BioLargo Inc. (BLGO:OTCQX) presented highlights of its Q2/25 news and achievements, in a letter to shareholders on July 23, reported Oak Ridge Financial Analyst Richard Ryan in a research note on the same date.
"BioLargo's business model approach is to invent or acquire novel technologies, develop them into product offerings and extend their commercial reach through licensing and channel partnerships to maximize their impact," Ryan explained.
This cleantech and life sciences innovator, the analyst noted, has several core products, which individually address PFAS (per/polyfluoroalkyl substances) contamination, achieve advanced water and wastewater treatment, control odor and volatile organic compounds, improve air quality, enable energy efficiency and safe onsite energy storage, and control infections and infectious disease.
94% Return Implied
Ryan reiterated Oak Ridge's $0.35 per share price target on BioLargo, noting the figure excludes estimates for potential PFAS removal or advanced oxidation system water treatment projects or any valuation of the company's sodium-sulfur battery technology (Cellinity).
At the time of his report, BioLargo was trading at about $0.18 per share. From this price, the return to target is 94%.
Accounting for PFAS-related revenues, Oak Ridge's bull case price target is $0.44 per share. This reflects about 144% upside from current levels.
BioLargo remains a Buy.
Other BLGO data, Ryan reported, at the time of his report included 306.1 million outstanding shares, a market cap of $56.6 million ($56.6M) and a 52-week range of $0.16–0.32 per share.
Q2/25 News Summary
Ryan presented the news items BioLargo mentioned in its shareholder letter:
PFAS: BioLargo joined forces with Verralize Inc., developer of next-generation water testing technologies. With Verralize's water test kit, users may find out in real time and onsite if water contains PFAS. This product, ideal for water treatment operators, is user friendly, low cost and able to distinguish between different PFAS molecules.
Cellinity: U.S. BESS Corp., provider of advanced energy storage solutions for critical infrastructure, validated BioLargo's Cellinity after a thorough examination, inspection and data review. U.S. BESS concluded that the Cellinity cell performs as observed without auxiliary systems and that performance aligns with the cell's demonstrated behavior. The third party also concluded it is reasonable to expect the cell will not experience thermal runway, the cell components are fully recyclable, parts are commonly available and can be domestically sourced and the cells lack any rare earth elements.
Q2/25 Milestones Recap
Recent company developments, as outlined in the shareholder letter, are as follows, Ryan reported:
PFAS: BioLargo began working with a large, international water treatment technology company on a specific client project. This could be a new sales channel for BioLargo's PFAS treatment technologies.
Cellinity: BioLargo signed four memoranda of understanding on July 22 with possible joint venture partners interested in building and operating Cellinity battery factories. This development is consistent with BioLargo's strategy to sell battery factories rather than the batteries themselves.
Clyra: BioLargo's life sciences subsidiary Clyra Medical Technologies Inc. entered into several sales and distribution agreements covering the U.S. and international markets. With these, Clyra's products should be available for purchase by 6,100 hospitals, 6,300 ambulatory surgery centers 2,200 specialty wound care clinics, all in just the U.S.
Pooph: BioLargo established a payment arrangement, including the charge of interest, for outstanding Pooph-related accounts receivable. BioLargo management believes most of the credit risk going forward has been mitigated through careful inventory management and cooperation by Pooph Inc.
Q2/25 Earnings Estimates
Ryan noted that BioLargo will report its Q2/25 in mid-August. The analyst pointed out that sales of Pooph products, the company's only income generating product, have been slower than expected in the past two quarters, thereby impacting BioLargo's overall financial results.
As such, BioLargo management anticipates Q2/25 results to be "flattish on the topline" but believes Pooph ultimately will be successful, Ryan relayed. He added that it is difficult to forecast future Pooph results given the lack of visibility into the business and the short time (three years) its products have been on the market.
Regardless, Oak Ridge shared its Q2/25 forecasts for BioLargo. The financial services firm expects revenue of $3.5M, which compares to $3.3M in Q1/25 and $5M a year earlier.
Oak Ridge estimates Q2/25 adjusted earnings per share of ($0.01), the same as the prior quarter but versus $0.00 last year.
Oak Ridge forecasts Q2/25 adjusted EBITDA to be $1.3M versus $1.2M in Q1/25 and $73,000 in Q2/24.
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