LiqTech International Announces Second Quarter 2025 Financial Results

Rhea-AI Summary

LiqTech International (Nasdaq: LIQT), a clean technology company specializing in filtration technologies, reported Q2 2025 financial results with revenue of $5.0 million, up 11% year-over-year and 7% sequentially.

The company delivered six swimming pool systems worth $800,000 and secured an order from NorthStar BlueScope Steel for an advanced membrane-based filtration system. Ceramics and plastics segments showed strong growth of 31% compared to Q1 2025.

Despite revenue growth, LiqTech reported a net loss of $(2.0) million and decreased gross margins of 9.8%. The company projects Q3 2025 revenue between $3.8-$4.2 million and full-year 2025 revenue of $19.0-$20.0 million, representing 30-37% growth from 2024.

Positive

• Revenue increased 11% year-over-year to $5.0 million in Q2 2025
• Strong growth in ceramics and plastics segments, up 31% sequentially
• Secured new order from major U.S. steel producer NorthStar BlueScope Steel
• Operating expenses decreased by 7.5% year-over-year to $2.6 million
• Projected 30-37% revenue growth for full-year 2025

Negative

• Net loss of $(2.0) million in Q2 2025
• Gross profit margin declined to 9.8% from 16% in Q2 2024
• Manufacturing capacity remains underutilized, impacting profitability
• Decrease in DPF sales affecting overall performance
• One-off write-offs from Middle East project closure impacted margins

Insights

Financial Analyst

LiqTech shows revenue growth but remains unprofitable with improving trajectory and positive outlook for 2025.

LiqTech's Q2 results demonstrate modest improvement with $5.0 million in revenue, an 11% year-over-year increase and 7% sequential growth from Q1. While still operating at a loss of $2.0 million, this represents a slight improvement from the $2.1 million loss in Q2 2024.

The company's gross profit margin declined to 9.8% from 16% in the year-ago period, primarily due to manufacturing capacity underutilization and one-time costs. Excluding $363,000 in one-off expenses, the adjusted margin would have been 14.7%, still below last year's performance.

On the positive side, operating expenses decreased by 7.5% to $2.6 million, with particular improvement in R&D expenses (down 40%). The company maintains a reasonable cash position of $8.7 million.

The revenue diversification is encouraging, with swimming pool systems generating nearly $800,000 in Q2, and ceramics and plastics businesses showing 31% sequential growth. The company's guidance for Q3 ($3.8-4.2 million) and full-year 2025 ($19.0-20.0 million) projects significant year-over-year growth of 52-68% and 30-37% respectively.

While LiqTech is making progress on its strategic initiatives and diversifying revenue streams, the continued losses and gross margin pressure highlight the challenges of scale and manufacturing efficiency. The expected revenue for 2025 would mark a four-year high for the company, potentially indicating a turning point if they can continue to improve operational efficiency.

BALLERUP, Denmark, Aug. 13, 2025 (GLOBE NEWSWIRE) -- LiqTech International, Inc. (Nasdaq: LIQT) ("LiqTech"), a clean technology company that manufactures and markets highly specialized filtration technologies, today announced its financial results for the second quarter of 2025 for the period ended June 30, 2025.

Recent Financial Highlights

• Q2 2025 revenue of $5.0 million, an increase of 11% increase from $4.5 million in Q2 2024, and a sequential increase of 7% from $4.6 million in Q1 2025.
• Q2 2025 net loss of $(2.0) million compared to $(2.1) million in Q2 2024.
• Ending cash balance of $8.7 million on June 30, 2025.
  

Outlook

• The Company expects Q3 2025 revenue to be between $3.8 million and $4.2 million, which would equate to a 52% to 68% increase from Q3 2024.
• The Company expects full year 2025 revenue to be between $19.0 million and $20.0 million which would equate to a 30% to 37% increase from the full year 2024.

Recent Operational Highlights

• Delivered 6 swimming pool systems during Q2 2025 totaling nearly $800,000 in revenue.
• Received an order for the delivery of an advanced membrane-based filtration system to treat oily wastewater from NorthStar BlueScope Steel, a major U.S.-based steel producer. A portion of the order was recognized as revenue during Q2 2205 with the remainder expected to be recognized during Q3 2025.
• A pilot unit was delivered during Q2 2025 to Razorback Direct with a focus on customer testing to an industry outside oil and gas.
• Aftermarket marine sales performance improved driven by new China-based after sales framework agreement.
• Ceramics and plastics experienced strong sequential growth of 31% combined compared to Q1 2025.
  

Management Commentary

"We achieved improved financial performance across the board during the second quarter, including revenue growth, gross margin improvement and decreased operating expenses, as we continued to execute on our key strategic priorities,” commented Fei Chen, CEO of LiqTech. “Specific to the second quarter, we delivered strong performance within our swimming pool markets, delivering six systems totaling nearly $800,000 in revenue. Further, the order flow looks strong as we enter the back half of the year. We also received an order for advanced membrane-based filtration system to treat oily wastewater from a major U.S.-based steel producer and delivered a new pilot unit to our partners at Razorback Direct to address a new end market opportunity. These water system orders, coupled with 31% sequential growth in our ceramic and plastics businesses combined, highlight a successful quarter which was not reliant on any one large order to achieve our previously stated revenue outlook.”

