--- title: "Liqtech | 10-Q: FY2026 Q1 Revenue Misses Estimate at USD 4.136 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/286256819.md" datetime: "2026-05-13T12:03:32.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/286256819.md) - [en](https://longbridge.com/en/news/286256819.md) - [zh-HK](https://longbridge.com/zh-HK/news/286256819.md) --- # Liqtech | 10-Q: FY2026 Q1 Revenue Misses Estimate at USD 4.136 M Revenue: As of FY2026 Q1, the actual value is USD 4.136 M, missing the estimate of USD 4.5 M. EPS: As of FY2026 Q1, the actual value is USD -0.28, missing the estimate of USD -0.21. EBIT: As of FY2026 Q1, the actual value is USD -2.085 M. ### Segment Revenue - **Total Revenue**: For the three months ended March 31, 2026, total revenue for LiqTech International, Inc. was $4,136,320, marking a 10.4% decrease from $4,617,541 in the same period of 2025, primarily due to a reduction in system sales related to a non-recurring Water for Energy delivery in 2025, despite increased sales in the Pool and Marine segments . - **Systems and Aftermarket**: Revenue decreased from $2,693,722 in Q1 2025 to $1,789,295 in Q1 2026 . - **Filters and Membranes**: Revenue increased from $953,846 in Q1 2025 to $1,306,999 in Q1 2026 . - **Components**: Revenue increased from $969,973 in Q1 2025 to $1,040,026 in Q1 2026 . ### Operational Metrics - **Gross Profit**: For the three months ended March 31, 2026, gross profit was $393,744, representing a 9.5% gross profit margin, an increase of 214.9% from $125,056 (2.7% gross profit margin) in Q1 2025 . This improvement was driven by a shift towards higher-value system sales, better manufacturing capacity utilization, procurement effects, and lower depreciation expenses . Depreciation included in gross profit was $330,006 in Q1 2026 and $392,292 in Q1 2025 . - **Cost of Goods Sold (by segment)**: - **Systems and Aftermarket**: $1,289,213 in Q1 2026, compared to $2,159,127 in Q1 2025 . - **Filters and Membranes**: $1,521,774 in Q1 2026, compared to $1,501,070 in Q1 2025 . - **Components**: $931,589 in Q1 2026, compared to $830,385 in Q1 2025 . - **Corporate**: $0 in Q1 2026, compared to $1,903 in Q1 2025 . - **Total Operating Expenses**: Increased by 15.6% to $2,670,953 in Q1 2026 from $2,310,385 in Q1 2025, with approximately 60% of this increase attributed to foreign exchange rate developments . - **Selling Expenses**: Increased by 36.6% to $980,674 in Q1 2026 from $718,016 in Q1 2025, primarily due to the full-year effect of hires in the China joint venture, investments in sales organizations in the U.S. and Europe, and annualization of U.S. Service Center costs . - **General and Administrative Expenses**: Increased by 3.8% to $1,414,145 in Q1 2026 from $1,362,246 in Q1 2025, remaining stable below general inflation after adjusting for foreign exchange rate developments . Non-cash compensation included was $218,252 in Q1 2026 and $241,245 in Q1 2025 . - **Research and Development Expenses**: Increased by 20.0% to $276,134 in Q1 2026 from $230,123 in Q1 2025, mainly due to membrane development costs and costs related to Marine systems development . - **Loss from Operations**: Increased by 4.2% to -$2,277,209 in Q1 2026 from -$2,185,329 in Q1 2025 . - **Other Expenses**: Total other expenses increased by 158.6% to -$448,267 in Q1 2026 from -$173,352 in Q1 2025, primarily due to losses on foreign currency transactions, lower interest income, and accrued interest on senior promissory notes, partially offset by lower amortization of debt discount . - **Net Loss**: The net loss for Q1 2026 was -$2,725,099, an increase of 15.6% from -$2,358,342 in Q1 2025 . - **Net Loss (by segment)**: - **Systems and Aftermarket**: -$306,327 in Q1 2026, compared to -$142,843 in Q1 2025 . - **Filters and Membranes**: -$684,950 in Q1 2026, compared to -$1,003,561 in Q1 2025 . - **Components**: -$266,982 in Q1 2026, compared to -$117,480 in Q1 2025 . - **Corporate**: -$1,466,840 in Q1 2026, compared to -$1,094,458 in Q1 2025 . ### Cash Flow - **Net Cash used in Operating Activities**: -$1,941,544 for the three months ended March 31, 2026, an increase of $644,358 compared to -$1,297,186 for the same period in 2025 . This was mainly due to the net loss of -$2,725,099, adjusted for non-cash items of $835,210, an increase in accounts receivable of $317,277, and prepaid expenses of $399,522, partially offset by an increase in accounts payable of $526,117 . - **Net Cash used in Investing Activities**: -$269,724 for the three months ended March 31, 2026, compared to -$110,860 for the same period in 2025, including purchases of production equipment and investments in assembly equipment for the China JV and U.S. Service Center . - **Net Cash provided by (used in) Financing Activities**: -$309,266 for the three months ended March 31, 2026, compared to $989,722 for the same period in 2025, primarily due to repayments of lease obligations and common stock acquisition for tax withholding, whereas the prior year included proceeds from a long-term loan and a capital contribution from noncontrolling interest . - **Cash, Cash Equivalents, and Restricted Cash at End of Period**: $2,732,739 as of March 31, 2026, down from $5,070,385 at the beginning of the period (December 31, 2025) . ### Unique Metrics - **Net Working Capital**: Decreased to $8,483,730 as of March 31, 2026, from $11,237,788 as of December 31, 2025, mainly due to a reduction in cash and cash equivalents used to fund operating losses . - **Noncontrolling Interest**: Noncontrolling interest in the joint venture amounted to -$76,077 as of March 31, 2026, reflecting the third party’s share of the JV’s net assets and net loss . ### Future Outlook and Strategy LiqTech International, Inc. plans to leverage its core competencies to develop new products and applications for clean water and pollution reduction, aiming to expand offerings in various industries and enhance penetration in existing markets through new customers and strategic partnerships . However, the company has incurred operating losses and used cash in operations, raising substantial doubt about its ability to continue as a going concern for the next twelve months . 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