Energy Recovery (ERII) Q3 FY2026 earnings: revenue $11 million, down 65.0% on the year

Energy Recovery, Inc. (ERII) reported revenue of $11 million for Q3 FY2026, the quarter ended 30 September 2026, down 65.0% on the same quarter a year earlier. Net income was -$6 million, and diluted earnings per share $-0.12. The figures are the company's own, from the 10-Q it filed with the SEC on 4 November 2026.

Revenue

$11 million

-65.0% on the year · -6.7% on the quarter

Q4 FY2024Q3 FY2026

Operating margin

-87.5%

11.4% a year earlier

Q4 FY2024Q3 FY2026

Net income

-$6 million

Q4 FY2024Q3 FY2026

Diluted EPS

-$0.12

Q4 FY2024Q3 FY2026

this quarterthe same quarter a year earlierHover a bar for its figure.

What management said

Revenue fell 65% year on year: Third-quarter revenue was $11.2 million, down from $32.0 million a year earlier. Nine-month revenue was $32.9 million, down 52% from $68.1 million.
Operating result turned to a loss: Loss from operations was $9.8 million, against income of $3.7 million a year earlier. Management attributed the change primarily to lower revenue.
Desalination drove the segment decline: Desalination revenue was $10.7 million against $29.1 million a year earlier. The segment posted an operating loss of $1.6 million, against operating income of $14.1 million.

Read the earnings call summary

Income statement (profit and loss)

$ million	Q3 FY2026	Q2 FY2026	Q3 FY2025	On the quarter	On the year
Revenue	11.2	12.0	32.0	-6.7%	-65.0%
Cost of revenue	n/a	n/a	11.4
Gross profit	4.2	9.0	20.6	-53.1%	-79.6%
Gross margin	37.5%	74.7%	64.2%
Research and development	3.1	2.8	3.7	+9.3%	-15.1%
Operating income	-9.8	-5.9	3.7
Operating margin	-87.5%	-49.0%	11.4%
Pre-tax income	-9.2	-5.1	4.6
Income tax	-2.9	-1.9	0.7
Effective tax rate	n/a	n/a	14.9%
Net income	-6.3	-3.2	3.9
Net margin	-56.5%	-26.7%	12.1%
Diluted EPS	-$0.12	-$0.06	$0.07

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ million	Q3 FY2026	Q2 FY2026	Q3 FY2025	On the quarter	On the year
Operating cash flow	-9.2	16.3	-3.1
Capital expenditure	0.5	0.9	0.3	-47.5%	+34.2%
Free cash flow	-9.7	15.4	-3.5
Free cash flow margin	-86.7%	128.6%	-10.9%
Cash from investing	-6.9	4.6	3.4
Cash from financing	-2.9	-9.6	-10.4
Depreciation and amortisation	1.0	1.0	0.9	+2.8%	+12.7%
Share-based compensation	1.0	1.4	2.2	-24.5%	-52.6%
Buybacks	2.4	10.0	10.6	-76.4%	-77.7%
Diluted shares, weighted	51m	51m	53m	-0.8%	-4.6%
Shares outstanding at period end	51m	51m	53m	-0.5%	-3.9%

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet

$ million	Q3 FY2026	Q2 FY2026	Q3 FY2025	On the quarter	On the year
Shareholders' equity	165	172	181	-4.5%	-8.9%
Debt	0.0	0.0	0.0
Operating lease liabilities	5.6	5.6	7.5	+0.0%	-25.9%
Other liabilities	21.1	19.7	21.3	+7.2%	-0.9%
Total liabilities and equity	191	198	210	-3.2%	-8.7%
Fixed assets	11.8	12.6	13.3	-6.8%	-11.8%
Goodwill	11.1	11.1	12.8	0.0%	-13.0%
Investments	43.1	36.6	32.8	+17.7%	+31.3%
Cash and equivalents	42.5	61.4	47.1	-30.9%	-9.8%
Receivables	10.7	14.2	44.0	-25.1%	-75.8%
Inventory	44.0	38.2	33.6	+15.2%	+31.2%
Other assets	28.2	23.4	26.0	+20.5%	+8.6%
Total assets	191	198	210	-3.2%	-8.7%

Questions

What was Energy Recovery's revenue in Q3 FY2026?

Energy Recovery (ERII) reported revenue of $11 million for Q3 FY2026, the quarter ended 30 September 2026, down 65.0% on the same quarter a year earlier.

