Filing Flows › Energy Recovery (ERII) › Q1 2025
Energy Recovery (ERII) Q1 2025 earnings results (first quarter 2025)
10-Q filed May 7, 2025
Energy Recovery (ERII) reported revenue of $8.1M for the first quarter 2025 (Q1 2025), -33% from a year earlier and -88% from the quarter before. Operating margin was -155.8%, net loss $9.9M (122.5% of revenue).
Energy Recovery, Q1 2025: revenue $8.1M (-33% year over year), operating margin -155.8%, net loss $9.9M, operating cash flow $10.7M. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $8.1M | -88% | -33% |
| Operating profit | −$12.6M | — | — |
| Net earnings | −$9.9M | — | — |
| Operating cash flow | $10.7M | +19% | +64% |
| Free cash flow | $10.5M | — | +84% |
What changed
Revenue was $8.1M in Q1 2025, down 33% year over year and down 88% from the previous quarter. Water was the largest line at 100% of revenue. Water lost $4.0M year over year (down 33%), 100% of the total change.
Gross margin was 55.3%, down 3.7 points from a year earlier. Operating costs exceeded revenue by $12.6M, an operating margin of -155.8%. Operating expenses fell 6% while revenue fell 33%. The fastest-growing cost line was General & admin (+13%). The quarter ended with a net loss of $9.9M, after a profit of $23.5M the previous quarter.
Operating cash flow was $10.7M (up 64% year over year). Non-cash charges added back $1.0M of depreciation and amortization and $2.0M of share-based compensation. Working capital and other items added $17.6M. After capital expenditures ($200K), free cash flow as the company reports it was $10.5M.
Questions
What was Energy Recovery's revenue in the first quarter 2025?
Energy Recovery (ERII) reported revenue of $8.1M for the first quarter 2025 (Q1 2025), -33% from a year earlier and -88% from the quarter before.
Was Energy Recovery profitable in the first quarter 2025?
Operating loss was $12.6M (-155.8% of revenue) and net loss $9.9M.
Source: Energy Recovery 10-Q on SEC EDGAR.