SAN LEANDRO, Calif.--(BUSINESS WIRE)--Energy Recovery, Inc. (Nasdaq: ERII), a trusted global leader in energy efficiency technology, today announced Joshua Ballard has made the decision to step down from his position as Chief Financial Officer at the end of June 2024. A search to identify Energy Recovery’s next CFO is underway with the executive search firm Korn Ferry. “I want to thank Josh for his tremendous leadership and contributions to the success of Energy Recovery. He is leaving a stronger organizat ...

SAN LEANDRO, Calif.--(BUSINESS WIRE)--Energy Recovery, Inc. (Nasdaq:ERII) (“Energy Recovery” or the “Company”) today announced its financial results for the fourth quarter and year ended December 31, 2023. Fiscal Year 2023 Highlights Record annual revenue of $128.3 million, which includes a 79% growth in wastewater and represents nine consecutive years of revenue growth. Record quarterly revenue of $57.2 million, representing a 35% year-on-year growth with strong performance in Energy Recovery’s prim ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 Form10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year endeDdecember 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission File Numbe0r0:1-34112 Energy Recovery, Inc. (Exact Name of Registrant as Specified in its Charter) (State or Other Jurisdiction of Incorpora ...

Energy Recovery Reports Record Full Year and Fourth Quarter Revenue for 2023 SAN LEANDRO, Calif. - February 21, 2024 – Energy Recovery, Inc. (Nasdaq:ERII) ("Energy Recovery" or the "Company") today announced its financial results for the fourth quarter and year ended December 31, 2023. Fiscal Year 2023 Highlights "We achieved record annual and fourth quarter revenue in 2023, which represents our ninth consecutive year of revenue growth despite a shift of $8 million revenue associated with a single project t ...

SAN LEANDRO, Calif.--(BUSINESS WIRE)--Energy Recovery, Inc. (Nasdaq: ERII) today announced the award of contracts totaling over $28 million to supply its newest top-of-the-line PX® Pressure Exchanger® energy recovery device (ERD), the PX Q400, to mega desalination projects in the Gulf region. These facilities will produce nearly 1.5 million cubic meters of water for municipal use in the Gulf, a significantly water-stressed region, and the awards demonstrate confidence in Energy Recovery’s latest innovati ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to __________ Commission File Number: 001-34112 Energy Recovery, Inc. (Exact Name of Registrant as Specified in its Charter) Delaware 01-0616 ...

Financial Data and Key Metrics Changes - The company generated revenue of $20.7 million in the second quarter, within the guidance of $20 million to $25 million, with over $26 million shipped but $6 million to be recognized in Q3 due to GAAP rules [52] - Operating loss in Q2 was approximately $2.5 million due to delays in recognizing a mega project, but overall profitability is expected to align with annual targets as more shipments occur in Q3 and Q4 [3][61] - Research and development spending decreased by 22% year-to-date, with an anticipated year-over-year decline of 4% to 8% by year-end [5] Business Line Data and Key Metrics Changes - The wastewater segment recognized $600,000 in revenue for a total of $2 million year-to-date, with confidence in achieving annual targets based on signed contracts and pipeline [60] - Desalination revenues are projected to be in the lower half of guidance, with a significant increase expected in Q4, potentially exceeding $60 million [63] Market Data and Key Metrics Changes - In Latin America, particularly Chile, contracts totaling over $8 million were announced for desalination projects, with expectations of growing water stress driving demand [28][45] - The company anticipates nearly doubling revenues in Central and South America from single-digit millions to mid-teens in 2023 [45] Company Strategy and Development Direction - The company is focused on expanding its team and capabilities to support a doubling of revenue in 2024, with ongoing investments in wastewater and CO2 technologies [39][65] - A new training facility in partnership with a major U.S. OEM is planned to enhance technical support for the PX G technology [58] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving guidance for the year despite short-term risks related to project timing and operational issues [61][62] - The company is well-positioned for the remainder of the year, with expectations of a strong Q4 driven by mega project shipments [38][63] Other Important Information - The company received the highest ESG rating of AAA from MSCI, marking a significant achievement in its industry [2] - Gross margins are expected to increase to between 65% to 67% in the latter half of the year, reflecting a positive product mix [64] Q&A Session Summary Question: What are the risks for Q3 and Q4 regarding project delays? - Management indicated that risks are primarily operational, such as paperwork and testing delays, but they remain confident in meeting overall annual targets [11][23] Question: Is there momentum in the Latin American market? - Management confirmed significant contracts in Chile and noted that the region is experiencing increasing water stress, which is expected to drive future demand [25][28] Question: Are there any M&A opportunities being considered? - While the company is always on the lookout for M&A opportunities, there are currently no immediate plans, as the focus remains on executing existing projects [87][96]

