Filing Flows › Energy Recovery (ERII) › Q2 2026
Energy Recovery (ERII) Q2 2026 earnings results (second quarter 2026)
10-Q filed Aug 5, 2026
Energy Recovery (ERII) reported revenue of $12.0M for the second quarter 2026 (Q2 2026), -57% from a year earlier and +24% from the quarter before. Operating margin was -49.0%, net loss $3.2M (26.7% of revenue).
Energy Recovery, Q2 2026: revenue $12.0M (-57% year over year), operating margin -49.0%, net loss $3.2M, operating cash flow $16.3M. The chart follows the revenue to costs, profit and cash.
| Q2 2026 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $12.0M | +24% | -57% |
| Operating profit | −$5.9M | — | -499% |
| Net earnings | −$3.2M | — | -256% |
| Operating cash flow | $16.3M | -22% | +293% |
| Free cash flow | $15.4M | — | +281% |
What changed
Revenue was $12.0M in Q2 2026, down 57% year over year and up 24% from the previous quarter. Desalination was the largest line at 96% of revenue. Desalination lost $14.0M year over year (down 55%), 87% of the total change.
Gross margin was 74.7%, up 10.7 points from Q2 2025. Operating costs exceeded revenue by $5.9M, an operating margin of -49.0%. Operating expenses fell 10% while revenue fell 57%. The quarter ended with a net loss of $3.2M, narrower than the previous quarter's $12.3M loss.
Operating cash flow was $16.3M (up 293% year over year). Non-cash charges added back $1.0M of depreciation and amortization and $1.4M of share-based compensation. Working capital and other items added $17.1M. After capital expenditures ($900K), free cash flow as the company reports it was $15.4M.
Questions
What was Energy Recovery's revenue in the second quarter 2026?
Energy Recovery (ERII) reported revenue of $12.0M for the second quarter 2026 (Q2 2026), -57% from a year earlier and +24% from the quarter before.
Was Energy Recovery profitable in the second quarter 2026?
Operating loss was $5.9M (-49.0% of revenue) and net loss $3.2M.
Source: Energy Recovery 10-Q on SEC EDGAR.