ERII on Nasdaq

Energy Recovery Inc.

Logo: energyrecovery.com5

U.S. based manufacturer of energy recovery devices

Energy Recovery Inc. is an American manufacturer of energy recovery devices in the water industry.3 Its shares trade on Nasdaq under the symbol ERII.1 Wikipedia text CC BY-SA 4.0

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Last updated Oct 20, 2026.

Overview

1992Founded1

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  • TickerERII on Nasdaq1
  • IndustrySpecial Industry Machinery, NEC1
  • HeadquartersSan Leandro1
  • Websiteenergyrecovery.com
  • Incorporated inDE6
  • Business address1717 Doolittle Drive, San Leandro, Ca 945776
  • Filer categoryLarge accelerated filer6
  • Legal formCorporation4
  • LEI549300ZEQL52Z525WJ224
  • StatusActive4
  • LEI statusLapsed (not renewed)4
  • Registered addressC/O THE CORPORATION TRUST COMPANY, 19801 Wilmington, United States4
  • Registered withDivision of Corporations, Department of State, 33662144

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Energy Recovery Inc. image from its website
Image: energyrecovery.com5

Energy Recovery Inc. is an American manufacturer of energy recovery devices in the water industry.3

Financials

From the company’s reports to the SEC. Every number links to the filing it came from.

Key numbers, fiscal 2025

65.1%Gross margin9
17.7%Operating margin9
17.0%Net margin9
-6.9%Revenue growth, 20259
11.1%Return on equity9
$17.4MFree cash flow9

What sells

Revenue by product, business segment and region, as the company reports it to the SEC.

Business segments

Water brought in 100% of the revenue Energy Recovery Inc. broke down this way in fiscal 2025.

  1. Water$134.7M9100%down 7% from 2024
  2. Emerging Technologies$285.0K90%down 55% from 2024
Business segments by year
Business segments202320242025
Water$127.7M$144.3M$134.7M
Emerging Technologies$624.0K$638.0K$285.0K

Regions

Middle East And Africa brought in 51% of the revenue Energy Recovery Inc. broke down this way in fiscal 2025.

  1. Middle East And Africa$68.2M951%up 14% from 2024
  2. Other$51.8M938%down 5% from 2024
  3. Africa$15.0M911%down 51% from 2024
Regions by year
Regions202320242025
Middle East And Africa$49.7M$59.9M$68.2M
Other$51.7M$54.3M$51.8M
Africa$26.9M$30.7M$15.0M

Where the money goes

Where each dollar of revenue went, fiscal 2025

  • Cost of revenue35¢$47.1M
  • Research and development10¢$13.0M
  • Other costs35¢$47.3M
  • Income tax3¢$4.6M
  • Profit17¢$23.0M

Out of $135.0M in revenue.9

Where each dollar of operating cash went, fiscal 2025

  • Capital spending4¢$1.3M
  • Share buybacks96¢$35.6M

Out of $18.8M of cash from operations. Spending exceeded cash from operations; the rest came from savings or borrowing.9

Financial statements

Revenue101112139$135.0M in 2025+55% since 2019
0$50.0M$100.0M$150.0M2019: $86.9M$86.9M20192020: $119.0M$119.0M2020+37%2021: $103.9M$103.9M2021−13%2022: $125.6M$125.6M2022+21%2023: $128.3M$128.3M2023+2%2024: $144.9M$144.9M2024+13%2025: $135.0M$135.0M2025−7%
Gross profit12139$87.9M in 2025+23% since 2021
0$25.0M$50.0M$75.0M$100.0M2021: $71.2M$71.2M20212022: $87.4M$87.4M2022+23%2023: $87.1M$87.1M2023−0%2024: $96.9M$96.9M2024+11%2025: $87.9M$87.9M2025−9%
Operating income101112139$23.9M in 2025+130% since 2019
0$10.0M$20.0M$30.0M$40.0M2019: $10.4M$10.4M20192020: $31.3M$31.3M2020+202%2021: $13.8M$13.8M2021−56%2022: $24.8M$24.8M2022+80%2023: $19.1M$19.1M2023−23%2024: $19.7M$19.7M2024+4%2025: $23.9M$23.9M2025+21%
Net income101112139$23.0M in 2025+110% since 2019
0$10.0M$20.0M$30.0M2019: $10.9M$10.9M20192020: $26.4M$26.4M2020+142%2021: $14.3M$14.3M2021−46%2022: $24.0M$24.0M2022+69%2023: $21.5M$21.5M2023−11%2024: $23.1M$23.1M2024+7%2025: $23.0M$23.0M2025−0%

