Energy Recovery, Inc. — Form 8-K
Filed November 4, 2026 · analyzed by the 8-K Agent
8-K
▼ Likely negative
significance 72/100
What the filing says
Energy Recovery reported Q3 2026 revenue of $11.2M (down 65% from $32.0M in Q3 2025) and a net loss of $6.3M; YTD 2026 net loss reached $21.8M on $32.9M revenue (down 52% YoY). Gross margin fell from 64.2% to 37.5% due to lower volumes and product mix, with the filing citing the war in Iran as a primary driver. The company recorded a $1.7M goodwill impairment and $2.4M restructuring charges YTD. Cash position declined to $85.6M from $83.3M despite $28.1M operating cash flow YTD, with $23.2M spent on stock buybacks.
Why this rating
Revenue collapse of ~48% YTD (52% down) is ~$35M shortfall—material to $595M market cap (5.9% of value). Persistent operating losses, goodwill impairment, and external geopolitical disruption signal demand and execution challenges, though strong cash position ($85.6M, 14% of market cap) provides runway.
Price action (we called it negative)
before filing · preread $6.72 | at our read pending | +10 min pending | +30 min pending | +1 hr pending | +4 hrs pending |
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