Cavitation Technologies (CVAT) Q3 2025 Earnings Report

Cavitation Technologies Inc. (CVAT) reported Q3 2025 results with a minimal revenue base of $122,000 and a sizable operating burn. Gross profit stood at $97,000, yielding a robust gross margin of 79.50%, but operating expenses dominated the P&L, producing an EBITDA of -$228,000 and a net loss of -$230,000. The quarterly performance shows a material YoY deterioration in revenue and profitability metrics (revenue down 76.5% YoY; net income down 169% YoY), while a QoQ improvement in revenue of 60.5% from the prior quarter is noted. The company’s balance sheet remains liquidity-positive on a net cash basis, but cash burn from operations (~$248,000) and a tiny revenue run-rate raise sustainability concerns absent additional monetization of Cavitation’s technology platform.

Looking forward, CVAT did not publish explicit guidance in the QQ3 2025 filing. Management commentary would be essential to gauge expectations for commercialization of Nano Reactor and related systems, potential licensing deals, and expansion into adjacent markets (renewable fuels, water treatment, wines/spirits, algae). The near-term investment thesis hinges on (1) converting research and engineering leverage into commercial deployments, (2) achieving meaningful revenue scale to absorb fixed costs, and (3) preserving liquidity to weather a prolonged top-line recovery. Investors should monitor operating cost control, product/market traction, and any material licensing or collaboration announcements that could lift recurring revenue while reducing cash burn.