Filing Flows › Energy Recovery (ERII) › Q2 2025
Energy Recovery (ERII) Q2 2025 earnings results (second quarter 2025)
10-Q filed Aug 6, 2025
Energy Recovery (ERII) reported revenue of $28.1M for the second quarter 2025 (Q2 2025), +3% from a year earlier and +248% from the quarter before. Operating margin was 5.3%, net earnings $2.1M (7.3% of revenue).
Energy Recovery, Q2 2025: revenue $28.1M (+3% year over year), operating margin 5.3%, net earnings $2.1M, operating cash flow $4.1M. The chart follows the revenue to costs, profit and cash.
| Q2 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $28.1M | +248% | +3% |
| Gross profit | $18.0M | +303% | +2% |
| Operating profit | $1.5M | — | — |
| Net earnings | $2.1M | — | — |
| Operating cash flow | $4.1M | -61% | -49% |
| Free cash flow | $4.0M | — | -49% |
What changed
Revenue was $28.1M in Q2 2025, up 3% year over year and up 248% from the previous quarter. Water was the largest line at 99% of revenue. Water added $921K year over year (up 3%), 108% of the total change. Emerging Technologies declined 25%.
Gross margin was 64.0%, down 0.6 points from a year earlier. Operating profit was $1.5M, a 5.3% margin (up 12.7 points year over year). Operating expenses fell 16% while revenue rose 3%. Net earnings were $2.1M. The effective tax rate was 14.0%. Non-operating items added $914K, 38% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $4.1M (down 49% year over year), 202% of net earnings. Non-cash charges added back $944K of depreciation and amortization and $1.9M of share-based compensation. Working capital and other items used $788K. After capital expenditures ($100K), free cash flow as the company reports it was $4.0M.
Questions
What was Energy Recovery's revenue in the second quarter 2025?
Energy Recovery (ERII) reported revenue of $28.1M for the second quarter 2025 (Q2 2025), +3% from a year earlier and +248% from the quarter before.
Was Energy Recovery profitable in the second quarter 2025?
Operating profit was $1.5M (5.3% of revenue) and net earnings $2.1M.
Source: Energy Recovery 10-Q on SEC EDGAR.