---
schema_version: "secwatch.filing_event.v1"
accession: "0001421517-26-000021"
form_type: "8-K"
ticker: "ERII"
cik: "0001421517"
company_name: "Energy Recovery, Inc."
filed_at: "2026-02-25T23:59:59+00:00"
generated_at: "2026-05-16T00:13:26.746210+00:00"
event_type: "earnings"
sentiment: "neutral"
materiality_score: 0.75
calibrated_materiality_score: 0.75
confidence: "high"
source: SEC EDGAR
---

# ERII Q4: net income $26.9M (+15% YoY); operating margin 46.8%; winds down CO2 grocery segment

## Summary
- Revenue $66.9M (down $0.2M YoY); gross margin 67.2% (down 300 bps); operating margin 46.8% (up 860 bps).
- Net income $26.9M, diluted EPS $0.50, up from $0.41 YoY; adjusted EBITDA $33.6M.
- Full-year 2025 revenue $135.0M (down 7%); net income $23.0M flat; cash/investments $83.3M.
- Company winds down CO2 retail grocery business within Emerging Technologies; expects $4.5-5.5M one-time costs, including $1-2M cash severance, substantially complete by Q1 2026.
- Exit driven by long adoption timeline and capital allocation criteria; non-cash items include inventory reserve and goodwill impairment.

## SEC filing metadata
- accession: 0001421517-26-000021
- form_type: 8-K
- ticker: ERII
- cik: 0001421517
- company_name: Energy Recovery, Inc.
- filed_at: 2026-02-25T23:59:59+00:00
- event_type: earnings
- sentiment: neutral
- materiality_score: 0.75
- calibrated_materiality_score: 0.75
- confidence: high
- sec_items: 2.02, 2.05, 2.06, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1421517/000142151726000021/0001421517-26-000021-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1421517/000142151726000021/erii-20260225.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001421517-26-000021
- JSON: https://secwatch.observer/filing/0001421517-26-000021.json
- Plain text: https://secwatch.observer/filing/0001421517-26-000021.txt

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.