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An update from Energy Recovery ( (ERII) ) is now available.
On May 6, 2026, Energy Recovery reported first-quarter 2026 results showing revenue of $9.7 million, up 20% year-on-year, but a sharply lower gross margin of 27.8% due largely to restructuring and goodwill impairment charges tied to the wind-down of its CO2 retail grocery business. The company posted an operating loss of $14.9 million, a net loss of $12.3 million and an adjusted EBITDA loss of $7.1 million, though it generated $21.0 million in operating cash flow and ended the quarter with $92.1 million in cash and investments.
The company also announced significant leadership changes, with Chief Executive Officer David Moon planning to retire once a successor is appointed and Chief Financial Officer Mike Mancini resigning effective May 6, 2026, to pursue another opportunity, while Aidan Ryan steps in as interim CFO. In tandem, the board authorized a new $25 million share repurchase program to be launched in the second quarter of fiscal 2026 and executed over the following 12 months, bringing total repurchase authorizations since November 2024 to $130 million, signaling continued capital-return efforts despite current losses and restructuring pressures.
The most recent analyst rating on (ERII) stock is a Buy with a $14.00 price target. To see the full list of analyst forecasts on Energy Recovery stock, see the ERII Stock Forecast page.
Spark’s Take on ERII Stock
According to Spark, TipRanks’ AI Analyst, ERII is a Neutral.
The score is supported by ERII’s strong balance sheet and structurally high profitability, plus cost actions and product initiatives outlined on the earnings call. It is held back by weak technical trends (below key moving averages with negative MACD), a relatively high P/E, and management’s near-term revenue timing risks from delayed desalination projects.
To see Spark’s full report on ERII stock, click here.
More about Energy Recovery
Energy Recovery, Inc., listed on Nasdaq as ERII, operates in the industrial technology and energy-efficiency sector, providing pressure exchanger and related solutions that improve performance and reduce costs in fluid-flow and refrigeration applications. The company focuses on sectors such as desalination and CO2-based systems, and is currently winding down its CO2 retail grocery business, which has recently weighed on its margins and earnings.
Average Trading Volume: 842,064
Technical Sentiment Signal: Sell
Current Market Cap: $581.1M
Learn more about ERII stock on TipRanks’ Stock Analysis page.