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Energy Recovery Q3 2026 revenue falls 65% to $11.2M

Cash and investments were $85.6 million as of September 30, 2026, while nine-month operating cash flow was $28.1 million.

Available on EDGAR Accepted by SEC EDGAR
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Filing Sentiment

Sentiment and the balance of points

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How Sentiment worksHow the balance works

Form Type
8-K

Rhea-AI Filing Summary

Energy Recovery, Inc. (ERII) reported third-quarter 2026 revenue of $11.2 million, down 65% from $32.0 million a year earlier. Gross margin was 37.5%, versus 64.2%; the company recorded a $9.8 million operating loss, compared with $3.7 million operating income, and a $6.3 million net loss versus $3.9 million net income. Diluted loss per share was $0.12, and adjusted EBITDA, a non-GAAP measure, was a $7.8 million loss versus $6.8 million income.

For the first nine months of 2026, revenue was $32.9 million versus $68.1 million, and net loss was $21.8 million versus $4.0 million. Net cash provided by operating activities was $28.1 million, compared with $11.7 million. Cash and investments totaled $85.6 million as of September 30, 2026. Management attributed lower revenue primarily to the war in Iran.

1 point · 0 major

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 4 points

How the balance works

Positive

  • Moderate pointNine-month operating cash flow was $28.1 million, compared with $11.7 million a year earlier.

Negative

  • Moderate pointThird-quarter revenue fell 65% to $11.2 million year over year.
  • Moderate pointGross margin declined to 37.5% from 64.2%.
  • Moderate pointThird-quarter results shifted to a $6.3 million net loss from $3.9 million income.
  • Moderate pointAdjusted EBITDA shifted to a $7.8 million loss from $6.8 million income.

Filing Explained

Q3 operating cash use was $9.8 million; September 30 cash and investments were $85.6 million.

This 8-K furnishes Energy Recovery’s third-quarter and nine-month results. Third-quarter operations used $9.8 million in cash; cash and investments totaled $85.6 million at September 30, 2026.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Third-quarter revenue $11.2 million Three months ended September 30, 2026; $32.0 million in 2025
Nine-month revenue $32.9 million Nine months ended September 30, 2026; $68.1 million in 2025
Gross margin 37.5% Three months ended September 30, 2026; 64.2% in 2025
Operating loss $9.8 million loss Third quarter of 2026; $3.7 million operating income in 2025
Net loss $6.3 million loss Third quarter of 2026; $3.9 million net income in 2025
Adjusted EBITDA $7.8 million loss Third quarter of 2026; $6.8 million income in 2025; non-GAAP measure
Net cash provided by operating activities $28.1 million Nine months ended September 30, 2026; $11.7 million in 2025
Cash and investments $85.6 million As of September 30, 2026
non-GAAP financial measures financial
"These non-GAAP financial measures should be considered as a supplement"
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
Adjusted EBITDA financial
"Adjusted EBITDA loss of $7.8 million"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Free cash flow financial
"Free cash flow is a non-GAAP financial measure"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
stock-based compensation financial
"stock-based compensation expense"
Stock-based compensation is when a company pays employees, directors or consultants with shares or the right to buy shares instead of or in addition to cash. It matters to investors because issuing stock or options spreads ownership thinner (like cutting a pie into more slices), which can reduce each existing share’s claim on profits and can also change reported earnings; investors watch it to assess true cost of running the business and how management is incentivized.
Revenue $11.2 million down 65% from Q3 2025
Gross margin 37.5% down 2,670 basis points from Q3 2025
Net income (loss) $6.3 million loss compared with $3.9 million net income in Q3 2025
Adjusted EBITDA $7.8 million loss compared with $6.8 million income in Q3 2025

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much revenue did Energy Recovery (ERII) report for Q3 2026?
Revenue was $11.2 million, down 65% from $32.0 million in Q3 2025.

What was Energy Recovery's (ERII) net result in Q3 2026?
Energy Recovery recorded a $6.3 million net loss, compared with $3.9 million of net income in Q3 2025.

Why did Energy Recovery's (ERII) gross margin decline in Q3 2026?
Gross margin was 37.5%, compared with 64.2% in Q3 2025. The company attributed the decrease primarily to lower volume, product mix and indirect manufacturing costs, partially offset by channel mix.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 4, 2026
erilogoh4c.jpg
Energy Recovery, Inc.
(Exact Name of Registrant as Specified in its Charter)
Delaware001-34112
01-0616867
(State or Other Jurisdiction of Incorporation)(Commission File Number)
(I.R.S. Employer Identification No.)

