# Energy Recovery, Inc. (ERII)

> Source: Nexqual · https://nexqual.com/ERII · data as of 2026-10-15 20:00 UTC · cite as "Nexqual, Energy Recovery, Inc. (ERII), nexqual.com/ERII" · informational, not investment advice.

**Price:** USD 6.64 (-1.04% on the day) · last close of Oct 15, 2026; US market closed, not a live price. Prev close 6.71 · day 6.64–6.77 · 52w 6.6–18.32 · market cap $339M · NMS

## Key facts
- Last four reported quarters (through Jun 30, 2026): revenue $121M, net income $15.3M (12.7% margin), free cash flow $38.6M (SEC filings).
- Valuation: P/E 22.1x (avg 39.8x at the last 3 fiscal year-ends).
- Analysts: Hold (mean 3.00 on a 1–5 scale) (4 analysts), mean target USD 8 (range 8–8).
- Total return with dividends: 1Y -60.4% vs S&P 500 +18.1%; 5Y -66.7% vs S&P 500 +85.1%.
- Next earnings: 2026-11-04, EPS estimate USD 0, revenue estimate $16.1M.

## Financials (SEC 10-K; TTM = last four 10-Q/10-K quarters)
| USD | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | TTM |
|---|---|---|---|---|---|---|
| Revenue | $104M | $126M | $128M | $145M | $135M | $121M |
| Gross profit | $71.2M | $87.4M | $87.1M | $96.9M | $87.9M | — |
| Operating income | $13.8M | $24.8M | $19.1M | $19.7M | $23.9M | $14.2M |
| Net income | $14.3M | $24.0M | $21.5M | $23.1M | $23.0M | $15.3M |
| EPS (diluted) | $0.24 | $0.42 | $0.37 | $0.40 | $0.42 | — |
| Free cash flow | $6.8M | $8.4M | $23.5M | $19.2M | $17.4M | $38.6M |
| Gross margin | 68.6% | 69.6% | 67.8% | 66.9% | 65.1% | — |
| Operating margin | 13.3% | 19.8% | 14.8% | 13.6% | 17.7% | 11.8% |
| Net margin | 13.7% | 19.1% | 16.8% | 15.9% | 17.0% | 12.7% |
| Revenue growth | -12.7% | +20.9% | +2.2% | +12.9% | -6.9% | — |
| Cash + short-term investments | $106M | $89.8M | $109M | $78.0M | $75.2M | — |
Fiscal years end Dec. EPS is split-adjusted.

## Valuation (price ÷ last four quarters, through Jun 30, 2026)
P/E 22.1x · P/S 2.8x · P/FCF 8.8x · P/B 2.0x · FCF yield 11.39% · Earnings yield 4.53% · Buyback yield (TTM) 10.25%
P/E at fiscal year-ends: Dec 2025 31.8x, Dec 2024 36.9x, Dec 2023 50.6x.

## Analysts
Consensus Hold (mean 3.00 on a 1–5 scale), 4 analysts; mean target USD 8 (low 8, high 8).
Rating changes, last 120 days:
| Date | Firm | Action | Rating | Price target |
|---|---|---|---|---|
| 2026-09-14 | Seaport Global | Downgrade | Buy → Neutral |  |
| 2026-08-06 | B. Riley Securities | Target lowered | Neutral | $10 → $8 |

## Total return (dividends reinvested)
|  | 1Y (from 2025-10-16) | 5Y (from 2021-10-11) |
|---|---|---|
| Total return | -60.4% | -66.7% |
| S&P 500 (SPY) | +18.1% | +85.1% |
| Per year | -60.5% | -19.7% |
| Volatility (annualized) | 63.8% | 49.2% |
| Max drawdown | -63.3% (Oct 2025→Oct 2026) | -77.8% (Jul 2023→Oct 2026) |

## Peers (Pollution & Treatment Controls)
ADUR (Aduro Clean Technologies Inc.) USD 10 -3.66% · PCT (PureCycle Technologies, Inc.) USD 3.2 -7.12% · CECO (CECO Environmental Corp.) USD 60.54 -10.06% · ZWS (Zurn Elkay Water Solutions Corp) USD 46.83 -0.76% · VLTO (Veralto Corp) USD 100.96 +1.99%

## More
Full page: https://nexqual.com/ERII · Free keyless MCP server with the same data and citations: https://mcp.nexqual.com/mcp · Guide for agents: https://nexqual.com/agents · https://nexqual.com/llms.txt