Liqtech International ((LIQT)) has held its Q3 earnings call. Read on for the main highlights of the call.
TipRanks Cyber Monday Sale
- Claim 60% off TipRanks Premium for data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
LiqTech International’s recent earnings call conveyed a cautiously optimistic sentiment, underscored by substantial improvements in revenue and gross margins. The company’s water treatment systems, especially in the swimming pool sector, demonstrated strong performance, contributing significantly to the positive financial outcomes. Despite these gains, challenges such as declining CPF and ceramic membrane sales and a net loss, albeit reduced, were acknowledged. A slight adjustment in revenue guidance due to timing issues added a note of caution to the overall positive outlook.
Revenue Growth
LiqTech International reported a remarkable increase in revenue for Q3 2025, reaching $3.8 million compared to $2.5 million in Q3 2024. This substantial year-over-year growth highlights the company’s successful strategies in expanding its market presence and enhancing its product offerings.
Water Treatment Systems Success
The swimming pool vertical within LiqTech’s water treatment systems achieved its highest quarterly revenue, marking a significant milestone. This success underscores the company’s ability to capitalize on niche markets and drive growth through targeted strategies.
Gross Margin Improvement
A notable improvement in gross margins was recorded, with figures rising to 19.6% in Q3 2025 from a negative 8.5% in the previous year. This positive shift indicates better cost management and efficiency in production processes.
Operational Efficiency
LiqTech’s focus on operational efficiency yielded results, as operating expenses decreased to $2.1 million from $2.4 million in Q3 2024. This reduction reflects the company’s commitment to optimizing its cost structure and enhancing profitability.
Partnerships and Expansion
Strategic expansions in key markets, including the UK, Denmark, and Holland, along with the opening of a new service center in Fort Worth, Texas, were highlighted. These initiatives are expected to bolster LiqTech’s market position and drive future growth.
Strategic Developments in China
LiqTech’s joint venture in China marked a significant achievement by securing two initial orders for marine dual-fuel engine water treatment systems. This development positions the company well in the growing Chinese market.
Decline in CPF and Ceramic Membrane Sales
Sales of CPF and ceramic membranes experienced a decline, totaling $800,000 compared to $1.1 million in Q3 2024. This decrease highlights a challenge that the company needs to address to sustain its growth trajectory.
Net Loss Reported
Despite reporting a net loss of $1.5 million for Q3 2025, this figure represents an improvement from the $2.8 million loss in Q3 2024. The reduction in net loss indicates progress towards achieving financial stability.
Revenue Guidance Adjustment
LiqTech adjusted its revenue guidance for 2025 slightly due to timing issues with purchase orders in the systems business. The company anticipates fourth-quarter revenue between $4.6 million and $5.6 million, with full-year 2025 revenue expected to range between $18 million and $19 million. This guidance reflects a 23% to 30% growth from 2024, showcasing the company’s optimistic outlook for continued expansion.
In summary, LiqTech International’s earnings call painted a picture of a company on the rise, with significant improvements in revenue and gross margins driven by strong performance in its water treatment systems. While challenges remain, the company’s strategic expansions and operational efficiencies provide a solid foundation for future growth. The cautious optimism expressed in the call suggests that LiqTech is well-positioned to capitalize on emerging opportunities and achieve its financial targets.