LiqTech International Announces First Quarter 2025 Financial Results
- Revenue increased 36% sequentially and 9% year-over-year
- Secured record commercial order for PureFlow™ mobile units
- New joint venture in China yielded two marine scrubber orders
- Multiple pilot units operational with extended agreements
- Strong Q2 2025 guidance suggesting 7-16% year-over-year growth
- Net loss remained at $(2.4) million
- Gross profit margin declined to 2.7% from 6.4% year-over-year
- Decreased sales in ceramic membranes and DPFs
- Low margins on full-scale liquid filtration system due to first-time manufacturing costs
- Manufacturing capacity underutilization affecting profitability
Insights
LiqTech shows 36% sequential revenue growth but continued losses amid mixed operational progress and margin challenges.
LiqTech's Q1 results present a mixed financial picture with notable revenue improvements but persistent profitability challenges. The company achieved
Despite the revenue improvement, profitability metrics deteriorated. Gross margin declined substantially from
The
The China joint venture shows early commercial validation with two marine scrubber orders and a new framework agreement for aftersales support. This strategic positioning in China's shipbuilding market represents a potential long-term growth avenue as global maritime regulations drive demand for cleaner fuel technologies.
The diversity of their revenue streams has improved, reducing dependency on any single large order and potentially creating more sustainable growth. However, they must address their manufacturing utilization and margin issues to translate revenue growth into profitability.
BALLERUP,
Recent Financial Highlights
- Q1 2025 revenue of
$4.6 million 36% from$3.4 million 9% increase from$4.2 million - Q1 2025 net loss of
$(2.4) million $(2.4) million - Ending cash balance of
$10.4 million
Outlook
- The Company expects Q2 2025 revenue to be between
$4.8 million $5.2 million 4% to13% sequential increase from Q1 2025, and a7% to16% year-over-year improvement from Q2 2024.
Recent Operational Highlights
- Shipped a record commercial order from Razorback Direct for LiqTech's PureFlow™ mobile units for the North American energy sector. The order was delivered in Q1 2025 and contributed to the strong sequential quarterly growth.
- Joint venture with Jiangsu JiTRI Marine Equipment Co., Ltd. ("JiTRI") to develop and sell silicon carbide ceramic membrane-based water treatment system for marine ships in
China had official opening ceremony on April 14, 2025. Two new marine scrubber orders were received as the result of Joint Venture establishment. These two systems will be delivered in Q4 2025 and Q1 2026, respectively. Further, a newChina -based framework agreement was entered into for aftersales support recently. - Multiple pilot units are currently operational across a variety of addressable end markets, including for lithium brine production pretreatment in the
U.S. and a unit with one of the world's leading integrated energy companies for oil and gas water treatment. Both rental-based agreements have recently been extended with expanded scopes contributing to expected revenue growth in Q2 2025. - Two swimming pool systems delivered during Q1 2025 with three additional orders received over the past few weeks expected to contribute to planned revenue growth in Q2 2025.
- David Kowalczyk was appointed Chief Financial and Operating Officer, effective March 1, 2025.
Management Commentary
"We successfully delivered a record commercial order for our PureFlow™ Mobile Units to the oil and gas industry during the first quarter of 2025 helping drive strong
"We also made significant progress with our
"Our guidance for the second quarter is based on good sales development across a variety of our key products and market verticals and less dependent on any single larger system order. Beyond our pilot unit rental expansions, we are seeing a ramp up in DPF order intakes, an increase in swimming pool systems order, and growth in our plastics, all of which are expected to drive further revenue growth. With improved manufacturing utilization that should drive improved gross margins, and the full effect of our recent cost saving initiatives implemented, we are expected to further improve our profitability metrics," Chen concluded.
Q1 2025 Financial Results
Revenue for the quarter ended March 31, 2025, was
Gross profit for the quarter ended March 31, 2025, was
Total operating expenses for the quarter ended March 31, 2025, were
Selling expenses increase due to a reversal of bonus accruals in 2023 and due to cost associated with the newly formed joint venture Nantong JiTRI LiqTech Green Energy Technology Co., Ltd. The increase was partially offset by decreased bad debt and depreciations.
General and administrative expenses were
Research and development expenses for the three months ended March 31, 2025 were
Total Other expense for the quarter ended March 31, 2025, was
Net loss for the quarter ended March 31, 2025 was
Cash on hand (including restricted cash) on March 31, 2025 was
Conference Call Details
Date and Time: Wednesday, May 14, 2025, at 9:00 a.m. Eastern time
Call-in Information: Interested parties can access the conference call by dialing (833) 535-2206 or (412) 902-6741.
Webcast: Interested parties can access the conference call via a live webcast, which is available in the Investor Relations section of the Company's website at https://www.liqtech.com/investor-relations/ or at https://app.webinar.net/roA9QlO420D.
Replay: A teleconference replay of the call will be available for seven days, at (877) 344-7529 or (412) 317-0088, replay access code 9014836. A webcast replay will be available at https://app.webinar.net/roA9QlO420D.
About LiqTech International Inc.
LiqTech International, Inc., a
For more information, please visit www.liqtech.com
Follow LiqTech on Linkedln: http://www.linkedin.com/company/liqtech-international
Follow LiqTech on Twitter: https://twitter.com/LiqTech
Forward–Looking Statement
This press release contains "forward-looking statements." Although the forward-looking statements in this release reflect the good faith judgment of management, forward-looking statements are inherently subject to known and unknown risks and uncertainties that may cause actual results to be materially different from those discussed in these forward-looking statements. Readers are urged to carefully review and consider the various disclosures made by us in the reports filed with the Securities and Exchange Commission, including the risk factors that attempt to advise interested parties of the risks that may affect our business, financial condition, results of operation, and cash flows. If one or more of these risks or uncertainties materialize, or if the underlying assumptions prove incorrect, our actual results may vary materially from those expected or projected. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this release.
