Energy Recovery, Inc.
For the period ended Jun 30, 2026. Filed Aug 5, 2026.
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.
Jun 30, 2026 · Filed Aug 5, 2026
ERII$7.39+3.4%Stored close · as of Nov 9, 2026
What changed in Risk Factors?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-06.
0001421517-26-000041
Item 1A. Risk FactorsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-05.
0001421517-26-000083
Item 1A. Risk FactorsThe 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 57 previous paragraphs and 87 current paragraphs.
35 unchanged; 21 reworded; 30 added; 0 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 0 previous and 0 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 (30)
Current report
demand for certain of our products. Further escalation of the conflict could heighten inflationary pressures on our input costs, adversely affect
Current report
global financial markets, increase currency exchange rate volatility, and elevate interest rates, which could increase the cost of future
Current report
countries where we have existing or prospective customer relationships, including the Middle East, where many of the water megaprojects
Current report
We face risks associated with our first international manufacturing facility in Saudi Arabia.
Current report
We are investing significant resources to establish and operate our first manufacturing facility outside the United States, located in
Current report
Saudi Arabia. The successful construction, commissioning, and operation of this facility are subject to a variety of risks and uncertainties that
Current report
could materially and adversely affect our business, financial condition, results of operations, and cash flows.
Current report
The facility is currently under development and is expected to begin operations in 2027. Establishing a new manufacturing
Current report
operation in a foreign jurisdiction presents challenges that we have not previously encountered at this scale, including obtaining and
Current report
maintaining licenses, permits, and regulatory approvals; complying with local labor, tax, environmental, health and safety, customs, and other
Current report
legal requirements; hiring, training, and retaining a skilled local workforce; and implementing our manufacturing processes, quality systems,
Current report
and internal controls in a new operating environment. Any delays, cost overruns, construction deficiencies, supply chain disruptions, labor
Current report
shortages, or difficulties in commissioning equipment could postpone the facility’s operational readiness, increase our costs, and delay
Current report
Our operations in Saudi Arabia also expose us to additional geopolitical, economic, and operational risks. These risks include
Current report
changes in government policies, trade regulations, local content requirements, taxation, foreign investment rules, import and export controls,
Current report
sanctions regimes, currency restrictions, and political or security conditions in the region. Any deterioration in regional stability, changes in
Current report
regulatory frameworks, or actions by governmental authorities could adversely affect the facility, our employees, our suppliers, or our
Current report
customers and could result in increased costs, operational disruptions, or limitations on our ability to conduct business in the region.
Current report
Further, the transfer of manufacturing knowledge, proprietary processes, and technology to a new foreign operation may increase
Current report
the risk of unauthorized disclosure, misuse, or infringement of our intellectual property. We may also face challenges in maintaining
Current report
consistent oversight, cybersecurity protections, internal controls, and compliance programs across geographically dispersed operations.
Current report
If we are unable to successfully construct, commission, ramp, and operate the Saudi Arabian facility on the timeline we expect, or if
Current report
the facility fails to achieve its anticipated operational, financial, or strategic objectives, our growth prospects, competitive position, operating
Current report
results, and long-term business strategy could be materially and adversely affected.
Current report
Because the facility is not yet operational, there is substantial uncertainty regarding the timing and effectiveness of the
Current report
commissioning and ramp-up process. Initial production volumes, labor productivity, manufacturing yields, quality metrics, and operating
Current report
efficiencies may fall short of expectations. We may also encounter unforeseen technical, engineering, infrastructure, equipment integration, or
Current report
supply chain issues during startup. Any such challenges could require additional capital expenditures, delay customer deliveries, increase
Current report
operating costs, and adversely affect our ability to achieve expected returns on our investment.
Reworded paragraphs (21)
Previous wording
Ukraine, the 2026 conflict in Iran and escalating conflicts in the Middle East, as well as the impact of increased inflation resulting from such
Current wording
Ukraine, the continuing 2026 conflict in Iran and escalating conflicts in the Middle East, as well as the impact of increased inflation and a
Previous wording
conflicts may have a negative economic impact on these and other countries, which may impact the levels of spending on, timing of, delays
Current wording
potential stagflation resulting from such conflicts may have a negative economic impact on these and other countries, which may impact the
Previous wording
to, and availability of, project financing for new desalination and retrofit plant projects. The inability of our customers to secure credit or
Current wording
levels of spending on, timing of, delays to, and availability of, project financing for new desalination and retrofit plant projects. The inability of
Previous wording
financing for these projects, may result in the postponement or cancellation of these projects. In addition, the change in government priorities
Current wording
our customers to secure credit or financing for these projects, may result in the postponement or cancellation of these projects. In addition,
Previous wording
and/or their reduction in spending for water treatment projects could result in decreased demand for our products and services, which could
Current wording
the change in government priorities and/or their reduction in spending for water treatment projects could result in decreased demand for our
Previous wording
have an adverse effect on our business, financial condition or results of operations.
