ERII earnings analysis
What we found in ERII's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Energy Recovery, Inc. reported a revenue increase of 20% year-over-year, reaching $9.706 million compared to $8.065 million for the same quarter last year. Despite a growth in revenue, the company experienced a net loss of $12.251 million, impacting the diluted EPS, which worsened to -$0.23 from -$0.18 a year earlier. Management acknowledged challenges related to restructuring and increased operational costs in the CO2 retail grocery segment as significant headwinds.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Growth YoY
- Revenue increased by 20%, reaching $9.706 million compared to $8.065 million in Q1 2025.
- EPS Decline
- Diluted EPS dropped to -$0.23 from -$0.18 in the prior year.
- Operating Expenses Increase
- Operating expenses climbed to $17.561 million from $17.020 million, primarily due to restructuring costs.
- Significant Cash Flow from Operations
- Net cash provided by operating activities was $21.037 million, up from $10.678 million in the previous year.
- Inventory Restructuring Impact
- The company incurred a restructuring - inventory reserve charge of $1.632 million due to the CO2 business wind-down.
- Strong Increment in Investment Income
- Interest income rose to approximately $1.073 million in the current year, indicating improved investment returns.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Increased Operating Losses
- Loss from operations widened to $14.859 million compared to $12.562 million in Q1 2025.
- Impairment of Goodwill
- Recorded a goodwill impairment charge of approximately $1.662 million due to the restructuring.
- Restructuring Headwinds
- Management anticipates ongoing headwinds from the wind-down of its CO2 retail grocery business impacting future operations.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.23
- Gross margin
- 27.8%
- Operating margin
- -153.7%
- Segment
- Desalination: $8.907M
- Segment
- Wastewater: $0.601M
- Segment
- Emerging Technologies: $0.198M
What they said about what is next.
No explicit numeric guidance provided; management expects impacts from restructuring to influence future performance.
The filing reads worse than the one before it.
What came before.
- 10-K · February 25, 2026
- Energy Recovery reported FY2025 revenue of $134.987M (down $9.961M or 7% vs. 2024) with net income of $22.962M and diluted EPS of $0.42. Profitability remains intact (gross margin 65.1%, operating income $23.889M) but…
- 10-Q · May 7, 2025
- Energy Recovery reported Q1 2025 revenue of $8,065 (down $4,025 or 33% YoY) and a materially lower gross margin of 55.3% (down 370 bps). Operating expenses totaled $17,020, producing an operating loss of $12,562 and a…
- 10-K · February 26, 2025
- Energy Recovery reported fiscal 2024 revenue of $144.948M (up $16.599M or 13% vs. 2023) with GAAP diluted EPS of $0.40 and net income of $23.05M. Profitability improved (gross profit $96.933M; gross margin 66.9%) and…
- 10-K · February 21, 2024
- Energy Recovery reported 2023 revenue of $128.3M, up 2% year-over-year, with net income of $21.5M (diluted EPS $0.37) and strong operating cash flow of $26.1M. Water remains the dominant business ($127.7M of revenue)…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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