1717 Doolittle Dr., San Leandro, CA 94577
(Address of Principal Executive Offices) (Zip Code)

510-483-7370
(Registrant’s telephone number, including area code)

Not applicable
(Former Name or Former Address, if Changed Since Last Report)


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, $0.001 par value per shareERIIThe Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨




Item 2.02    Results of Operations and Financial Condition

On November 4, 2026, Energy Recovery, Inc. (the “Company”) issued an earnings press release announcing its financial results for the third quarter and nine months ended September 30, 2026. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference in its entirety.

The information in this report (including Exhibit 99.1) is being furnished pursuant to Item 2.02 and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act.

Item 9.01    Financial Statements and Exhibits

(d)    Exhibits
Exhibit Number
Description
99.1
Press release of Energy Recovery, Inc., dated November 4, 2026, to report its financial results for the third quarter and nine months ended September 30, 2026.


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


Date:    November 4, 2026
Energy Recovery, Inc.
By:/s/ William Yeung
William Yeung
Chief Legal Officer



Exhibit 99.1
erilogoh4c.jpg

Energy Recovery Reports its Third Quarter 2026 Financial Results

SAN LEANDRO, Calif. - November 4, 2026 – Energy Recovery, Inc. (Nasdaq: ERII) (“Energy Recovery”, “Company”, “we”, and “our”) today announced its financial results for the third quarter and nine months ended September 30, 2026. Management has released a letter to shareholders reviewing business and financial updates from the third 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).

Third Quarter Highlights
•Revenue of $11.2 million, a decrease of $20.8 million, as compared to Q3’2025.
•Gross margin of 37.5%, as compared to gross margin of 64.2% in Q3’2025 primarily due to lower volume as well as product mix and indirect manufacturing costs, partially offset by channel mix.
•Operating expenses of $14.0 million, a decrease of 17.2%, as compared to Q3’2025, primarily due to lower employee compensation costs, including stock-based compensation expense, and lower consulting costs.
•Loss from operations of $9.8 million, declined $13.5 million as compared to income from operations of $3.7 million during Q3’2025, due primarily to lower revenue due to the war in Iran.
•Net loss of $6.3 million and adjusted EBITDA(1) loss of $7.8 million.
•Cash and investments of $85.6 million, which includes cash, cash equivalents, and short- and long-term investments.

Financial Highlights
Quarter to DateYear to Date
Q3’2026
Q3’2025
vs. Q3’2025202620252026 vs. 2025
(In millions, except net income (loss) per share, percentages and basis points)
Revenue$11.2$32.0down 65%$32.9$68.1down 52%
Gross margin37.5%64.2%down 2670 bps48.2%63.1%down 1490 bps
Operating margin(87.5%)11.4%NM(92.8%)(10.9%)NM
Net income (loss)($6.3)$3.9down 263%($21.8)($4.0)down 451%
Diluted earnings (loss) per share($0.12)$0.07down $0.19($0.42)($0.07)down $0.35
Effective tax rate23.1%13.0%
Cash provided by (used for) operations($9.8)($3.1)$28.1$11.7


Non-GAAP Financial Highlights (1)
Quarter to DateYear to Date
Q3’2026
Q3’2025
vs. Q3’2025202620252026 vs. 2025
(In millions, except adjusted net income (loss) per share, percentages and basis points)
Adjusted operating margin(78.7%)18.3%down 9700 bps(62.4%)(0.6%)NM
Adjusted net income (loss)($5.0)$6.3down 179%($12.2)$3.0NM
Adjusted earnings (loss) per share($0.10)$0.12down $0.22($0.24)$0.06down $0.30
Adjusted EBITDA($7.8)$6.8($17.5)$2.4
Free cash flow($10.1)($3.5)$25.9$11.0
(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.
NM    Not Meaningful



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, 2025, 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 (loss), adjusted earnings (loss) 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 (loss) from operations which excludes i) stock-based compensation; ii) restructuring charges; iii) restructuring - inventory reserve; iv) impairment of long-lived assets and v) impairment of goodwill, divided by revenues.
•Adjusted net income (loss) is a non-GAAP financial measure that the Company defines as net income (loss) which excludes i) stock-based compensation; ii) restructuring charges; iii) restructuring - inventory reserve; iv) impairment of long-lived assets; v) impairment of goodwill and vi) the applicable tax effect of the excluded items including the stock-based compensation discrete tax item.
•Adjusted earnings (loss) per share is a non-GAAP financial measure that the Company defines as net income (loss), which excludes i) stock-based compensation; ii) restructuring charges; iii) restructuring - inventory reserve; iv) impairment of long-lived assets; v) impairment of goodwill and vi) 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 (loss) which excludes i) depreciation and amortization; ii) stock-based compensation; iii) restructuring charges; iv) restructuring - inventory reserve; v) impairment of long-lived assets; vi) impairment of goodwill; vii) other income, net, such as interest income and other non-operating income (expense), net and viii) provision for (benefit from) income taxes.
•Free cash flow is a non-GAAP financial measure that the Company defines as net cash provided by (used in) operating activities less capital expenditures.



