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…
Earnings analysis · 10-Q
ERII earnings analysis
Filed May 6, 2026 · Our reading of the company's report
The latest report
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…
Read full summary
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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.23
What stood out
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Revenue Growth YoY
Revenue increased by 20%, reaching $9.706 million compared to $8.065 million in Q1 2025.
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EPS Decline
Diluted EPS dropped to -$0.23 from -$0.18 in the prior year.
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Operating Expenses Increase
Operating expenses climbed to $17.561 million from $17.020 million, primarily due to restructuring costs.
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Significant Cash Flow from Operations
Net cash provided by operating activities was $21.037 million, up from $10.678 million in the previous year.
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Inventory Restructuring Impact
The company incurred a restructuring - inventory reserve charge of $1.632 million due to the CO2 business wind-down.
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Strong Increment in Investment Income
Interest income rose to approximately $1.073 million in the current year, indicating improved investment returns.
What to watch
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Increased Operating Losses
Loss from operations widened to $14.859 million compared to $12.562 million in Q1 2025.
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Impairment of Goodwill
Recorded a goodwill impairment charge of approximately $1.662 million due to the restructuring.
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Restructuring Headwinds
Management anticipates ongoing headwinds from the wind-down of its CO2 retail grocery business impacting future operations.
Management's outlook
No explicit numeric guidance provided; management expects impacts from restructuring to influence future performance.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.