Energy Recovery, Inc.
For the period ended Sep 30, 2025. Filed Nov 5, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 5, 2025
ERII$7.15+6.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-06.
0001421517-25-000118
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-05.
0001421517-25-000134
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 219 previous paragraphs and 215 current paragraphs.
128 unchanged; 63 reworded; 23 added; 24 removed; 4 previous and 1 current paragraphs rearranged.
Tables are not compared: 16 previous and 12 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (23)
Current report
Within the geographical markets, the following countries represented revenue in excess of 10%.
Current report
Within the geographical markets, the following countries represented revenue in excess of 10%.
Current report
(“MEA”) and Europe markets, partially offset by higher shipments of products to the Asia market.
Current report
•Desalination: The increase in revenue of $3.0 million was due primarily to higher shipments of products to the Americas, Asia
Current report
and Europe markets.
Current report
by lower shipments of products to the Europe and MEAmarkets .
Current report
Nine months ended September 30, 2025, as compared to thenine months ended September 30, 2024
Current report
•Desalination: The increase in revenue of $3.3 million was due primarily to higher shipments of products to the Asia market.
Current report
shipments of products to the Asia markets.
Current report
due primarily to costs related to product mix andtariffs, partially offset by a decrease in indirect manufacturing costs.
Current report
ended September 30, 2025.
Current report
tolower employee compensation costs and lower Emerging Technologies segment development costs, partially offset by an increase in
Current report
consulting costs.
Current report
marketing costs and bad debt expense.
Current report
higher consulting costs incurred.
Current report
Nine months ended September 30, 2025, as compared to thenine months ended September 30, 2024
Current report
segment development costs and lower facility expenses, partially offset by restructuring and impairment charges, and an increase in
Current report
approximately 12 months.
Current report
Share Repurchase Programs
Current report
repurchasing our outstanding common stock in March 2025 and completed all purchases under the program in August 2025.
Current report
quarter of 2024; partially offset by
Current report
•Inventory: an increase in cash used primarily related to the increase in PXs manufactured for project deliveries in the fourth
Current report
quarter of 2025.
Removed paragraphs (24)
Previous report
1 Within the Middle East and Africa market, the following countries represented revenue in excess of 10%.
Previous report
2 Within the Asia market, the following countries represented revenue in excess of 10%.
Previous report
3 Within the Europe market, the following countries represented revenue in excess of 10%.
Previous report
1 Within the Middle East and Africa market, the following countries represented revenue in excess of 10%.
Previous report
2 Within the Asia market, the following countries represented revenue in excess of 10%.
Previous report
3 Within the Europe market, the following countries represented revenue in excess of 10%.
Previous report
markets, partially offset by lower shipments of products to the Americas market.
Previous report
•Desalination: The decrease in revenue of$0.4 million was due primarily to lower shipments of products to the Europe, MEA, and
Previous report
Theincrease in AM revenue of$0.5 million was due primarily to higher shipments of products to the Europe and Asia markets.
Previous report
Six months ended June 30, 2025, as compared to thesix months ended June 30, 2024
Previous report
•Desalination: The increase in revenue of $0.3 million was due primarily to higher shipments to the Asia market, partially offset by
Previous report
lower shipments to the Americas, Europe, and MEA markets.
Previous report
shipments of products to the Europe and Asia markets.
Previous report
tolower employee compensation costs, a severance charge in the three months ended June 30, 2024 that did not recur andhigher
Previous report
consulting costs incurred in the previous year related to our corporate strategy.
Previous report
employee compensation costs, including stock-based compensation.
Previous report
primarilyto higher consulting costs incurred in the previous year related to our corporate strategy.
Previous report
Six months ended June 30, 2025, as compared to thesix months ended June 30, 2024
Previous report
incurred during thesix months ended June 30, 2024 that did not recur, partially offset by restructuring charges, and an increase in consulting
Previous report
Share Repurchase Program
Previous report
repurchasing our outstanding common stock under the August 2025 Authorization during the third quarter of fiscal year 2025. The August
Previous report
2024; partially offset by
Previous report
•Accounts payables: a decrease in cash due to the timing of the payments made on our outstanding payables.
Previous report
our equity incentive plans.
Reworded paragraphs (63)
Previous wording
A discussion regarding our financial condition and results of operations for thethree and six months ended June 30, 2025, compared
Current wording
A discussion regarding our financial condition and results of operations for thethree and nine months ended September 30, 2025,
Previous wording
to thethree and six months ended June 30, 2024, is presented below.
Current wording
compared to thethree and nine months ended September 30, 2024, is presented below.
