LiqTech Revenue Jumps 54% in Q3, But Losses Persist

TL;DR

**LIQT's revenue surge is a mirage; the company is still bleeding cash and relying on loans, making it a risky bet for short-term gains.**

AI Summary

LiqTech International Inc. (LIQT) reported a significant increase in revenue for the three months ended September 30, 2025, reaching $3,807,274, up from $2,478,221 in the prior year, a 53.6% increase. For the nine months ended September 30, 2025, revenue grew to $13,382,304 from $11,198,627, an 19.5% increase. Despite revenue growth, the company continues to report net losses, with a net loss of $1,459,762 for the three months ended September 30, 2025, an improvement from a $2,840,526 net loss in the same period last year. The nine-month net loss also improved to $5,978,890 from $7,340,521. Gross profit turned positive for the quarter at $747,878, compared to a gross loss of $209,533 in Q3 2024. Cash and restricted cash decreased to $7,354,024 as of September 30, 2025, from $10,868,728 at December 31, 2024, reflecting significant cash usage in operating activities of $3,977,121 over nine months. A new loan from a related party provided $1,208,588 in non-current liabilities, indicating reliance on external financing. The company's accumulated deficit expanded to $92,202,628, highlighting ongoing profitability challenges.

Why It Matters

For investors, LIQT's substantial revenue growth of 53.6% in Q3 2025 is a positive signal, suggesting increasing market penetration for its ceramic filtration products. However, the continued net losses and declining cash reserves, with cash down to $7.35 million from $10.87 million, raise concerns about long-term financial stability and the path to profitability. The competitive landscape in advanced filtration is intense, and LIQT's ability to convert revenue into sustainable earnings will dictate its market position. Employees and customers will be watching for signs of sustained operational efficiency and product innovation, as the company navigates its growth strategy amidst ongoing losses and a new related-party loan of $1.2 million.

Risk Assessment

Risk Level: high — The company reported a net loss of $1,459,762 for Q3 2025 and an accumulated deficit of $92,202,628 as of September 30, 2025, indicating persistent unprofitability. Cash and restricted cash significantly declined by $3,514,704 over nine months to $7,354,024, and the company incurred a new $1,208,588 loan from a related party, signaling ongoing liquidity needs and potential reliance on external financing.

Analyst Insight

Investors should exercise extreme caution and conduct thorough due diligence. While revenue growth is encouraging, the persistent net losses, declining cash balance, and reliance on related-party financing suggest significant operational challenges. Consider waiting for clear signs of sustained profitability and positive free cash flow before investing.

Financial Highlights

debt To Equity

1.37

revenue

$3.81M

operating Margin

N/A

total Assets

$30.30M

total Debt

$17.52M

net Income

($1.46M)

eps

N/A

gross Margin

19.6%

cash Position

$7.35M

revenue Growth

+53.6%

Key Numbers

• $3.8M — Q3 2025 Revenue (Increased 53.6% from $2.48M in Q3 2024)
• $13.38M — Nine-Month 2025 Revenue (Increased 19.5% from $11.20M in nine months 2024)
• ($1.46M) — Q3 2025 Net Loss (Improved from ($2.84M) in Q3 2024)
• ($5.98M) — Nine-Month 2025 Net Loss (Improved from ($7.34M) in nine months 2024)
• $7.35M — Cash and Restricted Cash (Decreased from $10.87M at Dec 31, 2024)
• $747,878 — Q3 2025 Gross Profit (Turned positive from a gross loss of ($209,533) in Q3 2024)
• ($3.98M) — Net Cash Used in Operating Activities (For the nine months ended September 30, 2025)
• $1.21M — Loan from Related Party (New non-current liability as of September 30, 2025)
• ($92.2M) — Accumulated Deficit (Increased from ($86.27M) at December 31, 2024)
• 9,627,064 — Shares Outstanding (As of November 14, 2025)

Key Players & Entities

• LIQTECH INTERNATIONAL INC (company) — Registrant
• Nasdaq Stock Market LLC (company) — Exchange where Common Stock is registered
• $3,807,274 (dollar_amount) — Revenue for three months ended September 30, 2025
• $2,478,221 (dollar_amount) — Revenue for three months ended September 30, 2024
• $13,382,304 (dollar_amount) — Revenue for nine months ended September 30, 2025
• $11,198,627 (dollar_amount) — Revenue for nine months ended September 30, 2024
• $1,459,762 (dollar_amount) — Net Loss for three months ended September 30, 2025
• $2,840,526 (dollar_amount) — Net Loss for three months ended September 30, 2024
• $7,354,024 (dollar_amount) — Cash and restricted cash as of September 30, 2025
• $1,208,588 (dollar_amount) — Loan from related party as of September 30, 2025

