Cadiz Losses Widen to $24.4M Despite Revenue Jump, Secures $51M Tribal Loan

TL;DR

**Cadiz is burning cash and still losing money, but the $51M tribal loan is a make-or-break moment for its water project, so watch for execution.**

AI Summary

Cadiz Inc. (CDZIP) reported a net loss of $7.072 million for the three months ended September 30, 2025, an increase from a net loss of $6.793 million in the same period of 2024. For the nine months ended September 30, 2025, the net loss widened to $24.395 million, up from $22.515 million in the prior year, primarily due to increased professional fees for the Mojave Groundwater Bank project. Total revenues for the three months increased to $4.149 million from $3.224 million, and for the nine months, revenues significantly rose to $11.229 million from $4.858 million, driven by improved profitability from ATEC filter sales. The company's cash and cash equivalents decreased to $4.430 million at September 30, 2025, from $17.292 million at December 31, 2024. Cadiz secured a definitive agreement with Lytton Rancheria of California on October 27, 2025, for an unsecured term loan of up to $51 million to fund the Mojave Groundwater Bank construction. Despite increased losses, the company raised approximately $18.3 million in net proceeds from a direct common stock offering on March 7, 2025, and is focused on developing its water assets to address Southern California's water needs.

Why It Matters

Cadiz's ability to secure a $51 million loan from Lytton Rancheria is a critical lifeline, signaling progress on the Mojave Groundwater Bank, a project vital for Southern California's water security. For investors, this capital infusion, alongside a recent $18.3 million equity raise, temporarily alleviates immediate liquidity concerns, but the persistent net losses and cash burn remain a significant hurdle. Employees and customers of its ATEC water filtration business will see continued operations, while the broader market watches if Cadiz can finally monetize its substantial water assets, potentially impacting regional water supply dynamics and competitive landscapes in the water infrastructure sector.

Risk Assessment

Risk Level: high — Cadiz reported a net loss of $24.395 million for the nine months ended September 30, 2025, and used $12.010 million in cash from operating activities during the same period. Cash and cash equivalents plummeted from $17.292 million at December 31, 2024, to $4.430 million at September 30, 2025, indicating significant cash burn and reliance on external financing for its going concern. The company's accumulated deficit reached $682.436 million, highlighting a long history of unprofitability.

Analyst Insight

Investors should closely monitor the deployment of the $51 million Lytton Agreement funds and the progress of the Mojave Groundwater Bank. Given the high cash burn and persistent losses, a 'wait and see' approach is prudent; only consider investment if tangible milestones and clear paths to profitability emerge from the water project's development.

Financial Highlights

debt To Equity

N/A

revenue

$11.229M

operating Margin

N/A

total Assets

N/A

total Debt

N/A

net Income

-$24.395M

eps

N/A

gross Margin

N/A

cash Position

$4.430M

revenue Growth

+130.2%

Revenue Breakdown

Key Numbers

• $24.395M — Net Loss (9 months) (Increased from $22.515M in 2024, primarily due to professional fees.)
• $11.229M — Total Revenues (9 months) (Significantly up from $4.858M in 2024, driven by ATEC filter sales.)
• $12.010M — Cash Used in Operations (9 months) (Reflects ongoing operating and administrative costs.)
• $4.430M — Cash & Cash Equivalents (Decreased from $17.292M at Dec 31, 2024, indicating high cash burn.)
• $51M — Tribal Investment (Unsecured term loan from Lytton Rancheria for Mojave Groundwater Bank.)
• $18.3M — Net Proceeds from Stock Offering (Raised on March 7, 2025, from 5,715,000 shares at $3.50/share.)
• $682.436M — Accumulated Deficit (Reflects historical losses and ongoing unprofitability.)
• 82,025,586 — Common Shares Outstanding (As of September 30, 2025, up from 75,353,889 at Dec 31, 2024.)

