Energy Recovery Inc Financials
This page shows Energy Recovery Inc (ERII) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 17 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).
Flexible operating costs and a cash-heavy balance sheet kept earnings firm despite softer FY2025 sales and product economics.
FY2025 operating margin rose to17.7% from13.6% even as sales and gross margin both moved lower, so the earnings lift came mainly from lower overhead, not stronger scale. At the same time, cash conversion weakened: receivables reached$76.6M while operating cash flow was$18.8M , a sign that more reported profit was tied up in customer collections.
The balance sheet is unusually self-funded: cash of
The company is also using that flexibility for aggressive buybacks, spending
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Energy Recovery Inc's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Energy Recovery Inc has an operating margin of 17.7%, meaning the company retains $18 of operating profit per $100 of revenue. This strong profitability earns a score of 81/100, reflecting efficient cost management and pricing power. This is up from 13.6% the prior year.
Energy Recovery Inc's revenue declined 6.9% year-over-year, from $144.9M to $135.0M. This contraction results in a growth score of 41/100.
Energy Recovery Inc carries a low D/E ratio of 0.12, meaning only $0.12 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 79/100, indicating a strong balance sheet with room for future borrowing.
With a current ratio of 10.44, Energy Recovery Inc holds $10.44 in current assets for every $1 of short-term obligations. This comfortable liquidity earns a score of 97/100.
Energy Recovery Inc converts 12.9% of revenue into free cash flow ($17.4M). This strong cash generation earns a score of 78/100.
Energy Recovery Inc earns a strong 11.1% return on equity (ROE), meaning it generates $11 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 72/100. This is up from 11.0% the prior year.
Energy Recovery Inc scores 13.46, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($460.3M) relative to total liabilities ($25.3M). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Energy Recovery Inc passes 5 of 8 computable financial strength tests (1 of the nine could not be computed from available data). 3 of 4 profitability signals pass, all 2 leverage/liquidity signals pass, neither operating efficiency signal passes.
For every $1 of reported earnings, Energy Recovery Inc generates $0.82 in operating cash flow ($18.8M OCF vs $23.0M net income). This mixed ratio suggests some earnings may rely on non-cash accounting items.
Key Financial Metrics
Earnings & Revenue
Energy Recovery Inc generated $135.0M in revenue in fiscal year 2025. This represents a decrease of 6.9% from the prior year.
Energy Recovery Inc's EBITDA was $27.6M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 16.3% from the prior year.
Energy Recovery Inc reported $23.0M in net income in fiscal year 2025. This represents a decrease of 0.4% from the prior year.
Energy Recovery Inc earned $0.42 per diluted share (EPS) in fiscal year 2025. This represents an increase of 5.0% from the prior year.
Cash & Balance Sheet
Energy Recovery Inc generated $17.4M in free cash flow in fiscal year 2025, representing cash available after capex. This represents a decrease of 9.3% from the prior year.
Energy Recovery Inc held $48.1M in cash against $0 in long-term debt as of fiscal year 2025.
Energy Recovery Inc had 53M shares outstanding in fiscal year 2025. This represents a decrease of 3.6% from the prior year.
Margins & Returns
Energy Recovery Inc's gross margin was 65.1% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is down 1.7 percentage points from the prior year.
Energy Recovery Inc's operating margin was 17.7% in fiscal year 2025, reflecting core business profitability. This is up 4.1 percentage points from the prior year.
Energy Recovery Inc's net profit margin was 17.0% in fiscal year 2025, showing the share of revenue converted to profit. This is up 1.1 percentage points from the prior year.
Energy Recovery Inc's ROE was 11.1% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is up 0.2 percentage points from the prior year.
Capital Allocation
Energy Recovery Inc invested $13.0M in research and development in fiscal year 2025. This represents a decrease of 19.7% from the prior year.
Energy Recovery Inc spent $35.6M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents a decrease of 29.3% from the prior year.
Energy Recovery Inc invested $1.3M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 2.5% from the prior year.