FAQ

Risk Factors

• Continued Net Losses and Accumulated Deficit [high — financial]: Despite revenue growth, LIQT continues to report significant net losses, with a Q3 2025 net loss of $1,459,762 and a nine-month net loss of $5,978,890. The accumulated deficit has expanded to $92,202,628, indicating persistent profitability challenges and a substantial historical loss position.
• Decreasing Cash Position and High Operating Cash Burn [high — financial]: Cash and restricted cash decreased from $10,868,728 at December 31, 2024, to $7,354,024 as of September 30, 2025. The company used $3,977,121 in cash for operating activities over the nine months ended September 30, 2025, highlighting a significant cash burn rate.
• Reliance on Related Party Financing [medium — financial]: A new loan of $1,208,588 from a related party was added to non-current liabilities. This indicates a reliance on specific financing sources, which could pose risks if those relationships change or if alternative financing becomes unavailable.
• Inventory Growth [medium — operational]: Inventories, net, increased to $6,425,768 as of September 30, 2025, from $5,541,192 at December 31, 2024. While potentially supporting revenue growth, a significant increase in inventory can tie up working capital and carries risks of obsolescence or write-downs.
• Contract Asset Decline [low — operational]: Contract assets decreased to $964,171 from $1,666,698. This could indicate challenges in revenue recognition or collection related to long-term contracts, potentially impacting near-term cash flow.

Industry Context

LiqTech International operates in the water purification and filtration technology sector. This industry is driven by increasing global demand for clean water, stringent environmental regulations, and industrial needs for process water and wastewater treatment. Key trends include the adoption of advanced membrane technologies and sustainable solutions.

Regulatory Implications

As a publicly traded company, LIQT is subject to SEC regulations and reporting requirements. Compliance with financial reporting standards (GAAP) is critical. Potential regulatory risks could arise from environmental regulations impacting its customers' operations or from changes in international trade policies affecting its supply chain or market access.

What Investors Should Do

1. Monitor path to profitability
2. Analyze cash flow sustainability
3. Evaluate inventory management
4. Assess related party loan impact

Key Dates

• 2025-09-30: End of Q3 2025 — Reported $3.81M in revenue, a 53.6% increase year-over-year, and a positive gross profit of $747,878, turning from a gross loss in Q3 2024. However, a net loss of $1.46M persisted.
• 2025-09-30: Nine Months Ended Q3 2025 — Revenue reached $13.38M (19.5% growth YoY). Net loss improved to $5.98M from $7.34M in the prior year, but cash used in operations was $3.98M.
• 2025-09-30: Balance Sheet Date — Cash and restricted cash stood at $7.35M, down from $10.87M at year-end 2024. Non-current liabilities increased due to a new $1.21M loan from a related party.
• 2024-12-31: End of Fiscal Year 2024 — Reported $10.87M in cash and restricted cash and an accumulated deficit of $86.27M.

Glossary

Accumulated Deficit

The total net losses of a company over its lifetime that have not been offset by net income. (Indicates the company's long-term unprofitability, which has grown to $92.2M.)

Contract Assets

Represents the company's right to consideration in exchange for goods or services that the company has transferred to a customer when that right is conditional on something other than the passage of time. (A decrease to $964,171 suggests potential changes in contract fulfillment or customer acceptance.)

Gross Profit

Revenue minus the cost of goods sold. It indicates profitability before operating expenses. (Turning positive to $747,878 in Q3 2025 is a significant operational improvement, moving from a loss of $209,533 in Q3 2024.)

Loan from Related Party

Debt borrowed from an entity or individual that has a close relationship with the company, such as a major shareholder or executive. (The new $1.21M loan highlights a reliance on specific financing channels.)

Noncontrolling Interest

The portion of equity of a subsidiary that is not attributable to the parent company. (A new noncontrolling interest of ($30,756) appeared in Q3 2025, suggesting consolidation of a new entity or a change in ownership structure.)

Year-Over-Year Comparison

Compared to the prior year's comparable periods, LIQT has demonstrated strong revenue growth, with Q3 revenue up 53.6% and nine-month revenue up 19.5%. A significant operational improvement is the shift from a gross loss to a gross profit of $747,878 in Q3 2025. While net losses have narrowed, they remain substantial. Cash reserves have decreased, and operating cash burn continues, necessitating reliance on new financing, such as the $1.21M loan from a related party. The accumulated deficit has also widened, underscoring ongoing profitability challenges.

Key Financial Figures

• $0.001 — nge on which registered Common Stock, $0.001 par value LIQT The Nasdaq Stock Mar

Filing Documents

• liqt20250930_10q.htm (10-Q) — 1576KB
• ex_857537.htm (EX-31.1) — 9KB
• ex_857538.htm (EX-31.2) — 9KB
• ex_857539.htm (EX-32.1) — 5KB
• ex_857540.htm (EX-32.2) — 5KB
• 0001437749-25-034985.txt ( ) — 6218KB
• liqt-20250930.xsd (EX-101.SCH) — 49KB
• liqt-20250930_cal.xml (EX-101.CAL) — 50KB
• liqt-20250930_def.xml (EX-101.DEF) — 326KB
• liqt-20250930_lab.xml (EX-101.LAB) — 309KB
• liqt-20250930_pre.xml (EX-101.PRE) — 362KB
• liqt20250930_10q_htm.xml (XML) — 928KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 5

