Latest news with #EnergyRecovery
Business Wire
4 days ago
- Business
- Business Wire
Energy Recovery Reports its Second 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 second quarter and six months ended June 30, 2025. Second Quarter Highlights Q2'2025 financial results were in-line with internal expectations and consistent with our communicated expectations for quarterly revenue cadence in 2025. Revenue of $28.1 million, an increase of $0.9 million, as compared to Q2'2024, due to timing of revenue from contracted projects. Gross margin of 64.0%, a decrease of 60 bps, as compared to Q2'2024, due primarily to costs related to product mix and tariffs. Operating expenses of $16.5 million, a decrease of 15.8%, as compared to Q2'2024, due primarily to a decrease in employee costs and consulting costs. Income from operations of $1.5 million, an increase of 173.2%, as compared to Q2'2024, mainly due to higher revenue and lower operating expenses. Net income of $2.1 million and adjusted EBITDA (1) of $4.4 million. Cash and investments of $93.7 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 second quarter and discussing our outlook for 2025. This letter is located under 'Financial Info' in the 'Investors' section on the Energy Recovery website ( Financial Highlights Non-GAAP Financial Highlights (1) _______________ (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 Expand 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 (loss), adjusted net income (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) executive transition costs, such as executive search costs, retention costs, one-time severance costs and one-time corporate growth strategy costs; and iii) restructuring charges, 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) executive transition costs; iii) restructuring charges; 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 (loss) per share is a non-GAAP financial measure that the Company defines as net income (loss), which excludes i) stock-based compensation; ii) executive transition costs; iii) restructuring charges; 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 (loss) which excludes i) depreciation and amortization; ii) stock-based compensation; iii) executive transition costs; iv) restructuring charges; v) impairment of long-lived assets; vi) other income, net, such as interest income and other non-operating expense, net; and vii) provision for (benefit from) 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. Conference Call to Discuss Financial Results LIVE CONFERENCE Q&A CALL: Wednesday, August 6, 2025, 2:00 PM PT / 5:00 PM ET US / Canada Toll-Free: +1 (888) 645-4404 Local / International Toll: +1 (862) 298-0702 CONFERENCE Q&A CALL REPLAY: Available approximately three hours after conclusion of the live call. Expiration: Saturday, September 6, 2025 US / Canada Toll-Free: +1 (877) 660-6853 Local / International Toll: +1 (201) 612-7415 Access code: 13755031 Investors may also access the live call and the replay over the internet on the 'Events' page of the Company's website located at 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) is a trusted global leader in energy efficiency technology. Building on the Company's pressure exchanger technology platform, the Company designs and manufactures reliable, high-performance solutions that generate cost savings and increase energy efficiency across several industries. With a strong foundation in the desalination industry, the Company has delivered transformative solutions that optimize operations and deliver positive environmental impact to its customers worldwide for more than 30 years. Headquartered in the San Francisco Bay Area, the Company has manufacturing and research and development facilities across California with sales and on-site technical support available globally. To learn more, visit ENERGY RECOVERY, INC. (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 (In thousands, except per share data) Revenue $ 28,051 $ 27,199 $ 36,116 $ 39,289 Cost of revenue 10,097 9,633 13,704 14,588 Gross profit 17,954 17,566 22,412 24,701 Operating expenses General and administrative 7,669 9,532 16,243 17,098 Sales and marketing 5,360 6,104 10,266 12,256 Research and development 3,451 3,944 6,452 8,295 Restructuring charges — — 539 — Total operating expenses 16,480 19,580 33,500 37,649 Income (loss) from operations 1,474 (2,014 ) (11,088 ) (12,948 ) Other income, net 914 1,614 1,993 3,003 Income (loss) before income taxes 2,388 (400 ) (9,095 ) (9,945 ) Provision for (benefit from) income taxes 334 242 (1,269 ) (1,043 ) Net income (loss) $ 2,054 $ (642 ) $ (7,826 ) $ (8,902 ) Net income (loss) per share Diluted $ 0.04 $ (0.01 ) $ (0.14 ) $ (0.16 ) Number of shares used in per share calculations Expand ENERGY RECOVERY, INC. (Unaudited) Six Months Ended June 30, 2025 2024 (In thousands) Cash flows from operating activities: Net loss $ (7,826 ) $ (8,902 ) Non-cash adjustments 5,642 7,586 Net cash provided by (used in) operating assets and liabilities 17,008 15,886 Net cash provided by operating activities 14,824 14,570 Cash flows from investing activities: Net investment in marketable securities 33,882 (42,895 ) Capital expenditures (326 ) (1,025 ) Proceeds from sales of fixed assets 10 90 Net cash provided by (used in) investing activities 33,566 (43,830 ) Cash flows from financing activities: Net proceeds from issuance of common stock 983 1,502 Repurchase of common stock & payment of excise tax (22,009 ) — Net cash (used in) provided by financing activities (21,026 ) 1,502 Effect of exchange rate differences 60 (24 ) Net change in cash, cash equivalents and restricted cash $ 27,424 $ (27,782 ) Cash, cash equivalents and restricted cash, end of period $ 57,181 $ 40,443 Expand Expand Segment Activity Three Months Ended June 30, 2025 2024 Water Emerging Technologies Corporate Total Water Emerging Technologies Corporate Total (In thousands) Revenue $ 27,839 $ 212 $ — $ 28,051 $ 26,918 $ 281 $ — $ 27,199 Cost of revenue 9,926 171 — 10,097 9,345 288 — 9,633 Gross profit (loss) 17,913 41 — 17,954 17,573 (7 ) — 17,566 Operating expenses General and administrative 1,323 571 5,775 7,669 1,912 984 6,636 9,532 Sales and marketing 3,280 1,569 511 5,360 3,837 1,700 567 6,104 Research and development 1,604 1,847 — 3,451 1,073 2,871 — 3,944 Total operating expenses 6,207 3,987 6,286 16,480 6,822 5,555 7,203 19,580 Operating income (loss) $ 11,706 $ (3,946 ) $ (6,286 ) 1,474 $ 10,751 $ (5,562 ) $ (7,203 ) (2,014 ) Other income, net 914 1,614 Expand Six Months Ended June 30, 2025 2024 Water Emerging Technologies Corporate Total Water Emerging Technologies Corporate Total (In thousands) Revenue $ 35,903 $ 213 $ — $ 36,116 $ 39,007 $ 282 $ — $ 39,289 Cost of revenue 13,487 217 — 13,704 14,299 289 — 14,588 Gross profit (loss) 22,416 (4 ) — 22,412 24,708 (7 ) — 24,701 Operating expenses General and administrative 2,896 1,326 12,021 16,243 3,834 2,002 11,262 17,098 Sales and marketing 6,425 2,839 1,002 10,266 7,582 3,507 1,167 12,256 Research and development 2,782 3,670 — 6,452 2,173 6,122 — 8,295 Restructuring charges 210 123 206 539 — — — — Total operating expenses 12,313 7,958 13,229 33,500 13,589 11,631 12,429 37,649 Operating income (loss) $ 10,103 $ (7,962 ) $ (13,229 ) (11,088 ) $ 11,119 $ (11,638 ) $ (12,429 ) (12,948 ) Other income, net 1,993 3,003 Income before income taxes $ ) $ (9,945 ) Expand ENERGY RECOVERY, INC. (Unaudited) Stock-based Compensation Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 (In thousands) Stock-based compensation expense charged to: Cost of revenue $ 148 $ 461 $ 296 $ 804 General and administrative 728 1,011 1,598 2,418 Sales and marketing 701 912 1,380 1,922 Research and development 359 433 625 956 Total stock-based compensation expense $ 1,936 $ 2,817 $ 3,899 $ 6,100 Expand 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. Q2'2025 Q2'2024 Q2'2025 Q2'2024 (In millions, except shares, per share and percentages) Operating margin 5.3 % (7.4 )% (30.7 )% (33.0 )% Stock-based compensation 6.9 10.4 10.8 15.5 Executive transition costs — 12.3 — 9.7 Restructuring charges — — 1.5 — Impairment of long-lived assets — — 1.0 — Adjusted operating margin 12.2 % 15.3 % (17.4 )% (7.7 )% Net income (loss) $ 2.1 $ (0.6 ) $ (7.8 ) $ (8.9 ) Stock-based compensation 1.9 2.8 3.9 6.1 Executive transition costs (2) — 2.9 — 3.5 Restructuring charges (2) — — 0.5 — Impairment of long-lived assets (2) — — 0.3 — Stock-based compensation discrete tax item (0.3 ) (0.1 ) (0.2 ) (0.2 ) Adjusted net income (loss) $ 3.7 $ 5.0 $ (3.3 ) $ 0.5 Net income (loss) per share $ 0.04 $ (0.01 ) $ (0.14 ) $ (0.16 ) Adjustments to net income (loss) per share (3) 0.03 0.10 0.08 0.17 Adjusted net income (loss) per share $ 0.07 $ 0.09 $ (0.06 ) $ 0.01 Net income (loss) $ 2.1 $ (0.6 ) $ (7.8 ) $ (8.9 ) Stock-based compensation 1.9 2.8 3.9 6.1 Depreciation and amortization 0.9 1.0 1.9 2.0 Executive transition costs — 3.3 — 3.8 Restructuring charges — — 0.5 — Impairment of long-lived assets — — 0.4 — Other income, net (0.9 ) (1.6 ) (2.0 ) (3.0 ) Provision for (benefit from) income taxes 0.3 0.2 (1.3 ) (1.0 ) Adjusted EBITDA $ 4.4 $ 5.2 $ (4.4 ) $ (1.0 ) Free cash flow Net cash provided by operating activities $ 4.1 $ 8.1 $ 14.8 $ 14.6 Capital expenditures (0.1 ) (0.2 ) (0.3 ) (1.0 ) Free cash flow $ 4.0 $ 7.9 $ 14.5 $ 13.5 Expand _______________ (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. Expand
