LiqTech International Announces Second Quarter 2025 Financial Results

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 ElleskovHead of MarketingLiqTech International, Inc.Phone: +45 31315941www.liqtech.com LiqTech Investor Contact Robert BlumLytham Partners, LLC Phone: 602-889-9700liqt@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

LiqTech International Announces Second Quarter 2025 Financial Results

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