Liquidmetal Technologies Reports $784,000 Revenue Decline and Increased Operating Loss for Fiscal Year 2025

Liquidmetal Technologies, Inc. reported a total revenue of $784,000 for the fiscal year ending December 31, 2025, a decrease of 8.8% from $860,000 in 2024. The decline was primarily attributed to reduced product shipments, particularly in health monitoring rings and medical devices. Despite the revenue drop, the company achieved a gross profit of $230,000, reflecting a gross margin increase to 29.3% from 25.2% in the previous year. This improvement in gross margin was due to a decrease in the cost of sales, which fell to $554,000, or 70.7% of total revenue, compared to $643,000, or 74.8% of total revenue, in 2024.

Operating expenses rose significantly, totaling $3.97 million, or 506.6% of revenue, compared to $3.53 million, or 410.5% of revenue, in 2024. This increase was driven by higher travel, legal expenses, and costs associated with the startup of a joint venture. The company's operating loss widened to $3.74 million from $3.31 million in the prior year. Liquidmetal's net loss for 2025 was $2.34 million, a 55% increase from the $1.51 million loss reported in 2024.

In terms of strategic developments, Liquidmetal has been actively pursuing partnerships and joint ventures to enhance its manufacturing capabilities. Notably, the company formed a joint venture, Hangzhou Feifeng Liquidmetal Co., Ltd., in July 2025, aimed at developing a manufacturing facility in China. This venture is expected to be operational by 2026 and will be capitalized with $6 million, with Liquidmetal holding a 70% stake. Additionally, the company has entered into a manufacturing agreement with Dongguan Yihao Metal Materials Technology Co. Ltd. to outsource production of its amorphous alloy products.

As of December 31, 2025, Liquidmetal had a total of 7 full-time employees in the U.S. and 3 in its manufacturing operations in China. The company continues to focus on research and development, although expenses in this area decreased to $14,000 from $19,000 in 2024. The company anticipates ongoing operating losses until it can increase revenue through sustained product shipments and significant licensing revenues.

Looking ahead, Liquidmetal Technologies remains optimistic about its future, citing its current cash position of $7.16 million and investments in debt securities totaling $12.52 million as sufficient liquidity to support operations. The company plans to continue refining its technology and expanding its market presence, particularly in sectors such as medical devices, automotive components, and non-consumer electronics. However, it acknowledges the challenges posed by lengthy customer adoption cycles and competition from established materials in the market.