Cadiz Inc. (CDZI): History, Ownership, Mission, How It Works & Makes Money

As a seasoned investor, have you truly grasped the pivotal role Cadiz Inc. (CDZI) plays in solving the American Southwest's water crisis, especially now that its major projects are finally moving from concept to construction? The company's unique blend of water supply, storage, and filtration technology is finally translating into significant financial momentum, with total revenue for the first nine months of 2025 soaring to $11.2 million-a massive 131% year-over-year increase-driven largely by its ATEC Water Systems subsidiary. Plus, with a recent $51 million strategic investment secured for the Mojave Groundwater Bank, Cadiz Inc. is defintely entering a new, critical phase; you need to understand the mechanics behind this decades-long story to map its near-term risks and opportunities.

Cadiz Inc. (CDZI) History

You're looking for the foundational story of Cadiz Inc., and honestly, it's a long game-a four-decade effort to turn a massive desert water resource into a reliable supply for Southern California. The company's history is less about a quick startup and more about persistent, strategic asset acquisition and navigating complex regulatory hurdles. It all started with a geological discovery, not a business plan.

Given Company's Founding Timeline

Year established

Cadiz Inc. was established in 1983.

Original location

The company is headquartered in Los Angeles, California, but its core assets and origin story trace back to the Mojave Desert, near the unincorporated community of Cadiz, California. The entire business is built on the discovery of the vast aquifer system beneath the Cadiz Valley.

Founding team members

While the initial corporate founding team isn't widely publicized, the origin is credited to hydrogeologist Mark Liggett. In the early 1980s, Liggett's examination of government maps and NASA satellite imagery led to the discovery and confirmation of the massive aquifer under the Mojave Desert, which then launched the company's mission in 1983.

Initial capital/funding

Specific details on the precise initial seed capital from 1983 are not publicly detailed, but the early focus was on acquiring and developing undervalued land and water assets in Southern California. The first major capital infusion came later, when the company went public with its Initial Public Offering (IPO) in 2002, securing funds for its ambitious water project development.

Given Company's Evolution Milestones

Cadiz Inc.'s evolution shows a clear pivot from simply owning land and water rights to becoming a full-suite water solutions provider, including infrastructure and filtration technology. This table maps the key steps in that transformation.

Given Company's Transformative Moments

The biggest shift for Cadiz Inc. has been the move from a pure asset-holding and permitting company to an infrastructure and solutions provider. You can see this in the 2025 fiscal year data, where their subsidiary, ATEC Water Systems, is driving significant revenue growth.

The company's focus has moved from an exclusive, decades-long battle over the Cadiz Water Project to a multi-pronged approach encompassing water supply, storage, and filtration. This is a defintely more resilient business model.

• The Infrastructure Pivot: Acquiring the 220-mile Northern Pipeline was a game-changer. It transformed Cadiz Inc. from a company with a great water source but no delivery mechanism into one with a massive, repurposable asset, allowing them to bypass years of new pipeline permitting.
• The Solutions Diversification: The 2022 acquisition of ATEC Water Systems was smart. It immediately gave them a revenue stream and a way to address a wider market, not just the large-scale water project. For the first nine months of 2025, ATEC's revenue reached $10.1 million, driving the total company revenue to $11.2 million-a 131% increase year-over-year.
• The Mojave Groundwater Bank Financing: The October 2025 deal securing a $51 million investment from the Lytton Rancheria of California is a critical moment. This money is the first tranche of construction financing for the Mojave Groundwater Bank, and it signals a clear path to finally entering the construction phase on major water supply projects. The investment converts into an ownership interest in the new Mojave Water Infrastructure Company (MWI), which is a clear move to de-risk the core assets through strategic partnerships.
• The Arizona Market Entry: Executing a Memorandum of Understanding (MOU) in Q3 2025 with EPCOR, Arizona's largest private water utility, for 25,000 acre-feet per year (AFY) of water supply via the Southern Pipeline is a major expansion. It moves Cadiz Inc. beyond California and into the broader American Southwest water market.

This strategic evolution provides the necessary context for understanding the company's current operations and future potential, including its Mission Statement, Vision, & Core Values of Cadiz Inc. (CDZI).

Cadiz Inc. (CDZI) Ownership Structure

Cadiz Inc. operates with a mixed-ownership structure, which is typical for a publicly traded company, but its governance is heavily influenced by a significant insider stake. This setup means that while institutional investors hold the largest single block, a major private company and the executive team retain substantial control over strategic decisions and the company's long-term focus on water solutions.

