Energy Recovery Inc Financials
Financial Health Signals
Based on FY2024 annual data. Scores normalized against common benchmarks. How we calculate these scores
Energy Recovery Inc has an operating margin of 13.6%, meaning the company retains $14 of operating profit per $100 of revenue. This strong profitability earns a score of 68/100, reflecting efficient cost management and pricing power. This is down from 14.8% the prior year.
Energy Recovery Inc's revenue grew 12.9% year-over-year to $144.9M, a solid pace of expansion. This earns a growth score of 66/100.
Energy Recovery Inc carries a low D/E ratio of 0.16, meaning only $0.16 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 100/100, indicating a strong balance sheet with room for future borrowing.
With a current ratio of 7.41, Energy Recovery Inc holds $7.41 in current assets for every $1 of short-term obligations. This comfortable liquidity earns a score of 100/100.
Energy Recovery Inc converts 13.3% of revenue into free cash flow ($19.2M). This strong cash generation earns a score of 66/100.
Energy Recovery Inc's ROE of 11.0% shows moderate profitability relative to equity, earning a score of 44/100. This is up from 9.8% the prior year.
Energy Recovery Inc scores 17.34, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($826.4M) relative to total liabilities ($32.8M). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Energy Recovery Inc passes 5 of 9 financial strength tests. 3 of 4 profitability signals pass, 1 of 3 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.
For every $1 of reported earnings, Energy Recovery Inc generates $0.89 in operating cash flow ($20.5M OCF vs $23.1M net income). This mixed ratio suggests some earnings may rely on non-cash accounting items.
This page shows Energy Recovery Inc (ERII) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 16 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Key Financial Metrics
Energy Recovery Inc generated $144.9M in revenue in fiscal year 2024. This represents an increase of 12.9% from the prior year.
Energy Recovery Inc's EBITDA was $23.8M in fiscal year 2024, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 2.7% from the prior year.
Energy Recovery Inc generated $19.2M in free cash flow in fiscal year 2024, representing cash available after capex. This represents a decrease of 18.2% from the prior year.
Energy Recovery Inc reported $23.1M in net income in fiscal year 2024. This represents an increase of 7.2% from the prior year.
Energy Recovery Inc earned $0.40 per diluted share (EPS) in fiscal year 2024. This represents an increase of 8.1% from the prior year.
Energy Recovery Inc held $29.6M in cash against $0 in long-term debt as of fiscal year 2024.
Energy Recovery Inc had 55M shares outstanding in fiscal year 2024. This represents a decrease of 3.7% from the prior year.
Energy Recovery Inc's gross margin was 66.9% in fiscal year 2024, indicating the percentage of revenue retained after direct costs. This is down 1.0 percentage points from the prior year.
Energy Recovery Inc's operating margin was 13.6% in fiscal year 2024, reflecting core business profitability. This is down 1.2 percentage points from the prior year.
Energy Recovery Inc's net profit margin was 15.9% in fiscal year 2024, showing the share of revenue converted to profit. This is down 0.9 percentage points from the prior year.
Energy Recovery Inc's ROE was 11.0% in fiscal year 2024, measuring profit generated per dollar of shareholder equity. This is up 1.2 percentage points from the prior year.
Energy Recovery Inc invested $16.2M in research and development in fiscal year 2024. This represents a decrease of 4.5% from the prior year.
Energy Recovery Inc spent $50.4M on share buybacks in fiscal year 2024, returning capital to shareholders by reducing shares outstanding.
Energy Recovery Inc invested $1.3M in capex in fiscal year 2024, funding long-term assets and infrastructure. This represents a decrease of 49.4% from the prior year.