ERII Income Statement
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $9.7M-85.5% | $66.9M+109.0% | $32.0M+14.1% | $28.1M+247.8% | $8.1M-88.0% | $67.1M+73.8% | $38.6M+41.9% | $27.2M |
| Cost of Revenue | N/A | $21.9M+91.5% | $11.4M+13.3% | $10.1M+179.9% | $3.6M-81.9% | $20.0M+48.1% | $13.5M+39.9% | $9.6M |
| Gross Profit | $2.7M-94.0% | $45.0M+118.7% | $20.6M+14.5% | $18.0M+302.7% | $4.5M-90.5% | $47.1M+87.6% | $25.1M+43.0% | $17.6M |
| R&D Expenses | $2.8M-4.3% | $2.9M-20.6% | $3.7M+6.3% | $3.5M+15.0% | $3.0M-24.4% | $4.0M+0.1% | $4.0M+0.6% | $3.9M |
| SG&A Expenses | $6.5M+7.4% | $6.0M-20.0% | $7.5M-2.0% | $7.7M-10.6% | $8.6M+3.3% | $8.3M+8.2% | $7.7M-19.5% | $9.5M |
| Operating Income | -$14.9M-147.5% | $31.3M+755.1% | $3.7M+148.4% | $1.5M+111.7% | -$12.6M-149.0% | $25.6M+263.0% | $7.1M+450.4% | -$2.0M |
| Interest Expense | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Income Tax | -$1.8M-134.0% | $5.2M+667.9% | $680K+103.6% | $334K+120.8% | -$1.6M-147.4% | $3.4M+883.7% | $344K+42.1% | $242K |
| Net Income | -$12.3M-145.5% | $26.9M+594.7% | $3.9M+88.6% | $2.1M+120.8% | -$9.9M-142.1% | $23.5M+176.7% | $8.5M+1421.0% | -$642K |
| EPS (Diluted) | $-0.23 | N/A | $0.07+75.0% | $0.04+122.2% | $-0.18 | N/A | $0.15+1600.0% | $-0.01 |
ERII Balance Sheet
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $209.0M-9.7% | $231.5M+10.4% | $209.6M-1.2% | $212.3M-5.8% | $225.4M-7.2% | $242.8M-7.6% | $262.7M+5.5% | $249.0M |
| Current Assets | $161.1M-11.1% | $181.2M+16.4% | $155.6M+2.3% | $152.1M-1.6% | $154.6M-11.0% | $173.7M-8.6% | $189.9M+19.4% | $159.0M |
| Cash & Equivalents | $50.1M+4.2% | $48.1M+2.1% | $47.1M-17.4% | $57.0M+16.1% | $49.1M+65.9% | $29.6M-53.2% | $63.3M+56.9% | $40.3M |
| Inventory | $30.9M+27.3% | $24.3M-27.7% | $33.6M+2.8% | $32.7M+0.8% | $32.4M+30.1% | $24.9M-25.6% | $33.5M-0.6% | $33.7M |
| Accounts Receivable | $38.9M-49.2% | $76.6M+74.1% | $44.0M+35.1% | $32.6M+0.6% | $32.4M-49.4% | $64.1M+101.2% | $31.8M+54.1% | $20.7M |
| Goodwill | $11.1M-13.0% | $12.8M0.0% | $12.8M0.0% | $12.8M0.0% | $12.8M0.0% | $12.8M0.0% | $12.8M0.0% | $12.8M |
| Total Liabilities | $24.7M-2.4% | $25.3M-12.1% | $28.8M+6.4% | $27.1M-0.8% | $27.3M-16.8% | $32.8M+13.7% | $28.8M-5.6% | $30.5M |
| Current Liabilities | $17.4M0.0% | $17.4M-18.2% | $21.2M+12.6% | $18.8M+2.2% | $18.4M-21.3% | $23.4M+24.1% | $18.9M-5.8% | $20.0M |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Equity | $184.3M-10.6% | $206.2M+14.0% | $180.8M-2.4% | $185.2M-6.5% | $198.1M-5.7% | $210.0M-10.2% | $233.9M+7.0% | $218.5M |
| Retained Earnings | $116.4M-9.5% | $128.7M+26.5% | $101.8M+4.0% | $97.9M+2.1% | $95.8M-9.3% | $105.7M+28.5% | $82.2M+11.5% | $73.8M |
ERII Cash Flow Statement
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $21.0M+197.3% | $7.1M+326.0% | -$3.1M-175.5% | $4.1M-61.2% | $10.7M+19.2% | $9.0M+398.2% | -$3.0M-137.2% | $8.1M |
| Capital Expenditures | $814K+23.0% | $662K+93.6% | $342K+153.3% | $135K-29.3% | $191K+83.7% | $104K-38.5% | $169K-15.9% | $201K |
| Free Cash Flow | $20.2M+215.2% | $6.4M+284.7% | -$3.5M-186.6% | $4.0M-61.8% | $10.5M+18.5% | $8.9M+379.0% | -$3.2M-140.3% | $7.9M |
| Investing Cash Flow | -$7.6M-151.3% | -$3.0M-187.8% | $3.4M-83.5% | $20.9M+64.8% | $12.7M+94.5% | $6.5M-69.9% | $21.7M+155.8% | -$38.8M |
| Financing Cash Flow | -$11.4M-265.0% | -$3.1M+70.0% | -$10.4M+39.4% | -$17.2M-342.7% | -$3.9M+92.1% | -$49.1M-1243.2% | $4.3M+1276.0% | $312K |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | $10.7M+209.4% | $3.4M-67.5% | $10.6M-38.0% | $17.1M+280.6% | $4.5M-91.1% | $50.4M | $0 | $0 |
