Filing Flows › Energy Recovery (ERII) › Q1 2026
Energy Recovery (ERII) Q1 2026 earnings results (first quarter 2026)
10-Q filed May 6, 2026
Energy Recovery (ERII) reported revenue of $9.7M for the first quarter 2026 (Q1 2026), +20% from a year earlier and -85% from the quarter before. Operating margin was -153.1%, net loss $12.3M (126.2% of revenue).
Energy Recovery, Q1 2026: revenue $9.7M (+20% year over year), operating margin -153.1%, net loss $12.3M, operating cash flow $21.0M. The chart follows the revenue to costs, profit and cash.
| Q1 2026 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $9.7M | -85% | +20% |
| Operating profit | −$14.9M | -147% | — |
| Net earnings | −$12.3M | -146% | — |
| Operating cash flow | $21.0M | +197% | +97% |
| Free cash flow | $20.2M | — | +93% |
What changed
Revenue was $9.7M in Q1 2026, up 20% year over year and down 85% from the previous quarter. Desalination was the largest line at 92% of revenue. Desalination added $1.1M year over year (up 15%), 70% of the total change.
Gross margin was 27.8%, down 27.4 points from Q1 2025. Operating costs exceeded revenue by $14.9M, an operating margin of -153.1%. Operating expenses grew 3% against revenue growth of 20%. The fastest-growing cost line was Other operating costs (+493%). The quarter ended with a net loss of $12.3M, after a profit of $26.9M the previous quarter.
Operating cash flow was $21.0M (up 97% 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 $30.3M. After capital expenditures ($800K), free cash flow as the company reports it was $20.2M.
Questions
What was Energy Recovery's revenue in the first quarter 2026?
Energy Recovery (ERII) reported revenue of $9.7M for the first quarter 2026 (Q1 2026), +20% from a year earlier and -85% from the quarter before.
Was Energy Recovery profitable in the first quarter 2026?
Operating loss was $14.9M (-153.1% of revenue) and net loss $12.3M.
Source: Energy Recovery 10-Q on SEC EDGAR.