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.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.