#United States #Los Angeles #Cadiz Inc #Mojave Groundwater #ATEC Water

Cadiz Inc. Q3 2025 Investor Update

On November 13, 2025, Cadiz Inc. (NASDAQ: CDZI/CDZIP) published significant updates during its investor briefing for Q3 2025. The report outlined essential milestones achieved in the third quarter, as well as strategic plans geared for robust growth into 2026.

Major Milestones and Project Developments

2025 is shaping up to be a critical year for Cadiz, as the company reported solid progress on multiple fronts:

1. Mojave Groundwater Bank Initiative

Cadiz successfully secured its first round of construction financing through an agreement with the Lytton Rancheria of California, a federally recognized Native American tribe. Their investment of $51 million marks the pioneering step in funding for the Mojave Groundwater Bank project. This capital will transition into ownership stakes in the Mojave Water Infrastructure Company (MWI), the newly formed entity set up for the financing and development of pipeline and storage assets.

Additionally, Cadiz finalized a Memorandum of Understanding (MOU) with EPCOR, Arizona's largest private water utility, to supply an annual volume of 25,000 acre-feet of water through the Southern Pipeline. The anticipated agreement is expected to be executed in early 2026, aimed at enhancing water delivery to the Colorado River Aqueduct.

2. Collaboration with U.S. Bureau of Reclamation

Cadiz has also made headway by executing an MOU with the U.S. Bureau of Reclamation, focusing on the Mojave Groundwater Bank's development and exploring water augmentation opportunities concerning the Colorado River. Given the ongoing negotiations among states within the Colorado River basin regarding water sharing, Cadiz is poised to deliver much-needed solutions for water supply and management across the Southwest.

Environmental Compliance and Approvals

Last September, the Fenner Valley Water Authority (FVWA) approved an Addendum to Cadiz's operational permit for the Northern Pipeline, allowing the project to proceed. This approval came as a result of extensive environmental assessments and will play a significant role in the ongoing federal right-of-way process, forecasted to conclude in approximately eight weeks.

The company has also progressed through due diligence stages with private investors aiming to contribute up to $400 million for MWI's construction needs, with an expected closing of the financing in the upcoming quarter.

ATEC Water Systems Success

Cadiz's subsidiary, ATEC Water Systems, is witnessing exceptional growth, having dispatched 308 filtration systems by Q3's end—more than double the volume shipped in all of 2024. In the third quarter, ATEC recorded a 42% increase in revenue, reaching $4 million compared to $2.8 million during the same quarter the previous year. The company's year-to-date revenue is also impressive, hitting $10.1 million.

Hydrogen Production Initiatives

The hydrogen development underway at Cadiz Ranch is garnering substantial backing from local leaders. Recent updates concerning the One Big Beautiful Bill Act have positively influenced the clean hydrogen production credit (45V), propelling RIC Development LLC into active deployment phases for solar resources that will back green hydrogen production initiatives, with expected permitting submissions in early 2026.

Financial Performance

In terms of overall company performance, Cadiz's revenue reached $11.2 million for the first nine months of 2025, representing a remarkable 131% year-on-year increase, largely due to ATEC's contributions:

• - Q3 revenue totaled $4.1 million, compared to $3.2 million in Q3 2024.
• - The operating loss was calculated at $4.9 million, slightly up from the $4.8 million loss noted in Q3 2024.
• - A net loss of $7.1 million for Q3 2025 was recorded, in comparison with a $6.8 million loss for the same timeframe last year.
• - Cash outflow from operations for the initial nine months of this year was $12 million, improving from $15.3 million in 2024.

Looking Ahead

As 2025 concludes, Cadiz is strategically positioned to pivot towards sustainable cash flows, with key construction initiatives set to ramp up. With a solid roadmap forward, Cadiz aims to deliver enduring value to its shareholders and address water supply challenges exacerbated by climate change.

Founded in 1983, Cadiz Inc. is a Californian water solutions provider focused on ensuring reliable access to clean and affordable water. The company's substantial land ownership and diverse water resources place it in a unique position to combat pressing water access issues. For further information, visit Cadiz Inc.'s website.