Desert Control (DSRT) Q4 2025 earnings summary

Executive summary

• Organizational restructuring moved R&D from Norway to the U.S., expanded the U.S. team, and focused on sales and operations to support growth ambitions.

• Climate-smart soil solutions target water efficiency and economic resilience in agriculture, forestry, and landscaping, with commercial presence in the USA and Middle East.

• Two new board members with agriculture and water-saving expertise and a new CFO with capital markets experience were appointed to drive growth and shareholder value.

• Commercial strategy targets the U.S. and Middle East, using direct sales in the U.S. and distributor/license/royalty models in the Middle East.

• Significant operational progress in 2025 included new contract manufacturing in Arizona and a new operational base in Bakersfield, California.

Financial highlights

• FY2025 unaudited revenues were 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 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.

• Underlying cost base stable, excluding one-time restructuring and field activity costs.

Outlook and guidance

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

• Key milestones for 2025/2026 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 conversion, but long-term potential remains strong.

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

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