LiqTech International, Inc.

What they do

LiqTech develops and commercializes advanced ceramic membranes and complete filtration systems for water purification, industrial wastewater treatment, marine scrubber systems, and other liquid-solid separation applications. The company operates from Ballerup, Denmark, and sells globally, with revenue derived from both product sales and system installations. Its technology is marketed as a durable, high-efficiency alternative to polymeric membranes.

Revenue drivers

• Ceramic membrane products — Sales of silicon carbide membranes and membrane elements for water and wastewater treatment applications; a core product line that underpins the company's filtration technology.
• Filtration systems and equipment — Complete, engineered filtration systems, including marine scrubber water treatment units, industrial process water systems, and municipal drinking water solutions; these are higher-value projects that drive revenue when orders are won.
• Service and maintenance — Aftermarket services, spare parts, and membrane replacement for installed systems, providing recurring revenue tied to the installed base of filtration units.
• Geographic and end-market diversification — Revenue spans multiple end-markets (marine, oil & gas, industrial, municipal, and ballast water) and geographies, reducing dependence on any single customer or region.

Recent performance

For fiscal 2025, revenue was $16.5 million, up from $14.6 million in 2024, while the net loss narrowed to $8.5 million from $10.3 million. Quarterly revenue has been stable, with Q2 2026 revenue of $4.4 million compared to $4.1 million in Q1 2026 and $3.8 million in Q3 2025. Operating cash flow remained negative at $-6.1 million for 2025, and the company reported cash of $2.7 million as of March 31, 2026. The balance sheet showed total assets of $37.9 million, total liabilities of $12.1 million, and shareholder equity of $25.9 million at June 30, 2026. Net losses have been persistent, with cumulative losses from 2021 through 2025 totaling over $52 million.

Strategy

Management is focused on commercializing its ceramic membrane technology in high-growth water treatment segments, including municipal drinking water, industrial wastewater, and marine exhaust gas cleaning (scrubber) systems. The company has been pursuing strategic partnerships and distribution agreements to expand market reach and drive order intake. It continues to invest in R&D to improve membrane performance and reduce costs, aiming to make the technology more competitive against conventional membranes. LiqTech has also been managing working capital tightly to address recurring operating cash burn.

Risks

• Recurring losses and cash burn — The company has reported net losses every year from 2021 through 2025, and operating cash flow was negative each year, with cash of only $2.7 million as of March 2026.
• Nasdaq listing compliance — The company received a delisting notice or listing-rule failure notification on July 24, 2026, indicating a potential threat to continued listing on Nasdaq.
• Revenue volatility and order timing — Revenue depends on winning relatively large system orders, which can cause significant quarterly swings, as seen in the range from $3.1 million to $4.4 million over recent quarters.
• Dilution and equity financing — The company engaged in multiple unregistered sales of equity and a direct financial obligation during mid-2026, suggesting reliance on external capital and potential dilution for existing shareholders.

Outlook

Management has not provided specific forward guidance in the filings excerpted. The focus is on increasing order backlog and converting sales pipeline to revenue, particularly in municipal and marine segments. The company remains dependent on additional financing to fund operations and growth, given the current cash position and historical burn rate. Continued execution on cost controls and commercial scale-up is critical to achieving profitability.