Energy Recovery, Inc.
For the period ended Sep 30, 2026. Filed Nov 4, 2026.
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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, 2026 · Filed Nov 4, 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 2026-06-30; filed 2026-08-05.
0001421517-26-000083
Item 1A. Risk FactorsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-04.
0001421517-26-000093
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 87 previous paragraphs and 93 current paragraphs.
37 unchanged; 46 reworded; 9 added; 3 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 (9)
Current report
characterized by the supply chain environment, inflationary pressure, interest rate volatility, and labor shortages. These global
Current report
which could increase the cost of future financing. In addition, tariffs imposed by the U.S. and other countries have increased, and may
Current report
continue to increase, our costs, and we have experienced increased costs related to tariffs during thenine months ended September 30,
Current report
Changes to existing tariffs, the imposition of new tariffs, or retaliatory trade measures by other countries could further increase our
Current report
costs, affect our pricing, disrupt our supply chain, or reduce demand for our products. While the impact and longevity of these factors remain
Current report
legal challenges affecting, U.S. tariffs and any retaliatory tariffs by other countries), economic sanctions and export controls, trade
Current report
tensions in the Middle East. Any deterioration in regional stability, changes in regulatory frameworks, or actions by governmental authorities
Removed paragraphs (3)
Previous report
environment, inflationary pressure, rising interest rates, and labor shortages. These global macroeconomic factors, coupled with the U.S.
Previous report
sanctions regimes, currency restrictions, and political or security conditions in the region. Any deterioration in regional stability, changes in
Reworded paragraphs (46)
Previous wording
Our Water segment revenues largely depend on the construction of new large-scale desalination plants and the retrofit of
Current wording
Our Desalination segment revenues largely depend on the construction of new large-scale desalination plants and the
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existing desalination plants, and as a result, our operating results have historically experienced, and may continue to experience,
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retrofit of existing desalination plants, and as a result, our operating results have historically experienced, and may continue to
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significant variability due to volatility in capital spending, availability of project financing, project timing, execution, war or other
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experience, significant variability due to volatility in capital spending, availability of project financing, project timing, execution, war
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hostilities and other factors affecting the broader water desalination industry.
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or other hostilities and other factors affecting the broader water desalination industry.
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We currently derive the majority of our Water segment revenues from sales of energy recovery products and services used in newly
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We currently derive the majority of our Desalination segment revenues from sales of energy recovery products and services used in
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constructed, large-scale desalination plants and the retrofit of existing desalination plants, particularly in dry or drought-ridden regions of the
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newly constructed, large-scale desalination plants and the retrofit of existing desalination plants, particularly in dry or drought-ridden regions
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world. The demand for our products used in the Water segment may decrease if the construction of these large-scale desalination plants or
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of the world. The demand for our products used in the Desalination segment may decrease if the construction of these large-scale
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the retrofit of existing plants declines for any reason, including, any global or regional economic downturns, worsening global or regional
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desalination plants or the retrofit of existing plants declines for any reason, including, any global or regional economic downturns, worsening
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political conflicts, war or other hostilities, such as the 2026 conflict in Iran and escalating tensions in the Middle East, worsening regional
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global or regional political conflicts, war or other hostilities, such as the 2026 conflict in Iran and escalating tensions in the Middle East,
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conditions, changing government priorities, or the impact of any global or regional conflicts.
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worsening regional conditions, changing government priorities, or the impact of any global or regional conflicts.
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economy; inflation rates; changes in government regulation, permitting requirements, or priorities; and reduced capital spending for water
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economy; inflation rates; changes in government regulation, trade policy and tariffs, permitting requirements, or priorities; and reduced capital
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desalination solutions. Each of these factors could result in reduced or uneven demand for our products. Pronounced variability, complete
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spending for water desalination solutions. Each of these factors could result in reduced or uneven demand for our products. Pronounced
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cancellations or delays in the construction of such plants or reductions in spending for desalination in general could negatively impact our
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variability, complete cancellations or delays in the construction of such plants or reductions in spending for desalination in general could
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Water segment sales, which in turn could have an adverse effect on our entire business, financial condition, or results of operations, and
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negatively impact our Desalination segment sales, which in turn could have an adverse effect on our entire business, financial condition, or
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make it difficult for us to accurately forecast our future sales.
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results of operations, and make it difficult for us to accurately forecast our future sales.
