When Will LiqTech International, Inc. (NASDAQ:LIQT) Become Profitable?

We feel now is a pretty good time to analyse LiqTech International, Inc.'s (NASDAQ:LIQT) business as it appears the company may be on the cusp of a considerable accomplishment. LiqTech International, Inc., a clean technology company, designs, develops, produces, markets, and sells automated filtering systems, ceramic silicon carbide liquid applications, and diesel particulate air filters in the United States, Canada, Europe, Asia, and South America. The company’s loss has recently broadened since it announced a US$8.6m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$11m, moving it further away from breakeven. Many investors are wondering about the rate at which LiqTech International will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

View our latest analysis for LiqTech International

According to the 2 industry analysts covering LiqTech International, the consensus is that breakeven is near. They expect the company to post a final loss in 2026, before turning a profit of US$2.1m in 2027. The company is therefore projected to breakeven around 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2027? Working backwards from analyst estimates, it turns out that they expect the company to grow 72% year-on-year, on average, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won’t go into details of LiqTech International's upcoming projects, though, take into account that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we would like to bring into light with LiqTech International is its relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in LiqTech International's case is 45%. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of LiqTech International to cover in one brief article, but the key fundamentals for the company can all be found in one place – LiqTech International's company page on Simply Wall St. We've also put together a list of key factors you should further examine:

1. Valuation: What is LiqTech International worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether LiqTech International is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on LiqTech International’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.