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Desert Control Q3 2025 Report Overview

On November 6, 2025, Desert Control AS (DSRT) published its third-quarter financial report detailing performance for the fiscal period that concluded on September 30, 2025. This announcement illustrates significant strides in both operational and financial fields, highlighting the company's commitment to innovative solutions for soil and water management.

Operational Highlights

During the third quarter, Desert Control achieved notable successes with its first Pay-As-You-Save (PAYS) client, Woodland Hills Country Club. This partnership resulted in remarkable irrigation savings and enhanced turf quality, with estimates suggesting the potential for savings and incentives surpassing USD 100,000. The data supports the value and effectiveness of Desert Control's proprietary Liquid Natural Clay (LNC).

Additionally, the company launched its inaugural almond trials in California, aiming to assess LNC's impact on water-use efficiency and yield performance. This trial represents a critical move towards scaling LNC application in high-value crops, including pistachios, walnuts, and various fruits. Desert Control’s partners in Saudi Arabia and the UAE also made advancements in research and commercialization of LNC technologies. Notably, findings showed over 2× water retention and 3× nutrient gains from field data in Saudi Arabia, highlighting the technology's potential in sustainable development.

Financial Highlights

In Q3 2025, Desert Control made significant financial advances, completing a fully subscribed rights issue valued at NOK 75 million. This capital influx bolstered the company's balance sheet and extended its liquidity through the second half of 2026. However, revenue generation during this period remained below prior year levels, primarily due to the structure of the U.S. PAYS contract, where income from water savings is only recorded after customer verification.

Despite strong application work, revenue recognition is anticipated to commence in Q4 as customer confirmation milestones are achieved, allowing invoicing to begin under the PAYS framework.

Operating expenses witnessed an increase, leading to a decline in EBITDA when juxtaposed with last year's figures. This rise primarily correlates with elevated field activities in the U.S. and ongoing investments in organizational capacity. The quarter also encountered restructuring costs of approximately NOK 2.5 million, projected to have minimal residual impacts going forward.

Net Result Impact

The net loss for Q3 and year-to-date figures showed an uptick compared to previous periods. Factors contributing to this include U.S. expansion efforts, restructuring initiatives, and notable foreign exchange fluctuations amounting to NOK 9.5 million, mainly influenced by the NOK's strength against the USD. However, it is important to note that these translation effects do not impact the operational fundamentals or liquidity status of Desert Control.

Equity and Cash Position

Total equity experienced slight improvement year-on-year, largely supported by the rights issue completed in September 2025. This transaction not only reinforced the equity position but also improved liquidity, positioning the company favorably for the scale-up and commercialization of its products. Cash and equivalents did decline during Q3, attributable to planned investments in research, development, and organizational growth. Notably, Desert Control secured a 2.3 million NOK SkatteFUNN grant this quarter, reflecting a substantial increase over the previous year.

Conclusion

Desert Control is making significant strides in the realm of sustainability and efficient resource management. With successful operational ventures and strategic financial maneuvers, the company is well poised for future growth. Stakeholders are encouraged to follow the impending developments as Desert Control advances towards its goals of sustainability and profitability in agricultural and ecological contexts.

For more detailed insights, interested parties can access the full report and register for the upcoming webcast presentation held on November 6, 2025.

For additional inquiries, you may contact James Thomas, the Chief Executive Officer, via email or mobile provided in the official release.