LiqTech International (LIQT) investor relations material

Executive summary

• Q2 2026 revenue declined 12% year-over-year to $4.4 million, mainly due to the absence of a large Water for Energy project delivered in 2025 and lower system sales.

• Net loss widened to $3.1 million from $2.2 million in Q2 2025, reflecting lower sales and increased operating expenses.

• Gross margin for Q2 2026 was 8.4%, down from 9.8% in Q2 2025; six-month gross margin improved to 8.9% from 6.4% year-over-year.

• Liquidity improved significantly after an $18 million underwritten public offering in June, with cash and equivalents at $15.7 million and the company nearly debt-free.

• Strategic focus is on standardized, modular platforms, expanding distribution in commercial pool and marine, and shifting toward markets with repeatable demand and shorter sales cycles.

Financial highlights

• Q2 2026 revenue was $4.4 million, down 12% year-over-year; six-month revenue was $8.5 million, down 11.2%.

• Gross profit was $0.4 million (8.4% margin), compared to $0.5 million (9.8%) last year.

• Net loss was $3.1 million, versus $2.2 million in Q2 2025; six-month net loss rose to $5.78 million from $4.52 million.

• Adjusted EBITDA was -$1.6 million, compared to -$1.3 million year-over-year.

• Cash at June 30, 2026 was $15.7 million, up from $5.1 million at year-end 2025, reflecting public offering proceeds.

Outlook and guidance

• Full-year 2026 revenue guidance revised to $20–$23 million, representing 21–39% year-over-year growth, due to delays in a major Water for Energy project.

• Management expects current cash and projected operating cash flows to cover capital requirements for the next 12 months, but notes significant macroeconomic uncertainties.

• Focused on markets with repeatable demand and shorter sales cycles for improved revenue visibility.

• Priorities include gross margin improvement, disciplined spending, and working capital management.