Earnings Releases·Nov 4, 2026, 4:06 PM ET

Energy Recovery — Third Quarter 2026 Earnings Summary

Q3 2026 revenue fell 65% year-over-year to $11.2 million, with year-to-date revenue down 52% to $32.9 million, driven primarily by the war in Iran and significant declines in Megaproject revenue (-95% YoY).
The company reported a net loss of $6.3 million for the quarter and $21.8 million year-to-date, contrasting with net income of $3.9 million and a net loss of $4.0 million in the prior period, while gross margin contracted to 37.5% from 64.2% YoY.
Operating expenses decreased 17.2% to $14.0 million due to reduced compensation and consulting costs, though the company incurred $2.4 million in restructuring charges year-to-date, including inventory reserves and goodwill impairment.
Cash and investments stood at $85.6 million as of September 30, 2026, while the company utilized $23.2 million year-to-date for common stock repurchases and net excise tax activity.