Monitor the company's capital allocation strategy and future guidance, as the exit from the CO2 retail grocery business suggests a refocusing on core operations. The impairment charges will impact near-term financials, but reduced operating expenses could improve margins if revenue stabilizes.
Price Chart
Executive Summary
Energy Recovery, Inc. reported mixed financial results for Q4 2025, with stable quarterly revenue but declining annual revenue and net income. The company announced a strategic exit from its CO2 retail grocery business within the Emerging Technologies segment, expecting $4.5-$5.5 million in one-time costs, including goodwill impairment. Despite improved operating margins due to reduced expenses, the significant restructuring and impairment charges create a negative outlook.
Key Financial Metrics
Key Facts
- Q4 revenue was $66.9 million, down slightly from $67.1 million in Q4 2024
- Annual revenue declined 7% to $135.0 million from $144.9 million in 2024
- Net income was flat year-over-year at $23.0 million ($23.1 million in 2024)
- Company is exiting CO2 retail grocery business, expecting $4.5-$5.5 million in one-time costs
- One-time costs include $1.0-$2.0 million in cash severance and non-cash expenses including goodwill impairment
- Operating expenses decreased 36.5% in Q4 due to lower employee, consulting, and restructuring costs
Financial Impact
$4.5 million to $5.5 million in one-time exit costs
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Water | $134.7M | -6.7% |
| Emerging Technologies | $285.0K | -55.4% |
Risk Factors
- Further declines in annual revenue if core business segments don't grow
- Additional impairment charges if other segments underperform
- Execution risk in winding down the CO2 retail grocery business
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001421517-26-000021 |
| Document: erii-20260225.htm | 0001421517-26-000021 |
| Document: 0001421517-26-000021-index-headers.html | 0001421517-26-000021 |
| Document: 0001421517-26-000021-index.html | 0001421517-26-000021 |
| Document: 0001421517-26-000021.txt | 0001421517-26-000021 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 26, 2026 today | SC 13G/A | $6.79 | awaiting T+20 | — | $6.81 (+0.37%) |
Jun 15, 2026 19w ago | 144 | $8.58 $8.66 | ▲ +0.93% | ▲ +0.73% | $6.81 (−20.63%) |
Mar 4, 2026 33w ago | Insider Cluster | $10.72 $10.22 | ▼ −4.66% | ▼ −0.25% | $6.81 (−36.47%) |
Feb 25, 2026 34w ago | 8-K | $10.43 $9.94 | ▼ −4.70% | ▲ +1.72% | $6.81 (−34.71%) |
US Market Status
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