Every line of the income statement as filed: the last 3 fiscal years, latest first.9

Period ending2025-12-312024-12-312023-12-31
Revenue$135.0M$144.9M$128.3M
Cost of revenue$47.1M$48.0M$41.3M
Gross profit$87.9M$96.9M$87.1M
General and administrative$29.8M$33.1M$28.9M
Sales and marketing$20.9M$25.4M$22.2M
Research and development$13.0M$16.2M$17.0M
Restructuring charges$313.0K$2.5M$0
Total operating expenses$64.0M$77.2M$68.0M
Income from operations$23.9M$19.7M$19.1M
Interest income$3.6M$6.2M$3.8M
Other non-operating income (expense), net$92.0K-$207.0K-$101.0K
Total other income, net$3.7M$6.0M$3.7M
Income before income taxes$27.6M$25.7M$22.7M
Provision for income taxes$4.6M$2.7M$1.2M
Net income$23.0M$23.1M$21.5M
Basic (in dollars per share)$0.43$0.40$0.38
Diluted (in dollars per share)$0.42$0.40$0.37
Basic (in shares)53.8M shares57.2M shares56.4M shares
Diluted (in shares)54.2M shares57.8M shares57.7M shares

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Corporate structure

Energy Recovery Inc. sits at the top of its group. 3 entities, 3 countries on record. Switch between the flow chart and the network, and select any entity to see its details.

Major holders of Energy Recovery Inc.

  • Amundi Filed SCHEDULE 13G/A on Energy Recovery Inc., latest Jul 22, 2026 (4 filings since Feb 17, 2026)
  • VANGUARD GROUP INC Filed SCHEDULE 13G/A on Energy Recovery Inc., latest Mar 26, 2026 (3 filings since Feb 13, 2024)
  • BROWN CAPITAL MANAGEMENT LLC Filed SCHEDULE 13G/A on Energy Recovery Inc., latest May 15, 2025 (5 filings since Feb 14, 2024)
  • FMR LLC Filed SCHEDULE 13G/A on Energy Recovery Inc., latest Feb 12, 2025 (3 filings since Feb 9, 2024)
  • Trigran Investments, Inc. Filed SC 13G/A on Energy Recovery Inc., latest Feb 9, 2024 (3 filings since Feb 10, 2022)
  • Marius Skaugen Filed SC 13G on Energy Recovery Inc., latest Dec 9, 2021
  • Ole Peter Lorentzen Filed SC 13D/A on Energy Recovery Inc., latest Dec 2, 2021
  • Arvarius AS Filed SC 13G/A on Energy Recovery Inc., latest Oct 29, 2021
  • Energy Recovery Inc. San Leandro, California, United States
    • Energy Recovery Canada, Corp. Subsidiary · Canada
    • Energy Recovery Iberia, S.L. Subsidiary · Spain

Built from parent and subsidiary links from GLEIF, the Global Legal Entity Identifier Foundation (CC0); subsidiaries listed in Exhibit 21 of annual reports filed with the SEC; major holders from Schedules 13D and 13G. Each entity in the chart links to its source.

What it owns

What Energy Recovery Inc. reports owning in its annual reports to the SEC: buildings, land and equipment, real estate and locations, investments, intangible assets and inventory, at the end of its latest fiscal year and a year before.

Property and equipment

ItemLatestA year beforeChange
Property and equipment, before depreciation$55.0M9 Dec 31, 2025$54.5M9 Dec 31, 2024+0.9%
Accumulated depreciation$42.1M9 Dec 31, 2025$39.1M9 Dec 31, 2024+7.7%
Property and equipment, net$12.9M9 Dec 31, 2025$15.4M9 Dec 31, 2024−16.1%
Operating-lease assets (leased space)$7.7M9 Dec 31, 2025$9.7M9 Dec 31, 2024−20.6%

Investments

ItemLatestA year beforeChange
Cash and cash equivalents$48.1M9 Dec 31, 2025$29.6M9 Dec 31, 2024+62.3%
Marketable securities, current$27.2M9 Dec 31, 2025$48.4M9 Dec 31, 2024−43.8%
Long-term investments$8.0M9 Dec 31, 2025$21.8M9 Dec 31, 2024−63.2%

