What is Energy Recovery's wastewater — impairment of goodwill?

Energy Recovery (ERII) reported wastewater — impairment of goodwill of $0 in Q2 2026.

What does wastewater — impairment of goodwill mean?

Represents a non-cash charge taken when the carrying value of goodwill associated with the wastewater segment exceeds its fair market value. This signals a potential decline in the long-term economic outlook or competitive position of the segment.

Energy Recovery (ERII) Wastewater — Impairment of goodwill

Screener

Other segment segments

Desalination

$0—

Similar metrics at other companies

LKQEurope — Impairment of goodwill

$0—

GHC

GHCEducation — Impairment of goodwill

$1M—

GHC

GHCManufacturing — Impairment of goodwill

$0—

GHC

GHCAutomotive — Impairment of goodwill

$0—

LKQSpecialty — Impairment of goodwill

$13M—

FWRDIntermodal — Impairment of goodwill

$0—

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 / equity0×0.0×

Current ratio8.1×0.0×

Where this comes from

Reported directly by Energy Recovery in its filing.

Tagged under the XBRL concept us-gaap:GoodwillImpairmentLoss.

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 item	Three Months Ended June 30, 2026 / Desalination	Three Months Ended June 30, 2026 / Wastewater	Three Months Ended June 30, 2026 / Corporate and Other	Three Months Ended June 30, 2026 / Total	Six Months Ended June 30, 2026 / Desalination	Six Months Ended June 30, 2026 / Wastewater	Six Months Ended June 30, 2026 / Corporate and Other	Six Months Ended June 30, 2026 / Total
Operating expenses
General and administrative	1,025	872	4,904	6,801	1,781	1,853	9,622	13,256
Sales and marketing	2,453	1,209	674	4,336	4,938	2,372	2,145	9,455
Research and development	2,391	262	196	2,849	4,007	398	1,233	5,638
Restructuring charges	—	—	855	855	335	18	2,038	2,391
Impairment of goodwill	—	—	—	—	—	—	1,662	1,662
Total operating expenses	5,869	2,343	6,629	14,841	11,061	4,641	16,700	32,402
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 wastewater — impairment of goodwill?: Energy Recovery (ERII) reported wastewater — impairment of goodwill of $0 in Q2 2026.
What does wastewater — impairment of goodwill mean?: Represents a non-cash charge taken when the carrying value of goodwill associated with the wastewater segment exceeds its fair market value. This signals a potential decline in the long-term economic outlook or competitive position of the segment.