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Energy Recovery Reports its Fourth Quarter 2025 Financial Results
SAN LEANDRO, Calif.--(BUSINESS WIRE)-- Energy Recovery, Inc. (Nasdaq:ERII) (“Energy Recovery” or the “Company”) today announced its financial results for the
About this update from Energy Recovery, Inc.
[{"type":"text","content":" SAN LEANDRO, Calif.--(BUSINESS WIRE)--\nEnergy Recovery, Inc. (Nasdaq:ERII) (“Energy Recovery” or the “Company”) today announced its financial results for the fourth quarter and year ended December 31, 2025.\n\n\nFourth Quarter Highlights\n\n\n\nRevenue of $66.9 million, a decrease of $0.2 million, as compared to Q4’2024, due to timing of revenue from contracted projects.\n\n\n\nGross margin of 67.2%, a decrease of 300 bps, as compared to Q4’2024, due primarily to costs related to product mix and tariffs.\n\n\n\nOperating 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.\n\n\n\nIncome from operations of $31.3 million, an increase of 22.3%, as compared to Q4’2024, mainly due to lower operating expenses.\n\n\n\nNet income of $26.9 million and adjusted EBITDA(1) of $33.6 million.\n\n\n\nCash and investments of $83.3 million, which includes cash, cash equivalents, and short- and long-term investments.\n\n\n\nIn 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).\n\n\nFinancial Highlights\n\n\n\n\n \n\n\n\n\n\n\nQuarter-to-Date\n\n\n\n\n\n\n \n\n\n\n\n\n\n \n\n\n\n\n\n\nYear to Date\n\n\n\n\n\n\n\n\n \n\n\n\n\n\n\nQ4’2025\n\n\n\n\n\n\n \n\n\n\n\n\n\nQ4’2024\n\n\n\n\n\n\n \n\n\n\n\n\n\nvs. Q4’2024\n\n\n\n\n\n\n \n\n\n\n\n\n\n \n\n\n\n\n\n\n2025\n\n\n\n\n\n\n \n\n\n\n\n\n\n2024\n\n\n\n\n\n\n \n\n\n\n\n\n\n2025 vs. 2024\n\n\n\n\n\n\n\n\n \n\n\n\n\n\n\n(In millions, except net income per share, percentages and basis points)\n\n\n\n\n\n\n\n\nRevenue\n\n\n\n\n\n\n$66.9\n\n\n\n\n\n\n \n\n\n\n\n\n\n$67.1\n\n\n\n\n\n\n \n\n\n\n\n\n\ndown %\n\n\n\n\n\n\n \n\n\n\n\n\n\n \n\n\n\n\n\n\n$135.0\n\n\n\n\n\n\n \n\n\n\n\n\n\n$144.9\n\n\n\n\n\n\n \n\n\n\n\n\n\ndown 7%\n\n\n\n\n\n\n\n\nGross margin\n\n\n\n\n\n\n67.2%\n\n\n\n\n\n\n \n\n\n\n\n\n\n70.2%\n\n\n\n\n\n\n \n\n\n\n\n\n\ndown 300 bps\n\n\n\n\n\n\n \n\n\n\n\n\n\n \n\n\n\n\n\n\n65.1%\n\n\n\n\n\n\n \n\n\n\n\n\n\n66.9%\n\n\n\n\n\n\n \n\n\n\n\n\n\ndown 180 bps\n\n\n\n\n\n\n\n\nOperating...