BioLargo Inc.'s (BLGO:OTCQX) Q2/25 was notable for further development progress on its various technologies but also decreased sales of its Pooph pet odor elimination products, reported Richard Ryan, analyst with Oak Ridge Financial, in an Aug. 19 research note. Oak Ridge, to reflect its full-year 2026 estimates on the cleantech and life sciences innovator now that H1/25 is over, lowered its target price on BioLargo to $0.32 per share from $0.35.
"BioLargo's top line continues to experience softness due to lower Pooph sales, which have come off a very strong year ago period," Ryan wrote. "While the current level of Pooph sales is below expectations, management remains hopeful in its eventual success despite the lack of visibility into Pooph's business."
Along with Pooph, BioLargo has several core products, in development, 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.
78% Return Potential
Oak Ridge's new target on BioLargo, $0.32 per share, 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), wrote Ryan.
At the time of his report, BioLargo's share price was $0.18. From this price, the return to the new target is 78%.
The company is rated Buy.
As of Aug. 12, BioLargo had 308.9 million shares outstanding. It generated $823,000 ($823K) from the sale of 4,077,285 common stock shares to Lincoln Park during H1/25 and yielded $427,203 from the sale of 2,083,136 common stock shares to Lincoln Park after June 30.
The company's market cap is $55.6 million ($55.6M). Its 52-week range is $0.16–0.32 per share.
Takeaways From Financials
Ryan reviewed the main elements of BioLargo's Q2/25 financial results. Revenue was $2.78M, down from $5.1M in Q2/24 and down from $3.3M in Q1/25. Pooph sales accounted for $1.6M, or 57%, of total revenue. This amount is less than half of total revenue a year earlier, and less than Q1/25 revenue of $2.6M. However, ONM Environmental, the manufacturer and owner of the technology behind Pooph products, generated $823 in operating profit.
Total operating expenses in Q2/25 were $3.2M, up from $3M year over year. The sales, general and administrative expense specifically was $2.69M compared to $2.4M a year earlier.
BioLargo reported a net loss in Q2/25 of $1.88M, greater than its net loss in Q2/24 of $780K.
As for the balance sheet, it remained solid at quarter's end with $3.5M of cash, $2.3M of debt and $6.1M of shareholder equity. During H1/25, cash usage in operations was $3.9M compared to a positive cash flow from operations of $330K a year ago. An outstanding balance owed to ONM Environmental, was resolved via conversion of the $3.76M in accounts receivable into a note receivable to BioLargo.
Steady Forward Movement
Operationally, BioLargo made progress in its other divisions, Ryan noted and presented them. Developments included the following:
Clyra: BioLargo's 52%-owned subsidiary, Clyra Medical Technologies, secured a series of sales and distribution agreements covering both U.S. and international markets. These are expected to make Clyra's products available to 6,100 hospitals, 6,300 ambulatory surgery centers and 2,200 specialty wound care clinics in the U.S. alone. To support the commercialization ramp-up of its wound cleansing products, Clyra added seven full-time employees. The market opportunity with Clyra's products, in orthopedics and wound and burn care, is about $1 billion ($1B), Ryan wrote.
PFAS: As for BioLargo's municipal drinking water project in New Jersey, the shipment was completed and delivered in Q2/25, Ryan reported. Unrelated, the company completed a case study for leachate, water that comes out of the bottom of landfills. It concluded that BioLargo's solution is more cost effective over its life span than traditional solutions but remains hampered by being an early-adopter solution that must prove commercial scalability. The company's engineering segment has seen an uptick in service-related sales due to industrial polluters inquiring about PFAS remediation solutions. BioLargo continues developing sales and channel partners with known global entities.
BioLargo estimates PFAS contamination to be a $17 trillion problem globally. The existing market opportunity for BioLargo's Aqueous Electrostatic Concentrator is $1B-plus, and additional markets are emerging.
Cellinity: Cellinity, the subsidiary behind BioLargo's revolutionary battery technology, signed, during Q2/25, four memoranda of understanding with prospective joint venture partners interested in building and operating Cellinity battery factories. The market opportunity for this factory model is about $2.5B-plus.
New FY25 Estimates
Ryan included in his research report some of Oak Ridge's full-year 2025 (FY25) estimates for BioLargo. Its revised revenue forecast is $11.9M, down from $16M previously.
Its new FY25 gross margin projection is about 48%, up slightly from 46% before.
Its estimate of FY25 operating expenses is $13M.
Multiple Shots on Goal
Ryan discussed the potential for more than one success story for BioLargo. As for its pet odor elimination business, it competes with several large conglomerates that control the market, including Procter & Gamble, Church & Dwight and S.C. Johnson, plus a few smaller companies, like Angry Orange and Pourri. This is about a $7–9B market.
Other end markets in odor elimination, such as sports, air freshener, agriculture and all-purpose use, are opportunities for expansion for ONM, each of which could stand on its own. Pursuing these other markets requires capital, however, and that could mean additional BioLargo share dilution and slower-than-expected advancement. The market opportunity here for BioLargo is more than $100M plus 20% of any future exit.
"Perhaps Pooph is the rising tide that lifts other initiatives toward commercialization, and potentially a strategic exit," Ryan wrote. "BLGO is not tied to needing one success story."
With noticeable progress happening with the other in-development products in the company's diverse portfolio of solutions, BioLargo has many shots on goal, added Ryan, "a testament to its science/technologies."
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