Energy Recovery, Inc. reported financial results for the second quarter and six months ended June 30, 2026. Revenue fell to $12.0 million in Q2, a 57% decline from the prior year period, driven by lower megaproject demand attributed to geopolitical tensions. The company posted a net loss of $3.2 million ($0.06 per diluted share) compared to net income of $2.1 million previously. Gross margin improved to 74.7% due to indirect manufacturing cost efficiencies and channel mix, partially offset by volume declines. Operating expenses decreased 10% year-over-year despite incurring restructuring charges. The company holds $98.1 million in cash and investments. Energy Recovery designs and manufactures energy-saving technology for critical infrastructure, primarily utilizing proprietary pressure exchanger technology in the desalination industry.
