Energy Recovery Reports its Fourth Quarter 2025 Financial Results
MWN-AI** Summary
Energy Recovery, Inc. (Nasdaq: ERII) reported its financial results for the fourth quarter of 2025, highlighting a revenue of $66.9 million—a slight decline from $67.1 million in Q4 2024, attributed to the timing of revenue from contracted projects. The company's gross margin decreased to 67.2%, down 300 basis points compared to the previous year, mainly due to changes in the product mix and tariff impacts. However, the decline in revenue did not hamper operational efficiency, as operating expenses dropped significantly by 36.5% to $13.6 million, primarily due to reductions in employee and consulting costs.
Income from operations increased by 22.3% to $31.3 million, benefiting from the decreased operating expenses. Net income rose by 15% to $26.9 million, with adjusted EBITDA reaching $33.6 million. The company closed the year with $83.3 million in cash and investments, which includes cash, cash equivalents, and both short- and long-term investments.
For the entire year, Energy Recovery reported a consolidated revenue of $135 million, a 7% decrease from $144.9 million in 2024. Despite the decrease in top-line results, the operating margin improved to 17.7%, reflecting ongoing efficiencies. Adjusted net income for the year stood at $31.2 million but fell 23% from the prior year's $40.7 million.
Management has communicated expectations for 2026 in a letter to shareholders, available on the company's investor relations site. Overall, while the fourth quarter showed mixed results, the cost-control measures taken have led to an increase in profitability metrics, thus providing a cautiously optimistic outlook for the year ahead.
MWN-AI** Analysis
Energy Recovery, Inc. (Nasdaq: ERII) has released its financial results for the fourth quarter of 2025, which provide valuable insights into its performance and future prospects. Despite a slight decrease in revenue to $66.9 million, driven by delays in contracted projects, the company’s operating income grew significantly by 22.3% year-over-year, reaching $31.3 million. This was attributed to a sharp reduction in operating expenses by 36.5%, showcasing improved cost management and operational efficiency.
The gross margin contracted to 67.2%, a decline of 300 basis points from Q4 2024, largely due to adverse product mix and tariff-related costs. Nonetheless, the company maintained a healthy operating margin of 46.8%. Net income increased by 15% to $26.9 million, further emphasizing the effectiveness of cost-cutting measures.
Investors should note the company's cash position, which stood at $83.3 million, offering support for future growth initiatives and reinforcing liquidity. The steady rise in adjusted EBITDA to $33.6 million also indicates a positive trend in operational cash flow.
Looking ahead, potential investors might consider Energy Recovery a prudent opportunity given its robust operational efficiencies and strong net income growth. Despite some revenue challenges, the strategic focus on cost control positions the company favorably to navigate market fluctuations. Additionally, the upcoming conference call on February 25, 2026, will serve as a critical platform for management to articulate their outlook for 2026, which may provide further insight into growth prospects.
In conclusion, while investors should remain vigilant regarding revenue stability, the overall financial health and operational efficiency suggested by these results indicate that Energy Recovery may be a compelling investment for those focused on long-term sustainability in the energy sector.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Energy Recovery, Inc. (Nasdaq:ERII) (“Energy Recovery” or the “Company”) today announced its financial results for the fourth quarter and year ended December 31, 2025.
Fourth Quarter Highlights
- Revenue of $66.9 million, a decrease of $0.2 million, as compared to Q4’2024, due to timing of revenue from contracted projects.
- Gross margin of 67.2%, a decrease of 300 bps, as compared to Q4’2024, due primarily to costs related to product mix and tariffs.
- Operating expenses of $13.6 million, a decrease of 36.5%, as compared to Q4’2024, due primarily to a decrease in employee costs, consulting costs and restructuring costs.
- Income from operations of $31.3 million, an increase of 22.3%, as compared to Q4’2024, mainly due to lower operating expenses.
- Net income of $26.9 million and adjusted EBITDA (1) of $33.6 million.
- Cash and investments of $83.3 million, which includes cash, cash equivalents, and short- and long-term investments.
In conjunction with these financial results, management has released a letter to shareholders reviewing business and financial updates from the fourth quarter and discussing our outlook for 2026. This letter is located under “News and Events” in the “Investors” section on the Energy Recovery website ( https://ir.energyrecovery.com/news-events/shareholder-letters ).
