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Cadiz Inc. (NASDAQ:CDZI) On The Verge Of Breaking Even

Simply Wall St · 11/05/2025 10:18

With the business potentially at an important milestone, we thought we'd take a closer look at Cadiz Inc.'s (NASDAQ:CDZI) future prospects. Cadiz Inc., together with its subsidiaries, provides water solutions in the United States. The US$431m market-cap company posted a loss in its most recent financial year of US$36m and a latest trailing-twelve-month loss of US$38m leading to an even wider gap between loss and breakeven. The most pressing concern for investors is Cadiz's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

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Cadiz is bordering on breakeven, according to some American Water Utilities analysts. They expect the company to post a final loss in 2024, before turning a profit of US$15m in 2025. The company is therefore projected to breakeven around a year from now or less! How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 67% year-on-year, on average, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

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NasdaqGM:CDZI Earnings Per Share Growth November 5th 2025

We're not going to go through company-specific developments for Cadiz given that this is a high-level summary, though, bear in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

See our latest analysis for Cadiz

Before we wrap up, there’s one issue worth mentioning. Cadiz currently has a debt-to-equity ratio of 165%. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, and the company has considerably exceeded this. Note that a higher debt obligation increases the risk in investing in the loss-making company.

Next Steps:

There are key fundamentals of Cadiz which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Cadiz, take a look at Cadiz's company page on Simply Wall St. We've also compiled a list of key aspects you should further examine:

  1. Historical Track Record: What has Cadiz's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Cadiz's board and the CEO’s background.
  3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.