Desert Control (DSRT) Q4 2025 earnings summary

Executive summary

• Organizational restructuring included moving R&D from Norway to the U.S., expanding the U.S. team, and appointing a new CFO and board members with deep industry experience.

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

• Multiple revenue streams include direct sales, pay-as-you-save programs, licensing, and hardware sales, with strong traction in California golf and agriculture segments and pilots in almonds, dates, and vineyards.

• Significant operational progress in 2025, including increased delivery capacity, new contract manufacturing in Arizona, and strengthened production platform with new units and an operational base in Bakersfield, California.

• Water scarcity and regulatory changes in the Western U.S. and globally are intensifying, driving demand for water-saving technologies.

Financial highlights

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

• Year-end cash position 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.

• Revenue grew year-over-year but remained modest due to PAYS contract structure; 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 was stable excluding one-time restructuring and field activity costs.

Outlook and guidance

• 2026 expected to see increased activity in the U.S., with doubled and then tripled delivery capacity as new production units come online.

• Revenue expected at USD 2-3 million in 2026, supported by strong trial activity and sales pipeline.

• Key milestones for 2025/2026 include better execution in California, 8 golf course pilots, 10 agriculture pilots, 3 full golf course applications, and initiation of a large-scale contract in the Middle East.

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

• Liquidity sufficient to fund operations and growth investments into H2 2026, with operating expenses projected to remain level year-over-year.