Energy Recovery Reports its First Quarter 2025 Financial Results
SAN LEANDRO, Calif. - May 7, 2025 - Energy Recovery, Inc. (Nasdaq:ERII) ("Energy Recovery" or the "Company") today announced its financial results for the first quarter ended March 31, 2025.
First Quarter Highlights
•Q1'25 financial results were in-line with internal expectations and consistent with our communicated expectations for quarterly revenue cadence in 2025.
•Revenue of $8.1 million, a decrease of $4.0 million as compared to Q1'2024 due to timing of revenue from contracted projects.
•Gross margin of 55.3%, a decrease of 370 bps, as compared to Q1'2024, due primarily to a decrease in revenue spread over fixed costs.
•Operating expenses of $17.0 million, a decrease of 5.8%, as compared to Q1'2024, due primarily to a decrease in employee costs, partially offset by $0.5 million of restructuring charges, $0.4 million of impairment costs, and an increase in costs related to our manufacturing transformation.
•Loss from operations of $12.6 million, a decrease of 14.9%, as compared to Q1'2024, mainly due to lower revenue and lower gross margin.
•Net loss of $9.9 million and adjusted EBITDA(1) loss of $8.7 million.
•Cash and investments of $106.7 million, which includes cash, cash equivalents, and short- and long-term investments.
In conjunction with these financial results, management has released a letter to shareholders reviewing business and financial updates from the first quarter and discussing our outlook for 2025. This letter is located under "Financial Info" in the "Investors" section on the Energy Recovery website (https://ir.energyrecovery.com/financial-information).
Financial Highlights
| Quarter to Date | |||||||||||||||||
| 2025 | 2024 | 2025 vs. 2024 | |||||||||||||||
| (In millions, except net loss per share, percentages and basis points) | |||||||||||||||||
| Revenue | $8.1 | $12.1 | down 33% | ||||||||||||||
| Gross margin | 55.3% | 59.0% | down 370 bps | ||||||||||||||
| Operating margin | (155.8%) | (90.4%) | NM | ||||||||||||||
| Net loss | ($9.9) | ($8.3) | down 20% | ||||||||||||||
| Net loss per share | ($0.18) | ($0.14) | down $0.04 | ||||||||||||||
| Effective tax rate | 14.0% | 13.5% | |||||||||||||||
| Cash provided by operations | $10.7 | $6.5 | |||||||||||||||
Non-GAAP Financial Highlights (1)
| Quarter to Date | |||||||||||||||||
| 2025 | 2024 | 2025 vs. 2024 | |||||||||||||||
| (In millions, except adjusted net loss per share, percentages and basis points) | |||||||||||||||||
| Adjusted operating margin | (120.4%) | (59.4%) | NM | ||||||||||||||
| Adjusted net loss | ($7.0) | ($4.6) | down 52% | ||||||||||||||
| Adjusted net loss per share | ($0.13) | ($0.08) | down $0.05 | ||||||||||||||
| Adjusted EBITDA | ($8.7) | ($6.2) | |||||||||||||||
| Free cash flow | $10.5 | $5.7 | |||||||||||||||
(1)Refer to the sections "Use of Non-GAAP Financial Measures" and "Reconciliation of Non-GAAP Financial Measures" for definitions of our non-GAAP financial measures and reconciliations of GAAP to non-GAAP amounts, respectively.
NM Not Meaningful
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Disclaimer
ERI - Energy Recovery Inc. published this content on May 07, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 07, 2025 at 22:47 UTC.