Intangibles and goodwill

ItemLatestA year beforeChange
Goodwill$12.8M9 Dec 31, 2025$12.8M9 Dec 31, 20240%

Inventory

ItemLatestA year beforeChange
Inventory, total$24.3M9 Dec 31, 2025$24.9M9 Dec 31, 2024−2.6%
Raw materials$8.3M9 Dec 31, 2025$8.8M9 Dec 31, 2024−6.1%
Work in process$6.3M9 Dec 31, 2025$6.4M9 Dec 31, 2024−2.3%
Finished goods$10.8M9 Dec 31, 2025$10.5M9 Dec 31, 2024+2.9%

Properties, in its own words

The table below presents details for each of our principal properties. Each of these principal properties is located in the U.S.

Facility · Location · Status · Approximate Square Footage · Lease Expiration · Segment Usage

The rest of Item 2

Headquarters, R&D and manufacturing · San Leandro, California · Lease · 171,000 · Dec- 2028 · Water, Emerging Technology

Manufacturing and warehouse · Tracy, California · Lease · 54,429 · Apr- 2030 · Water, Emerging Technology

Sublease1 · Katy, Texas · Lease · 221,220 · Dec- 2029 · Water, Emerging Technology

1 In March 2025, we entered into a sublease agreement for the Katy, Texas property. See Note 7, Commitments and Contingencies -

Sublease of the Notes which is incorporated by reference into this Item 2 for a description of the sublease.

Additionally, we lease offices located in Dubai, United Arab Emirates; and Shanghai, Peoples Republic of China. We believe that these

facilities will be adequate for our purposes for the foreseeable future. In the future, we may need to add new facilities as we evolve our

business. We believe that suitable additional or substitute space will be available on commercially reasonable terms to meet our future

needs.

Item 2 of the 10-K filed Feb 25, 2026.18

The story

Energy Recovery was founded in 1992 by Leif and Marissa Hauge and incorporated in Virginia. The company was reincorporated in Delaware in 2001. Energy Recovery began selling its PX pressure exchanger products for seawater reverse osmosis (SWRO) desalination applications in 1997 and went public in 2008. It has since expanded its product offerings to include a variety of pressure exchangers operating at multiple pressure ranges for desalination and wastewater treatment.

The company is currently led by David Moon, President and Chief Executive Officer.

From Wikipedia’s article on Energy Recovery, shared under CC BY-SA 4.0.7

Leadership

Who has led Energy Recovery Inc., and when. Pick a name to see everywhere that person has worked.

Chief executive

  1. Gonzalo G. Pique2008–2011
  2. Thomas S. Rooney Jr.2011–2014
  3. Joel Gay2016–2018
  4. Chris M. Gannon2018–2019
  5. Robert Yu Lang Mao2020–2023
  6. David W. Moon2023–2026
  7. Alexander J. Buehler2026–now

Chair

  1. Hans Peter Michelet2008–2012

President

  1. Gonzalo G. Pique2008–2011
  2. Thomas S. Rooney Jr.2011–2014
  3. Joel Gay2016–2018
  4. Robert Yu Lang Mao2020–2023
  5. David W. Moon2023–2026
  6. Alexander J. Buehler2026–now

Chief financial officer

  1. Thomas D. Willardson2008–2011
  2. Alexander J. Buehler2011–2014
  3. Joel Gay2014–2015
  4. Chris M. Gannon2015–2018
  5. Joshua Ballard2018–2024
  6. Michael S. Mancini2024–2026
  7. Aidan Ryan2026–now
1995200020052010201520202025
Board members and other officers (41)

Products and brands

PX Pressure Exchanger

The PX Pressure Exchanger device is Energy Recovery's flagship product used in desalination. The Pressure Exchanger's technology utilizes pressure energy to reduce electricity and maintenance costs. The device collides two fluid flows, transferring the energy from one fluid to the next. This energy transfer occurs in a fraction of a second, reducing the interaction between the two fluids. Energy Recovery developed pressure exchanger products for specific applications, including its PX® Pressure Exchanger® such as the U-Series for Ultra High-Pressure Reverse Osmosis (UHPRO) applications in wastewater treatment.

Energy Recovery holds a majority market share in the desalination industry. There are more than 35,000 Pressure Exchangers supplied in more than 100 countries worldwide. The company's technologies have cut more than 14 billion kWh of energy each year and produced more than 12 billion liters of clean water daily.