ERII Income Statement
| Metric | Q3'25 | Q2'25 | Q1'25 | Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $32.0M+14.1% | $28.1M+247.8% | $8.1M-88.0% | $67.1M+146.6% | $27.2M+125.0% | $12.1M-78.9% | $57.2M+54.4% | $37.0M |
| Cost of Revenue | $11.4M+13.3% | $10.1M+179.9% | $3.6M-81.9% | $20.0M+107.2% | $9.6M+94.4% | $5.0M-72.0% | $17.7M+58.6% | $11.2M |
| Gross Profit | $20.6M+14.5% | $18.0M+302.7% | $4.5M-90.5% | $47.1M+168.2% | $17.6M+146.2% | $7.1M-81.9% | $39.5M+52.6% | $25.9M |
| R&D Expenses | $3.7M+6.3% | $3.5M+15.0% | $3.0M-24.4% | $4.0M+0.7% | $3.9M-9.4% | $4.4M-12.2% | $5.0M+24.9% | $4.0M |
| SG&A Expenses | $7.5M-2.0% | $7.7M-10.6% | $8.6M+3.3% | $8.3M-12.9% | $9.5M+26.0% | $7.6M+5.7% | $7.2M-2.8% | $7.4M |
| Operating Income | $3.7M+148.4% | $1.5M+111.7% | -$12.6M-149.0% | $25.6M+1371.8% | -$2.0M+81.6% | -$10.9M-153.0% | $20.6M+125.7% | $9.1M |
| Interest Expense | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Income Tax | $680K+103.6% | $334K+120.8% | -$1.6M-147.4% | $3.4M+1298.3% | $242K+118.8% | -$1.3M-161.0% | $2.1M+306.8% | $518K |
| Net Income | $3.9M+88.6% | $2.1M+120.8% | -$9.9M-142.1% | $23.5M+3755.9% | -$642K+92.2% | -$8.3M-141.7% | $19.8M+105.0% | $9.7M |
| EPS (Diluted) | $0.07+75.0% | $0.04+122.2% | $-0.18-145.0% | $0.40+4100.0% | $-0.01+92.9% | $-0.14-141.2% | $0.34+100.0% | $0.17 |
ERII Balance Sheet
| Metric | Q3'25 | Q2'25 | Q1'25 | Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $209.6M-1.2% | $212.3M-5.8% | $225.4M-7.2% | $242.8M-2.5% | $249.0M+2.0% | $244.3M-3.4% | $253.0M+13.6% | $222.7M |
| Current Assets | $155.6M+2.3% | $152.1M-1.6% | $154.6M-11.0% | $173.7M+9.2% | $159.0M-10.8% | $178.4M-3.8% | $185.5M+26.8% | $146.3M |
| Cash & Equivalents | $47.1M-17.4% | $57.0M+16.1% | $49.1M+65.9% | $29.6M-26.5% | $40.3M-43.0% | $70.8M+3.9% | $68.1M+32.4% | $51.4M |
| Inventory | $33.6M+2.8% | $32.7M+0.8% | $32.4M+30.1% | $24.9M-26.0% | $33.7M+6.3% | $31.7M+21.1% | $26.1M-22.8% | $33.9M |
| Accounts Receivable | $44.0M+35.1% | $32.6M+0.6% | $32.4M-49.4% | $64.1M+209.9% | $20.7M-17.5% | $25.1M-46.6% | $46.9M+101.1% | $23.3M |
| Goodwill | $12.8M0.0% | $12.8M0.0% | $12.8M0.0% | $12.8M0.0% | $12.8M0.0% | $12.8M0.0% | $12.8M0.0% | $12.8M |
| Total Liabilities | $28.8M+6.4% | $27.1M-0.8% | $27.3M-16.8% | $32.8M+7.4% | $30.5M+8.2% | $28.2M-14.9% | $33.2M+15.8% | $28.6M |
| Current Liabilities | $21.2M+12.6% | $18.8M+2.2% | $18.4M-21.3% | $23.4M+17.0% | $20.0M+16.9% | $17.1M-20.2% | $21.5M+30.8% | $16.4M |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Equity | $180.8M-2.4% | $185.2M-6.5% | $198.1M-5.7% | $210.0M-3.9% | $218.5M+1.1% | $216.0M-1.7% | $219.8M+13.3% | $194.0M |
