LiqTech International, Inc. (LIQT): BCG Matrix [Dec-2025 Updated]

You're looking at LiqTech International, Inc.'s portfolio right now, and honestly, mapping out where their tech stands in late 2025 requires a clear look through the Boston Consulting Group Matrix. We're seeing a clear split: the Silicon Carbide membranes are clearly the future Stars, demanding investment to capture that high-growth water treatment market, while the legacy Diesel Particulate Filter business is doing the heavy lifting as a reliable Cash Cow. The real question is which new applications will jump from risky Question Marks to Star status, and which older lines are just Dogs ready for the chopping block. Dive in below to see exactly how this technology mix dictates LiqTech International, Inc.'s next move.

Background of LiqTech International, Inc. (LIQT)

You're looking at LiqTech International, Inc. (LIQT), a company focused squarely on clean technology solutions. Honestly, they make their money manufacturing and marketing highly specialized filtration products and systems. The core of their offering is proprietary silicon carbide (SiC) technology, which they use to create component membranes, membrane systems, and filters for both microfiltration and ultrafiltration needs.

LiqTech International, Inc. operates across three main segments: Water, Ceramics, and Plastics. The Water segment deals with liquid filtration systems used in diverse areas like marine scrubber systems, industrial applications, and pool/spa water treatment. The Ceramics side involves their SiC filtration technologies, while the Plastics segment handles flexible and plastics manufacturing products like machining and welding components. They also historically dealt with Diesel Particulate Filters (DPFs) for controlling soot from diesel engines, though DPF activity has seen some decline recently.

The company is headquartered in Ballerup, Denmark, but they have a significant international footprint, including a joint venture in China focused on marine applications. For instance, in late 2025, their China-based joint venture broke ground on a new R&D test center.

Looking at the numbers as of late 2025, LiqTech International, Inc. is showing clear top-line momentum. Management projects full-year 2025 revenue to land between $18.0 million and $19.0 million, which would be a 23% to 30% increase over 2024. This growth is being driven by specific areas; for example, Q3 2025 revenue hit $3.8 million, a 54% jump year-over-year. Water system sales were a big contributor here, bringing in $2.0 million in Q3 alone, helped by pool system deliveries and a major oily wastewater treatment system for NorthStar BlueScope Steel.

Financially, you see progress toward stability, even though they are still reporting losses. The net loss for Q3 2025 was $(1.5) million, a substantial improvement from the $(2.8) million loss in the same quarter of 2024. Plus, the gross profit margin improved significantly to 19.6% in Q3 2025, up 28.1% points from the prior year's negative margin. As of September 30, 2025, the company maintained an ending cash balance of $7.3 million.

It's worth noting that the revenue guidance adjustment for 2025 was due to customers moving a couple of system orders from Q4 2025 into early 2026. Still, the company is seeing strong sequential growth in its Plastics and Ceramics businesses combined, which rose 31% sequentially in Q2 2025.

LiqTech International, Inc. (LIQT) - BCG Matrix: Stars

The Silicon Carbide (SiC) membranes for industrial water treatment segment at LiqTech International, Inc. fits the Star quadrant due to its position in a market exhibiting significant expansion and the company's strong, albeit niche, revenue momentum.

The broader global Industrial Water Treatment market was estimated at USD 46.13 billion in 2024 and is projected to reach USD 71.63 billion by 2033, growing at a Compound Annual Growth Rate (CAGR) of 5.1% from 2025 to 2033. LiqTech International, Inc.'s performance reflects this high-growth environment, with third quarter of 2025 revenue reaching $3.8 million, marking a 54% increase from the $2.5 million reported in the third quarter of 2024. The full-year 2025 revenue is projected to fall between $18.0 million and $19.0 million, representing a 23% to 30% increase over the full year 2024.

Here's a look at the financial indicators supporting the Star classification as of the third quarter of 2025:

The strong relative market share in niche, high-performance applications is validated by specific segment performance. The Water Systems & Services segment, which includes the SiC membrane solutions, generated $2.0 million in revenue for the third quarter of 2025. Within this, pool system deliveries alone accounted for $1.0 million in the quarter, including one order valued at over $500,000. This success stems from the proprietary technology's proven performance in demanding environments.

