LiqTech International Reports 9% Revenue Growth to $4.62 Million in Q1 2025

LiqTech International, Inc. reported its financial results for the first quarter of 2025, revealing a revenue of $4.62 million, a 9% increase from $4.24 million in the same period last year. The growth was primarily driven by increased sales in liquid filtration systems and plastics products, although this was partially offset by a decline in ceramic membranes and diesel particulate filters (DPFs). The company attributed the decrease in ceramic membrane sales to temporary market conditions, with customers delaying purchases in anticipation of potential interest rate cuts.

Despite the revenue increase, LiqTech experienced a gross profit of $125,056, down 53.9% from $271,102 in the prior year, resulting in a gross profit margin of 2.7%. The decline was largely due to the low margins associated with the delivery of a full-scale liquid filtration system to the U.S., which incurred significant development costs. Additionally, the underutilization of manufacturing capacity due to reduced demand for ceramic membranes and DPFs further impacted profitability.

Operating expenses for the quarter totaled $2.31 million, a slight decrease of 0.3% compared to $2.32 million in Q1 2024. Selling expenses rose significantly by 38.7% to $718,016, attributed to lower sales commissions in the previous year and costs related to the newly formed joint venture, Nantong JiTRI LiqTech Green Energy Technology Co., Ltd., which focuses on marine water treatment systems in China. Conversely, general and administrative expenses decreased by 11.8% to $1.36 million, reflecting a reduction in non-recurring costs from the previous year.

LiqTech's net loss for the first quarter was $2.36 million, a slight improvement from a net loss of $2.39 million in the same period last year. The company reported a loss per share of $0.25, compared to $0.41 in Q1 2024. As of March 31, 2025, LiqTech had cash and restricted cash of $10.45 million, down from $10.87 million at the end of 2024, and net working capital decreased to $15.40 million from $15.74 million.

Looking ahead, LiqTech remains cautious about the macroeconomic environment, including geopolitical tensions and trade restrictions, which could impact its operations and financial performance. The company believes that its current cash reserves and ongoing operational cash flow will be sufficient to meet its capital requirements over the next 12 months. However, it acknowledges the potential for reduced demand for its products due to economic uncertainties and is focused on expanding its market presence and product offerings to mitigate these risks.