Yahoo
28-07-2025
- Business
- Yahoo
Here's Why Energy Recovery (ERII) Fell in Q2
Conestoga Capital Advisors, an asset management company, released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The second quarter began with a historically poor start but gained momentum later as tariff fears subsided and market volatility dropped precipitously. Conestoga Micro Cap Composite appreciated 15.65% net-of-fees in the second quarter but underperformed the Russell Microcap Growth Index's 20.92% return. In a highly volatile market led by high-beta and lower-quality stocks, the firm does not expect the fund to align with index performance. Please review the fund's top 5 holdings to gain insight into their key selections for 2025. In its second quarter 2025 investor letter, Conestoga Capital Advisors highlighted stocks such as Energy Recovery, Inc. (NASDAQ:ERII). Energy Recovery, Inc. (NASDAQ:ERII) develops, manufactures, and distributes energy efficiency technology solutions. The one-month return of Energy Recovery, Inc. (NASDAQ:ERII) was 8.61%, and its shares lost 3.81% of their value over the last 52 weeks. On July 25, 2025, Energy Recovery, Inc. (NASDAQ:ERII) stock closed at $13.88 per share, with a market capitalization of $756.449 million. Conestoga Capital Advisors stated the following regarding Energy Recovery, Inc. (NASDAQ:ERII) in its second quarter 2025 investor letter: "Energy Recovery, Inc. (NASDAQ:ERII) is a global leader in energy efficiency technology through its proprietary pressure exchanger technology. After being a 1Q leader, ERII gave back its gains on a weak first quarter report. ERII's results are always hard to predict on a quarterly basis and the first quarter is historically the lightest, but the street was caught off guard by revenue at half the expected level. Management also paused its Wastewater segment guidance due to its Chinese exposure. Liberation Day level tariffs made their products uncompetitive. The company's largest segment, desalination, continues to see robust demand." A treatment plant with a large industrial wastewater treatment pipe in the foreground. Energy Recovery, Inc. (NASDAQ:ERII) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 19 hedge fund portfolios held Energy Recovery, Inc. (NASDAQ:ERII) at the end of the first quarter compared to 15 in the previous quarter. While we acknowledge the potential of Energy Recovery, Inc. (NASDAQ:ERII) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered Energy Recovery, Inc. (NASDAQ:ERII) and shared Conestoga Capital Advisors' views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
16-07-2025
- Business
- Business Wire
Energy Recovery to Release Second Quarter 2025 Financial Results
SAN LEANDRO, Calif.--(BUSINESS WIRE)-- Energy Recovery, Inc. (NASDAQ: ERII or the Company) announced today it will release its financial results for the quarterly period ending June 30, 2025. The Company will host a conference call to discuss the results and related matters on August 6, 2025, after market close. EARNINGS RELEASE Wednesday, August 6, 2025 (after market close) LIVE CONFERENCE CALL Wednesday, August 6, 2025, 2 p.m. PT / 5 p.m. ET Listen-only, US / Canada Toll-Free: +1 (888) 645-4404 Listen-only, Local / International: +1 (862) 298-0702 CONFERENCE CALL REPLAY Expiration: September 6, 2025 US / Canada Toll-Free: +1 (877) 660-6853 Local / International Toll: +1 (201) 612-7415 Access code: 13755031 Investors may also access the live call and replay over the internet via webcast. The replay will be available approximately three hours after the live call concludes. About Energy Recovery Energy Recovery is a trusted global leader in energy efficiency technology. Building on our pressure exchanger technology platform, we design and manufacture reliable, high-performance solutions that generate cost savings, increase energy efficiency, and reduce carbon emissions across several industries. With a strong foundation in the desalination industry, Energy Recovery has delivered transformative solutions that increase operational efficiency and environmental sustainability to our customers worldwide for more than 30 years. Headquartered in the San Francisco Bay Area, Energy Recovery has manufacturing and R&D facilities across California, with sales and on-site technical support available globally. For more information, visit
Yahoo
12-06-2025
- Business
- Yahoo
What Is Energy Recovery, Inc.'s (NASDAQ:ERII) Share Price Doing?
