0001437749-26-005983
SEC filingLiqTech International reported FY 2025 revenue of $16.5M, a 13.0% increase from $14.6M in FY 2024. Despite revenue growth, the company incurred a net loss of $8.6M, an improvement from a $10.3M net loss in the prior year. Gross profit improved significantly to $1.3M (7.6% margin) from $0.3M (1.7% margin), driven by a more favorable sales mix and increased deliveries of high-margin systems. However, operating losses remained substantial at $8.3M. The company ended the year with $5.1M in cash, down from $10.9M, and negative operating cash flow of $6.1M, raising substantial doubt about its ability to continue as a going concern. Management is implementing cost optimization and evaluating financing alternatives.
LiqTech International reported FY 2025 revenue of $16,507,558, representing a 13.0% increase from $14,604,618 in FY 2024. The company's net loss improved to $8,601,940 from $10,345,258 in the prior year, a 16.9% reduction. Gross profit increased significantly to $1,250,523 (7.6% margin) from $250,905 (1.7% margin), driven by revenue growth and a more favorable sales mix. However, the company continued to experience substantial operating losses of $8,308,700, though this represented a 12.4% improvement from the prior year's $9,487,849 operating loss. The company ended the year with $5,070,385 in cash and cash equivalents, down from $10,868,728, and reported negative operating cash flow of $6,108,176.
Revenue growth was primarily driven by increased deliveries of systems (Pool, Energy & Industry) and components (plastics), partially offset by decreased sales of filters. Systems and Aftermarket revenue increased 48.8% to $8,243,681, driven by increased deliveries of pool filtration systems and water treatment systems for industrial applications. Components revenue increased 21.9% to $4,120,754, mainly related to machine building for the food & beverage industry. Filters and Membranes revenue decreased 28.9% to $4,006,105, primarily due to a strategic refocusing away from automotive diesel particulate filters toward other market segments. Geographically, Europe accounted for 68% of revenue ($11,148,402), Americas 25% ($4,057,487), Asia-Pacific 6% ($1,017,386), and Middle East & Africa 1% ($284,283).
Gross profit margin improved significantly to 7.6% from 1.7% in the prior year, representing a 398.4% increase in gross profit dollars. This improvement was attributed to both revenue growth and a more favorable sales mix with a higher proportion of high-margin products within the Systems segment. However, the company continued to invest in deliveries of containerized oil and gas systems to the U.S., which contributed to lower-than-usual margins as part of a strategic market-seeding initiative. Operating expenses decreased slightly to $9,559,223 from $9,738,754, with selling expenses remaining relatively flat at $2,718,047, general and administrative expenses increasing slightly to $5,677,525, and research and development expenses decreasing to $1,163,651 from $1,352,060.
The company used $6,108,176 in operating cash flow during FY 2025, an improvement from $7,534,072 used in the prior year. Investing activities used $217,930 primarily for purchases of property and equipment. Financing activities provided $719,287, mainly from proceeds from a related party loan of $1,213,801, partially offset by repayments of finance lease liabilities. The balance sheet shows total assets of $27,278,097, with current assets of $15,959,251 including $5,070,385 cash, $3,429,992 accounts receivable, and $6,479,321 inventories. Total liabilities were $16,905,861, including $4,721,463 current liabilities and $12,184,398 non-current liabilities. Stockholders' equity was $10,433,326 with an accumulated deficit of $94,795,121.
The company's financial statements have been prepared under the going concern assumption, but substantial doubt exists about its ability to continue as a going concern due to recurring losses and negative operating cash flow. Management has implemented cost optimization and operational initiatives designed to improve liquidity and support a sustainable path toward profitability. The company continues to evaluate financing alternatives and strategic opportunities to enhance its capital position. Key risk factors include the need for substantial capital investment, dependence on a few major customers (four largest accounted for approximately 30% of net sales), global trade restrictions and tariffs, energy market volatility, and intellectual property protection challenges. The company's strategy focuses on leveraging core competencies in material science and advanced filtration to penetrate attractive end markets with regulatory tailwinds.