PART I FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=6&type=section&id=Item%201%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements, highlighting a net loss of **$8.0 million** for the six months ended June 30, 2023, a significant decline from **$5.5 million** net income in the prior year, driven by a **35% revenue decrease** Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Current Assets** | $150,291 | $157,867 | | **Total Assets** | $209,674 | $217,039 | | **Total Current Liabilities** | $15,189 | $18,302 | | **Total Liabilities** | $27,892 | $31,701 | | **Total Stockholders' Equity** | $181,782 | $185,338 | Condensed Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $20,723 | $20,292 | $34,124 | $52,838 | | **Gross Profit** | $13,543 | $13,372 | $21,698 | $36,420 | | **Income (Loss) from Operations** | $(2,586) | $(2,904) | $(10,697) | $5,318 | | **Net Income (Loss)** | $(1,665) | $(2,359) | $(7,961) | $5,535 | | **Diluted EPS** | $(0.03) | $(0.04) | $(0.14) | $0.10 | Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $4,523 | $7,479 | | **Net cash used in investing activities** | $(17,036) | $(12,979) | | **Net cash provided by (used in) financing activities** | $379 | $(25,638) | | **Net change in cash, cash equivalents and restricted cash** | $(12,093) | $(31,134) | [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes detail accounting policies and financial results, including revenue disaggregation by segment, geography, and channel, segment performance, and customer concentration, highlighting reliance on the Water segment and Middle East/Africa region Revenue by Segment (Six Months Ended June 30, in thousands) | Segment | 2023 Revenue | 2022 Revenue | | :--- | :--- | :--- | | Water | $33,810 | $52,729 | | Emerging Technologies | $314 | $109 | Revenue by Geographical Market (Six Months Ended June 30, 2023, in thousands) | Geographical Market | Revenue | % of Total | | :--- | :--- | :--- | | Middle East and Africa | $13,837 | 40.6% | | Asia | $13,492 | 39.5% | | Americas | $4,567 | 13.4% | | Europe | $2,228 | 6.5% | | **Total** | **$34,124** | **100%** | Segment Operating Income (Loss) (Six Months Ended June 30, in thousands) | Segment | 2023 | 2022 | | :--- | :--- | :--- | | Water | $9,672 | $26,433 | | Emerging Technologies | $(10,667) | $(11,730) | - For the six months ended June 30, 2022, Customer A and Customer B accounted for **25%** and **15%** of total revenue, respectively[84](index=84&type=chunk) - For the six months ended June 30, 2023, Customers C, D, and F accounted for **13%**, **11%**, and **12%** of revenue, respectively, indicating a shifting but concentrated customer base[84](index=84&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial results, noting a **35% revenue decrease** for the first six months of 2023, a decline in gross margin to **63.6%**, and a **4.2% increase** in operating expenses, while maintaining a strong liquidity position [Results of Operations](index=29&type=section&id=Results%20of%20Operations) This section details the **35% revenue decline** to **$34.1 million** for the six months ended June 30, 2023, driven by a **54% drop** in Megaproject revenue, alongside a **40.4% decrease** in gross profit and a **4.2% rise** in operating expenses Revenue by Channel (Six Months Ended June 30, in thousands) | Channel | 2023 Revenue | 2022 Revenue | % Change | | :--- | :--- | :--- | :--- | | Megaproject | $15,454 | $33,910 | (54%) | | Original equipment manufacturer | $11,538 | $12,360 | (7%) | | Aftermarket | $7,132 | $6,568 | 9% | | **Total Revenue** | **$34,124** | **$52,838** | **(35%)** | Gross Profit and Margin (Six Months Ended June 30) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Gross Profit (in thousands) | $21,698 | $36,420 | | Gross Margin | 63.6% | 68.9% | Operating Expenses by Segment (Six Months Ended June 30, 2023, in thousands) | Segment | Operating Expenses | % Change YoY | | :--- | :--- | :--- | | Water | $12,116 | 22.4% | | Emerging Technologies | $10,577 | (10.5%) | | Corporate | $9,702 | 3.4% | | **Total** | **$32,395** | **4.2%** | [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity as of June 30, 2023, includes **$44.2 million** in cash and **$53.3 million** in marketable debt instruments, with **$4.5 million** net cash from operations and a **$50.0 million** revolving credit line, deemed sufficient for the next 12 months - Principal sources of liquidity as of June 30, 2023, consisted of **$44.2 million** in cash and cash equivalents, **$53.3 