secwatch.observer — SEC 8-K summary
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Issuer:     Energy Recovery, Inc. (ERII)
CIK:        0001421517
Form:       8-K
Filed at:   2026-02-25T23:59:59+00:00
Accession:  0001421517-26-000021
Event type: earnings
Sentiment:  neutral
Materiality: 0.75
Item codes: 2.02, 2.05, 2.06, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

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

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/1421517/000142151726000021/0001421517-26-000021-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/1421517/000142151726000021/erii-20260225.htm
  HTML page:      https://secwatch.observer/filing/0001421517-26-000021

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