Conference Call to Discuss Financial Results

LIVE CONFERENCE Q&A CALL:
Wednesday, November 4, 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: Friday, December 4, 2026
US / Canada Toll-Free: +1 (877) 660-6853
Local / International Toll: +1 (201) 612-7415
Access code: 13763225

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


Contact
Investor Relations
ir@energyrecovery.com



ENERGY RECOVERY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
September 30,
2026		December 31,
2025
(In thousands)
ASSETS
Cash, cash equivalents and investments$85,605 $83,283 
Accounts receivable and contract assets10,657 78,286 
Inventories, net44,050 24,260 
Prepaid expenses and other assets5,879 3,416 
Property, equipment and operating leases18,879 20,635 
Goodwill11,128 12,790 
Deferred tax assets and other assets15,235 8,844 
TOTAL ASSETS$191,433 $231,514 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Accounts payable, accrued expenses, and other liabilities, current$16,169 $13,784 
Contract liabilities and other liabilities, non-current2,014 2,109 
Lease liabilities8,493 9,429 
Total liabilities26,676 25,322 
Stockholders’ equity164,757 206,192 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY$191,433 $231,514 




ENERGY RECOVERY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended September 30,Nine Months Ended September 30,
2026202520262025
(In thousands, except per share data)
Revenue$11,196 $32,000 $32,898 $68,116 
Cost of revenue6,999 11,442 15,410 25,146 
Restructuring - inventory reserve— — 1,632 — 
Gross profit4,197 20,558 15,856 42,970 
Operating expenses
General and administrative6,712 7,514 19,968 23,757 
Sales and marketing4,165 5,714 13,620 15,980 
Research and development3,115 3,668 8,753 10,120 
Restructuring charges— — 2,391 539 
Impairment of goodwill— — 1,662 — 
Total operating expenses13,992 16,896 46,394 50,396 
Income (loss) from operations(9,795)3,662 (30,538)(7,426)
Other income, net596 892 2,231 2,885 
Income (loss) before income taxes(9,199)4,554 (28,307)(4,541)
Provision for (benefit from) income taxes(2,869)680 (6,528)(589)
Net income (loss)$(6,330)$3,874 $(21,779)$(3,952)
Net income (loss) per share
Basic$ (0.12)$ 0.07 $ (0.42)$ (0.07)
Diluted$ (0.12)$ 0.07 $ (0.42)$ (0.07)
Number of shares used in per share calculations
Basic51,033 53,162 51,714 54,101 
Diluted51,033 53,466 51,714 54,101 




ENERGY RECOVERY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months Ended September 30,
20262025
(In thousands)
Cash flows from operating activities:
Net loss$(21,779)$(3,952)
Non-cash adjustments4,923 8,747 
Net cash provided by operating assets and liabilities44,952 6,898 
Net cash provided by operating activities28,096 11,693 
Cash flows from investing activities:
Net investment in marketable securities(7,696)37,670 
Capital expenditures(2,148)(668)
Proceeds from sales of fixed assets13 10 
Net cash (used in) provided by investing activities(9,831)37,012 
Cash flows from financing activities:
Net proceeds from issuance of common stock132 1,931 
Tax payment for employee shares withheld(725)(567)
Repurchase of common stock and net excise tax activity(23,246)(32,781)
Net cash used in financing activities(23,839)(31,417)
Effect of exchange rate differences(20)58 
Net change in cash, cash equivalents and restricted cash$(5,594)$17,346 
Cash and cash equivalents, end of period$42,482 $47,103 



ENERGY RECOVERY, INC.
SUPPLEMENTAL FINANCIAL INFORMATION
(Unaudited)

Channel Revenue
Three Months Ended September 30,Nine Months Ended September 30,
20262025vs. 202520262025vs. 2025
(In thousands, except percentages)
Original equipment manufacturer$6,222$8,962down 31%$17,988$21,320down 16%
Aftermarket4,0404,638down 13%10,90613,558down 20%
Megaproject93418,400down 95%4,00433,238down 88%
Total revenue$11,196$32,000down 65%$32,898$68,116down 52%
Segment Activity
Three Months Ended September 30,
20262025
DesalinationWastewaterCorporate and OtherTotalDesalinationWastewaterCorporate and OtherTotal
(In thousands)
Revenue$10,693 $476 $27 $11,196 $29,110 $2,818 $72 $32,000 
Cost of revenue6,625 321 53 6,999 10,119 1,204 119 11,442 
Gross profit (loss)4,068 155 (26)4,197 18,991 1,614 (47)20,558 
Operating expenses
General and administrative1,621 208 4,883 6,712 719 699 6,096 7,514 
Sales and marketing2,678 1,051 436 4,165 2,539 1,165 2,010 5,714 
Research and development1,391 284 1,440 3,115 1,659 161 1,848 3,668 
Restructuring charges— — — — — — — — 
Total operating expenses5,690 1,543 6,759 13,992 4,917 2,025 9,954 16,896 
Operating income (loss)$(1,622)$(1,388)$(6,785)(9,795)$14,074 $(411)$(10,001)3,662 
Other income, net596 892 
Income (loss) before income taxes$(9,199)$4,554 