“For the year, our revenue outlook anticipates continued year-over-year improvements in the third and fourth quarters, with full year revenue expected to be at the Company’s highest level in four years dating back to the pandemic. I believe we are well positioned to build upon the success of recent pilot and commercial projects that handle the most challenging liquids across a variety of large-scale applications, while strengthening our commercial position in established markets such as swimming pools, DPFs, ceramics, and plastics,” Chen concluded.

Q2 2025 Financial Results

Revenue for the quarter ended June 30, 2025, was $5.0 million compared to $4.5 million for the same period in 2024, representing an increase of 11%. Sequentially, revenue increased 7% compared to $4.6 million in the first quarter of 2025. The favorable change was attributable to an increase in liquid filtration systems, specifically an uptick in pool system deliveries and aftermarket sales, increased sales of plastics products, and increased sales of ceramic membranes, partly offset by a decrease in deliveries of DPFs. The Company believes that the decrease in sales of DPFs reflects normal business cycle swings, and that a normalization will be seen for the full year.

Gross profit for the quarter ended June 30, 2025, was $0.5 million, reflecting a gross profit margin of 9.8%, compared to $0.7 million, or a gross profit margin of 16% in the same period of 2024. This decline was primarily driven by the continued underutilization of the Company’s manufacturing capacity. Gross profit was further impacted by increased provisions for slow-moving inventory also linked to the lower DPF activity. Finally, one-off write-offs related to the closure of a loss-making project in the Middle East, sales of a pilot unit and currency effects on inventory lowered the margin. Adjusted for these one-off costs of $363,000, the gross profit margin would have been approximately 14.7%.

Total operating expenses for the quarter ended June 30, 2025, were $2.6 million, representing a decrease of $0.2 million, or 7.5%, compared to $2.8 million for the same period in 2024.

Selling expenses for the three months ended June 30, 2025 were $0.8 million compared to $0.9 million for the same period in 2024, representing a decrease of 5.0%. The decrease in selling expenses is mainly related to the release of bad debt provision and lower depreciation. The decrease was partially offset by cost associated with the newly formed joint venture, Nantong JiTRI LiqTech Green Energy Technology Co., Ltd. The primary focus of the JV is to develop and commercialize systems for the marine water treatment market in China.

General and administrative expenses for the three months ended June 30, 2025 were $1.5 million compared to $1.5 million for the same period in 2024. While overall expenses remained stable, an increase in non-cash compensation was offset by a corresponding decrease in salaries. Included in general and administrative expenses were non-cash compensation of $0.2 million for the three months ended June 30, 2025, and 2024, respectively.

Research and development expenses for the three months ended June 30, 2025 were $0.2 million compared to $0.4 million for the same period in 2024, representing a decrease of 40%. The decrease was primarily attributed to one-time exit costs of a loss-making external development project in the comparing period. Additionally, reduction in the average number of employees engaged in research and development activity as the Company streamlined and centralized the R&D function.

Total Other expenses for the three months ended June 30, 2025 were $0.1 million compared to other expenses of $0.0 million for the comparable period in 2024. The change was primarily attributable to lower gain on currency transactions and increased interest expenses partially offset by decreased debt discount amortization.

Net loss for the quarter ended June 30, 2025 was $(2.0) million, compared to $(2.1) million in the prior year.

Cash on hand (including restricted cash) on June 30, 2025 was $8.7 million.

Conference Call Details

Date and Time: Wednesday, August 13, 2025, at 9:00 a.m. Eastern time

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/qE3PwQvBxXG.

Replay: A webcast replay will be available at https://app.webinar.net/qE3PwQvBxXG.

About LiqTech International Inc.

LiqTech International, Inc., a Nevada corporation, is a high-tech filtration technology company that provides state-of-the-art ceramic silicon carbide filtration technologies for gas and liquid purification. LiqTech's silicon carbide membranes are designed to be used in the most challenging purification applications, and its silicon carbide filters are used to control diesel exhaust soot emissions. Using nanotechnology, LiqTech develops products using its proprietary silicon carbide technology, resulting in a wide range of component membranes, membrane systems, and filters for both microfiltration and ultrafiltration applications. By incorporating LiqTech's SiC liquid membrane technology with the Company´s extensive systems design experience and capabilities, LiqTech offers unique, modular designed filtration solutions for the most difficult water purification applications.

