Core Viewpoint - LiqTech International, Inc. reported improved financial performance in Q2 2025, with revenue growth, gross margin improvement, and decreased operating expenses, driven by strong demand in swimming pool markets and other filtration systems [3][4]. Recent Financial Highlights - Q2 2025 revenue was $5.0 million, an 11% increase from $4.5 million in Q2 2024, and a 7% sequential increase from $4.6 million in Q1 2025 [4][5]. - The net loss for Q2 2025 was $(2.0) million, slightly improved from $(2.1) million in Q2 2024 [5][12]. - The ending cash balance on June 30, 2025, was $8.7 million [5][12]. - Q3 2025 revenue is expected to be between $3.8 million and $4.2 million, representing a 52% to 68% increase from Q3 2024 [5]. - Full year 2025 revenue is projected to be between $19.0 million and $20.0 million, indicating a 30% to 37% increase from 2024 [5]. Recent Operational Highlights - Six swimming pool systems were delivered in Q2 2025, generating nearly $800,000 in revenue [5]. - An order was received for an advanced membrane-based filtration system from NorthStar BlueScope Steel, with part of the revenue recognized in Q2 2025 and the remainder expected in Q3 2025 [5]. - A pilot unit was delivered to Razorback Direct for customer testing in a new industry [5]. - The ceramics and plastics segments experienced a combined sequential growth of 31% compared to Q1 2025 [5]. Management Commentary - The CEO highlighted the successful execution of strategic priorities, with strong performance in swimming pool markets and a robust order flow for the second half of the year [3]. - The company anticipates continued year-over-year revenue improvements in the latter half of 2025, aiming for the highest revenue level in four years [3]. Q2 2025 Financial Results - Gross profit for Q2 2025 was $0.5 million, with a gross profit margin of 9.8%, down from $0.7 million and 16% in Q2 2024, primarily due to underutilization of manufacturing capacity and increased provisions for slow-moving inventory [7]. - Total operating expenses decreased by 7.5% to $2.6 million compared to $2.8 million in Q2 2024 [8]. - Selling expenses decreased by 5% to $0.8 million, attributed to the release of bad debt provisions and lower depreciation [9]. - Research and development expenses decreased by 40% to $0.2 million, mainly due to one-time exit costs from a loss-making project [11].