Cadiz Inc.'s Current Status

Cadiz Inc. (CDZI) is a publicly traded company, with its common stock listed on the NASDAQ exchange under the ticker symbol CDZI. This status requires the company to comply with strict reporting and transparency requirements set by the Securities and Exchange Commission (SEC), which is why we have access to the latest Q3 2025 financial data. As of the end of the third quarter of 2025, the company reported total long-term debt of $60.3 million, with stockholders' equity at $27.7 million. The company is focused on unlocking long-term recurring cash flows as it moves into the construction phase of its major water supply and storage projects.

Cadiz Inc.'s Ownership Breakdown

The company's ownership is split across three main categories of shareholders, as of the most recent data near November 2025. This breakdown shows a high concentration of shares held by institutional funds and insiders, which you should defintely note when evaluating stock liquidity and potential activist pressure.

Cadiz Inc.'s Leadership

The leadership team at Cadiz Inc. brings a deep background in California policy, utility regulation, and infrastructure development. Their combined experience is critical for navigating the complex regulatory environment surrounding their water projects, particularly the Mojave Groundwater Bank. You can review their strategic goals in detail on the Mission Statement, Vision, & Core Values of Cadiz Inc. (CDZI).

The current executive team steering the company as of November 2025 includes:

• Susan Kennedy: Chairman and Chief Executive Officer (CEO). She was appointed CEO in January 2024 and previously served as a Commissioner of the California Public Utilities Commission (CPUC).
• Stan Speer: Chief Financial Officer (CFO). He provides financial and strategic solutions, bringing experience from global professional services firms.
• Cathryn Rivera: Chief Operating Officer (COO). Appointed in September 2024, she is an expert in policy development and crisis management, having served four California governors.
• Courtney Degener: Senior Vice President, Communications & External Relations.

The average tenure for the current management team is about 1.8 years, which suggests a relatively recent restructuring of the core leadership to align with the company's shift toward project execution and scaling operations. This is a team built for the upcoming construction phase.

Cadiz Inc. (CDZI) Mission and Values

Cadiz Inc.'s mission and values are fundamentally centered on solving the critical water scarcity challenge in the American Southwest through sustainable resource management and innovative infrastructure. This commitment goes beyond simple profit, focusing on providing clean, reliable, and affordable water to communities.

The company's core purpose is to sustainably deliver clean, affordable water to people who need it, a goal that informs every strategic decision, including the Q3 2025 financial update that showed total company revenue reaching $11.2 million for the first nine months of the year, a 131% year-over-year increase driven by its water filtration technology segment (ATEC).

Cadiz Inc.'s Core Purpose

Cadiz Inc. is a water solutions innovator, acting as a private sector partner to governments and utilities to improve water access and equity. This is a long game, and the company is defintely playing it, as evidenced by the $51 million investment secured in Q3 2025 from the Lytton Rancheria of California to fund the Mojave Groundwater Bank.

Official Mission Statement

The company's mission is to support communities that lack reliable access to clean, affordable water, which is essential for economic growth and an equitable quality of life.

• Improve California's water transportation network.
• Deliver sustainable water supply and storage solutions.
• Cultivate sustainable farming opportunities on its land holdings.
• Create value for shareholders through responsible and innovative projects.

Here's the quick math: managing the 2.5 million acre-feet of water supply and 220 miles of pipeline assets is a huge responsibility tied directly to this mission.

Vision Statement

Cadiz Inc. envisions a future where water scarcity is mitigated through innovative and sustainable solutions, positioning the company as a leader in resource management in the Southwest.

• Be a leader in sustainable water resource management.
• Develop and implement innovative solutions to water scarcity challenges.
• Foster collaborative relationships with stakeholders for long-term sustainability.

What this estimate hides is the long-term goal of developing a groundwater storage capacity of 300,000 acre-feet to reduce water supply volatility in Southern California.

Cadiz Inc. Slogan/Tagline

While Cadiz Inc. does not use a single, formally declared, short slogan in its latest investor materials, its central message is clear and often summarized by: Mission Statement, Vision, & Core Values of Cadiz Inc. (CDZI).

• Delivering Clean, Reliable, Affordable Water for People.

Also, the company's purpose is often stated as: Our purpose is to sustainably deliver clean affordable water to people who need it.