From Wikipedia’s article on Energy Recovery, shared under CC BY-SA 4.0.7

Subsidiaries and ownership

Subsidiaries (Exhibit 21)

  • Energy Recovery Canada, Corp. Canada8
  • Energy Recovery Iberia, S.L. Spain8

The subsidiaries the company lists in Exhibit 21 of its annual report, as filed.

Timeline

  1. Aug 5, 20268-K Results of operations73
  2. Jul 13, 20268-K Executive or director change74
  3. Jun 17, 2026New chief executive Alexander J. Buehler becomes CEO19
  4. Jun 11, 20268-K Executive or director change75
  5. Jun 8, 20268-K Shareholder vote76
  6. May 28, 20268-K Executive or director change77
  7. May 6, 20268-K Results of operations; Executive or director change; Other events78
  8. Feb 25, 20268-K Results of operations; Exit or restructuring costs; Impairment79
  9. Nov 5, 20258-K Results of operations80
  10. Aug 6, 20258-K Results of operations81
  11. Aug 6, 20258-K Other events82
  12. Jun 11, 20258-K Shareholder vote83
  13. May 7, 20258-K Results of operations84
  14. Nov 13, 2023New chief executive David W. Moon becomes CEO20
  15. May 22, 2020New chief executive Robert Yu Lang Mao becomes CEO21
  16. May 8, 2018New chief executive Chris M. Gannon becomes CEO22
  17. Mar 10, 2016New chief executive Joel Gay becomes CEO23
  18. Feb 18, 2011New chief executive Thomas S. Rooney Jr. becomes CEO24
  19. Sep 11, 2008New chief executive Gonzalo G. Pique becomes CEO25
  20. 1992Founded Founded1

Calendar

Coming up

  1. Nov 4, 2026 · After the closeReports results for the quarter ending Sep/2026 A year earlier it reported $0.07 a share, on Nov 5, 2025.85

When it reported results

  1. Aug 5, 2026Reported quarterly or annual results73
  2. May 6, 2026Reported quarterly or annual results78
  3. Feb 25, 2026Reported quarterly or annual results79
  4. Nov 5, 2025Reported quarterly or annual results80
  5. Aug 6, 2025Reported quarterly or annual results81
  6. May 7, 2025Reported quarterly or annual results84
  7. Feb 26, 2025Reported quarterly or annual results86
  8. Oct 30, 2024Reported quarterly or annual results87

Upcoming dates from Nasdaq's calendar; past results from the company's 8-K filings (Item 2.02). The full markets calendar

Filings

397 filings to the SEC since October 2021: 5 annual reports, 15 quarterly reports, 46 major events, 198 insider forms, 30 large holders, 103 other. The latest 20:

  1. Aug 17, 2026S-8 EDGAR
  2. Aug 14, 2026SCHEDULE 13G/A EDGAR
  3. Aug 5, 202610-Q EDGAR
  4. Aug 5, 20268-K EDGAR
  5. Jul 29, 20264 EDGAR
  6. Jul 29, 20264 EDGAR
  7. Jul 28, 2026144 EDGAR
  8. Jul 28, 2026144 EDGAR
  9. Jul 22, 20264 EDGAR
  10. Jul 22, 20263 EDGAR
  11. Jul 22, 2026SCHEDULE 13G/A EDGAR
  12. Jul 13, 20268-K EDGAR
  13. Jun 25, 20264 EDGAR
  14. Jun 17, 20264 EDGAR
  15. Jun 17, 20264 EDGAR
  16. Jun 15, 2026144 EDGAR
  17. Jun 11, 20268-K/A 8-K EDGAR
  18. Jun 8, 20268-K EDGAR
  19. Jun 5, 20264 EDGAR
  20. Jun 5, 20264 EDGAR

The 397 filings since October 2021 can be filtered by form type and year here when JavaScript is on.

Every filing from the last five years, summarized. The full record is on SEC EDGAR.

Insider trades

114 open-market trades by officers, directors and large owners since October 2021: 13 buys and 101 sales. Grants, option exercises and gifts are left out.

