LiqTech International (NASDAQ:LIQT) reported second-quarter 2026 revenue of $4.4 million, down 12% from $5 million a year earlier, as record commercial pool sales and higher marine revenue were offset by lower water-for-energy activity, production constraints in its diesel particulate filter and membrane business, and softer plastics demand.
The company also revised its full-year 2026 revenue outlook to a range of $20 million to $23 million. Chief Executive Officer Fei Chen said the change reflected a delay in a major water-for-energy project after the customer underwent an organizational change that restarted parts of its internal evaluation and approval process.
Commercial Pool Revenue Reaches Record
Commercial pool was LiqTech’s strongest business line in the quarter, with revenue reaching a record $1.5 million, compared with $800,000 in both the second quarter of 2025 and the first quarter of 2026. Chen attributed the growth to the company’s standardized and modular QlariFlow platform, expanded distribution relationships and a growing base of reference installations.
During the quarter, LiqTech completed assembly of systems for the Plumpton Aquatic and Leisure Centre project in Australia and its first U.S. commercial pool project in Worland, Wyoming. A large pool system in the Netherlands, announced in April, is operating successfully, according to the company.
Chen said the company is pursuing both larger systems and a greater volume of installations. While most current sales remain concentrated in Europe, LiqTech is expanding in the U.S. through a distribution partner, where pool systems tend to be larger than those in Europe.
The company views commercial pools as an attractive market because systems can be more standardized than many industrial projects, and installations can generate references and aftermarket service opportunities.
Marine Progress and Industrial Wastewater Orders
Marine revenue totaled $700,000, up from $400,000 a year earlier but slightly below $800,000 in the first quarter. LiqTech received factory acceptance test approval for its first two ISO dual-fuel water treatment units during the period. It expects to deliver one additional ISO unit and two marine scrubber water treatment systems in the third quarter.
The company also secured an order for four water treatment systems for exhaust gas recirculation-equipped vessels in China, with the first system expected to be delivered in December. LiqTech manufactures its silicon carbide membranes in Denmark while using its Chinese joint venture for localized engineering, sourcing, assembly and service.
Chen said ISO technology represents roughly 30% of the relevant marine market, with EGR accounting for the remaining 70%. He cited internet data indicating that about 600 vessels using a combination of ISO and EGR technologies are expected to be delivered through 2028 and 2029. LiqTech is working to standardize its marine systems and said its assembly arrangements in China can be expanded as sales increase.
Since the quarter ended, LiqTech announced a $2.1 million follow-on order from a U.S.-based steel manufacturer for four additional industrial wastewater filtration systems. About 75% of the order is expected to be delivered by the end of 2026.
The order follows a 10-month deployment of an initial system at the customer’s site. Chen said the customer used LiqTech’s QureFlow system to treat wastewater with high oil content and suspended particles, replacing polymer membranes that had required frequent replacement due to clogging.
LiqTech also announced an order from a new U.S. customer for a QureFlow QF-6 ceramic membrane filtration system at a facility in Freeport, Texas. The system is intended to treat wastewater from industrial equipment cleaning and recycle treated water into the site’s wash-water supply.
Margins and Operating Losses
Gross profit was $400,000, producing an 8.4% gross margin, compared with gross profit of $500,000 and a 9.8% margin in the prior-year quarter. Chief Financial and Chief Operating Officer David Kowalczyk said the decline primarily reflected product mix, including a lower contribution from higher-value system activity, and lower manufacturing capacity utilization.
Total operating expenses rose 4% to $2.7 million. Kowalczyk said approximately 60% of the increase resulted from foreign-exchange movements, as a significant portion of LiqTech’s costs are denominated in Danish kroner and euros. Research and development expense increased to $300,000 from $200,000, driven by membrane development and work on marine and commercial pool systems.
The company reported a net loss of $3.1 million, compared with a $2.2 million loss a year earlier. Adjusted EBITDA was negative $1.6 million, compared with negative $1.3 million in the second quarter of 2025.
DPF and membrane revenue declined to about $1 million from $1.3 million, primarily because of constrained availability of a critical raw material. Plastics revenue fell to about $900,000 from $1.2 million as customer purchasing slowed amid raw-material price volatility and broader market uncertainty.
Financing Strengthens Liquidity
LiqTech closed an underwritten public offering in June that generated approximately $18 million in net proceeds. A portion of the proceeds was used to repay outstanding senior promissory notes and original issue discount notes.
Cash on hand, including restricted cash, was $15.7 million as of June 30, compared with $2.7 million at the end of the first quarter. Kowalczyk said the financing provides working capital and flexibility for business development and targeted investments, but management intends to evaluate spending against commercial milestones and maintain cash discipline.
Chen said LiqTech is placing greater emphasis on markets with shorter sales cycles, more repeatable demand and better revenue visibility, including commercial pools, marine and selected industrial wastewater applications. The company will continue pursuing water-for-energy opportunities, he said, but more selectively and increasingly through strategic commercial partnerships.
About LiqTech International (NASDAQ:LIQT)
LiqTech International, Inc develops and manufactures advanced ceramic filtration systems that leverage proprietary silicon carbide (SiC) membranes to remove particulates and hydrophobic contaminants from a variety of fluid streams. The company’s core products include tubular ceramic membrane modules and complete filtration skids designed for applications where high chemical resistance, thermal stability and mechanical strength are required.
Their filtration solutions are utilized across multiple industries, including municipal and industrial water treatment, desalination pretreatment, produced water management in oil and gas operations, and process water recycling in power generation and chemical processing.