Cadiz Inc. (CDZI) How It Works

Cadiz Inc. operates as a water solutions company in the U.S., primarily focused on developing and managing water supply, storage, and conveyance infrastructure in California's arid regions, plus selling advanced water filtration technology. The company's value creation is currently driven by its subsidiary, ATEC Water Systems, which generated $10.1 million in revenue for the first nine months of 2025, while the larger infrastructure projects move into the construction and financing phase.

Given Company's Product/Service Portfolio

Given Company's Operational Framework

You're looking at a two-pronged operational model: a high-growth product sales business and a capital-intensive infrastructure development business. The ATEC Water Systems subsidiary provides immediate, high-margin revenue, with a Q3 2025 gross margin of approximately 50%. This helps fund the corporate overhead while the major projects are being finalized.

The core infrastructure operations center on the Cadiz Ranch property, which spans 45,000 acres in the Mojave Desert. Here's the quick math on their long-term plan:

• Water Sourcing: Extracting an estimated 50,000 acre-feet of groundwater annually from the Cadiz Valley aquifer.
• Conveyance & Storage: Utilizing the existing 220 miles of pipeline (Northern and Southern Pipelines) to move the water to market and bank (store) imported water underground.
• Financing: Establishing the Mojave Water Infrastructure Company (MWI), a separate entity to finance, construct, and own the pipeline and storage assets. This structure is designed to attract large-scale private infrastructure capital.
• Emerging Initiative: Developing a green hydrogen project at Cadiz Ranch, leveraging the land and access to pipeline infrastructure for future energy revenue streams.

What this estimate hides is the significant capital needed; they are in the final stages of diligence for up to $400 million in MWI equity capital to fund construction, plus the initial $51 million investment from Lytton Rancheria secured in Q3 2025. If onboarding takes 14+ days, churn risk rises. For a deeper dive into the numbers, check out Breaking Down Cadiz Inc. (CDZI) Financial Health: Key Insights for Investors.

Given Company's Strategic Advantages

Cadiz Inc.'s market success hinges on owning and controlling irreplaceable, strategically located assets in a water-scarce region, plus having a defintely scalable product business.

• Massive Water Assets: Ownership of 45,000 acres of land and vested rights to a significant, drought-resilient water supply in a region with chronic water scarcity.
• Infrastructure Control: Control over 220 miles of existing, underutilized pipeline right-of-way, which drastically cuts down on the time and cost for new construction permits compared to competitors.
• Proprietary Technology: The ATEC Water Systems subsidiary offers a proven, cost-effective water treatment and filtration solution, providing an immediate revenue stream and a competitive edge in cleaning impaired water sources.
• Strategic Partnerships: Securing a $51 million initial investment from the Lytton Rancheria and executing a Memorandum of Understanding (MOU) with EPCOR for the sale of 25,000 acre-feet per year (AFY) of water via the Southern Pipeline shows clear market validation and de-risks the major projects.

Their long-term play is to transition from a land-holding company to a fully operational water utility, which is a huge shift.

Cadiz Inc. (CDZI) How It Makes Money

Cadiz Inc. primarily makes money through two distinct, though currently imbalanced, segments: the sale of proprietary water filtration technology and, to a much smaller degree, revenue from its land and water resources, while its major asset-the Mojave Groundwater Bank-remains in the critical, capital-intensive development phase.

The company's current financial engine is its ATEC Water Systems subsidiary, which provides a steady, growing cash flow from water treatment products while the long-term, high-value water conveyance and storage projects are being financed and built. This is a classic development-stage company model: fund the future with a profitable side business.

Cadiz Inc.'s Revenue Breakdown

Looking at the third quarter of 2025, the revenue picture is clear: the Water Filtration Technology segment is the primary source of sales, accounting for nearly all of the company's top line. Here's the quick math on the $4.15 million in total revenue for Q3 2025.

The Water Filtration Technology segment, or ATEC, delivered $4.03 million in Q3 2025 revenue, representing a strong 42% increase year-over-year, which is defintely a bright spot. The Land & Water Resources segment, which includes agricultural operations and small land leases, contributed the remaining $115,000 in the quarter.

Business Economics

The company operates with a dual economic model: a high-growth, transactional technology business (ATEC) and a long-term, high-barrier-to-entry infrastructure development business (Mojave Groundwater Bank). This structure is complex because the majority of the company's valuation is tied to the asset that is not yet generating significant revenue.

