LiqTech International, Inc.

Revenue in the second quarter of 2026 was $4.4 million, down 12% from $5 million in the second quarter of 2025. Gross profit was $0.4 million, with gross margin of 8.4%, versus gross profit of $0.5 million and gross margin of 9.8% a year ago. Net loss was $3.1 million, compared with a net loss of $2.2 million in the prior-year quarter, and adjusted EBITDA was negative $1.6 million versus negative $1.3 million. Commercial Pool revenue reached a record $1.5 million, Marine revenue was $0.7 million, DPF and membrane revenue was approximately $1 million, and plastics revenue was about $0.9 million. Full-year 2026 revenue guidance was revised to $20 million to $23 million, mainly because a larger Water for Energy project moved beyond 2026; management still expects strong performance from Commercial Pool, Marine, selected Water for Industry orders, and ongoing DPF/membrane and plastics contributions. Approximately 75% of the $2.1 million steel follow-on order is expected to be delivered by the end of 2026.

Fei Chen framed the quarter as a mix of progress and disappointment: strong execution in Commercial Pool and Marine, but a material delay in Water for Energy. He emphasized a strategic shift toward more standardized, repeatable businesses and more selective, partnership-driven Water for Energy opportunities, while keeping profitability and disciplined capital allocation at the center of the plan. His tone was cautious but constructive, stressing that the company now has a stronger balance sheet and clearer focus, but must prove it can convert that into more predictable revenue and improved profits.

David Kowalczyk highlighted the quarter’s financial profile: revenue of $4.4 million, gross profit of $0.4 million, gross margin of 8.4%, net loss of $3.1 million, and adjusted EBITDA of negative $1.6 million. He said the margin decline reflected product mix and lower factory utilization, partly offset by procurement benefits and lower depreciation, and noted that operating expenses were $2.7 million, up 4% year over year, with roughly 60% of the increase driven by foreign exchange. He also detailed the balance sheet improvement from the June offering, which produced about $18 million in net proceeds and lifted cash and restricted cash to $15.7 million at June 30 from $2.7 million at the end of Q1, while eliminating the senior promissory notes and original issued discount notes. Management said the new capital will support working capital, business development, and focused investments, but cash use will remain disciplined.

Analysts asked where near-term profitability improvements could come from, and management pointed to standardized products, better procurement, China JV sourcing, inventory optimization, production efficiency, quality control, and tighter sales resource allocation. They also asked about QureFlow’s competitive edge versus other systems; Fei Chen said the silicon carbide membrane and continuous-operation design help handle dirty, high-oil wastewater and reduce clogging, and he said the U.S. steel customer had run the system for 10 months before ordering four more units. On Marine, management said iCER, EGR, and scrubber systems can scale through flexible China assembly capacity, and that the company is standardizing the platform to speed future delivery.