Cadiz, Inc. (CDZI)
NASDAQUtilitiesRegulated WaterSnapshot 2026-09-04
$4.17+3.99%
Close 2026-09-04 · 1-day change
NASDAQUtilitiesRegulated WaterSnapshot 2026-09-04
Broken: Primary pillar broken — Improve cash from operations from negative $5.5M in 2026-Q1: OCF -$5.5M vs target >-$2.0M.
Cadiz aims to grow revenue by about 82% next year. Management targets robust baseline order growth and reducing net losses from negative $8.6M in 2026-Q1. The company has a new COO and strategic partnerships to support growth. If cash burn improves from negative $5.5M in 2026-Q1, liquidity will strengthen.
Cadiz remains loss-making with operating income negative $6.8M in 2026-Q1. Cash flow from operations is still negative $5.5M, showing no clear progress. The recent 20% stock drop reflects market doubts about turnaround success and growth sustainability.
The market prices in about 82% revenue growth next year but also reflects elevated risk from ongoing losses. Our fair value near $0.70 suggests limited upside given persistent negative cash flow and volatile management.
Breaks if: cash flow remains below -$5M next 4 quarters
Breaks if: net losses worsen or remain below -$8M next 4 quarters
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a turnaround situation. The current thesis state is cautious, as the company is experiencing volatility in management and financial results, which raises concerns about its future performance.
The market appears to be pricing in a high level of fragility, with an expensive valuation compared to peers. There is an expectations gap indicating that investors may have overly optimistic views about CDZI's potential.
Fundamentals are likely to remain under pressure in the near term, as the company has reported increasing operating losses and negative cash flow. Management's focus on growth and project development is mixed, with some priorities on track while others lag behind.
The long-term thesis hinges on several factors, including the company's ability to manage cash flow and reduce losses, the impact of potential interest rate cuts by the Fed, and performance trends in the broader Utilities sector.
The most important moves since the prior daily snapshot.
Yes, our read has weakened. The company missed earnings by $0.02 and revenue fell short. This indicates ongoing cash flow management issues. The recent financial performance remains weak, which adds to the concerns.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Focus on improving operating income and reducing net losses through operational efficiencies and project execution.
Breaks if: YoY revenue growth falls below 50% in FY26
Continue accelerating growth in baseline orders for ATEC Water Systems and expand recurring water treatment business.
Newly stated in 2026-Q1. Management highlighted 74% growth in baseline orders in 2025 and expects robust growth to continue in 2026 and beyond. Revenue trends for ATEC are not separately reported, but the company reported record production and revenues in 2025. The trajectory is consistent with management's stated growth expectations.
“We expect robust growth in baseline orders to continue in 2026 and beyond.”
In the next 1 to 3 years, CDZI's outlook remains uncertain due to its current challenges and high risk. Not investment advice.