Nine Months Ended September 30,
20262025
DesalinationWastewaterCorporate and OtherTotalDesalinationWastewaterCorporate and OtherTotal
(In thousands)
Revenue$31,083 $1,590 $225 $32,898 $62,369 $5,462 $285 $68,116 
Cost of revenue14,348 949 113 15,410 22,760 2,050 336 25,146 
Restructuring - inventory reserve— — 1,632 1,632 — — — — 
Gross profit (loss)16,735 641 (1,520)15,856 39,609 3,412 (51)42,970 
Operating expenses
General and administrative3,402 2,061 14,505 19,968 2,352 1,962 19,443 23,757 
Sales and marketing7,616 3,423 2,581 13,620 6,830 3,299 5,851 15,980 
Research and development5,398 682 2,673 8,753 3,878 724 5,518 10,120 
Restructuring charges335 18 2,038 2,391 107 103 329 539 
Impairment of goodwill— — 1,662 1,662 — — — — 
Total operating expenses16,751 6,184 23,459 46,394 13,167 6,088 31,141 50,396 
Operating income (loss)$(16)$(5,543)$(24,979)(30,538)$26,442 $(2,676)$(31,192)(7,426)
Other income, net2,231 2,885 
Loss before income taxes$(28,307)$(4,541)

Stock-based Compensation
Three Months Ended September 30,Nine Months Ended September 30,
2026202520262025
(In thousands)
Stock-based compensation expense charged to:
Cost of revenue$129 $156 $372 $452 
General and administrative149 868 1,547 2,466 
Sales and marketing529 828 1,782 2,208 
Research and development240 355 695 980 
Total stock-based compensation expense$1,047 $2,207 $4,396 $6,106 



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 DateYear to Date
Q3'2026Q3'2025Q3'2026Q3'2025
(In millions, except shares, per share and percentages)
Operating margin
(87.5)%11.4 %(92.8)%(10.9)%
Stock-based compensation8.86.913.29.0
Restructuring charges——7.30.8
Impairment of long-lived assets———0.5
Restructuring - inventory reserve——5.0—
Impairment of goodwill——5.1—
Adjusted operating margin
(78.7)%18.3 %(62.4)%(0.6)%
Net income (loss)
$(6.3)$3.9 $(21.8)$(4.0)
Stock-based compensation
1.0 2.2 4.3 6.1 
Restructuring charges (2)
— — 2.0 0.5 
Impairment of long-lived assets (2)
— — — 0.3 
Restructuring - inventory reserve(2)
— — 1.4 — 
Impairment of goodwill (2)
— — 1.4 — 
Stock-based compensation discrete tax item0.3 0.3 0.4 0.1 
Adjusted net income (loss)
$(5.0)$6.3 $(12.2)$3.0 
Net income (loss) per share
$(0.12)$0.07 $(0.42)$(0.07)
Adjustments to net income (loss) per share (3)
0.02 0.05 0.18 0.13 
Adjusted earnings (loss) per share
$(0.10)$0.12 $(0.24)$0.06 
Net income (loss)
$(6.3)$3.9 $(21.8)$(4.0)
Stock-based compensation1.0 2.2 4.3 6.1 
Depreciation and amortization1.0 0.9 3.0 2.8 
Restructuring charges— — 2.4 0.5 
Impairment of long-lived assets— — — 0.4 
Restructuring - inventory reserve— — 1.6 — 
Impairment of goodwill— — 1.7 — 
Other income, net
(0.6)(0.9)(2.2)(2.9)
Provision for (benefit from) income taxes(2.9)0.7 (6.5)(0.6)
Adjusted EBITDA
$(7.8)$6.8 $(17.5)$2.4 
Free cash flow
Net cash provided by (used in) operating activities$(9.8)$(3.1)$28.1 $11.7 
Capital expenditures(0.3)(0.3)(2.1)(0.7)
Free cash flow$(10.1)$(3.5)$25.9 $11.0 
(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.


Source: View Original Filing on SEC EDGAR

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