| Retained Earnings | $101.8M+4.0% | $97.9M+2.1% | $95.8M-9.3% | $105.7M+43.3% | $73.8M-0.9% | $74.4M-10.0% | $82.7M+31.5% | $62.9M |
ERII Cash Flow Statement
| Metric | Q3'25 | Q2'25 | Q1'25 | Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -$3.1M-175.5% | $4.1M-61.2% | $10.7M+19.2% | $9.0M+10.9% | $8.1M+24.3% | $6.5M-52.9% | $13.8M+77.9% | $7.7M |
| Capital Expenditures | $342K+153.3% | $135K-29.3% | $191K+83.7% | $104K-48.3% | $201K-75.6% | $824K-40.6% | $1.4M+320.6% | $330K |
| Free Cash Flow | -$3.5M-186.6% | $4.0M-61.8% | $10.5M+18.5% | $8.9M+12.4% | $7.9M+38.8% | $5.7M-54.2% | $12.4M+67.1% | $7.4M |
| Investing Cash Flow | $3.4M-83.5% | $20.9M+64.8% | $12.7M+94.5% | $6.5M+116.8% | -$38.8M-679.1% | -$5.0M-574.7% | -$739K+44.8% | -$1.3M |
| Financing Cash Flow | -$10.4M+39.4% | -$17.2M-342.7% | -$3.9M+92.1% | -$49.1M-15830.4% | $312K-73.8% | $1.2M-67.0% | $3.6M+348.4% | $805K |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | $10.6M-38.0% | $17.1M+280.6% | $4.5M-91.1% | $50.4M | $0 | $0 | $0 | $0 |
ERII Financial Ratios
| Metric | Q3'25 | Q2'25 | Q1'25 | Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 64.2%+0.2pp | 64.0%+8.7pp | 55.3%-15.0pp | 70.3%+5.7pp | 64.6%+5.6pp | 59.0%-10.1pp | 69.1%-0.8pp | 69.9% |
| Operating Margin | 11.4%+6.2pp | 5.3%+161.0pp | -155.8%-194.0pp | 38.2%+45.6pp | -7.4%+83.0pp | -90.4%-126.5pp | 36.0%+11.4pp | 24.7% |
| Net Margin | 12.1%+4.8pp | 7.3%+129.8pp | -122.5%-157.5pp | 35.0%+37.4pp | -2.4%+66.0pp | -68.3%-103.0pp | 34.6%+8.6pp | 26.1% |
| Return on Equity | 2.1%+1.0pp | 1.1% | N/A | 11.2% | N/A | N/A | 9.0%+4.0pp | 5.0% |
| Return on Assets | 1.8%+0.9pp | 1.0%+5.3pp | -4.4%-14.0pp | 9.7%+9.9pp | -0.3%+3.1pp | -3.4%-11.2pp | 7.8%+3.5pp | 4.3% |
| Current Ratio | 7.33-0.7 | 8.08-0.3 | 8.39+1.0 | 7.41-0.5 | 7.94-2.5 | 10.41+1.8 | 8.64-0.3 | 8.91 |
| Debt-to-Equity | 0.16+0.0 | 0.150.0 | 0.14-0.0 | 0.16+0.0 | 0.140.0 | 0.13-0.0 | 0.150.0 | 0.15 |
| FCF Margin | -10.8%-25.1pp | 14.3%-115.7pp | 130.0%+116.8pp | 13.2%-15.7pp | 28.9%-18.0pp | 46.9%+25.3pp | 21.7%+1.6pp | 20.0% |
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Frequently Asked Questions
What is Energy Recovery Inc's annual revenue?
Energy Recovery Inc (ERII) reported $144.9M in total revenue for fiscal year 2024. This represents a 12.9% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Energy Recovery Inc's revenue growing?
