Desert Control (DSRT) Q3 2025 earnings summary

Executive summary

• Completed a fully subscribed NOK 75 million rights issue, strengthening equity and liquidity for future growth and commercial expansion.

• Relocated R&D from Norway to the U.S., consolidating laboratory research and expanding U.S. teams to improve operational efficiency and proximity to customers.

• Focused commercial efforts on the U.S. Southwest and Middle East, with pilots in key segments like almonds, wine, and golf, and major commercial awards in Abu Dhabi.

• Emphasized climate-smart soil enhancement solutions targeting water efficiency and economic resilience, with direct sales in the U.S. and licensing in the Middle East.

• Established presence in major sandy soil markets, notably the U.S. and Middle East, with expansion plans for Australia and other global regions.

Financial highlights

• Q3 2025 revenue and other income totaled NOK 0.1 million, down 67% year-over-year; YTD revenue at NOK 1.8 million, down 9%.

• Operating loss for Q3 2025 was NOK -19.7 million, a 29% increase year-over-year; YTD operating loss at NOK -52.7 million.

• EBITDA for Q3 2025 was NOK -19.0 million; YTD EBITDA at NOK -49.9 million.

• Cash and cash equivalents at quarter-end were NOK 8.2 million, down 89% from the prior year; rights issue proceeds received in October.

• Total equity at quarter-end was NOK 88.1 million, up 2% year-over-year.

Outlook and guidance

• Revenue recognition from U.S. PAYS contracts expected to begin in Q4 2025 as customer validation milestones are achieved.

• Targeting a 10x revenue expansion from 2025 to 2027, driven by scalable commercialization and new production units.

• Key milestones for 2025/2026 include new production units, multiple pilots, and large-scale contracts in the Middle East.

• Rights issue proceeds will fund operations well into the second half of 2026.

• Estimated 2026 revenue mix: ~50% hardware sales, ~25% direct U.S. sales, ~25% licensing.