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Mar 31, 2025
Energy Recovery Q1 2025 Earnings Report
Energy Recovery reported its financial results for the first quarter ended March 31, 2025, with revenue of $8.1 million and a net loss of $9.9 million.
Key Takeaways
Energy Recovery's Q1 2025 financial results were in-line with internal expectations, showing a decrease in revenue to $8.1 million due to timing of contracted projects and a net loss of $9.9 million. Gross margin decreased to 55.3%, while operating expenses saw a slight reduction.
Q1'25 financial results aligned with internal expectations and communicated quarterly revenue cadence for 2025.
Revenue decreased by $4.0 million compared to Q1'2024, totaling $8.1 million, primarily due to the timing of revenue from contracted projects.
Gross margin was 55.3%, a decrease of 370 basis points from Q1'2024, mainly due to lower revenue spread over fixed costs.
Operating expenses decreased by 5.8% to $17.0 million, driven by lower employee costs, partially offset by restructuring and impairment charges, and manufacturing transformation costs.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The company's outlook for 2025 is discussed in a letter to shareholders, available on their investor relations website. This letter provides business and financial updates and future expectations.
Positive Outlook
- Q1'25 financial results were in-line with internal expectations.
- Consistent with communicated expectations for quarterly revenue cadence in 2025.
- Operating expenses decreased by 5.8% compared to Q1'2024.
- Cash and investments increased to $106.7 million.
- Management has released a letter to shareholders reviewing business and financial updates and discussing the 2025 outlook.
Challenges Ahead
- Revenue decreased by $4.0 million compared to Q1'2024.
- Gross margin decreased by 370 bps compared to Q1'2024.
- Loss from operations increased by 14.9% compared to Q1'2024.
- Net loss increased to $9.9 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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