CitroTech (NYSEAMERICAN:CITR) reported a 130% increase in third-quarter revenue and a narrower operating loss as the fire-retardant company expanded its network of trained partners and worked to develop treated wood products with Hexion.
Revenue rose to $664,000 from $288,212 a year earlier, CEO Wes Bolsen said on the company’s earnings call. He said the increase came despite several significant purchase orders shifting by a few weeks from the third quarter into the fourth quarter.
The company’s loss from operations narrowed to $2.3 million from $4.2 million in the third quarter of 2025. Bolsen also highlighted an October public offering that generated $5.6 million in gross proceeds from common stock, with no warrants attached.
Board Chair and Director Craig Huff purchased $500,000 of common stock through BoltRock Holdings LLC at the offering price of $2.50 per share, Bolsen said, citing Huff’s securities filings.
Bolsen said the additional capital would support commercial contracts, inventory purchases ahead of the 2027 wildfire season and continued work toward obtaining U.S. Forest Service Qualified Products List status. He said the company believes it has sufficient capital to reach several milestones in its current operating plan.
Partner Network and Customer Adoption
CitroTech’s certified partner network grew to 31 trained partners as of Sept. 30, up from 13 at the end of the second quarter, Bolsen said. The company plans to train another five to 10 partners at a December session in Oceanside, California.
Responding to a question from Northland analyst Robert Brooks, Bolsen said CitroTech has turned down applicants as it seeks partners with relevant equipment, personnel and experience working in their communities. He suggested the network could eventually reach about 100 partners, rather than thousands, with some partners potentially expanding across multiple states.
Bolsen said some partners have begun reordering product after treating homes and other properties. He also pointed to partner All Risk Shield’s work protecting assets during the Norte Fire in Orange County, California, in October.
San Diego continued to purchase and deploy CitroTech during the second half of the year, including in ecologically sensitive areas, Bolsen said. He added that a live demonstration in Los Angeles County in August attracted representatives from six county fire agencies, more than 30 fire chiefs, utility decision-makers and commercial partners.
Infrastructure and Wood Product Testing
Bolsen described a third-quarter application on wooden railroad bridges in East Los Angeles, where he said arson-related fires were subsequently set nearby on two occasions. Surrounding structures sustained significant damage, while treated railroad ties were charred but did not burn, he said.
Asked why the railroad had not immediately placed a larger order, Bolsen cited the time needed to complete supplier registration and paperwork. He said some third-quarter sales came from the railroad work and that he anticipated potential additional sales in the fourth quarter. He did not identify the railroad.
The company also began a utility deployment in the western United States, treating areas around transmission and distribution lines. Bolsen said CitroTech expects to expand its utility work during the 2027 fire season, subject to customer demand and available resources.
In treated wood, the HexiTech joint venture with Hexion passed outside burn testing during the third quarter on spruce-pine-fir and southern yellow pine, Bolsen said. CitroTech had previously tested its product on Douglas fir.
Bolsen said the venture is handling commercialization of treated lumber and building materials. He expects the cost to be comparable to, or potentially better than, conventional pressure-treated products, while emphasizing that the venture would continue testing the products’ characteristics.
2027 Outlook
Bolsen said CitroTech remains focused primarily on the United States to avoid stretching its resources too thin, although it is considering international opportunities and has a partner in Canada. He said wildfire risk can shift across U.S. regions throughout the year, creating opportunities outside the traditional May-to-September season.
The company is also speaking with large insurance carriers, directly and through partners, about long-term fire-retardant treatments for homes, Bolsen said. He characterized the discussions as ongoing and did not announce an insurance contract.
Looking ahead, Bolsen said CitroTech is focused on converting its pipeline into repeatable, recurring revenue. He cautioned through his broader remarks that anticipated utility expansion and other future commercial activity depend on customer demand and available resources.
About CitroTech (NYSEAMERICAN:CITR)
CitroTech Inc. manufactures and sells fire inhibitor products in the United States and Canada. The company also offers lumber treatment and spraying solutions, as well as develops wildfire defense systems on residential and commercial properties under the CitroSafe Systems brand name. It serves wildland fire, residential home protection, wood products, ground application, lumber and building materials, and construction industries; homeowners; governments; and agencies. The company was formerly known as General Enterprise Ventures, Inc. and changed its name to CitroTech Inc. in January 2026.
