Energy Recovery Q4 Revenue Misses by $15.7M, EPS Down 21%, Shares Slide 35%
Energy Recovery posted Q4 2025 revenue of $66.87 million, flat year-over-year and 19% below the $82.59 million consensus, while adjusted EPS of $0.53 fell 21% short of the $0.67 estimate. Shares plunged 35% after the results highlighted underperformance in adjusted EBITDA, which was 15.6% below forecasts.
1. Q4 2025 Financial Misses
Energy Recovery reported Q4 2025 revenue of $66.87 million, flat year-over-year and $15.72 million below the $82.59 million consensus. Adjusted EPS was $0.53, missing the $0.67 estimate by 21%, while adjusted EBITDA came in 15.6% under forecast.
2. Share Price Reaction
Shares plunged 35% in the morning session following the earnings release, marking one of the largest single-day moves for the stock in the past year. The share price is down 23.5% year-to-date and trades 42% below its 52-week high of $18.11.
3. Volatility and Outlook
The stock has experienced ten moves greater than 5% over the last year, underscoring elevated volatility. With flat revenue and margin pressures evident, investors will be closely monitoring management’s guidance for signs of margin improvement and new contract awards.