10-Q · May 13, 2026
LiqTech continues to face challenges this quarter, with revenue declining to $4.14M, down 10.4% from $4.62M in Q1 2025. Notable improvements were seen in gross profit margins, which increased to 9.5% compared to 2.7%…
Earnings analysis · 10-Q
LIQT earnings analysis
Filed August 12, 2026 · Our reading of the company's report
The latest report
LiqTech’s Q2 revenue declined 12.0% year over year to $4,363,752, while gross margin fell to 8.4% from 9.8% and operating margin deteriorated to negative 53.4% from negative 42.6%; diluted EPS was negative $0.14.…
Read full summary
LiqTech’s Q2 revenue declined 12.0% year over year to $4,363,752, while gross margin fell to 8.4% from 9.8% and operating margin deteriorated to negative 53.4% from negative 42.6%; diluted EPS was negative $0.14. Six-month gross margin improved to 8.9%, but operating losses and cash burn worsened, with $5,037,030 used in operating activities. The $18,106,656 equity financing materially improved cash to $15,655,731 and enabled settlement of $6,000,000 of senior notes, but dilution, persistent material control weaknesses and ongoing dependence on external financing remain significant concerns.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.14
What stood out
-
Systems demand mix remains active
Q2 revenue was $4,363,752, down $593,737, or 12.0%, year over year. Management attributed the decline to a significant 2025 Water for Energy system delivery that did not recur, while Pool and Marine system sales increased.
-
Six-month gross margin improved
Six-month gross profit increased 24.5% to $759,283, and gross margin expanded to 8.9% from 6.4% in the prior-year period. Management cited higher-value system mix, better manufacturing utilization and procurement effects.
-
Capital raise strengthened liquidity
Cash and restricted cash rose to $15,655,731 from $5,070,385 at December 31, 2025, while net working capital increased by $10,131,186 to $21,368,974, primarily following the capital raise.
-
Senior debt was fully settled
The company settled the $6,000,000 senior promissory notes on June 8, 2026: $3,000,000 was exchanged for 3,000,000 common shares and $3,000,000 was repaid in cash. No senior promissory notes remained outstanding at quarter-end.
-
Filters grew on a six-month basis
Filters and Membranes grew six-month revenue 4.2% to $2,348,612 from $2,253,258, despite a 19.9% Q2 decline to $1,041,613. Management also reported increased six-month Filter deliveries.
-
Short-term notes repaid post-quarter
The company reported no remaining obligations under the $1,100,000 short-term promissory notes after repaying them on July 22, 2026, reducing near-term refinancing exposure.
What to watch
-
Cash burn remains elevated
Operating cash flow used was $5,037,030 in the first six months, versus $2,907,836 used in the prior-year period. Accounts receivable increased cash usage by $1,955,382, indicating continued working-capital pressure.
-
Operating losses worsened
Q2 operating loss widened to $2,331,817 from $2,109,869, with operating margin deteriorating to negative 53.4% from negative 42.6%. Total operating expenses rose 4.0% to $2,697,356 while revenue declined 12.0%.
-
Material weaknesses remain
Management disclosed that disclosure controls and internal controls over financial reporting were not effective as of June 30, 2026 due to material weaknesses. The company stated these weaknesses cannot be considered remediated until controls operate for a sufficient period.
-
Customer concentration raises volatility
Customer concentration remains material: Customer A represented 19% of Q2 revenue, while Customers A, B and C represented 13%, 13% and 10% of accounts receivable, respectively, at June 30, 2026.
-
Large equity issuance diluted holders
The company issued 20,000,000 common shares in the June public offering and 3,000,000 shares to cancel debt; shares outstanding increased to 32,947,841 from 9,627,064 at December 31, 2025, creating substantial dilution risk.
-
Macro and geographic exposure persist
The filing states there were no material changes to the risk factors in the 2025 Form 10-K. However, management warned that reduced demand could result from a global recession, regulatory shifts, escalating interest rates and tariffs, and reported that approximately 87% of assets were located in Denmark at June 30, 2026.
Management's outlook
No quantitative revenue or EPS guidance was provided. Management stated that, based on current projections, cash on hand and ongoing cash generated from operations are expected to cover capital requirements and committed investments for the next 12 months, while highlighting significant uncertainty from macroeconomic issues, tariffs, geopolitical instability, commodity prices and supply-chain disruptions.
Earlier filings 4
10-K · February 27, 2026
LiqTech positions itself as a niche clean-tech manufacturer of silicon carbide (SiC) membranes, DPFs and integrated filtration systems with growth focused on industrial water, produced water and marine dual-fuel…
10-Q · November 14, 2024
LiqTech International, Inc. reported a significant decline in performance for Q3 2024, with revenue dropping to $2.48 million from $5.07 million a year ago, representing a year-over-year decrease of 51%. Gross and…
10-Q · August 14, 2024
LiqTech International, Inc. reported a decline in revenue and losses in Q2 2024, missing consensus estimates. Revenue decreased to $4.5 million, down from $5 million in the prior year, with a net loss of approximately…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.