• ATEC's Margin: The Water Filtration Technology segment operates with a gross margin of approximately 50%, which is a healthy figure for a product-based technology business and helps cover a portion of the corporate overhead.
• Water Project Pricing: The future revenue from the Mojave Groundwater Bank will be based on long-term water sales agreements with public water systems, like the Memorandum of Understanding (MOU) with EPCOR for 25,000 acre-feet per year (AFY). These contracts typically involve a fixed capacity charge plus a variable volume charge, providing predictable, utility-like revenue once operational.
• Capital Intensity: The core water project is highly capital-intensive. The recent $51 million investment from Lytton Rancheria of California is the first tranche of construction financing for the Mojave Water Infrastructure Company (MWI), which will build and own the pipeline and storage assets. This indicates a heavy reliance on external financing to reach the revenue-generating stage.
• Market Position: The value proposition is simple: a new, reliable water supply in drought-prone Southern California, where the demand for water is inelastic (meaning it doesn't change much with price). This gives the water project significant pricing power once it's fully operational.

For a deeper dive into the long-term strategic goals, you should review the Mission Statement, Vision, & Core Values of Cadiz Inc. (CDZI).

Cadiz Inc.'s Financial Performance

As of November 2025, the company's financial performance reflects a business in transition-strong revenue growth from a subsidiary but continued net losses due to significant development costs. For the first nine months of 2025, total revenue reached $11.2 million, a jump of 131% year-over-year, largely due to ATEC's performance. Still, the company is not profitable yet.

• Net Loss: The net loss for the nine months ended September 30, 2025, was $24.4 million, which is an increase from the $22.52 million loss in the prior year period. This widening loss is a direct result of increased operating expenses, including legal and consulting fees tied to developing the Mojave Groundwater Bank.
• Profitability Ratios: Key metrics highlight the development-stage nature of the business. The company has a negative net margin of 217.49% and a negative Return on Equity (ROE) of 97.55% as of the third quarter 2025, underscoring the severe pressure on profitability.
• Debt and Liquidity: The balance sheet as of September 30, 2025, shows total long-term debt of $60.3 million, including $40.4 million in convertible debt. This results in a high debt-to-equity ratio of 2.40, which is typical for a company funding major infrastructure development with debt and equity raises.
• Cash Flow: Cash used in operations for the first nine months of 2025 was $12 million, a reduction from $15.3 million in the same period in 2024, primarily due to the improved performance of ATEC. That's a solid step in the right direction for cash management.

The core takeaway is that while the ATEC business is performing well, the company's financial health hinges on successfully completing and commercializing the multi-billion-dollar Mojave Groundwater Bank project.

Cadiz Inc. (CDZI) Market Position & Future Outlook

Cadiz Inc. is at a critical inflection point in late 2025, transitioning from a land and water asset-holding entity to an operational water infrastructure and technology provider. While its current market share in the vast U.S. water utility sector is negligible, the company is positioned for a massive revenue jump in 2026 as its Mojave Groundwater Bank project moves into the construction phase and its ATEC Water Systems division continues its explosive growth.

The core business is shifting from pure resource ownership to a service model, which is defintely a smarter way to capture recurring cash flows.

Competitive Landscape

You need to understand that Cadiz Inc. does not compete directly with the major regulated utilities on a customer-by-customer basis yet. Instead, it competes for large-scale water supply and treatment contracts, and its market share is currently dominated by its ATEC technology sales.

Opportunities & Challenges

The company's future hinges on its ability to execute its major infrastructure projects and capitalize on the growing need for water reuse and purification technology.

Industry Position

Cadiz Inc. is not a traditional water utility; it is a water resource and infrastructure developer. Its position is unique because it owns the resource-2.5 million acre-feet of water supply and 45,000 acres of land-and the infrastructure corridor, which includes 220 miles of pipeline assets.

The ATEC Water Systems subsidiary is the current revenue driver, with its gross margin hitting approximately 50% in Q3 2025. This technology focus gives it a niche edge in the growing water treatment market, especially for emerging contaminants like PFAS.

The company is strategically leveraging its assets to pivot to a high-margin, recurring revenue model. They are on track to complete the Northern Pipeline by the end of 2026 and the Southern Pipeline by the end of 2027, which will be the real test of their long-term value proposition. You can learn more about their strategic goals in their Mission Statement, Vision, & Core Values of Cadiz Inc. (CDZI).

Here's the quick math: Total company revenue for the first nine months of 2025 was $11.2 million, with ATEC contributing the majority. This shows the immediate value is in the technology, but the massive future upside is tied to the successful construction and operation of the Mojave Groundwater Bank, which is now funded with an initial $51 million tranche.