Financial Highlights
Quarter-to-Date | Year to Date | |||||||||||
Q4’2025 | Q4’2024 | vs. Q4’2024 | 2025 | 2024 | 2025 vs. 2024 | |||||||
(In millions, except net income per share, percentages and basis points) | ||||||||||||
Revenue | $66.9 | $67.1 | down % | $135.0 | $144.9 | down 7% | ||||||
Gross margin | 67.2% | 70.2% | down 300 bps | 65.1% | 66.9% | down 180 bps | ||||||
Operating margin | 46.8% | 38.2% | up 860 bps | 17.7% | 13.6% | up 410 bps | ||||||
Net income | $26.9 | $23.5 | up 15% | $23.0 | $23.1 | down 0% | ||||||
Diluted net income per share | $0.50 | $0.41 | up $0.09 | $0.42 | $0.40 | up $0.02 | ||||||
Effective tax rate | 16.8% | 10.4% | ||||||||||
Cash provided by operations | $7.1 | $9.0 | $18.8 | $20.5 |
Non-GAAP Financial Highlights (1)
Quarter-to-Date | Year to Date | |||||||||||
Q4’2025 | Q4’2024 | vs. Q4’2024 | 2025 | 2024 | 2025 vs. 2024 | |||||||
(In millions, except adjusted net income per share, percentages and basis points) | ||||||||||||
Adjusted operating margin | 48.9% | 45.2% | up 370 bps | 23.9% | 26.2% | down 230 bps | ||||||
Adjusted net income | $28.2 | $28.3 | down 0% | $31.2 | $40.7 | down 23% | ||||||
Adjusted net income per share | $0.53 | $0.50 | up $0.03 | $0.58 | $0.71 | down $0.13 | ||||||
Adjusted EBITDA | $33.6 | $31.3 | $36.0 | $42.0 | ||||||||
Free cash flow | $6.4 | $8.9 | $17.4 | $19.2 |
| ____________ | ||
(1) | Refer to the sections “Use of Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” for definitions of our non-GAAP financial measures and reconciliations of GAAP to non-GAAP amounts, respectively. |
Forward-Looking Statements
Certain matters discussed in this press release and on the conference call are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on information currently available to the Company and on management’s beliefs, assumptions, estimates, or projections and are not guarantees of future events or results. Potential risks and uncertainties include risks relating to the future demand for the Company’s products, risks relating to performance by our customers and third-party partners, risks relating to the timing of revenue, and any other factors that may have been discussed herein regarding the risks and uncertainties of the Company’s business, and the risks discussed under “Risk Factors” in the Company’s Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”) for the year ended December 31, 2024, as well as other reports filed by the Company with the SEC from time to time. Because such forward-looking statements involve risks and uncertainties, the Company’s actual results may differ materially from the predictions in these forward-looking statements. All forward-looking statements are made as of today, and the Company assumes no obligation to update such statements.
Use of Non-GAAP Financial Measures
This press release includes certain non-GAAP financial measures, including adjusted operating margin, adjusted net income, adjusted net income per share, adjusted EBITDA and free cash flow. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either exclude or include amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States of America, or GAAP. These non-GAAP financial measures do not reflect a comprehensive system of accounting, differ from GAAP measures with the same captions, and may differ from non-GAAP financial measures with the same or similar captions that are used by other companies. As such, these non-GAAP measures should be considered as a supplement to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. The Company uses these non-GAAP financial measures to analyze its operating performance and future prospects, develop internal budgets and financial goals, and to facilitate period-to-period comparisons. The Company believes these non-GAAP financial measures reflect an additional way of viewing aspects of its operations that, when viewed with its GAAP results, provide a more complete understanding of factors and trends affecting its business.
Notes to the Financial Results
- Adjusted operating margin is a non-GAAP financial measure that the Company defines as income from operations which excludes i) stock-based compensation; ii) executive transition costs, such as executive search costs, retention costs, one-time severance costs and one-time corporate growth strategy costs; iii) restructuring charges 1 , and iv) impairment of long-lived assets, divided by revenues.