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desalination plants, and the treatment of various wastewater verticals, which could result in decreased demand for our water
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desalination plants, and the treatment of various wastewater verticals, which could result in decreased demand for our products
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The demand for our water products and services depends primarily on the continued construction of new large-scale desalination
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The demand for our products and services depends primarily on the continued construction of new large-scale desalination plants,
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plants, the retrofit of existing plants, and the construction of wastewater treatment facilities, particularly in the countries that are part of the
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the retrofit of existing plants, and the construction of wastewater treatment facilities, particularly in the countries that are part of the Gulf
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Gulf Cooperation Council, China, Taiwan and India. Weak economic conditions, global uncertainty including the continuing conflicts in
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Cooperation Council, China, Taiwan and India. Weak economic conditions, global uncertainty including the continuing conflicts in Ukraine,
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Ukraine, the continuing 2026 conflict in Iran and escalating conflicts in the Middle East, as well as the impact of increased inflation and a
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the continuing 2026 conflict in Iran and escalating conflicts in the Middle East, as well as the impact of increased inflation and a potential
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potential stagflation resulting from such conflicts may have a negative economic impact on these and other countries, which may impact the
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stagflation resulting from such conflicts may have a negative economic impact on these and other countries, which may impact the levels of
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levels of spending on, timing of, delays to, and availability of, project financing for new desalination and retrofit plant projects. The inability of
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spending on, timing of, delays to, and availability of, project financing for new desalination and retrofit plant projects. The inability of our
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our customers to secure credit or financing for these projects, may result in the postponement or cancellation of these projects. In addition,
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customers to secure credit or financing for these projects, may result in the postponement or cancellation of these projects. In addition, the
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the change in government priorities and/or their reduction in spending for water treatment projects could result in decreased demand for our
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change in government priorities and/or their reduction in spending for water treatment projects could result in decreased demand for our
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revenue. Therefore, we are exposed to, and impacted by, global macroeconomic factors, U.S. and foreign government policies, and foreign
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revenue. Therefore, we are exposed to, and impacted by, global macroeconomic factors, U.S. and foreign government policies, including
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exchange fluctuations. There is uncertainty surrounding macroeconomic factors in the U.S. and globally characterized by the supply chain
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trade and tariff policies, and foreign exchange fluctuations. There is uncertainty surrounding macroeconomic factors in the U.S. and globally
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political climate, political unrest internationally, and conflicts in Europe and the Middle East, such as the continuing 2026 conflict in Iran and
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macroeconomic factors, coupled with the U.S. political climate, political unrest internationally, and conflicts in Europe and the Middle East,
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Iran’s response to attacks by the United States and Israel, have created global economic and political uncertainty, and have impacted
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such as the continuing 2026 conflict in Iran and Iran’s response to attacks by the United States and Israel, have created global economic and
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demand for certain of our products. Further escalation of the conflict could heighten inflationary pressures on our input costs, adversely affect
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political uncertainty, and have impacted demand for certain of our products. Further escalation of the conflict could heighten inflationary
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global financial markets, increase currency exchange rate volatility, and elevate interest rates, which could increase the cost of future
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pressures on our input costs, adversely affect global financial markets, increase currency exchange rate volatility, and elevate interest rates,
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financing. While the impact and longevity of these factors remain uncertain, we are constantly evaluating the extent to which these factors
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uncertain, we are constantly evaluating the extent to which these factors will impact our business, financial condition, or results of operations.
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will impact our business, financial condition, or results of operations. Over the long-term, demand for our energy recovery devices could
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Over the long-term, demand for our energy recovery devices could correlate to global macroeconomic and geopolitical factors. Any
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remain uncertain, may adversely affect our results of operations and financial condition.
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disruption to the economic factors and regulations in these regions, which remain uncertain, may adversely affect our results of operations
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uncertainty, together with other recent key global events, such as currency control regulations and tariff regimes, economic sanctions and
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uncertainty, together with other recent key global events, such as currency control regulations and tariff regimes (including changes to, and
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export controls, trade restrictions, ongoing terrorist activity, and hostilities in the Middle East, may adversely impact (i) the ability or
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restrictions, ongoing terrorist activity, and hostilities in the Middle East, may adversely impact (i) the ability or willingness of non-U.S.
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willingness of non-U.S. companies to transact business with U.S. companies, including with us; (ii) our ability to transact business in other
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companies to transact business with U.S. companies, including with us; (ii) our ability to transact business in other countries where we have
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countries where we have existing or prospective customer relationships, including the Middle East, where many of the water megaprojects
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existing or prospective customer relationships, including the Middle East, where many of the water megaprojects are planned; (iii) regulation
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are planned; (iii) regulation and trade agreements affecting U.S. companies; (iv) global stock markets (including The NASDAQ Global Select
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and trade agreements affecting U.S. companies; (iv) global stock markets (including The NASDAQ Global Select Market on which our
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Market Composite on which our common shares are traded); and (v) general global economic conditions. Furthermore, the conflicts in
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common shares are traded); and (v) general global economic conditions. Furthermore, the conflicts in Europe and the Middle East have
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Europe and the Middle East have resulted in worldwide geopolitical and macroeconomic uncertainty, and we cannot predict how these
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resulted in worldwide geopolitical and macroeconomic uncertainty, and we cannot predict how these conflicts will evolve or their timing. If
Showing the first 40 of 46 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
sanctions regimes, currency restrictions, regional political conflicts, war or other hostilities, such as the 2026 conflict in Iran and escalating
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
correlate to global macroeconomic and geopolitical factors. Any disruption to the economic factors and regulations in these regions, which