Previous wording
Thedecrease in MPD revenue of$1.0 million was due primarily to lower shipments of products to the Middle East and Africa (“MEA”)
Current wording
Thedecrease in MPD revenue of$10.6 million was due primarily to lower shipments of products to the Middle East and Africa
Previous wording
Theincrease in OEM revenueof$1.4 million was due primarily to:
Current wording
Theincrease in OEM revenueof$4.0 million was due primarily to:
Previous wording
•Wastewater: The increase in revenue of $1.7 million was due primarily to higher shipments of products to the Asia and Europe
Current wording
•Wastewater: The increase in revenue of$1.0 million was due primarily to higher shipments of products to the Asia and Europe
Previous wording
and Asia markets, partially offset by higher shipments of products to the Europe market.
Current wording
Thedecrease in AMrevenue of$18 thousand was prim arily due to higher shipments of products to the Asia markets, partially offset
Previous wording
Thedecrease in MPDrevenueof $5.1 million was due primarily to lower shipments to the MEA, Asia, and Americas markets, partially
Current wording
Thedecrease in MPDrevenueof $15.7 million was due primarily to lower shipments to the MEA and Americas markets, partially
Previous wording
Theincrease in OEM revenue of$2.1 million was primarily due:
Current wording
Theincrease in OEM revenue of$6.1 million was primarily due:
Previous wording
•Wastewater: The increase in revenue of $1.7 million was due primarily to higher shipments of products to the Asia and Europe
Current wording
•Wastewater: The increase in revenue of$2.8 million was due primarily to higher shipments to the Asia and Europe markets.
Previous wording
Theincrease ingross profit anddecrease in gross margin for the three months ended June 30, 2025, as compared to the prior year,
Current wording
The decrease ingross profit and gross margin for the three months ended September 30, 2025, as compared to the prior year, was
Previous wording
Thedecrease in gross profit and gross margin for thesix months ended June 30, 2025, as compared to the prior year, was due
Current wording
Thedecrease in gross profit and gross margin for thenine months ended September 30, 2025, as compared to the prior year, was
Previous wording
primarily to costs related to product mix and tariffs during thesix months ended June 30, 2025.
Current wording
due primarily to costs related to product mix and tariffs, partially offset by a decrease inindirect manufacturing costs during thenine months
Previous wording
three and six months ended June 30, 2025, as compared to the comparable periodsin the prior year, are discussed within the following
Current wording
three and nine months ended September 30, 2025, as compared to the comparable periodsin the prior year, are discussed within the
Previous wording
overall operating expenditures, and the segment and corporate operating expenses discussions below.
Current wording
following overall operating expenditures, and the segment and corporate operating expenses discussions below.
Previous wording
Overall Operating Expenditures. Overall operating expenditures decreased$3.1 million, or(15.8%). This decrease wasdue primarily
Current wording
Overall Operating Expenditures. Overall operating expenditures decreased$1.2 million, or(6.4%). This decrease wasdue primarily
Previous wording
Water Segment. Water segment operating expenses decreased by$1.3 million, or(9.4%). This decrease was due primarily to lower
Current wording
Water Segment. Water segment operating expenses increased by$0.2 million, or 3.2%. This increase was due primarily to higher
Previous wording
Emerging Technologies Segment. Emerging Technologies segment operating expenses decreased by$1.6 million, or(28.2%). This
Current wording
Emerging Technologies Segment. Emerging Technologies segment operating expenses decreased by$1.6 million, or(28.6%). This
Previous wording
decrease was due primarily to lower employee compensation costs.
Current wording
decrease was due primarily to lower employee compensation costs as well as lower development costs.
Previous wording
Corporate Operating Expenses. Corporate operating expenses decreased by$0.9 million, or(12.7%). This decrease was due
Current wording
Corporate Operating Expenses. Corporate operating expenses increased by$0.3 million, or 4.6%. This increase was due primarilyto
Previous wording
Overall Operating Expenditures. Overall operating expenditures decreased by$4.1 million, or(11.0%). This decrease was due
Current wording
Overall Operating Expenditures. Overall operating expenditures decreased by$5.3 million, or(9.5%). This decrease was due
Previous wording
primarily to adecrease in employee costs, such as employee compensation and stock-based compensation as well as severance charges
Current wording
primarily to adecrease in employee costs, such as employee compensation and stock-based compensation, lower Emerging Technologies
Previous wording
costs. Changes in non-employee costs included:
Current wording
consulting costs. Changes in non-employee costs included:
Previous wording
Water Segment. Water segment operating expenses decreased by$0.6 million, or(9.0)%. This decrease was due primarily to lower
Current wording
Water Segment. Water segment operating expenses decreased by$1.1 million, or(5.2%). This decrease was due primarily to lower
Previous wording
employee costs, including stock-based compensation costs.