- Adjusted net income is a non-GAAP financial measure that the Company defines as net income which excludes i) stock-based compensation; ii) executive transition costs; iii) restructuring charges 1 ; iv) impairment of long-lived assets; and v) the applicable tax effect of the excluded items including the stock-based compensation discrete tax item.
- Adjusted net income per share is a non-GAAP financial measure that the Company defines as net income, which excludes i) stock-based compensation; ii) executive transition costs; iii) restructuring charges 1 ; iv) impairment of long-lived assets; and v) the applicable tax effect of the excluded items including the stock-based compensation discrete tax item, divided by basic shares outstanding.
- Adjusted EBITDA is a non-GAAP financial measure that the Company defines as net income which excludes i) depreciation and amortization; ii) stock-based compensation; iii) executive transition costs; iv) restructuring charges 1 ; v) impairment of long-lived assets; vi) other income, net, such as interest income and other non-operating income (expense), net; and vii) provision for income taxes.
- Free cash flow is a non-GAAP financial measure that the Company defines as net cash provided by operating activities less capital expenditures.
| ____________ | ||
1 | Restructuring charges are presented net of adjustments |
Conference Call to Discuss Financial Results
LIVE CONFERENCE Q&A CALL:
Wednesday, February 25, 2026, 2:00 PM PT / 5:00 PM ET
US / Canada Toll-Free: +1 (877) 709-8150
Local / International Toll: +1 (201) 689-8354
CONFERENCE Q&A CALL REPLAY:
Available approximately three hours after conclusion of the live call.
Expiration: Wednesday, March 25, 2026
US / Canada Toll-Free: +1 (877) 660-6853
Local / International Toll: +1 (201) 612-7415
Access code: 13758280
Investors may also access the live call and the replay over the internet on the “Events” page of the Company’s website located at https://ir.energyrecovery.com/news-events/ir-calendar .
Disclosure Information
Energy Recovery uses the investor relations section on its website as means of complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor Energy Recovery’s investor relations website in addition to following Energy Recovery’s press releases, SEC filings, and public conference calls and webcasts.
About Energy Recovery
Energy Recovery (Nasdaq: ERII) designs and manufactures world-class energy-saving technology for critical infrastructure that communities rely on every day, driving a more resilient and sustainable future. Grounded in more than 30 years of leadership in the desalination industry, today we use our proprietary pressure exchanger technology to help customers in multiple industries improve their operations and lower their emissions. Headquartered in the San Francisco Bay Area, we operate manufacturing and R&D facilities throughout California, with sales and on-site technical support available globally. For more information, please visit www.energyrecovery.com
ENERGY RECOVERY, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | |||||
December 31, | December 31, | ||||
(In thousands) | |||||
ASSETS | |||||
Cash, cash equivalents and investments | $ | 83,283 | $ | 99,851 | |
Accounts receivable and contract assets | 78,286 | 66,842 | |||
Inventories, net | 24,260 | 24,906 | |||
Prepaid expenses and other assets | 3,416 | 3,889 | |||
Property, equipment and operating leases | 20,635 | 25,119 | |||
Goodwill | 12,790 | 12,790 | |||
Deferred tax assets and other assets | 8,844 | 9,395 | |||
TOTAL ASSETS | $ | 231,514 | $ | 242,792 | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||
Liabilities | |||||
