LiqTech International reported third‑quarter 2025 revenue of $3.8 million, a 54 % increase from $2.5 million in the same period last year. Gross profit rose to $0.7 million, giving a gross margin of 19.6 %, a dramatic turnaround from the 8.5 % negative margin recorded in Q3 2024. Operating expenses fell 12.6 % to $2.1 million, and the company posted a net loss of $1.4 million, a significant improvement over the $2.8 million loss in the prior year. Cash and restricted cash stood at $7.3 million, providing a solid liquidity cushion for ongoing operations.
The revenue surge was driven primarily by stronger demand in the swimming‑pool water‑treatment segment and higher utilization of the company’s silicon‑carbide membrane technology. Cost control initiatives—particularly in raw‑material procurement and manufacturing efficiency—helped lift the gross margin, while the favorable product mix shifted the company from a negative to a positive margin profile.
Margin expansion was further supported by disciplined operating‑expense management. Operating expenses declined in line with revenue growth, and the company’s focus on operational efficiencies reduced overhead costs. The combination of higher‑margin product sales and lower cost per unit allowed LiqTech to convert a previously negative gross margin into a healthy 19.6 % margin, signaling improved profitability prospects.
Management guided for a lower adjusted EBITDA breakeven target of $5.5–$6.0 million in quarterly revenue, bringing the company closer to positive adjusted EBITDA later in 2025. The company also projected Q4 2025 revenue of $4.6–$5.6 million and full‑year 2025 revenue of $18.0–$19.0 million, representing a 23 % to 30 % increase from full‑year 2024. A robust order backlog and continued focus on operational efficiencies were highlighted as key drivers of the positive outlook.
Analysts reacted positively to the results, citing the strong revenue growth, margin turnaround, and improved loss profile. The single analyst covering LiqTech maintained a ‘buy’ rating, reflecting confidence in the company’s trajectory.
Management emphasized that the company’s order backlog remains robust heading into the fourth quarter and reiterated its commitment to operational efficiencies and cost discipline, underscoring the company’s confidence in achieving profitability as revenue and margins continue to improve.
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