Current wording
employee costs, including stock-based compensation costs, partially offset by an increase in consulting costs.
Previous wording
Emerging Technologies Segment. Emerging Technologies operating expenses decreased by$3.7 million, or(31.6%). This decrease
Current wording
Emerging Technologies Segment. Emerging Technologies operating expenses decreased by$5.3 million, or(30.6%). This decrease
Previous wording
Corporate Operating Expenses. Corporate operating expenses increased by$0.8 million, or 6.4%. This increase wasprimarily due
Current wording
Corporate Operating Expenses. Corporate operating expenses increased by$1.1 million, or 5.9%. This increase wasprimarily due
Previous wording
thesix months ended June 30, 2025, partially offset by lower employee costs.
Current wording
thenine months ended September 30, 2025, partially offsetby lower employee costs.
Previous wording
recorded during thesix months ended June 30, 2025, respectively. The company did not record a restructuring charge during the three
Current wording
recorded during thenine months ended September 30, 2025. The company did not record a restructuring charge during the three months
Previous wording
months ended June 30, 2025. The total restructuring charge relates to severance and benefits, including reemployment assistance, for
Current wording
ended September 30, 2025. The total restructuring charge relates to severance and benefits, including reemployment assistance, for
Previous wording
Thedecrease in “Total other income, net” in thethree and six months ended June 30, 2025, as compared to the comparable period in
Current wording
Thedecrease in “Total other income, net” in thethree and nine months ended September 30, 2025, as compared to the comparable
Previous wording
the prior year, was primarily due to a decrease in short- and long-term investments.
Current wording
period in the prior year, was primarily due to a decrease in short- and long-term investments.
Previous wording
For thethree and six months ended June 30, 2025, the recognized provision for and (benefit from) income taxes, respectively,
Current wording
For thethree and nine months ended September 30, 2025, the recognized provision for and (benefit from) income taxes, respectively,
Previous wording
For the three and six months ended June 30, 2024, the recognized provision for and (benefit from) income taxes, respectively,
Current wording
For the three and nine months ended September 30, 2024, the recognized provision for and (benefit from) income taxes, respectively,
Previous wording
and certain permanent differences, such as share-based compensation windfalls.
Current wording
certain permanent differences, such as share-based compensation shortfalls, and partial release of California valuation allowance.
Previous wording
The effective tax rate excluding discrete items for thesix months ended June 30, 2025, as compared to the prior year, differed
Current wording
The effective tax rate excluding discrete items for thenine months ended September 30, 2025, as compared to the prior year, differed
Previous wording
financing. As of June 30, 2025, our principal sources of liquidity consisted of (i) unrestricted cash and cash equivalents of$57.1 million that
Current wording
financing. As of September 30, 2025, our principal sources of liquidity consisted of (i) unrestricted cash and cash equivalents of$47.1 million
Previous wording
are primarily invested in money market funds and U.S. treasury securities; (ii) investment-grade short-term and long-term marketable debt
Current wording
that are held in cash accounts and invested in money market funds and U.S. treasury securities; (ii) investment-grade short-term and long-
Previous wording
instruments of$36.6 million that are primarily invested in U.S. treasury securities, corporate notes and bonds, and municipal and agency
Current wording
term marketable debt instruments of$32.8 million that are primarily invested in U.S. treasury securities and corporate notes and bonds; and
Previous wording
notes and bonds; and (iii) accounts receivable, net of allowances, of$32.6 million. As of June 30, 2025, there was unrestricted cash of
Current wording
(iii) accounts receivable, net of allowances, of$44.0 million. As of September 30, 2025, there was unrestricted cash of$0.5 million held
Previous wording
$0.9 million held outside the U.S. We invest cash not needed for current operations predominantly in investment-grade, marketable debt
Current wording
outside the U.S. We invest cash not needed for current operations predominantly in investment-grade, marketable debt instruments with the
Showing the first 40 of 63 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
employee stock options granted under our equity incentive plans.
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
Americas markets, partially offset by higher shipments of products to the Asia market.
Previous report — wording carried elsewhere
was due primarily to costs related to product mix and tariffs.
Previous report — wording carried elsewhere
These LCs had a weighted average remaining life of approximately 19 months.
Previous report — wording carried elsewhere
2025 Authorization will expire in May 2026.