Liquidmetal Technologies Reports 9.2% Revenue Decline and Increased Operating Loss in Q1 2026

Liquidmetal Technologies, Inc. reported a decrease in total revenue for the first quarter of 2026, generating $256,000 compared to $282,000 in the same period of 2025, marking a decline of 9.2%. The company's cost of sales also decreased to $179,000, representing 69.9% of total revenue, down from 72.3% in the previous year. Gross profit for the quarter was $77,000, slightly lower than the $78,000 reported in Q1 2025. The company attributed the revenue decline primarily to reduced product shipments, particularly in recurring customer orders and medical device orders.

Operating expenses increased significantly, rising to $1.215 million from $979,000 year-over-year, largely due to higher payroll expenses and costs associated with the company's factory build-out in China. The increase in selling, marketing, general, and administrative expenses accounted for a substantial portion of this rise, with expenses reaching 473.4% of revenue in Q1 2026. The company reported an operating loss of $1.138 million, compared to a loss of $901,000 in the prior year, reflecting a 26.3% increase in losses.

In terms of operational developments, Liquidmetal Technologies continues to focus on its joint venture in Hangzhou, China, aimed at developing a manufacturing facility for amorphous metal products. The company has also entered into a manufacturing agreement with Dongguan Yihao Metal Materials Technology Co. Ltd. to serve as a non-exclusive contract manufacturer for its products. As of March 31, 2026, the company had $7.404 million in cash and restricted cash, alongside $11.757 million in investments in debt securities, providing a total liquidity of $19.161 million.

The company’s net loss attributable to shareholders for the first quarter of 2026 was $765,000, compared to a loss of $568,000 in the same quarter of 2025. This increase in net loss reflects ongoing operational challenges and the impact of increased expenses. Liquidmetal Technologies noted that it expects to continue facing operating losses until it can increase revenues through sustained product shipments and significant licensing revenues.

Looking ahead, Liquidmetal Technologies remains optimistic about its strategic initiatives, including the expansion of its manufacturing capabilities and the potential for new product applications using its proprietary amorphous alloys. The company believes that its current capital resources will be sufficient to fund operations for the foreseeable future, indicating no substantial doubt about its ability to continue as a going concern.