LiqTech International, Inc. operates as a global clean technology enterprise, dedicated to the innovation, manufacturing, marketing, and distribution of sophisticated filtration and ...
LiqTech International, Inc. (LIQT) is a Denmark-headquartered clean-technology manufacturer focused on advanced filtration and purification systems for both liquid and gas streams. The company markets its know-how and engineered solutions across multiple geographies—serving customers in North America, Europe, Asia, and South America—through direct sales, systems integrators, distributors, agents, and strategic ...LiqTech International, Inc. (LIQT) is a Denmark-headquartered clean-technology manufacturer focused on advanced filtration and purification systems for both liquid and gas streams. The company markets its know-how and engineered solutions across multiple geographies—serving customers in North America, Europe, Asia, and South America—through direct sales, systems integrators, distributors, agents, and strategic partners.
Business and segments: LiqTech organizes operations into three main segments. The Water segment develops and supplies liquid filtration and purification systems used in applications such as marine exhaust gas scrubber systems, produced-water treatment, pre-filtration for reverse osmosis (for both potable water and seawater desalination), general industrial filtration, drinking-water production, pool and spa maintenance, food and beverage processing, and filter presses. It also provides related disinfection approaches such as UV systems as part of broader water-treatment solutions.
The Ceramics segment centers on silicon carbide (SiC) ceramic filtration technologies designed to purify challenging liquids and gases. This division also manufactures diesel particulate filters used for exhaust emission control in both retrofit markets and original equipment manufacturer (OEM) contexts.
The Plastics segment produces custom machined and welded plastic components, supporting engineered system build-outs and customer-specific requirements where durable plastic parts are required in filtration and purification assemblies.
Products, engineering approach, and “cost/BOM” context: The core differentiation is membrane technology and engineered filtration components intended to improve performance under difficult operating conditions (e.g., harsh fluids, demanding filtration requirements, and applications requiring robust materials such as SiC ceramics). As with many filtration-system businesses, the overall solution typically combines engineered ceramic filter elements and associated hardware (manifolds, housings, control interfaces, and installation-ready components) plus application-specific integration work. While exact bill-of-materials (BOM) and unit economics are not provided in the supplied data, the company’s positioning suggests value is driven by specialized membrane performance and system integration rather than commoditized filtration media.
Financial/operational context: Based on the provided trailing metrics snapshot, LiqTech shows profitability pressure in recent periods (e.g., negative operating and net profit margins and negative free cash flow measures), while maintaining a relatively strong current ratio in the dataset. These indicators are consistent with development and manufacturing cycles typical for specialized filtration technologies, where working capital needs and project ramp-up can be significant.
Key people and governance: Fei Chen serves as President & CEO (appointed effective September 12, 2022). The company’s leadership history also references prior long-term CEO/founder involvement, reflecting continuity in management through different strategic phases.
“Wishes”/directional priorities (typical for the sector and consistent with IR messaging): strengthening commercial traction, expanding installed-base outcomes in water and emissions control applications, and translating membrane performance into repeatable system offerings that can scale through partners and distribution. The overall goal is to broaden adoption of its advanced filtration technologies for increasingly stringent environmental and water-treatment requirements.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$16.5M
+13.0%
+5.5%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$-8.5M
+17.6%
-11.3%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+7.6%
+341.0%
-12.0%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
-50.3%
+22.5%
+2.9%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
-51.7%
+27.1%
-5.5%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$-6.5M
+26.9%
-40.4%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
-39.4%
+35.4%
-33.0%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
165.6%
+133.5%
-86.8%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
3.38x
-19.7%
+74.9%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good morning, and welcome to the LiqTech International Reports Second Quarter Fiscal Year 2026 Financial Results Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Robert Blum with Lytham Partners. Please go ahead.
Robert Blum: Great. Thank you very much, [ Chloe ]. Good morning, everyone, and thank you for joining us on today's call to discuss LiqTech's second quarter 2026 financial results. Joining us on today's call from the company are Fei Chen, Chief Executive Officer; and David Kowalczyk, the company's Chief Financial and Chief Operating Officer. As the operator mentioned, before I turn the call over to management, I'll remind everyone that there will be a Q&A session at the end of the call today. [Operator Instructions]. Before we begin with prepared remarks, we submit for the record the following statement. This conference call may contain forward-looking statements. Although the forward-looking statements reflect the good faith and judgment of management, forward-looking statements are inherently subject to known and unknown risks and uncertainties that may cause actual results to be materially different from those discussed during the conference call. The company, therefore, urges all listeners to carefully review and consider the various disclosures made in the reports filed with the Securities and Exchange Commission, including the risk factors that attempt to advise interested parties of the risks that may affect our business, financial condition, operations and cash flows. If one or more of these risks or uncertainties materialize or if the underlying assumptions prove incorrect, the company's actual results may vary materially from those expected or projected. The company, therefore, encourages all listeners not to place undue reliance on these forward-looking statements, which pertain only as of this date and the date of the release and conference call. The company assumes no obligation to update any forward-looking statements to reflect any events or circumstances that may arise after the date of this release and conference call. Now I'd like to turn the call over to Fei Chen, CEO of LiqTech International. Fei, please proceed.
Fei Chen: Thank you, Robert, and good day to everyone on the call. Before discussing the quarter, I want to acknowledge an important development for LiqTech and our shareholder base. In June, we completed an underwritten public offering that generated approximately $18 million in net proceeds. The offering brought a number of new shareholders into LiqTech. And I want to thank those investors along with our existing shareholders for the confidence you have placed in our company and our technology. We recognize the rising equity capital comes with significant responsibility to our shareholders. We expect to be judged by how effectively we deploy that capital, how consistently we execute and ultimately, whether we can …
