What does wastewater — restructuring - inventory reserve mean?

Reflects specific accounting provisions made for inventory write-downs or obsolescence resulting from strategic restructuring initiatives within the wastewater segment. This indicates potential inefficiencies or shifts in product strategy that require asset valuation adjustments.

Energy Recovery (ERII) Wastewater — Restructuring - inventory reserve

Screener

Other segment segments

Desalination

$0—

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$506K-12.8%

Other financials

Income statement

See full

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

See full

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:InventoryWriteDown.

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
Revenue	$11,483	$513	$—	$11,996	$20,390	$1,114	$198	$21,702
Cost of revenue	2,781	258	—	3,039	7,723	628	60	8,411
Restructuring - inventory reserve	—	—	—	—	—	—	1,632	1,632
Gross profit (loss)	8,702	255	—	8,957	12,667	486	(1,494)	11,659
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

Item 1 — Financial Statements (unaudited)

FAQ

What is Energy Recovery's wastewater — restructuring - inventory reserve?: Energy Recovery (ERII) reported wastewater — restructuring - inventory reserve of $0 in Q2 2026.
What does wastewater — restructuring - inventory reserve mean?: Reflects specific accounting provisions made for inventory write-downs or obsolescence resulting from strategic restructuring initiatives within the wastewater segment. This indicates potential inefficiencies or shifts in product strategy that require asset valuation adjustments.