Loading...
•
Sep 30, 2025
Energy Recovery Q3 2025 Earnings Report
Energy Recovery reported its third quarter 2025 financial results, with revenue of $32.0 million and a net income of $3.9 million.
Key Takeaways
Energy Recovery's third quarter 2025 financial results were in-line with internal expectations, with revenue of $32.0 million, a decrease of 17% compared to the prior year, primarily due to the timing of revenue from contracted projects. The company reported a net income of $3.9 million and adjusted EBITDA of $6.8 million.
Revenue for Q3 2025 was $32.0 million, a 17% decrease from Q3 2024, attributed to the timing of contracted project revenue.
Gross margin stood at 64.2%, a slight decrease of 90 basis points year-over-year, mainly due to product mix and tariffs.
Net income for the quarter was $3.9 million, a 54% decrease compared to $8.5 million in Q3 2024.
Adjusted EBITDA was $6.8 million, down from $11.6 million in the same period last year.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Management has released a letter to shareholders reviewing business and financial updates from the third quarter and discussing the outlook for 2025.
Positive Outlook
- Financial results were in-line with internal expectations.
- Consistent with communicated expectations for quarterly revenue cadence in 2025.
- Decrease in operating expenses due to lower employee costs and Emerging Technologies segment development costs.
- Cash and investments remain strong at $79.9 million.
- Management is providing an outlook for 2025 in their shareholder letter.
Challenges Ahead
- Revenue decreased by $6.6 million compared to Q3 2024.
- Gross margin decreased by 90 bps due to product mix and tariffs.
- Income from operations decreased by 48.1% compared to Q3 2024.
- Net income decreased by 54% compared to Q3 2024.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...