For more information, please visit www.liqtech.com 

Follow LiqTech on Linkedln: http://www.linkedin.com/company/liqtech-international 

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
		June 30,				December 31,
		2025				2024
			(Unaudited)
Assets
Current Assets:
Cash and restricted cash		$	8,673,449			$	10,868,728
Accounts receivable, net			4,095,991				2,396,056
Inventories, net			5,514,889				5,541,192
Contract assets			1,140,358				1,666,698
Prepaid expenses and other current assets			367,630				168,443
Total Current Assets			19,792,317				20,641,117
Non-Current Assets:
Property and equipment, net			6,445,062				6,618,822
Operating lease right-of-use assets			4,690,909				4,450,822
Deposits and other assets			505,382				456,658
Intangible assets, net			40,110				39,367
Goodwill			247,626				220,693
Total Non-Current Assets			11,929,089				11,786,362
Total Assets		$	31,721,406			$	32,427,479

LIQTECH INTERNATIONAL, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)
		June 30,				December 31,
		2025				2024
			(Unaudited)
Liabilities and Stockholders’ Equity
Current Liabilities:
Accounts payable		$	1,532,813			$	1,300,966
Accrued expenses			2,698,239				2,491,479
Current portion of finance lease liabilities			522,815				458,347
Current portion of operating lease liabilities			623,766				544,197
Contract liabilities			102,710				109,319
Total Current Liabilities			5,480,343				4,904,308
Non-Current Liabilities:
Deferred tax liability			64,281				57,960
Finance lease liabilities, net of current portion			1,676,281				1,600,931
Operating lease liabilities, net of current portion			4,067,143				3,906,625
Loan from related party, net of current portion			1,167,215				-
Notes payable, net			5,335,911				5,303,563
Total Non-Current Liabilities			12,310,831				10,869,079
Total Liabilities			17,791,174				15,773,387
Stockholders' Equity:
Preferred stock; par value $0.001, 2,500,000 shares authorized, 0 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively			-				-
Common stock; par value $0.001, 50,000,000 shares authorized and 9,614,043 and 9,475,443 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively			9,614				9,475
Additional paid-in capital			109,912,732				109,274,166
Accumulated deficit			(90,770,715	)			(86,267,438	)
Accumulated other comprehensive loss			(5,218,427	)			(6,362,111	)
Total Stockholders' Equity			13,933,204				16,654,092
Noncontrolling Interest			(2,972	)			-
Total Equity			13,930,232				16,654,092
Total Liabilities and Equity		$	31,721,406			$	32,427,479

LIQTECH INTERNATIONAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
		For the Three Months Ended								For the Six Months Ended
		June 30,								June 30,
		2025				2024				2025				2024
Revenue		$	4,957,489			$	4,485,062			$	9,575,030			$	8,720,406
Cost of goods sold			4,472,911				3,767,851				8,965,396				7,732,093
Gross Profit			484,578				717,211				609,634				988,313
Operating Expenses:
Selling expenses			812,568				855,122				1,530,584				1,372,701
General and administrative expenses			1,539,323				1,541,316				2,901,569				3,086,047
Research and development expenses			242,556				407,292				472,679				662,104
Total Operating Expenses			2,594,447				2,803,730				4,904,832				5,120,852
Loss from Operations			(2,109,869	)			(2,086,519	)			(4,295,198	)			(4,132,539	)
Other Income (Expense):
Interest and other income			64,605				45,744				133,356				114,830
Interest expense			(63,466	)			(29,290	)			(111,749	)			(101,009	)
Amortization of debt discount			(84,318	)			(150,591	)			(252,348	)			(296,631	)
Gain (loss) on foreign currency transactions			34,060				84,462				69,576				339,998
Gain (loss) on disposal of property and equipment			(2,158	)			10,344				(63,464	)			(453,233	)
Total Other Expense			(51,277	)			(39,331	)			(224,629	)			(396,045	)
Loss Before Income Taxes			(2,161,146	)			(2,125,850	)			(4,519,827	)			(4,528,584	)
Income tax benefit			(360	)			(14,150	)			(699	)			(28,589	)
Net Loss		$	(2,160,786	)		$	(2,111,700	)		$	(4,519,128	)		$	(4,499,995	)
Net Loss attributable to noncontrolling interest			(8,901	)			-				(15,851	)			-
Net Loss attributable to LiqTech International, Inc.			(2,151,885	)			(2,111,700	)			(4,503,277	)			(4,499,995	)
Loss Per Common Share – Basic and Diluted		$	(0.22	)		$	(0.36	)		$	(0.47	)		$	(0.77	)
Weighted-Average Common Shares Outstanding – Basic and Diluted			9,606,902				5,808,127				9,606,902				5,806,480

FAQ

What was LiqTech's (LIQT) revenue in Q2 2025?

LiqTech reported revenue of $5.0 million in Q2 2025, representing an 11% increase from Q2 2024 and a 7% sequential increase from Q1 2025.

What is LiqTech's (LIQT) revenue guidance for full-year 2025?

LiqTech expects full-year 2025 revenue to be between $19.0 million and $20.0 million, representing a 30-37% increase from 2024.

How much was LiqTech's (LIQT) net loss in Q2 2025?

LiqTech reported a net loss of $(2.0) million in Q2 2025, compared to $(2.1) million in Q2 2024.

What was LiqTech's (LIQT) cash position as of June 30, 2025?

LiqTech had a cash balance of $8.7 million (including restricted cash) as of June 30, 2025.

What major orders did LiqTech (LIQT) receive in Q2 2025?

LiqTech received an order from NorthStar BlueScope Steel for an advanced membrane-based filtration system and delivered six swimming pool systems worth $800,000.