Accounts payable, accrued expenses, and other liabilities, current | $ | 13,784 | $ | 20,837 | |
Contract liabilities and other liabilities, non-current | 2,109 | 628 | |||
Lease liabilities | 9,429 | 11,317 | |||
Total liabilities | 25,322 | 32,782 | |||
Stockholders’ equity | 206,192 | 210,010 | |||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 231,514 | $ | 242,792 | |
ENERGY RECOVERY, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | |||||||||||||
Three Months Ended December 31, | Years Ended December 31, | ||||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||||
(In thousands, except per share data) | |||||||||||||
Revenue | $ | 66,871 | $ | 67,075 | $ | 134,987 | $ | 144,948 | |||||
Cost of revenue | 21,910 | 19,955 | 47,056 | 48,015 | |||||||||
Gross profit | 44,961 | 47,120 | 87,931 | 96,933 | |||||||||
Operating expenses | |||||||||||||
General and administrative | 6,012 | 8,303 | 29,769 | 33,074 | |||||||||
Sales and marketing | 4,946 | 6,754 | 20,926 | 25,423 | |||||||||
Research and development | 2,914 | 3,972 | 13,034 | 16,236 | |||||||||
Restructuring charges | (226 | ) | 2,476 | 313 | 2,476 | ||||||||
Total operating expenses | 13,646 | 21,505 | 64,042 | 77,209 | |||||||||
Income from operations | 31,315 | 25,615 | 23,889 | 19,724 | |||||||||
Other income, net | 821 | 1,240 | 3,706 | 6,011 | |||||||||
Income before income taxes | 32,136 | 26,855 | 27,595 | 25,735 | |||||||||
Provision for income taxes | 5,222 | 3,384 | 4,633 | 2,685 | |||||||||
Net income | $ | 26,914 | $ | 23,471 | $ | 22,962 | $ | 23,050 | |||||
Net income per share | |||||||||||||
Basic | $ | 0.51 | $ | 0.41 | $ | 0.43 | $ | 0.40 | |||||
Diluted | $ | 0.50 | $ | 0.41 | $ | 0.42 | $ | 0.40 | |||||
Number of shares used in per share calculations | |||||||||||||
Basic | 52,915 | 56,629 | 53,802 | 57,213 | |||||||||
Diluted | 53,360 | 57,236 | 54,158 | 57,822 | |||||||||
ENERGY RECOVERY, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | ||||||||
Years Ended December 31, | ||||||||
2025 | 2024 | |||||||
(In thousands) | ||||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 22,962 | $ | 23,050 | ||||
Non-cash adjustments | 11,945 | 16,214 | ||||||
Net cash used in operating assets and liabilities | (16,137 | ) | (18,742 | ) | ||||
Net cash provided by operating activities | 18,770 | 20,522 | ||||||
Cash flows from investing activities: | ||||||||
Net investment in marketable securities | 35,305 | (14,489 | ) | |||||
Capital expenditures | (1,330 | ) | (1,298 | ) | ||||
Proceeds from sales of fixed assets | 10 | 133 | ||||||
Net cash provided by (used in) investing activities | 33,985 | (15,654 | ) | |||||
Cash flows from financing activities: | ||||||||
Net proceeds from issuance of common stock | 1,796 | 7,100 | ||||||
Repurchase of common stock and payment of excise tax | (36,330 | ) | (50,384 | ) | ||||
Net cash used in financing activities | (34,534 | ) | (43,284 | ) | ||||
Effect of exchange rate differences | 98 | (52 | ) | |||||
Net change in cash, cash equivalents and restricted cash | $ | 18,319 | $ | (38,468 | ) | |||
Cash, cash equivalents and restricted cash, end of year | $ | 48,076 | $ | 29,757 | ||||
ENERGY RECOVERY, INC. SUPPLEMENTAL FINANCIAL INFORMATION (Unaudited) | |||||||||||||||
Channel Revenue | |||||||||||||||
Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||
2025 | 2024 | vs. 2024 | 2025 | 2024 | vs. 2024 | ||||||||||
(In thousands, except percentages) | |||||||||||||||
Megaproject | $ | 49,647 | $ | 46,475 | up 7% | $ | 82,885 | $ | 95,399 | down 13% | |||||
Original equipment manufacturer | 10,620 | 16,315 | down 35% | 31,940 | 31,525 | up 1% | |||||||||