DateWhoTradeSharesPriceValueFiling
Jul 28, 2026Clemente RodneySVP, WaterSale5,387$8.56$46.1KForm 4
Jul 28, 2026Yeung WilliamChief Legal OfficerSale2,048$8.56$17.5KForm 4
Jun 15, 2026Sabol Colin RDirectorBuy11,180$8.88$99.3KForm 4
Jun 15, 2026BUEHLER ALEXANDER JInterim President and CEOSale14,900$8.71$129.8KForm 4
May 13, 2026TONDREAU PAMELA L.DirectorBuy20,000$8.34$166.8KForm 4
Apr 6, 2026Hanstveit ArveDirectorSale2,419$10.29$24.9KForm 4
Apr 2, 2026Hanstveit ArveDirectorSale165,292$10.14$1.7MForm 4
Mar 10, 2026Hanstveit ArveDirectorSale25,000$10.96$274.0KForm 4
Mar 6, 2026Hanstveit ArveDirectorSale11,582$10.62$123.0KForm 4
Mar 5, 2026Ramanan NatarajanChief Technology OfficerSale272$10.57$2.9KForm 4
Mar 5, 2026Hanstveit ArveDirectorSale38,418$10.71$411.5KForm 4
Mar 4, 2026Clemente RodneySVP, WaterSale20,568$10.61$218.2KForm 4
Feb 6, 2026Yeung WilliamChief Legal OfficerSale646$15.14$9.8KForm 4
Feb 5, 2026Yeung WilliamChief Legal OfficerSale890$14.59$13.0KForm 4
Feb 5, 2026Clemente RodneySVP, WaterSale724$14.59$10.6KForm 4
Feb 2, 2026Yeung WilliamChief Legal OfficerSale729$14.46$10.5KForm 4
Jan 28, 2026Yeung WilliamChief Legal OfficerSale7,271$14.55$105.8KForm 4
Dec 5, 2025Hanstveit ArveDirectorSale15,000$14.71$220.7KForm 4
Dec 4, 2025Hanstveit ArveDirectorSale15,000$14.97$224.6KForm 4
Oct 24, 2025Yeung WilliamChief Legal OfficerSale9,168$18.00$165.0KForm 4

All 114 trades can be filtered by person here when JavaScript is on.

From Forms 4 filed with the SEC.

Major holders

Investors who own more than 5% of the shares must tell the SEC: a 13D if they may seek to influence the company, a 13G if they hold passively.

Executive pay

What the company paid its top executives, from the summary compensation table in its proxy statement. Total pay includes salary, bonus, stock and option awards and other pay, as the company valued them.

YearExecutiveAgeSalaryTotal pay
2025David W. Moon64$614.2K$3.2M96
2025Michael S. Mancini$400.0K$1.5M96
2025Rodney Clemente$398.8K$1.5M96
2025Natarajan Ramanan$276.0K$1.3M96
2025William W. Yeung$391.7K$1.2M96
2024President and ChiefExecutive Officer$568.4K$3.7M96
2024Chief FinancialOfficer$146.2K$1.8M96
2024Senior VicePresident, Water$372.7K$1.7M96
2024Chief Legal Officer$352.6K$1.2M96
2023Chief Legal Officer$332.7K$1.2M96

Held by these funds

The largest holders among investment managers' 13F reports for the quarter ending Jun 30, 2026, the top 25 of 100. Change is in shares since the quarter before.

FundSharesValueShare of the fundChange
BlackRock, Inc.6,344,252$57.2M0.0%+253,326
Amundi4,003,535$36.1M0.0%+263,226
Vanguard Capital Management LLC2,183,718$19.7M0.0%−46,552
Legal & General Group Plc2,059,764$18.6M0.0%+157,239
FIL Ltd1,715,722$15.5M0.0%−272,197
Geode Capital Management, LLC1,697,550$15.3M0.0%+402,442
State Street Corp1,625,893$14.7M0.0%−147,055
Vanguard Portfolio Management LLC1,263,667$11.4M0.0%+2,006
Morgan Stanley1,237,003$11.2M0.0%+444,312
Mackenzie Financial Corp1,187,686$10.7M0.0%New
Invesco Ltd.925,550$8.3M0.0%+99,254
Dimensional Fund Advisors LP878,724$7.9M0.0%+1,293
ArrowMark Colorado Holdings LLC847,000$7.6M0.3%+331,000
Royce & Associates LP752,812$6.8M0.1%+269,794
Avenir Corp693,886$6.3M0.8%−123,869
Ameriprise Financial Inc679,236$6.1M0.0%−4,580,580
Marshall Wace, Llp677,248$6.1M0.0%+570,951
Kopion Asset Management, LLC639,545$5.8M3.6%+132,580
Goldman Sachs Group Inc601,335$5.4M0.0%+132,800
683 Capital Management, LLC530,000$4.8M0.5%−20,000
Lazard Asset Management LLC500,061$4.5M0.0%+432,632
Northern Trust Corp478,524$4.3M0.0%+28,087
Citadel Advisors LLC476,236$4.3M0.0%+26,800
Tudor Investment Corp Et Al471,905$4.3M0.0%New
Swiss Life Asset Management Ltd464,661$4.2M0.0%+6,878

13F reports cover disclosed long positions in U.S. stocks only.

