxley Act[166](index=166&type=chunk) - Inline XBRL documents are filed concurrently with the report[164](index=164&type=chunk)

Core Insights - Cadiz, Inc. will participate in the 15th Annual ROTH London Conference on June 25-26, 2025, at the Four Seasons Hotel London [1] - The company's Chairman and CEO, Susan Kennedy, will engage in one-on-one meetings with institutional investors during the conference [2] - Cadiz, Inc. is focused on providing clean, reliable, and affordable water solutions, leveraging its extensive resources including 45,000 acres of land and 2.5 million acre-feet of water supply [3] Company Overview - Founded in 1983, Cadiz, Inc. specializes in water supply, storage, pipeline, and treatment solutions [3] - The company possesses 220 miles of pipeline assets and utilizes advanced water treatment filtration technology [3] - Cadiz aims to address the challenges posed by climate change on clean water access through its comprehensive solutions [3]