Aftermarket | 6,604 | 4,285 | up 54% | 20,162 | 18,024 | up 12% | |||||||||
Total revenue | $ | 66,871 | $ | 67,075 | no change | $ | 134,987 | $ | 144,948 | down 7% |
Segment Activity | ||||||||||||||||||||||||||||||
Three Months Ended December 31, | ||||||||||||||||||||||||||||||
2025 | 2024 | |||||||||||||||||||||||||||||
Water | Emerging | Corporate | Total | Water | Emerging | Corporate | Total | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||
Revenue | $ | 66,871 | $ | — | $ | — | $ | 66,871 | $ | 66,959 | $ | 116 | $ | — | $ | 67,075 | ||||||||||||||
Cost of revenue | 22,113 | (203 | ) | — | 21,910 | 19,756 | 199 | — | 19,955 | |||||||||||||||||||||
Gross profit (loss) | 44,758 | 203 | — | 44,961 | 47,203 | (83 | ) | — | 47,120 | |||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||||||
General and administrative | 1,372 | 355 | 4,285 | 6,012 | 2,490 | 913 | 4,900 | 8,303 | ||||||||||||||||||||||
Sales and marketing | 3,535 | 1,053 | 358 | 4,946 | 4,324 | 1,856 | 574 | 6,754 | ||||||||||||||||||||||
Research and development | 1,742 | 1,172 | — | 2,914 | 1,205 | 2,767 | — | 3,972 | ||||||||||||||||||||||
Restructuring charges | (105 | ) | (76 | ) | (45 | ) | (226 | ) | 1,147 | 832 | 497 | 2,476 | ||||||||||||||||||
Total operating expenses | 6,544 | 2,504 | 4,598 | 13,646 | 9,166 | 6,368 | 5,971 | 21,505 | ||||||||||||||||||||||
Operating income (loss) | $ | 38,214 | $ | (2,301 | ) | $ | (4,598 | ) | 31,315 | $ | 38,037 | $ | (6,451 | ) | $ | (5,971 | ) | 25,615 | ||||||||||||
Other income, net | 821 | 1,240 | ||||||||||||||||||||||||||||
Income before income taxes | $ | 32,136 | $ | 26,855 |
ENERGY RECOVERY, INC. SUPPLEMENTAL FINANCIAL INFORMATION (Unaudited) | ||||||||||||||||||||||||||||
Segment Activity | ||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||
2025 | 2024 | |||||||||||||||||||||||||||
Water | Emerging | Corporate | Total | Water | Emerging | Corporate | Total | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Revenue | $ | 134,702 | $ | 285 | $ | — | $ | 134,987 | $ | 144,310 | $ | 638 | $ | — | $ | 144,948 | ||||||||||||
Cost of revenue | 46,923 | 133 | — | 47,056 | 47,389 | 626 | — | 48,015 | ||||||||||||||||||||
Gross profit | 87,779 | 152 | — | 87,931 | 96,921 | 12 | — | 96,933 | ||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||||
General and administrative | 5,686 | 2,350 | 21,733 | 29,769 | 8,127 | 3,821 | 21,126 | 33,074 | ||||||||||||||||||||
Sales and marketing | 13,664 | 5,449 | 1,813 | 20,926 | 15,683 | 7,340 | 2,400 | 25,423 | ||||||||||||||||||||
Research and development | 6,344 | 6,690 | — | 13,034 | 4,523 | 11,713 | — | 16,236 | ||||||||||||||||||||
Restructuring charges | 105 | 47 | 161 | 313 | 1,147 | 832 | 497 | 2,476 | ||||||||||||||||||||
Total operating expenses | 25,799 | 14,536 | 23,707 | 64,042 | 29,480 | 23,706 | 24,023 | 77,209 | ||||||||||||||||||||
Operating income (loss) | $ | 61,980 | $ | (14,384 | ) | $ | (23,707 | ) | 23,889 | $ | 67,441 | $ | (23,694 | ) | $ | (24,023 | ) | 19,724 | ||||||||||
Other income, net | 3,706 | 6,011 | ||||||||||||||||||||||||||
Income before income taxes | $ | 27,595 | $ | 25,735 |
Stock-based Compensation | |||||||||||
Three Months Ended December 31, | Years Ended December 31, | ||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||
(In thousands) | |||||||||||
Stock-based compensation expense charged to: | |||||||||||
Cost of revenue | $ | 91 | $ | 96 | $ | 543 | $ | 1,076 | |||
General and administrative | 841 | 641 | 3,307 | 4,013 | |||||||
Sales and marketing | 651 | 722 | 2,859 | 3,489 | |||||||
Research and development | 30 | 351 | 1,010 | 1,744 | |||||||
Total stock-based compensation expense | $ | 1,613 | $ | 1,810 | $ | 7,719 | $ | 10,322 | |||
