Cavitation Technologies Shares Rise 5% in 1 Day Since Financial Results

Net Income YoY

-1,142.5%

Key highlights

• Revenue declined to $0.00 million for FY-26 from $0.20 million in the prior fiscal year
• Net loss widened by 1,142.5% year-over-year to reach $1.40 million
• Gross profit fell to $0.00 million compared to $0.17 million in FY-25
• Diluted earnings per share remained flat at -$0.00 for the reporting period
• The company signed a $35.00 million definitive all-cash tender offer agreement in August 2026

How the Period Went

Cavitation Technologies reported zero revenue for fiscal year 2026, representing a total cessation of top-line activity compared to the $0.20 million generated in FY-25. This downturn is primarily attributed to the company's strategic transition, which involved assigning its core vegetable oil refining patents to Desmet for $880,000 in late 2024. Without active revenue streams from its legacy industrial licensing, the company's net loss expanded significantly to $1.40 million, a 1,142.5% increase from the $0.11 million loss recorded in the previous year. Diluted earnings per share remained unchanged at -$0.00, reflecting the current pre-revenue status of its new business initiatives.

Margins and Profitability

The absence of revenue during the fiscal year resulted in a gross profit of $0.00 million, down from $0.17 million in the prior period. Profitability was further pressured by the costs associated with pivoting the business model toward the Permian Basin water treatment market and consumer beverage technology. The net loss of $1.40 million highlights the capital-intensive nature of the current development phase for the Enviro WaterTek joint venture and the Alchemy Beverages partnership. Operating expenses were not offset by traditional revenue sources, as the company moved away from its previous industrial patent-dependent model to focus on equipment-based solutions.

Business Overview

• Focus shifted from vegetable oil refining to water treatment and alcoholic beverage technology in October 2024.
• Operates the Enviro WaterTek joint venture targeting produced water treatment in the Permian Basin.
• Partnered with Alchemy Beverages, Inc. to market the Barmuze appliance for spirit enhancement.
• Legacy patents assigned to Desmet as part of a $880,000 strategic divestment plan.
• Targeting the specialty industrial machinery sector with a focus on resource efficiency and environmental remediation.

Financial Context

The company's stock, trading at $0.038, reflects a market capitalization of approximately $11.77 million. Technical indicators show a Relative Strength Index of 32.6, suggesting the equity is approaching oversold levels following a 24.0% decline over the past month. Despite the lack of FY-26 revenue, the stock has experienced a 26.67% increase over the last quarter. This market interest follows the August 2026 announcement of a $35.00 million definitive all-cash tender offer agreement with European Guarantee Services, as reported by GlobeNewswire. This external offer provides a significant valuation benchmark compared to the company's current operating financials.

Down 8.7% since our story on 6 Oct: $0.04 when we broke it → $0.03 at the close on 13 Oct. Daily closing prices. Source: Yahoo Finance.

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Industry Landscape

Cavitation Technologies operates within the specialty industrial machinery sector, where demand is increasingly driven by environmental compliance and wastewater management. The company's pivot into the Permian Basin water treatment market aligns with heightened needs for sustainable fluid management in oil and gas extraction. While the transition has temporarily halted revenue, the diversification into beverage technology via the Barmuze appliance offers exposure to the consumer appliances market. This dual-sector approach aims to balance the longer sales cycles of industrial water projects with the retail potential of consumer-facing technology, though the company faces competition from established water remediation and kitchen appliance manufacturers.

Cavitation Technologies, Inc. · financial snapshot

Share price	$0.04
Market cap	$12M
Revenue (annual)	$203,000
P/E (TTM)	inf×
1-month price change	-24.00%
Sector	IndustrialsSpecialty Industrial Machinery

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.