Key Players & Entities

• Cadiz Inc. (company) — registrant
• Lytton Rancheria of California (company) — federally recognized Native American tribe providing capital
• Mojave Groundwater Bank (project) — groundwater storage project
• ATEC (company) — water filtration business
• HHC $ Fund 2012 (company) — lender (Heerema)
• NASDAQ Global Market (regulator) — exchange where CDZI and CDZIP are registered
• $24.395 million (dollar_amount) — net loss for nine months ended September 30, 2025
• $51 million (dollar_amount) — unsecured term loan from Lytton Rancheria
• $18.3 million (dollar_amount) — net proceeds from common stock offering on March 7, 2025
• $4.430 million (dollar_amount) — cash and cash equivalents at September 30, 2025

FAQ

Risk Factors

• Sustained Net Losses and Cash Burn [high — financial]: The company reported a net loss of $7.072 million for Q3 2025 and $24.395 million for the nine months ended September 30, 2025. Cash and cash equivalents decreased significantly from $17.292 million at December 31, 2024, to $4.430 million at September 30, 2025, indicating a substantial cash burn rate.
• Dependence on Future Financing [high — financial]: The company's ability to fund its operations and projects, such as the Mojave Groundwater Bank, relies heavily on securing external financing. The recent $51 million term loan from Lytton Rancheria is crucial, but ongoing capital needs may require further equity or debt issuances.
• Permitting and Regulatory Hurdles [high — regulatory]: Development of water projects like the Mojave Groundwater Bank is subject to extensive environmental reviews, permitting processes, and potential legal challenges. Delays or denials in these areas could significantly impact project timelines and financial viability.
• Project Execution Risk [medium — operational]: The successful development and operation of the Mojave Groundwater Bank are critical to Cadiz's future revenue streams. Any operational issues, cost overruns, or failure to meet water delivery commitments could have severe financial consequences.
• Litigation and Legal Challenges [medium — legal]: The company has historically faced and may continue to face legal challenges related to its projects, particularly concerning water rights and environmental impacts. Adverse legal outcomes could result in significant financial liabilities or operational restrictions.

Industry Context

Cadiz Inc. operates in the water infrastructure and resource management sector, a critical but complex industry facing increasing demand due to population growth and climate change. The company's focus on groundwater banking and water conveyance positions it to address significant regional water scarcity issues in Southern California. However, this sector is characterized by long development cycles, substantial capital requirements, and intense regulatory scrutiny.

Regulatory Implications

Cadiz Inc.'s water projects are subject to a complex web of federal, state, and local regulations, including environmental impact assessments and water rights management. Obtaining and maintaining necessary permits and approvals is paramount, and any delays or adverse decisions could significantly impede project development and financial performance.

What Investors Should Do

1. Monitor progress on the Mojave Groundwater Bank project.
2. Analyze cash burn and future financing needs.
3. Evaluate the sustainability of ATEC filter sales growth.

Key Dates

• 2025-10-27: Definitive agreement for unsecured term loan — Secured up to $51 million from Lytton Rancheria to fund the Mojave Groundwater Bank, providing crucial capital for project development.
• 2025-03-07: Direct common stock offering — Raised approximately $18.3 million in net proceeds, bolstering cash reserves to support operations and development activities.
• 2025-09-30: End of Q3 2025 — Reporting period for the 10-Q, showing increased net loss and revenue growth, with reduced cash reserves.

Glossary

Mojave Groundwater Bank

A project designed to store and convey water in the Cadiz Valley, intended to address water supply needs in Southern California. (Central to Cadiz Inc.'s future revenue generation and strategic focus, but faces significant development costs and regulatory hurdles.)

ATEC filter sales

Sales related to filtration products, which have shown improved profitability and driven revenue growth for Cadiz Inc. (A key driver of the company's recent revenue increase, indicating a positive performance in this segment.)

Accumulated Deficit

The total cumulative net losses of a company since its inception, representing retained earnings that are negative. (At $682.436 million, it highlights Cadiz Inc.'s long history of unprofitability and the significant challenge of achieving sustainable earnings.)

Cash Burn Rate

The rate at which a company is spending its cash reserves, typically used for companies that are not yet profitable. (The significant decrease in cash and cash equivalents from $17.292 million to $4.430 million indicates a high cash burn rate, necessitating careful financial management and continued fundraising.)

Year-Over-Year Comparison

Compared to the prior year's nine-month period, Cadiz Inc. has seen a substantial increase in total revenues, rising from $4.858 million to $11.229 million, primarily driven by improved profitability in ATEC filter sales. However, this revenue growth has been overshadowed by a widening net loss, which increased from $22.515 million to $24.395 million, largely due to higher professional fees associated with the Mojave Groundwater Bank project. The company's cash position has also deteriorated significantly, with cash and cash equivalents dropping from $17.292 million at the end of 2024 to $4.430 million as of September 30, 2025, indicating increased operational spending and investment.