ENERGY RECOVERY, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (1) (Unaudited) | |||||||||||||||
This press release includes certain non-GAAP financial information because we plan and manage our business using such information. The following table reconciles the GAAP financial information to the non-GAAP financial information. | |||||||||||||||
Quarter-to-Date | Year to Date | ||||||||||||||
Q4'2025 | Q4'2024 | 2025 | 2024 | ||||||||||||
(In millions, except shares, per share and percentages) | |||||||||||||||
Operating margin | 46.8 | % | 38.2 | % | 17.7 | % | 13.6 | % | |||||||
Stock-based compensation | 2.4 | 2.7 | 5.7 | 7.1 | |||||||||||
Executive transition costs | — | 0.7 | — | 3.7 | |||||||||||
Restructuring charges | (0.3 | ) | 3.7 | 0.2 | 1.7 | ||||||||||
Impairment of long-lived assets | — | — | 0.3 | — | |||||||||||
Adjusted operating margin | 48.9 | % | 45.2 | % | 23.9 | % | 26.2 | % | |||||||
Net income | $ | 26.9 | $ | 23.5 | $ | 23.0 | $ | 23.1 | |||||||
Stock-based compensation | 1.6 | 1.8 | 7.7 | 10.3 | |||||||||||
Executive transition costs (2) | — | 0.4 | — | 4.8 | |||||||||||
Restructuring charges (2) | (0.2 | ) | 2.2 | 0.3 | 2.2 | ||||||||||
Impairment of long-lived assets (2) | — | — | 0.3 | — | |||||||||||
Stock-based compensation discrete tax item | (0.2 | ) | 0.4 | (0.1 | ) | 0.3 | |||||||||
Adjusted net income | $ | 28.2 | $ | 28.3 | $ | 31.2 | $ | 40.7 | |||||||
Net income per share | $ | 0.51 | $ | 0.41 | $ | 0.43 | $ | 0.40 | |||||||
Adjustments to net income per share (3) | 0.02 | 0.09 | 0.15 | 0.31 | |||||||||||
Adjusted net income per share | $ | 0.53 | $ | 0.50 | $ | 0.58 | $ | 0.71 | |||||||
Net income | $ | 26.9 | $ | 23.5 | $ | 23.0 | $ | 23.1 | |||||||
Stock-based compensation | 1.6 | 1.8 | 7.7 | 10.3 | |||||||||||
Depreciation and amortization | 0.9 | 1.0 | 3.8 | 4.0 | |||||||||||
Executive transition costs | — | 0.4 | — | 5.4 | |||||||||||
Restructuring charges | (0.2 | ) | 2.5 | 0.3 | 2.5 | ||||||||||
Impairment of long-lived assets | — | — | 0.4 | — | |||||||||||
Other income, net | (0.8 | ) | (1.2 | ) | (3.7 | ) | (6.0 | ) | |||||||
Provision for income taxes | 5.2 | 3.4 | 4.6 | 2.7 | |||||||||||
Adjusted EBITDA | $ | 33.6 | $ | 31.3 | $ | 36.0 | $ | 42.0 | |||||||
Free cash flow | |||||||||||||||
Net cash provided by operating activities | $ | 7.1 | $ | 9.0 | $ | 18.8 | $ | 20.5 | |||||||
Capital expenditures | (0.7 | ) | (0.1 | ) | (1.3 | ) | (1.3 | ) | |||||||
Free cash flow | $ | 6.4 | $ | 8.9 | $ | 17.4 | $ | 19.2 |
| ____________ | ||
(1) | Amounts may not total due to rounding. | |
(2) | Amounts presented are net of tax. | |
(3) | Refer to the sections “Use of Non-GAAP Financial Measures” for description of items included in adjustments. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20260225882954/en/
Investor Relations
ir@energyrecovery.com
FAQ**
How has the decline in revenue from $67.1 million in Q4 2024 to $66.9 million in Q4 2025 impacted Energy Recovery Inc. ERII's overall growth trajectory and market position?
What steps is Energy Recovery Inc. ERII taking to address the decrease in gross margin from 70.in Q4 20to 67.in Q4 2025, particularly concerning product mix and tariffs?
With operating expenses down by 36.5% in Q4 2025, what measures has Energy Recovery Inc. ERII implemented that could sustain this trend moving forward?
How does Energy Recovery Inc. ERII plan to utilize its cash and investments of $83.3 million to drive future growth and innovation in the coming years?
**MWN-AI FAQ is based on asking OpenAI questions about Energy Recovery Inc. (NASDAQ: ERII).
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