LiqTech posts $4.1m Q1 revenue, reiterates 2026 growth target

LiqTech International, the Nasdaq-listed Danish maker of silicon carbide filtration systems, reported first-quarter 2026 revenue of $4.1 million, down 10% year-on-year from $4.6 million in Q1 2025. The decline reflected the absence of a large one-off Water for Energy delivery that had boosted the prior-year quarter rather than any broad deterioration in demand. The company reiterated its full-year 2026 revenue guidance of $23 million to $27 million — a range that would represent 39% to 64% growth over full-year 2025.

Net loss for the quarter widened modestly to $2.7 million from $2.4 million, while adjusted EBITDA (earnings before interest, tax, depreciation and amortisation, adjusted for stock-based compensation) came in at negative $1.5 million versus negative $1.4 million in Q1 2025. Gross profit margin improved markedly, rising to 9.5% from 2.7% a year earlier, which the company attributed to a more favourable product mix, better manufacturing utilisation, and procurement savings. Cash on hand stood at $2.7 million as of 31 March 2026, down from $5.1 million at the end of December 2025.

Segment performance

Commercial pool filtration emerged as a standout performer, with deliveries of $0.8 million against $0.3 million in Q1 2025. New orders in the quarter included a first US installation for three systems at a school-district aquatic centre in Wyoming, a large-scale project in the Netherlands in partnership with Lotec, and a follow-on order for ten systems for a leisure centre in Victoria, Australia, placed through distributor Waterco. The marine segment also strengthened, with two systems delivered for water treatment on liquefied natural gas (LNG) dual-fuel vessels; two more deliveries are expected in Q2. Marine revenue reached $0.8 million, quadrupling from $0.2 million a year earlier. The diesel particle filter (DPF) and membrane segment grew to $1.3 million from $1.0 million, while plastics revenue rose 5% to $1.0 million.

Chief executive Fei Chen said the quarter reflected a strategic shift away from large, one-off project contracts toward "repeatable, scalable markets". "By focusing on markets where our silicon carbide membrane technology offers clear value, while maintaining a disciplined cost structure, we believe LiqTech is well positioned to advance toward durable, profitable growth," Chen said.

Market context

LiqTech's silicon carbide membrane technology sits at the intersection of industrial water treatment and clean-process filtration — a market receiving increased attention as water scarcity and tightening environmental discharge standards raise the cost of conventional treatment. The produced-water treatment pilot commenced in West Texas during Q1 is a signal of the company's intent in the US energy sector, where operators face mounting regulatory pressure to manage and reuse water extracted alongside oil and gas.

The company's China joint venture with JiTRI is expected to generate incremental marine order flow through 2026, though operating cost increases partly reflect the full-year staffing build-out of that entity. Currency headwinds — the US dollar weakened approximately 10% against the Danish krone over the quarter — inflated reported operating expenses by roughly 60% of their year-on-year increase, a structural exposure for a Denmark-headquartered business reporting in dollars.

With $2.7 million in cash and a widening net loss run-rate, LiqTech's ability to execute on its growth guidance without additional financing will be a key question for investors. The company's Q2 order book, described as pointing toward a record commercial-pool quarter, will be the first substantive test of whether the revenue ramp underpinning the full-year guidance is on track.