Current wording
products and services, which could have an adverse effect on our business, financial condition or results of operations.
Previous wording
political climate, political unrest internationally, and conflicts in Europe and the Middle East, such as the 2026 conflict in Iran and Iran’s
Current wording
political climate, political unrest internationally, and conflicts in Europe and the Middle East, such as the continuing 2026 conflict in Iran and
Previous wording
response to attacks by the United States and Israel, have created global economic and political uncertainty, and have impacted demand for
Current wording
Iran’s response to attacks by the United States and Israel, have created global economic and political uncertainty, and have impacted
Previous wording
certain of our products. While the impact and longevity of these factors remain uncertain, we are constantly evaluating the extent to which
Current wording
financing. While the impact and longevity of these factors remain uncertain, we are constantly evaluating the extent to which these factors
Previous wording
these factors will impact our business, financial condition, or results of operations. Over the long-term, demand for our energy recovery
Current wording
will impact our business, financial condition, or results of operations. Over the long-term, demand for our energy recovery devices could
Previous wording
devices could correlate to global macroeconomic and geopolitical factors. Any disruption to the economic factors and regulations in these
Current wording
correlate to global macroeconomic and geopolitical factors. Any disruption to the economic factors and regulations in these regions, which
Previous wording
regions, which remain uncertain, may adversely affect our results of operations and financial condition.
Current wording
remain uncertain, may adversely affect our results of operations and financial condition.
Previous wording
uncertainty, together with other recent key global events, such as currency control regulations and tariff regimes, ongoing terrorist activity,
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uncertainty, together with other recent key global events, such as currency control regulations and tariff regimes, economic sanctions and
Previous wording
and hostilities in the Middle East, may adversely impact (i) the ability or willingness of non-U.S. companies to transact business with U.S.
Current wording
export controls, trade restrictions, ongoing terrorist activity, and hostilities in the Middle East, may adversely impact (i) the ability or
Previous wording
megaprojects are planned; (iii) regulation and trade agreements affecting U.S. companies; (iv) global stock markets (including The NASDAQ
Current wording
are planned; (iii) regulation and trade agreements affecting U.S. companies; (iv) global stock markets (including The NASDAQ Global Select
Previous wording
Global Select Market Composite on which our common shares are traded); and (v) general global economic conditions. Furthermore, the
Current wording
Market Composite on which our common shares are traded); and (v) general global economic conditions. Furthermore, the conflicts in
Previous wording
conflicts in Europe and the Middle East have resulted in worldwide geopolitical and macroeconomic uncertainty, and we cannot predict how
Current wording
Europe and the Middle East have resulted in worldwide geopolitical and macroeconomic uncertainty, and we cannot predict how these
Previous wording
these conflicts will evolve or their timing. If these conflicts continue for a significant time or further expand to other countries or regions, they
Current wording
conflicts will evolve or their timing. If these conflicts continue for a significant time, further expand to other countries or regions or cannot be
Previous wording
could have additional adverse effects on macroeconomic conditions that may have a direct adverse impact on our business and/or our supply
Current wording
stabilized by any diplomatic efforts, they could have additional adverse effects on macroeconomic conditions that may have a direct adverse
Previous wording
chain, business partners or customers in the broader region. All of these factors are outside of our control, but may nonetheless cause us to
Current wording
impact on our business and/or our supply chain, business partners or customers in the broader region. All of these factors are outside of our
Previous wording
adjust our strategy in order to compete effectively in global markets.
Current wording
control, but may nonetheless cause us to adjust our strategy in order to compete effectively in global markets.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
willingness of non-U.S. companies to transact business with U.S. companies, including with us; (ii) our ability to transact business in other
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
companies, including with us; (ii) our ability to transact business in other countries, including the Middle East, where many of the water