The market benefits from significant regulatory tailwinds, pushing demand for advanced filtration. LiqTech International, Inc.'s proprietary Silicon Carbide (SiC) technology offers concrete sustainability advantages that align with these mandates. You can see the operational impact:

• Commercial pool systems can save up to 60% on water.
• Energy consumption reduction is up to 60% for these systems.
• Chlorine dosing can be lowered by 30%.

The potential for high future cash generation is clear, but it requires continued investment to sustain the growth trajectory. The company's breakeven target, measured on an adjusted EBITDA basis, is a quarterly revenue of approximately $6,000,000. With the third quarter of 2025 revenue at $3.8 million and the fourth quarter projection between $4.6 million and $5.6 million, the business is still operating below the level needed to consistently generate positive operating cash flow. The ending cash balance of $7.3 million as of September 30, 2025, must fund the necessary promotion and placement to push these high-growth units past the breakeven threshold and into Cash Cow status.

LiqTech International, Inc. (LIQT) - BCG Matrix: Cash Cows

You're analyzing the core, mature businesses of LiqTech International, Inc., the ones that should be funding the riskier bets. For LiqTech International, Inc., the established Diesel Particulate Filter (DPF) product lines fit this Cash Cow profile, operating in a segment that's mature but still holds a necessary market position.

These DPF lines are supposed to provide a steady, reliable revenue stream from replacement parts and compliance-driven sales, even if the overall market growth for this specific technology is low. The goal here is to maintain market share with minimal promotional spend, letting the product generate cash. To be fair, the recent figures show some pressure here; DPF and ceramic membrane sales were only $0.8 million in the third quarter of 2025, which was a step down from $1.1 million in the third quarter of 2024. Still, the company noted that gross profit improvement in Q3 2025 was achieved despite write-offs linked to DPF activity, suggesting the remaining core business is contributing to the overall margin recovery.

The overall company financial picture shows progress toward supporting other areas. For the full year 2025, LiqTech International, Inc. expects total revenue to land between $18.0 million and $19.0 million. This segment, while facing headwinds, is part of the base that helps cover the corporate overhead. The company's breakeven target, measured on an adjusted EBITDA basis, sits at a quarterly revenue level of approximately $6.0 million, which you'd expect a Cash Cow to comfortably cover.

Here's a quick look at the relevant financial context for the period ending September 30, 2025:

The strategy for these established units involves milking the gains passively while making targeted investments to improve efficiency, which can boost cash flow further. You want to see investments supporting infrastructure rather than heavy marketing pushes.

• Established DPF product lines in a mature segment.
• Sales declined to $0.8 million in Q3 2025 from $1.1 million year-over-year.
• Gross profit margin for the company improved to 19.6% in Q3 2025.
• These units fund higher-growth, riskier Question Marks.
• The company is focused on operational efficiencies to support the base business.

The goal is definitely to maintain productivity here. If onboarding takes 14+ days, churn risk rises, but for DPFs, you're looking at repeat, necessary purchases. Finance: draft 13-week cash view by Friday.

LiqTech International, Inc. (LIQT) - BCG Matrix: Dogs

Dogs are business units or products with a low market share in markets experiencing low growth rates. For LiqTech International, Inc., the segment most closely aligning with this profile, based on recent performance trends, is the DPF and ceramic membranes line.

Older, legacy filtration products with limited technological differentiation often fall into this category because newer, more advanced solutions capture market attention and growth. The financial data from the third quarter of 2025 clearly shows this segment underperforming compared to the company's growth areas.

• Segments facing intense price competition and declining market growth rates.
• Low relative market share in broad, commoditized filtration markets.
• Products that may be candidates for divestiture or significant cost reduction efforts.

The revenue contribution from DPF and ceramic membranes was $0.8 million in the third quarter of 2025, a reduction from $1.1 million in the third quarter of 2024. This decline contrasts sharply with the growth seen elsewhere in LiqTech International, Inc.'s portfolio. Furthermore, the financial reporting indicated that gross profit improvement was partially offset by write-offs for slow-moving inventory linked to DPF activity, a classic sign of a cash trap where capital is tied up in assets with little return.