While Energy Recovery, Inc. (NASDAQ:ERII) might not have the largest market cap around , it saw a double-digit share price rise of over 10% in the past couple of months on the NASDAQGS. The recent rally in share prices has nudged the company in the right direction, though it still falls short of its yearly peak. As a small cap stock, which tends to lack high analyst coverage, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value. Is there still an opportunity here to buy? Today we will analyse the most recent data on Energy Recovery's outlook and valuation to see if the opportunity still exists. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Energy Recovery appears to be expensive according to our price multiple model, which makes a comparison between the company's price-to-earnings ratio and the industry average. We've used the price-to-earnings ratio in this instance because there's not enough visibility to forecast its cash flows. The stock's ratio of 32.25x is currently well-above the industry average of 23.27x, meaning that it is trading at a more expensive price relative to its peers. If you like the stock, you may want to keep an eye out for a potential price decline in the future. Given that Energy Recovery's share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility. View our latest analysis for Energy Recovery Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let's also take a look at the company's future expectations. With profit expected to grow by 35% over the next year, the near-term future seems bright for Energy Recovery. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation. Are you a shareholder? It seems like the market has well and truly priced in ERII's positive outlook, with shares trading above industry price multiples. However, this brings up another question – is now the right time to sell? If you believe ERII should trade below its current price, selling high and buying it back up again when its price falls towards the industry PE ratio can be profitable. But before you make this decision, take a look at whether its fundamentals have changed. Are you a potential investor? If you've been keeping an eye on ERII for a while, now may not be the best time to enter into the stock. The price has surpassed its industry peers, which means it is likely that there is no more upside from mispricing. However, the positive outlook is encouraging for ERII, which means it's worth diving deeper into other factors in order to take advantage of the next price drop. Diving deeper into the forecasts for Energy Recovery mentioned earlier will help you understand how analysts view the stock going forward. So feel free to check out our free graph representing analyst forecasts. If you are no longer interested in Energy Recovery, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
26-05-2025
- Business
- Yahoo
There's Been No Shortage Of Growth Recently For Energy Recovery's (NASDAQ:ERII) Returns On Capital
If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Ideally, a business will show two trends; firstly a growing return on capital employed (ROCE) and secondly, an increasing amount of capital employed. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. With that in mind, we've noticed some promising trends at Energy Recovery (NASDAQ:ERII) so let's look a bit deeper. Our free stock report includes 1 warning sign investors should be aware of before investing in Energy Recovery. Read for free now. For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. To calculate this metric for Energy Recovery, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.10 = US$21m ÷ (US$225m - US$18m) (Based on the trailing twelve months to March 2025). Thus, Energy Recovery has an ROCE of 10%. In absolute terms, that's a pretty normal return, and it's somewhat close to the Machinery industry average of 11%. See our latest analysis for Energy Recovery Above you can see how the current ROCE for Energy Recovery compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like to see what analysts are forecasting going forward, you should check out our free analyst report for Energy Recovery . We like the trends that we're seeing from Energy Recovery. The data shows that returns on capital have increased substantially over the last five years to 10%. The amount of capital employed has increased too, by 26%. The increasing returns on a growing amount of capital is common amongst multi-baggers and that's why we're impressed. To sum it up, Energy Recovery has proven it can reinvest in the business and generate higher returns on that capital employed, which is terrific. And with a respectable 63% awarded to those who held the stock over the last five years, you could argue that these developments are starting to get the attention they deserve. In light of that, we think it's worth looking further into this stock because if Energy Recovery can keep these trends up, it could have a bright future ahead. On a final note, we've found 1 warning sign for Energy Recovery that we think you should be aware of. For those who like to invest in solid companies, check out this free list of companies with solid balance sheets and high returns on equity. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
