Energy Recovery (NASDAQ: ERII) saw its stock price plummet 13.56% in after-hours trading on Wednesday following the release of its first-quarter 2025 financial results, which fell significantly short of analyst expectations.
The company reported a quarterly loss of $0.13 per share, missing the analyst consensus estimate of a $0.03 loss by a staggering 333.33%. This represents a substantial deterioration from the $0.08 loss per share reported in the same period last year. Revenue for the quarter came in at $8.06 million, falling well below the analyst consensus estimate of $21.91 million by 63.19%. This also marks a 33.29% decrease compared to the $12.09 million in sales reported for the same quarter in the previous year.
Other key financial metrics further highlighted the company's struggles. Energy Recovery reported a negative EBIT margin of -155.8% and a net loss of $9.9 million for the quarter. The company's adjusted EBITDA stood at -$8.7 million, underscoring the significant challenges faced during this period. Despite these disappointing results, Energy Recovery maintained a gross margin of 55.3%, suggesting some resilience in its core operations amidst the overall financial downturn.