Financial Statements

Item 1. Financial Statements 5 Condensed Consolidated Balance Sheets as of September 30, 2025 (unaudited) and December 31, 2024 5 Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2025 and September 30, 2024 (unaudited) 7 Condensed Consolidated Statements of Comprehensive Loss for the Three and Nine Months Ended September 30, 2025 and September 30, 2024 (unaudited) 8 Condensed Consolidated Statements of Stockholders ' Equity for the Three and Nine Months ended September 30, 2025 and September 30, 2024 (unaudited) 9 Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2025 and September 30, 2024 (unaudited) 11 Notes to Condensed Consolidated Financial Statements (unaudited) 13

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 22

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 28

Controls and Procedures

Item 4. Controls and Procedures 29

OTHER INFORMATION

PART II. OTHER INFORMATION 30

Legal Proceedings

Item 1. Legal Proceedings 30

Risk Factors

Item 1A. Risk Factors 30

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 30

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 30

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 30

Other Information

Item 5. Other Information 30

Exhibits

Item 6. Exhibits 31

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS Certain statements made in this Quarterly Report on Form 10-Q are "forward-looking statements" regarding the plans and objectives of management for future operations and market trends and expectations. Such statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The forward-looking statements included herein are based on current expectations that involve numerous risks and uncertainties. Our plans and objectives are based, in part, on assumptions involving the continued expansion of our business. Assumptions relating to the foregoing involve judgments with respect to, among other things, future political, legislative, economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond our control. This is especially underlined by the potential impacts from the prevailing macro-economic uncertainty on the Company, including the related effects to our business operations, results of operations, cash flows, and financial position. Although we believe that our assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the forward-looking statements included in this Quarterly Report on Form 10-Q will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that our objectives and plans will be achieved. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.

Forward-looking statements include, but are not limited to, statements concerning

Forward-looking statements include, but are not limited to, statements concerning: The potential adverse effects on our operations and financial performance from armed conflicts or geopolitical tensions; The potential adverse impact of global trade restrictions, tariffs and geopolitical tensions on our business and supply chain; The potential negative impact of prolonged energy market volatility and supply disruptions on our business The potential adverse impact of health crises, pandemics, and public health emergencies on our business, financial condition, and operations Our dependence on a few major customers and the ability to maintain future relationships with one or more of these major customers; Our ability to operate with financial stability and secure access to external financing and adequate liquidity; Our ability to secure and source supplies of raw materials and key components in due time and at competitive prices; Our ability to achieve revenue growth and penetrate new markets; Our dependence on the expertise and experience of our management team and the retention of key employees Our reliance and access to qualified personnel to expand our business; Our ability to adapt to potentially adverse changes in legislative, regulatory and political frameworks; Changes in interest rates or tightening of debt capital markets; Changes in emissions and environmental regulations, and potential further tightening of emission standards; 3 Exposure to potentially adverse tax consequences; Our ability to compete under changing governmental standards by which our products are evaluated; The financial impact from the fluctuation and volatility of foreign currencies; The potential monetary costs of defending our intellectual property rights; Our ability to successfully protect our intellectual property rights and manufacturing know-how; The possibility of a dispute over intellectual property developed in conjunction with third par

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS LIQTECH INTERNATIONAL, INC. CONDENSED CONSOLIDATED BALANCE SHEETS September 30, December 31, 2025 2024 (Unaudited) Assets Current Assets: Cash and restricted cash $ 7,354,024 $ 10,868,728 Accounts receivable, net 3,775,455 2,396,056 Inventories, net 6,425,768 5,541,192 Contract assets 964,171 1,666,698 Prepaid expenses and other current assets 255,649 168,443 Total Current Assets 18,775,067 20,641,117 Non-Current Assets: Property and equipment, net 6,172,371 6,618,822 Operating lease right-of-use assets 4,543,004 4,450,822 Deposits and other assets 519,360 456,658 Intangible assets, net 38,128 39,367 Goodwill 247,938 220,693 Total Non-Current Assets 11,520,801 11,786,362 Total Assets $ 30,295,868 $ 32,427,479 The accompanying notes are an integral part of these condensed consolidated financial statements. 5 LIQTECH INTERNATIONAL, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED) September 30, December 31, 2025 2024 (Unaudited) Liabilities and Stockholders' Equity Current Liabilities: Accounts payable $ 1,964,959 $ 1,300,966 Accrued expenses 2,185,853 2,491,479 Current portion of finance lease liabilities 513,746 458,347 Current portion of operating lease liabilities 633,385 544,197 Contract liabilities 70,241 109,319 Total Current Liabilities 5,368,184 4,904,308 Non-Current Liabilities: Deferred tax liability 63,984 57,960 Finance lease liabilities, net of current portion 1,546,110 1,600,931 Operating lease liabilities, net of current portion 3,909,619 3,906,625 Loan from related party 1,208,588 - Notes payable, net 5,422,525 5,303,563 Total Non-Current Liabilities 12,150,826 10,869,079 Total Liabilities 17,519,010 15,773,387 Stockholders' Equity: Preferred stock; par value $ 0.001 , 2,500,000 shares authorized, 0 shares issued and outstanding at September 30, 2025 and December 3

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View this 10-Q filing on SEC EDGAR