ERII Financial Ratios
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 27.8%-39.4pp | 67.2%+3.0pp | 64.2%+0.2pp | 64.0%+8.7pp | 55.3%-15.0pp | 70.3%+5.2pp | 65.1%+0.5pp | 64.6% |
| Operating Margin | -153.1%-199.9pp | 46.8%+35.4pp | 11.4%+6.2pp | 5.3%+161.0pp | -155.8%-194.0pp | 38.2%+19.9pp | 18.3%+25.7pp | -7.4% |
| Net Margin | -126.2%-166.5pp | 40.3%+28.1pp | 12.1%+4.8pp | 7.3%+129.8pp | -122.5%-157.5pp | 35.0%+13.0pp | 22.0%+24.3pp | -2.4% |
| Return on Equity | -6.7%-19.7pp | 13.1%+10.9pp | 2.1%+1.0pp | 1.1%+6.1pp | -5.0%-16.2pp | 11.2%+7.5pp | 3.6%+3.9pp | -0.3% |
| Return on Assets | -5.9%-17.5pp | 11.6%+9.8pp | 1.8%+0.9pp | 1.0%+5.3pp | -4.4%-14.0pp | 9.7%+6.4pp | 3.2%+3.5pp | -0.3% |
| Current Ratio | 9.28-1.2 | 10.44+3.1 | 7.33-0.7 | 8.08-0.3 | 8.39+1.0 | 7.41-2.7 | 10.06+2.1 | 7.94 |
| Debt-to-Equity | 0.13+0.0 | 0.12-0.0 | 0.16+0.0 | 0.150.0 | 0.14-0.0 | 0.16+0.0 | 0.12-0.0 | 0.14 |
| FCF Margin | 208.4%+198.8pp | 9.6%+20.4pp | -10.8%-25.1pp | 14.3%-115.7pp | 130.0%+116.8pp | 13.2%+21.4pp | -8.2%-37.2pp | 28.9% |
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Frequently Asked Questions
What is Energy Recovery Inc's annual revenue?
Energy Recovery Inc (ERII) reported $135.0M in total revenue for fiscal year 2025. This represents a -6.9% 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 declined by 6.9% year-over-year, from $144.9M to $135.0M in fiscal year 2025.
Is Energy Recovery Inc profitable?
Yes, Energy Recovery Inc (ERII) reported a net income of $23.0M in fiscal year 2025, with a net profit margin of 17.0%.
What is Energy Recovery Inc's EBITDA?
Energy Recovery Inc (ERII) had EBITDA of $27.6M in fiscal year 2025, 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 65.1% in fiscal year 2025, 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 17.7% in fiscal year 2025, 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 17.0% in fiscal year 2025, 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 11.1% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Energy Recovery Inc's free cash flow?
Energy Recovery Inc (ERII) generated $17.4M in free cash flow during fiscal year 2025. This represents a -9.3% 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 $18.8M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Energy Recovery Inc's total assets?
Energy Recovery Inc (ERII) had $231.5M in total assets as of fiscal year 2025, 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 2025, funding long-term assets and infrastructure.
How much does Energy Recovery Inc spend on research and development?
Energy Recovery Inc (ERII) invested $13.0M in research and development during fiscal year 2025.
What is Energy Recovery Inc's current ratio?
Energy Recovery Inc (ERII) had a current ratio of 10.44 as of fiscal year 2025, 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 0.12 as of fiscal year 2025, 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 9.9% for fiscal year 2025, 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 13.46, 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 8 computable signals; 1 of the nine could not be computed from available data, so the full-scale strength rating is not shown. 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 to 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 0.82x, 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 75 out of 100 on our Financial Health Score, indicating strong standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.