Energy Recovery, Inc. (Nasdaq:ERII) (“Energy Recovery” or the “Company”) today announced its financial results for the first quarter ended March 31, 2025.
First Quarter Highlights
Q1’25 financial results were in-line with internal expectations and consistent with our communicated expectations for quarterly revenue cadence in 2025.
Revenue of $8.1 million, a decrease of $4.0 million as compared to Q1’2024 due to timing of revenue from contracted projects.
Gross margin of 55.3%, a decrease of 370 bps, as compared to Q1’2024, due primarily to a decrease in revenue spread over fixed costs.
Operating expenses of $17.0 million, a decrease of 5.8%, as compared to Q1’2024, due primarily to a decrease in employee costs, partially offset by $0.5 million of restructuring charges, $0.4 million of impairment costs, and an increase in costs related to our manufacturing transformation.
Loss from operations of $12.6 million, a decrease of 14.9%, as compared to Q1’2024, mainly due to lower revenue and lower gross margin.
Net loss of $9.9 million and adjusted EBITDA(1) loss of $8.7 million.
Cash and investments of $106.7 million, which includes cash, cash equivalents, and short- and long-term investments.
In conjunction with these financial results, management has released a letter to shareholders reviewing business and financial updates from the first quarter and discussing our outlook for 2025. This letter is located under “Financial Info” in the “Investors” section on the Energy Recovery website (https://ir.energyrecovery.com/financial-information).