Here's the quick math comparing the Q3 2025 segment revenues:

The performance of the DPF segment, which saw its revenue fall by approximately 27.3% year-over-year in Q3 2025, positions it as a Dog. Expensive turn-around plans usually do not help because the underlying market dynamics or competitive positioning are fundamentally weak. For LiqTech International, Inc., this product line frequently breaks even or consumes cash due to inventory management issues, even as the overall company works toward profitability, with the Q3 2025 net loss improving to $(1.5) million from $(2.8) million year-over-year.

The company's overall cash position at the end of Q3 2025 was $7.3 million. Diverting resources to revitalize a low-share, low-growth product like the DPF line, especially when facing write-offs, is a strategic misallocation when high-growth areas like Water Systems (which grew 187% in the quarter) require investment. These business units are prime candidates for divestiture or significant cost reduction efforts to free up capital.

• Q3 2025 DPF/Membrane Revenue: $0.8 million.
• Q3 2024 DPF/Membrane Revenue: $1.1 million.
• Gross Profit Margin for Q3 2025 was 19.6%, but DPF activity contributed to inventory write-offs.
• Operating expenses for Q3 2025 were $2.1 million, down 12.6% from the prior year, showing general cost control efforts.

Finance: draft scenario analysis for divesting DPF segment by next Wednesday.

LiqTech International, Inc. (LIQT) - BCG Matrix: Question Marks

You're looking at the areas of LiqTech International, Inc. (LIQT) that are burning cash now but hold the key to future dominance. These are the Question Marks, characterized by high market growth but a low current slice of that market pie. For LiqTech International, Inc., this quadrant is heavily populated by the newer, riskier deployments of their silicon carbide (SiC) membrane technology.

These units focus on emerging, high-risk applications. Think about new uses for SiC membranes in treating produced water from oil and gas operations or in complex ballast water purification systems for the marine sector. These markets are definitely growing, driven by tightening global environmental mandates and the need for robust filtration that polymer membranes can't handle.

The market context for SiC membranes shows this high-growth environment. The Global SiC Tubular Ceramic Membrane market was valued at $420.5 million in 2024 and is projected to hit $890.7 million by 2032, showing a compound annual growth rate (CAGR) of 9.2% during that forecast period. Still, LiqTech International, Inc.'s current relative market share in these specific, newer segments remains low, meaning they are fighting for initial adoption against established or emerging competitors.

These ventures require substantial capital investment to scale up production, secure necessary certifications, and prove commercial viability in these demanding environments. The financial reality reflects this cash consumption. For the third quarter ended September 30, 2025, LiqTech International, Inc. posted a net loss of $(1.5) million. This loss, while an improvement from the prior year's $(2.8) million loss in Q3 2024, still shows the company is operating below the level needed to cover fixed costs, which is typical for Question Marks.

The company's overall revenue guidance for the full year 2025 is between $18.0 million and $19.0 million, representing a 23% to 30% increase from 2024. However, the current quarterly revenue run-rate, like the $3.8 million reported for Q3 2025, is still significantly below the internal target needed to achieve adjusted EBITDA breakeven, which management estimates is around quarterly revenue of $5.5 million to $6.0 million. This gap highlights the investment drain.

Here's a quick look at the numbers framing this high-risk, high-reward positioning:

The outcome for these SiC membrane applications in produced water and ballast water is genuinely uncertain. They require heavy, focused investment to rapidly capture market share and transition into Stars, where high growth meets high market share. If the investment fails to generate the necessary adoption, or if the technology faces unforeseen hurdles in these harsh new environments, these units will quickly devolve into Dogs, continuing to consume cash without generating sufficient return.

The strategic path involves clear choices for LiqTech International, Inc. regarding these specific product lines:

• Invest heavily to secure early commercial wins in produced water treatment.
• Aggressively fund pilot programs, like the one for oily wastewater at NorthStar BlueScope Steel, to drive adoption.
• Focus R&D, which was reduced to $0.27 million in Q3 2025, back into these high-potential areas if the commercial pipeline warrants it.
• Divest or significantly reduce spending if commercial viability milestones are not met by the end of 2026.

To be fair, the company is seeing success in related water systems, with total water system revenue increasing by 187% during Q3 2025, driven by pool systems and the oily wastewater delivery. Still, the Question Mark category demands a decision on whether to double down on the risk for the potential Star payoff.

Finance: review the cash burn rate against the $7.3 million ending cash balance and model the capital required to reach the $5.5 million quarterly revenue breakeven point within the next four quarters.