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Energy Recovery ERII Desalination — Operating Expenses

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Other financials

Income statement

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Revenue$12.0M-57.2%
Gross profit$9.0M-50.1%
Operating income-$5.9M-499%
Net income-$3.2M-256%
EPS (diluted)-$0.06-250%

Balance sheet

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Cash & equivalents$61.4M+7.4%
Total debt$8.2M-22.0%
Total equity$172.5M-6.9%
Total assets$197.7M-6.8%

Cash flow

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Operating cash flow$16.3M+293%
CapEx$875.0K+548%
Free cash flow$15.4M+285%

Valuation

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Market cap$407.85M-44.8%
Enterprise value$354.64M-48.8%
P/E26.6×-4.0×
P/S3.4×-1.8×

Profitability

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Gross margin64%-2.7pp
Operating margin11.8%-3.4pp
Net margin12.7%-4.3pp
FCF margin25%

Returns & leverage

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Return on equity8.6%-3.4pp
Debt / equity0.0×
Current ratio8.1×0.0×

Where this comes from

Reported directly by Energy Recovery in its filing.

Tagged under the XBRL concept us-gaap:OperatingExpenses.

The source filing: Energy Recovery’s 10-Q, filed August 5, 2026.

Filed
Aug 5, 2026, 4:08 PM EDT
Fiscal quarter
Q2 FY2026
Calendar quarter
Q2 2026
Accession
0001421517-26-000083
Line itemThree Months Ended June 30, 2026 / DesalinationThree Months Ended June 30, 2026 / WastewaterThree Months Ended June 30, 2026 / Corporate and OtherThree Months Ended June 30, 2026 / TotalSix Months Ended June 30, 2026 / DesalinationSix Months Ended June 30, 2026 / WastewaterSix Months Ended June 30, 2026 / Corporate and OtherSix Months Ended June 30, 2026 / Total
Operating expenses
General and administrative1,0258724,9046,8011,7811,8539,62213,256
Sales and marketing2,4531,2096744,3364,9382,3722,1459,455
Research and development2,3912621962,8494,0073981,2335,638
Restructuring charges855855335182,0382,391
Impairment of goodwill1,6621,662
Total operating expenses5,8692,3436,62914,84111,0614,64116,70032,402
Operating income (loss)$2,833$(2,088)$(6,629)$(5,884)$1,606$(4,155)$(18,194)$(20,743)

Item 1 — Financial Statements (unaudited)

FAQ

What is Energy Recovery's desalination — operating expenses?
Energy Recovery (ERII) reported desalination — operating expenses of $5.87M in Q2 2026.
What does desalination — operating expenses mean?
The aggregate of all non-production costs required to run the desalination segment, including sales, marketing, research, and administrative overhead. This metric is vital for evaluating the overall operational efficiency and cost management discipline of the business unit.

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