Desert Control Reports Q2 2025 Results with Operational Progress in U.S. and Middle East

Key Takeaways

• Desert Control (DSRT) expanded deployments of its Liquid Natural Clay (LNC) technology across agriculture, golf, and landscaping in Q2 2025.
• The company completed its first full golf course application and achieved initial commercial sales in Saudi Arabia.
• Trials with U.S. universities and commercial growers reported encouraging results for crop yields.
• Revenue recognition timing under major contracts pushed earnings into later quarters.
• The company ended the quarter with NOK 24.84 million in cash and is evaluating funding options to extend its financial runway.

Desert Control Operational Developments

Desert Control AS (DSRT) reported progress in the second quarter of 2025, with increased deployments and trials of its Liquid Natural Clay (LNC) technology in both the U.S. and the Middle East. The company highlighted new applications with commercial growers, universities, and golf courses in California and Arizona, alongside continued partnerships for landscaping and urban greening.

Key developments included:

• Application of more than 4.5 million liters of LNC at Woodland Hills Country Club in California, marking the company’s first full golf course deployment.
• The first commercial sale by Saudi Desert Control at Atlas Turf Arabia, applying LNC to 3.7 hectares of turf, the region’s first internationally licensed golf and sports turf farm.
• A pilot application at Tempe Marketplace, representing the company’s first engagement with a large commercial real estate owner.
• Trials at the University of Arizona Maricopa Agricultural Center showing encouraging improvements in cantaloupe and broccoli yields in certain test sections.

Desert Control Financial Performance

Desert Control maintained stable operations during the quarter while continuing to invest in product development and commercial capacity. Revenue recognition under the U.S. Pay-As-You-Save (PAYS) contract remains tied to measurable water savings, with significant Q2 activity expected to contribute to revenue in Q3 and beyond.

Highlights for the quarter include:

• Revenue Outlook For Desert Control: Timing of recognition under U.S. contracts deferred Q2 contributions, but work completed is expected to strengthen revenue in coming quarters.
• EBITDA: Performance remained stable year-to-date, supported by cost control and operational efficiencies despite higher activity levels.
• Equity: Total equity stood at NOK 43.71 million at quarter-end, reflecting a reduced buffer from ongoing losses.
• Cash Position: NOK 24.84 million in cash and cash equivalents as of June 30, 2025.
• Funding Horizon: Current resources are expected to support operations into Q4 2025, excluding new revenues.

Funding Considerations

To secure its long-term growth strategy, Desert Control’s Board is evaluating funding alternatives, which may include equity financing, grants, license agreements, or cost optimization measures. Strategic alternatives aimed at enhancing shareholder value are also under consideration.

Read the complete financial results here.