million** in marketable debt instruments, and **$15.4 million** in net accounts receivable[118](index=118&type=chunk) - The company has a **$50.0 million** committed revolving credit line expiring in December 2026[119](index=119&type=chunk) - As of June 30, 2023, no revolving loans were outstanding, and **$20.5 million** of the **$25.0 million** letters of credit sub-limit was utilized[120](index=120&type=chunk) Cash Flow Summary (Six Months Ended June 30, in thousands) | Cash Flow Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $4,523 | $7,479 | | Net cash used in investing activities | $(17,036) | $(12,979) | | Net cash provided by (used in) financing activities | $379 | $(25,638) | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=39&type=section&id=Item%203%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are unhedged foreign currency exposure from vendor payments and interest rate risk on its **$53.3 million** investment portfolio, where a **1% rate increase** would decrease fair value by less than **$0.2 million** - The company's revenue contracts are denominated in U.S. dollars, but it pays many vendors in foreign currencies, creating exposure to exchange rate fluctuations[134](index=134&type=chunk)[135](index=135&type=chunk) - The company has not hedged this exposure as it has been insignificant to date[136](index=136&type=chunk) - The investment portfolio of **$53.3 million** is subject to interest rate risk[138](index=138&type=chunk) - To minimize this, the weighted average maturity of investments is kept under five months[138](index=138&type=chunk) - A hypothetical **1%** increase in interest rates would cause a decrease of less than **$0.2 million** in the portfolio's fair value[138](index=138&type=chunk) [Item 4. Controls and Procedures](index=39&type=section&id=Item%204%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of June 30, 2023, with no material changes to internal control over financial reporting during the quarter - The President and Chief Executive Officer and the Chief Financial Officer concluded that as of June 30, 2023, the company's disclosure controls and procedures were effective[140](index=140&type=chunk) - No changes in internal control over financial reporting occurred during the period that have materially affected, or are reasonably likely to materially affect, these controls[141](index=141&type=chunk) PART II OTHER INFORMATION [Item 1. Legal Proceedings](index=41&type=section&id=Item%201%20Legal%20Proceedings) The company is not currently involved in any legal proceedings expected to have a material adverse effect on its business, financial condition, or operating results - As of the reporting date, the company is not a party to any legal proceedings that it believes are likely to have a material adverse effect on its business[144](index=144&type=chunk) [Item 1A. Risk Factors](index=41&type=section&id=Item%201A%20Risk%20Factors) No material changes to the company's risk factors have occurred since those disclosed in its 2022 Annual Report on Form 10-K and Q1 2023 Form 10-Q - No material changes in risk factors have occurred since those disclosed in the 2022 Annual Report and the Q1 2023 Form 10-Q[145](index=145&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=41&type=section&id=Item%202%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - None[146](index=146&type=chunk) [Item 5. Other Information](index=41&type=section&id=Item%205%20Other%20Information) This section discloses the termination of a Rule 10b5-1 trading arrangement by CFO Joshua Ballard on June 7, 2023 - On June 7, 2023, CFO Joshua Ballard terminated a Rule 10b5-1 trading arrangement[150](index=150&type=chunk) [Item 6. Exhibits](index=42&type=section&id=Item%206%20Exhibits) This section lists exhibits filed with the Form 10-Q, including certifications from the Principal Executive Officer and Principal Financial Officer, and Inline XBRL documents - Exhibits filed include CEO and CFO certifications pursuant to Sarbanes-Oxley Act Sections 302 and 906, and Inline XBRL data[152](index=152&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to __________ Commission File Number: 001-34112 Energy Recovery, Inc. (Exact Name of Registrant as Specified in its Charter) Delaware 01-0616867 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 Form 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission File Number: 001-34112 Energy Recovery, Inc. (Exact Name of Registrant as Specified in its Charter) (State or Other Jurisdiction of Incorp ...