Summary of LiqTech International Q2 2026 Earnings Call

1Key Financial Results and Metrics:

Revenue: $4.4 million, down 12% from $5 million in Q2 2025.

Commercial Pool: Record revenue of $1.5 million, up from $0.8 million YoY.

Marine: Revenue of $0.7 million, up from $0.4 million YoY.

DPF and Membrane: Revenue approximately $1 million, down from $1.3 million YoY.

Plastics: Revenue of $0.9 million, down from $1.2 million YoY.

Gross Profit: $0.4 million with a gross margin of 8.4%, compared to 9.8% in Q2 2025.

Net Loss: $3.1 million, compared to a net loss of $2.2 million in Q2 2025.

Adjusted EBITDA: Negative $1.6 million, slightly worse than negative $1.3 million YoY.

Cash Position: $15.7 million at the end of Q2, significantly improved from $2.7 million at the end of Q1, following an $18 million public offering.

2Strategic Updates and Business Highlights:

Completed an underwritten public offering in June 2026, generating $18 million in net proceeds, which strengthened the balance sheet and provided working capital.

Focus on building a balanced and profitable company around silicon carbide membrane technology, with a particular emphasis on:

Commercial Pool: Achieved record revenue and expanded distribution network.

Marine: Continued execution with new orders and successful project milestones.

Water for Industry: Secured a $2.1 million follow-on order from a U.S. steel manufacturer, indicating growing traction in industrial wastewater applications.

Emphasis on strategic partnerships in Water for Energy to enhance market penetration and revenue visibility.

3Forward Guidance and Outlook:

Revised full-year revenue guidance to $20 million - $23 million, reflecting delays in Water for Energy projects.

Despite the revision, the company expects meaningful year-over-year revenue growth, driven by strong performance in Commercial Pool and Marine, and selected Water for Industry opportunities.

4Bad News, Challenges, or Points of Concern:

Delay in a significant Water for Energy project due to changes in customer decision-making processes, impacting revenue visibility for the remainder of 2026.

Overall revenue decline driven by lower Water for Energy activity and temporary production constraints in DPF and membranes.

Gross margin pressures due to product mix and lower manufacturing capacity utilization.

The need for continued financial discipline amid a volatile market environment.

5Notable Q&A Insights:

Management highlighted ongoing process improvements aimed at enhancing profitability, including standardization of products and optimization of procurement and production processes.

Competitive advantages of the QureFlow system were discussed, emphasizing its unique silicon carbide membrane technology, which performs well in challenging wastewater conditions.

The company is seeing both an increase in the number of pool system sales and larger sales per system, particularly in the U.S. market.

Management expressed confidence in their ability to scale production capacity for marine applications through partnerships in China. This summary encapsulates the key takeaways from LiqTech's Q2 2026 earnings call, highlighting both the progress made and the challenges faced by the company.