How much did Energy Recovery earn in Q3 FY2026?

Net loss for Q3 FY2026 was $6 million, and the diluted loss per share $0.12.

When did Energy Recovery report Q3 FY2026 results?

Energy Recovery filed its 10-Q for the quarter ended 30 September 2026 with the SEC on 4 November 2026.

Quarterly results, the last 20 quarters

	Q4 FY2021 *	Q1 FY2022	Q2 FY2022	Q3 FY2022	Q4 FY2022 *	Q1 FY2023	Q2 FY2023	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026	Q3 FY2026
Revenue	33.6	32.5	20.3	30.5	42.3	13.4	20.7	37.0	57.2	12.1	27.2	38.6	67.1	8.1	28.1	32.0	66.9	9.7	12.0	11.2
Cost of revenue	10.4	9.5	6.9	9.4	12.4	5.2	7.2	11.2	17.7	5.0	9.6	13.5	20.0	3.6	10.1	11.4	21.9	n/a	n/a	n/a
Gross profit	23.2	23.0	13.4	21.0	29.9	8.2	13.5	25.9	39.5	7.1	17.6	25.1	47.1	4.5	18.0	20.6	45.0	2.7	9.0	4.2
Gross margin	69%	71%	66%	69%	71%	61%	65%	70%	69%	59%	65%	65%	70%	55%	64%	64%	67%	28%	75%	37%
R&D	6.7	4.9	5.4	3.8	3.7	4.3	3.8	4.0	5.0	4.4	3.9	4.0	4.0	3.0	3.5	3.7	2.9	2.8	2.8	3.1
Operating income	6.0	8.2	-2.9	4.9	14.6	-8.1	-2.6	9.1	20.6	-10.9	-2.0	7.1	25.6	-12.6	1.5	3.7	31.3	-14.9	-5.9	-9.8
Operating margin	18%	25%	-14%	16%	35%	-61%	-12%	25%	36%	-90%	-7%	18%	38%	-156%	5%	11%	47%	-153%	-49%	-87%
Pre-tax income	6.0	8.3	-2.8	5.2	15.4	-7.5	-1.9	10.2	21.9	-9.5	-0.4	8.8	26.9	-11.5	2.4	4.6	32.1	-14.0	-5.1	-9.2
Tax rate	12%	5%	n/a	7%	11%	n/a	n/a	5%	10%	n/a	n/a	4%	13%	n/a	14%	15%	16%	n/a	n/a	n/a
Net income	5.3	7.9	-2.4	4.8	13.7	-6.3	-1.7	9.7	19.8	-8.3	-0.6	8.5	23.5	-9.9	2.1	3.9	26.9	-12.3	-3.2	-6.3
Net margin	16%	24%	-12%	16%	32%	-47%	-8%	26%	35%	-68%	-2%	22%	35%	-123%	7%	12%	40%	-126%	-27%	-57%
Diluted EPS	$0.08	$0.14	-$0.04	$0.08	$0.24	-$0.11	-$0.03	$0.17	$0.34	-$0.14	-$0.01	$0.15	$0.41	-$0.18	$0.04	$0.07	$0.50	-$0.23	-$0.06	-$0.12
Operating cash flow	6.2	-1.6	9.1	-1.2	6.4	8.7	-4.1	7.7	13.8	6.5	8.1	-3.0	9.0	10.7	4.1	-3.1	7.1	21.0	16.3	-9.2
Capital expenditure	1.8	2.0	0.5	0.6	1.2	0.3	0.6	0.3	1.4	0.8	0.2	0.2	0.1	0.2	0.1	0.3	0.7	0.8	0.9	0.5
Free cash flow	4.5	-3.6	8.6	-1.8	5.1	8.4	-4.7	7.4	12.4	5.7	7.9	-3.2	8.9	10.5	4.0	-3.5	6.4	20.2	15.4	-9.7
Buybacks	6.2	8.1	18.6	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	50.4	4.5	17.1	10.6	3.4	10.7	10.0	2.4
Shares outstanding	57m	57m	56m	56m	56m	56m	56m	57m	57m	57m	57m	58m	55m	55m	54m	53m	53m	52m	51m	51m
Filing	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS, and its diluted share count where shown, are from the company's results press release for that quarter, checked against the company's filed figures or a second data source. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

10-Q for the period ended 30 September 2026, filed 4 November 2026: the filing.