CADIZ INC recently released its 10-K report. Cadiz Inc., together with its subsidiaries, provides water solutions in the United States through two segments: Land and Water Resources and Water Filtration Technology. The company supplies water, stores groundwater, conveys water through pipeline assets, and provides filtration services for impaired or contaminated groundwater, while also operating agricultural activities including alfalfa.
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Cadiz said its discussion includes forward-looking statements tied to assumptions about asset value and financing, and it highlighted risks around its ability to secure new funding for working capital needs. The company described a portfolio centered in Southern California that includes 2.5 million acre-feet of water supply rights, 1 million acre-feet of groundwater storage capacity, 220 miles of existing underground pipeline, 43 miles of pipeline right-of-way entitlements, and water filtration technology acquired through ATEC in 2022.
The company’s business model is built around integrated water supply, storage, conveyance, and treatment services for public and private water systems, government agencies, and commercial customers. It said the Mojave Groundwater Bank combines those water assets, and in 2024 it entered agreements for the purchase of 21,275 acre-feet per year of annual water supply to be delivered through the Northern Pipeline over a 40-year term at a market price estimated to start at about $850 per acre-foot in 2024 dollars, subject to annual adjustment.
Cadiz said the full project, including the Northern Pipeline, Southern Pipeline, and related facilities, is currently estimated at $1.5 billion. To help finance that buildout, it formed Mojave Water Infrastructure Company LLC, and in October 2025 it entered into the Lytton Credit Agreement, which may provide up to $51 million in an unsecured loan facility convertible into the Storage Cash Flows Right; the company said this was the first tranche of up to about $451 million in total equity capital being raised through MWI.
For 2025, Cadiz reported total revenue of $16.3 million, up from $9.6 million in 2024. ATEC contributed $14.5 million of 2025 revenue, compared with $7.9 million in 2024, while alfalfa sales contributed $1.4 million in 2025 versus $1.3 million in 2024 and agricultural lease income was $0.4 million in both years.
Cost of sales rose to $11.2 million in 2025 from $7.3 million in 2024. ATEC cost of sales was $7.5 million, producing a 48.4% gross margin, compared with $4.3 million and a 45.5% gross margin in 2024; alfalfa cost of sales increased to $3.7 million from $3.0 million, and Cadiz said the larger alfalfa loss reflected a contractor delay in converting three wells from diesel to natural gas.
General and administrative expenses increased to $29.5 million in 2025 from $24.3 million in 2024. Excluding stock-based compensation, G&A was $24.2 million in 2025 versus $19.7 million in 2024, with the increase attributed mainly to legal and consulting fees tied to the Mojave Groundwater Bank and higher marketing commissions and sales expenses at ATEC. Stock and option compensation totaled $5.3 million in 2025, up from $4.6 million in 2024.
Interest expense increased to $8.6 million in 2025 from $7.9 million in 2024. Cadiz reported a net loss of $34.2 million for 2025, compared with a net loss of $31.1 million in 2024.
By segment, Land and Water Resources generated $1.8 million of revenue in 2025 and posted an operating loss of $28.1 million, compared with $1.7 million of revenue and a $25.0 million operating loss in 2024. Water Filtration Technology generated $14.5 million of revenue in 2025 and posted operating income of $2.5 million, compared with $7.9 million of revenue and $1.7 million of operating income in 2024. Today the company's shares have moved -0.59% to a price of $5.06. Check out the company's full 10-K submission here.
