Desert Control (DSRT) Q4 2025 earnings summary

Executive summary

• Organizational restructuring included relocating R&D from Norway to the U.S., expanding the U.S. team, and appointing a permanent CFO to support growth and shareholder value.

• Focused on climate-smart soil enhancement solutions to improve water efficiency and economic resilience in agriculture, forestry, and landscaping, with a strong commercial presence in the USA and Middle East.

• Multiple revenue streams include direct sales, pay-as-you-save programs, licensing, and hardware sales.

• Increased traction in golf and agriculture segments, with successful pilots and growing customer interest, especially in California and Arizona.

• Production capacity scaled up with new contract manufacturer in Arizona and operational base in Bakersfield, California.

Financial highlights

• FY2025 revenues reached NOK 2,745 thousand, with EBITDA at negative NOK 66,466 thousand.

• Year-end cash balance was NOK 62,500 thousand, with no debt reported.

• Completed a fully subscribed NOK 75 million rights issue in October, strengthening equity and liquidity into H2 2026.

• Net loss increased year-over-year, impacted by US investments, restructuring, and NOK/USD translation losses.

• Operating expenses rose due to higher US field activity and production scaling, but underlying cost base stable excluding one-time costs.

Outlook and guidance

• 2026 is expected to see increased activity in the U.S., with more pilots and full-scale projects in golf and agriculture, and revenue expected at USD 2-3 million.

• Key milestones include better execution in California, new production units, 8 golf course pilots, 10 agriculture pilots, and 3 full golf course applications.

• Middle East revenue estimates reduced for 2026 due to slower contract progress, but long-term potential remains strong.

• Liquidity sufficient to fund operations and growth investments into H2 2026.

• Anticipated supply constraints as demand grows, with plans to double and then triple delivery capacity by adding new production units.