Key Financial Figures

• $0.01 — ch registered Common Stock, par value $0.01 per share CDZI The NASDAQ Global Ma

Filing Documents

• cdzi20250930_10q.htm (10-Q) — 1318KB
• ex_886157.htm (EX-31.1) — 8KB
• ex_886158.htm (EX-31.2) — 8KB
• ex_886160.htm (EX-32.1) — 4KB
• ex_886161.htm (EX-32.2) — 4KB
• 0001437749-25-034647.txt ( ) — 5846KB
• cdzi-20250930.xsd (EX-101.SCH) — 45KB
• cdzi-20250930_cal.xml (EX-101.CAL) — 36KB
• cdzi-20250930_def.xml (EX-101.DEF) — 359KB
• cdzi-20250930_lab.xml (EX-101.LAB) — 293KB
• cdzi-20250930_pre.xml (EX-101.PRE) — 377KB
• cdzi20250930_10q_htm.xml (XML) — 854KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

ITEM 1. Financial Statements Cadiz Inc. Condensed Consolidated Financial Statements Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss for the three months ended September 30, 2025 and 2024 1 Unaudited Condensed Consolidated Statement of Operations and Comprehensive Loss for the nine months ended September 30, 2025 and 2024 2 Unaudited Condensed Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024 3 Unaudited Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2025 and 2024 4 Unaudited Condensed Consolidated Statement of Stockholders' Equity for the three and nine months ended September 30, 2025 5 Unaudited Condensed Consolidated Statement of Stockholders' Equity for the three and nine months ended September 30, 2024 6 Unaudited Notes to the Condensed Consolidated Financial Statements 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 23

Quantitative and Qualitative Disclosures about Market Risk

ITEM 3. Quantitative and Qualitative Disclosures about Market Risk 34

Controls and Procedures

ITEM 4. Controls and Procedures 34

– OTHER INFORMATION

PART II – OTHER INFORMATION

Legal Proceedings

ITEM 1. Legal Proceedings 35

Risk Factors

ITEM 1A. Risk Factors 35

Unregistered Sales of Equity Securities and Use of Proceeds

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 35

Defaults Upon Senior Securities

ITEM 3. Defaults Upon Senior Securities 35

Mine Safety Disclosures

ITEM 4. Mine Safety Disclosures 35

Other Information

ITEM 5. Other Information 35

Exhibits

ITEM 6. Exhibits 36 Cadiz Inc. Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) For the Three Months Ended September 30, ($ in thousands, except per share data) 2025 2024 Total revenues $ 4,149 $ 3,224 Costs and expenses: Cost of sales 3,015 2,409 General and administrative 5,726 5,275 Depreciation 304 307 Total costs and expenses 9,045 7,991 Operating loss ( 4,896 ) (4,767 ) Interest expense, net ( 2,173 ) (2,023 ) Loss before income taxes ( 7,069 ) (6,790 ) Income tax expense ( 3 ) (3 ) Net loss and comprehensive loss $ ( 7,072 ) $ (6,793 ) Less: Preferred stock dividend ( 1,265 ) ( 1,265 ) Net loss and comprehensive loss applicable to common stock $ ( 8,337 ) $ (8,058 ) Basic and diluted net loss per common share $ ( 0.10 ) $ (0.12 ) Basic and diluted weighted average shares outstanding 82,127 68,020 See accompanying notes to the unaudited condensed consolidated financial statements. 1 Cadiz Inc. Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) For the Nine Months Ended September 30, ($ in thousands, except per share data) 2025 2024 Total revenues $ 11,229 $ 4,858 Costs and expenses: Cost of sales 7,758 4,265 General and administrative 20,768 16,310 Depreciation 909 907 Total costs and expenses 29,435 21,482 Operating loss ( 18,206 ) (16,624 ) Interest expense, net ( 6,181 ) (5,883 ) Loss before income taxes ( 24,387 ) (22,507 ) Income tax expense ( 8 ) (8 ) Net loss and comprehensive loss $ ( 24,395 ) $ (22,515 ) Less: Preferred stock dividend ( 3,818 ) ( 3,818 ) Net loss and comprehensive loss applicable to common stock $ ( 28,213 ) $ (26,333 ) Basic and diluted net loss per common share $ ( 0.35 ) $ (0.39 ) Basic and diluted weighted average shares outstanding 80,444 67,598

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View this 10-Q filing on SEC EDGAR