Filing Flows › Energy Recovery (ERII) › Q3 2026
Energy Recovery (ERII) Q3 2026 earnings results (third quarter 2026)
10-Q filed Nov 4, 2026
Energy Recovery (ERII) reported revenue of $11.2M for the third quarter 2026 (Q3 2026), -65% from a year earlier and -7% from the quarter before. Operating margin was -87.5%, net loss $6.3M (56.5% of revenue).
Energy Recovery, Q3 2026: revenue $11.2M (-65% year over year), operating margin -87.5%, net loss $6.3M, operating cash flow −$9.2M. The chart follows the revenue to costs, profit and cash.
| Q3 2026 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $11.2M | -7% | -65% |
| Operating profit | −$9.8M | — | -367% |
| Net earnings | −$6.3M | — | -263% |
| Operating cash flow | −$9.2M | -157% | — |
What changed
Revenue was $11.2M in Q3 2026, down 65% year over year and down 7% from the previous quarter. Desalination was the largest line at 96% of revenue. Desalination lost $18.4M year over year (down 63%), 89% of the total change.
Gross margin was 37.5%, down 26.8 points from Q3 2025. Operating costs exceeded revenue by $9.8M, an operating margin of -87.5%. Operating expenses fell 17% while revenue fell 65%. The quarter ended with a net loss of $6.3M, wider than the previous quarter's $3.2M loss.
Operating cash flow was −$9.2M. Non-cash charges added back $1.0M of depreciation and amortization and $1.0M of share-based compensation. Working capital and other items used $5.0M. Capital expenditures of $459K exceeded it, leaving free cash flow of −$9.7M.
Questions
What was Energy Recovery's revenue in the third quarter 2026?
Energy Recovery (ERII) reported revenue of $11.2M for the third quarter 2026 (Q3 2026), -65% from a year earlier and -7% from the quarter before.
Was Energy Recovery profitable in the third quarter 2026?
Operating loss was $9.8M (-87.5% of revenue) and net loss $6.3M.
Source: Energy Recovery 10-Q on SEC EDGAR.