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On May 8, 2025, Energy Recovery's stock experienced a significant drop of 22.14% in pre-market trading.
Energy Recovery reported a 33.3% decrease in sales for the first quarter of 2025, falling short of market expectations. The company's revenue for the quarter was $8.1 million, a decrease of $4.0 million compared to the same period last year. This decline was primarily due to the timing of revenue from contracted projects. The company's gross margin also decreased by 370 basis points to 55.3%, largely due to lower revenue spread over fixed costs. Operating expenses decreased by 5.8% to $17.0 million, but the company still reported a net loss of $9.9 million for the quarter.
Energy Recovery's financial results for the first quarter of 2025 were in line with internal expectations and consistent with the company's communicated expectations for quarterly revenue
in 2025. The company's management released a letter to shareholders reviewing business and financial updates from the first quarter and discussing the outlook for 2025. The letter is available on the website under the "Financial Info" section in the "Investors" section.
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