Energy Recovery Inc (ERII) revenue grew by 12.9% year-over-year, from $128.3M to $144.9M in fiscal year 2024.
Is Energy Recovery Inc profitable?
Yes, Energy Recovery Inc (ERII) reported a net income of $23.1M in fiscal year 2024, with a net profit margin of 15.9%.
What is Energy Recovery Inc's earnings per share (EPS)?
Energy Recovery Inc (ERII) reported diluted earnings per share of $0.40 for fiscal year 2024. This represents a 8.1% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.
What is Energy Recovery Inc's EBITDA?
Energy Recovery Inc (ERII) had EBITDA of $23.8M in fiscal year 2024, measuring earnings before interest, taxes, depreciation, and amortization.
What is Energy Recovery Inc's gross margin?
Energy Recovery Inc (ERII) had a gross margin of 66.9% in fiscal year 2024, indicating the percentage of revenue retained after direct costs of goods sold.
What is Energy Recovery Inc's operating margin?
Energy Recovery Inc (ERII) had an operating margin of 13.6% in fiscal year 2024, reflecting the profitability of core business operations before interest and taxes.
What is Energy Recovery Inc's net profit margin?
Energy Recovery Inc (ERII) had a net profit margin of 15.9% in fiscal year 2024, representing the share of revenue converted into profit after all expenses.
What is Energy Recovery Inc's return on equity (ROE)?
Energy Recovery Inc (ERII) has a return on equity of 11.0% for fiscal year 2024, measuring how efficiently the company generates profit from shareholder equity.
What is Energy Recovery Inc's free cash flow?
Energy Recovery Inc (ERII) generated $19.2M in free cash flow during fiscal year 2024. This represents a -18.2% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Energy Recovery Inc's operating cash flow?
Energy Recovery Inc (ERII) generated $20.5M in operating cash flow during fiscal year 2024, representing cash generated from core business activities.
What are Energy Recovery Inc's total assets?
Energy Recovery Inc (ERII) had $242.8M in total assets as of fiscal year 2024, including both current and long-term assets.
What are Energy Recovery Inc's capital expenditures?
Energy Recovery Inc (ERII) invested $1.3M in capital expenditures during fiscal year 2024, funding long-term assets and infrastructure.
How much does Energy Recovery Inc spend on research and development?
Energy Recovery Inc (ERII) invested $16.2M in research and development during fiscal year 2024.
Does Energy Recovery Inc buy back shares?
Yes, Energy Recovery Inc (ERII) spent $50.4M on share buybacks during fiscal year 2024, returning capital to shareholders by reducing shares outstanding.
How many shares does Energy Recovery Inc have outstanding?
Energy Recovery Inc (ERII) had 55M shares outstanding as of fiscal year 2024.
What is Energy Recovery Inc's current ratio?
Energy Recovery Inc (ERII) had a current ratio of 7.41 as of fiscal year 2024, which is generally considered healthy.
What is Energy Recovery Inc's debt-to-equity ratio?
Energy Recovery Inc (ERII) had a debt-to-equity ratio of 0.16 as of fiscal year 2024, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Energy Recovery Inc's return on assets (ROA)?
Energy Recovery Inc (ERII) had a return on assets of 9.5% for fiscal year 2024, measuring how efficiently the company uses its assets to generate profit.
What is Energy Recovery Inc's Altman Z-Score?
Energy Recovery Inc (ERII) has an Altman Z-Score of 17.34, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios—working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets—to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Energy Recovery Inc's Piotroski F-Score?
Energy Recovery Inc (ERII) has a Piotroski F-Score of 5 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Energy Recovery Inc's earnings high quality?
Energy Recovery Inc (ERII) has an earnings quality ratio of 0.89x, considered mixed quality. This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
How financially healthy is Energy Recovery Inc?
Energy Recovery Inc (ERII) scores 74 out of 100 on our Financial Profile, indicating strong overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.