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Energy Recovery ERII Desalination — Operating Income (Loss)

Other segment segments

Wastewater
-$2.09M

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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$443.07M-40.0%
Enterprise value$389.86M-43.7%
P/E28.9×-1.7×
P/S3.7×-1.5×

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:OperatingIncomeLoss.

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 income (loss)?
Energy Recovery (ERII) reported desalination — operating income (loss) of $2.83M in Q2 2026.
What does desalination — operating income (loss) mean?
This metric represents the profitability of the desalination business segment after deducting operating expenses from segment-specific revenues. It serves as a key indicator of the segment's ability to generate sustainable earnings from its core energy recovery devices and pump solutions. Monitoring this figure helps investors assess the operational efficiency and margin profile of the company's primary water-related business activities.

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