Energy Recovery (NASDAQ: ERII) saw its stock price plummet 13.56% in after-hours trading following the release of its first quarter 2025 financial results. The company reported a significant loss and a substantial decline in revenue, falling short of analyst expectations across multiple metrics.

For Q1 2025, Energy Recovery posted a loss per share of $0.18, with an adjusted loss per share of $0.13. This marked a notable decline from the same period last year when the company reported a loss of $0.08 per share. The company's revenue also took a hit, coming in at just $8.1 million, a 33.29% decrease from the $12.09 million reported in Q1 2024. The financial strain was further evident in the company's EBIT margin, which stood at an alarming -155.8%, while net income fell to -$9.9 million.

The Q1 results significantly missed analyst estimates, with the adjusted EPS of -$0.13 falling short of the -$0.03 consensus by 333.33%. Perhaps more concerning was the revenue figure of $8.06 million, which missed the analyst consensus estimate of $21.91 million by a staggering 63.19%. Despite these challenges, Energy Recovery maintained a gross margin of 55.3%, although this positive aspect was overshadowed by an adjusted EBITDA of -$8.7 million for the quarter.