We assume no obligation to update any forward-looking statements to reflect any event or circumstance that may arise after the date of this release.
LiqTech Company Contact
Susan Keegan Elleskov
Head of Marketing
LiqTech International, Inc.
Phone: +45 31315941
www.liqtech.com
LiqTech Investor Contact
Robert Blum
Lytham Partners, LLC
Phone: 602-889-9700
liqt@lythampartners.com
LIQTECH INTERNATIONAL, INC. | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
March 31, | December 31, | |||||||
2025 | 2024 | |||||||
(Unaudited) | ||||||||
Assets | ||||||||
Current Assets: | ||||||||
Cash and restricted cash | $ | 10,447,432 | $ | 10,868,728 | ||||
Accounts receivable, net | 3,440,023 | 2,396,056 | ||||||
Inventories, net | 5,714,955 | 5,541,192 | ||||||
Contract assets | 850,986 | 1,666,698 | ||||||
Prepaid expenses and other current assets | 459,619 | 168,443 | ||||||
Total Current Assets | 20,913,015 | 20,641,117 | ||||||
Non-Current Assets: | ||||||||
Property and equipment, net | 6,451,419 | 6,618,822 | ||||||
Operating lease right-of-use assets | 4,469,577 | 4,450,822 | ||||||
Deposits and other assets | 469,447 | 456,658 | ||||||
Intangible assets, net | 38,885 | 39,367 | ||||||
Goodwill | 228,495 | 220,693 | ||||||
Total Non-Current Assets | 11,657,823 | 11,786,362 | ||||||
Total Assets | $ | 32,570,838 | $ | 32,427,479 | ||||
LIQTECH INTERNATIONAL, INC. | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED) | ||||||||
March 31, | December 31, | |||||||
2025 | 2024 | |||||||
(Unaudited) | ||||||||
Liabilities and Stockholders' Equity | ||||||||
Current Liabilities: | ||||||||
Accounts payable | $ | 1,759,043 | $ | 1,300,966 | ||||
Accrued expenses | 2,554,524 | 2,491,479 | ||||||
Current portion of finance lease liabilities | 486,220 | 458,347 | ||||||
Current portion of operating lease liabilities | 569,436 | 544,197 | ||||||
Contract liabilities | 138,810 | 109,319 | ||||||
Total Current Liabilities | 5,508,033 | 4,904,308 | ||||||
Non-Current Liabilities: | ||||||||
Deferred tax liability | 59,660 | 57,960 | ||||||
Finance lease liabilities, net of current portion | 1,665,330 | 1,600,931 | ||||||
Operating lease liabilities, net of current portion | 3,900,142 | 3,906,625 | ||||||
Loan from related party, net of current portion | 1,120,044 | - | ||||||
Notes payable, net | 5,251,593 | 5,303,563 | ||||||
Total Non-Current Liabilities | 11,996,769 | 10,869,079 | ||||||
Total Liabilities | 17,504,802 | 15,773,387 | ||||||
Stockholders' Equity: | ||||||||
Preferred stock; par value | - | - | ||||||
Common stock; par value | 9,606 | 9,475 | ||||||
Additional paid-in capital | 109,682,187 | 109,274,166 | ||||||
Accumulated deficit | (88,618,830) | (86,267,438) | ||||||
Accumulated other comprehensive loss | (6,013,765) | (6,362,111) | ||||||
Total Stockholders' Equity | 15,059,198 | 16,654,092 | ||||||
Noncontrolling Interest | 6,838 | - | ||||||
Total Equity | 15,066,036 | 16,654,092 | ||||||
Total Liabilities and Equity | $ | 32,570,838 | $ | 32,427,479 | ||||
LIQTECH INTERNATIONAL, INC. | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | ||||||||
For the Three Months Ended | ||||||||
March 31, | ||||||||
2025 | 2024 | |||||||
Revenue | $ | 4,617,541 | $ | 4,235,344 | ||||
Cost of goods sold | 4,492,485 | 3,964,242 | ||||||
Gross Profit | 125,056 | 271,102 | ||||||
Operating Expenses: | ||||||||
Selling expenses | 718,016 | 517,579 | ||||||
General and administrative expenses | 1,362,246 | 1,544,731 | ||||||
Research and development expenses | 230,123 | 254,812 | ||||||
Total Operating Expenses | 2,310,385 | 2,317,122 | ||||||
Loss from Operations | (2,185,329) | (2,046,020) | ||||||
Other Income (Expense): | ||||||||
Interest and other income | 68,751 | 69,086 | ||||||
Interest expense | (48,283) | (71,719) | ||||||
Amortization of debt discount | (168,030) | (146,040) | ||||||
Gain (loss) on foreign currency transactions | 35,516 | 255,536 | ||||||
Gain (loss) on disposal of property and equipment | (61,306) | (463,577) | ||||||
Total Other Expense | (173,352) | (356,714) | ||||||
Loss Before Income Taxes | (2,358,681) | (2,402,734) | ||||||
Income tax benefit | (339) | (14,439) | ||||||
Net Loss | $ | (2,358,342) | $ | (2,388,295) | ||||
Net Loss attributable to noncontrolling interest | (6,950) | - | ||||||
Net Loss attributable to LiqTech International, Inc. | (2,351,392) | (2,388,295) | ||||||
Loss Per Common Share – Basic and Diluted | $ | (0.25) | $ | (0.41) | ||||
Weighted-Average Common Shares Outstanding – Basic and Diluted | 9,602,354 | 5,804,702 | ||||||
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SOURCE LiqTech International, Inc.
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