SEC filer profile

How Energy Recovery Inc. is registered with the Securities and Exchange Commission, from its EDGAR record and the cover page of its latest annual report.

  • Name on EDGAREnergy Recovery, Inc.2
  • CIK0001421517
  • Employer ID (EIN)01-061686718
  • Filer statusLarge accelerated filer not an emerging growth company; not a smaller reporting company; not a shell company18
  • Incorporated inDelaware18
  • Fiscal year endsDecember 312
  • Industry code (SIC)3559 Special Industry Machinery, NEC2
  • SEC reviewing officeOffice of Technology, Division of Corporation Finance2
  • Business address1717 Doolittle Drive, San Leandro, CA 945772
  • Phone(510) 483-73702
  • Shares outstanding51,044,875 as of Jul 31, 202616
  • Public float$595.0M as of Jun 30, 202518
  • AuditorDeloitte & Touche LLP, San Francisco, California PCAOB ID 34; it also attests to the company’s internal control over financial reporting18
  • On EDGAR sinceApr 1, 20082
  • Filings1,238 in all: 4 (591), 8-K (225), 144 (85), 10-Q (55), 3 (53), 4/A (33), SC 13G/A (27), SC 13G (21)2
    All 39 form types

    10-K (18), DEF 14A (18), SCHEDULE 13G/A (14), 8-K/A (13), SD (13), UPLOAD (12), CORRESP (9), SC 13D/A (7), S-8 (6), ARS (4), DEFR14A (4), S-1/A (4), 3/A (3), DEFA14A (3), 10-K/A (2), EFFECT (2), S-8 POS (2), 144/A (1), 424B3 (1), 424B4 (1), 5 (1), 8-A12B (1), CERTNAS (1), CT ORDER (1), D (1), PRE 14A (1), S-1 (1), S-3 (1), S-3ASR (1), SC 13D (1), SCHEDULE 13G (1)

  • Latest filingsAnnual report (10-K) Feb 25, 2026
    Quarterly report (10-Q) Aug 5, 2026
    Proxy statement (DEF 14A) Apr 21, 2026
    Latest 8-K (8-K) Aug 5, 2026

Securities registered for trading

ClassSymbolExchange
Common Stock, $0.001 par valueERIINasdaq Stock Market

From the cover page of the 10-K filed Feb 25, 2026 (Section 12(b) of the Exchange Act).18

Risk factors and legal proceedings

The risks Energy Recovery Inc. names in Item 1A of its 10-K filed Feb 25, 2026: 71 risks under these headings, as written.18

  • Risks Related to our Water Segment
  • Our Water segment revenues largely depend on the construction of new large-scale desalination plants and the retrofit of existing
  • desalination plants, and as a result, our operating results have historically experienced, and may continue to experience,
  • significant variability due to volatility in capital spending, availability of project financing, project timing, execution and other
  • factors affecting the broader water desalination industry.
  • Our Water segment faces competition from a number of companies that offer competing energy recovery solutions. If any of these
  • companies produce superior products or offer their products at substantially lower prices, our competitive position in the market
  • could be harmed and our revenues may decline.
  • A sustained downturn in the economy or global unrest could impact the future of new, and the retrofit of existing, desalination
  • plants, and the treatment of various wastewater verticals, which could result in decreased demand for our water products and
  • We may not be successful in developing suitable market adoption for our products in the wastewater market.
  • Risks Related to our Emerging Technologies Segment
The other 61 risks
  • We have decided to wind down operations of our CO2 retail grocery business, and we expect to incur costs associated with the
  • wind down, which will have an adverse effect on our Emerging Technologies segment financial condition and results of operations.
  • Our expected future development of the next generation of the PX G1300 may not be completed as anticipated and/or may not meet
  • our expectations.
  • We may not be able to develop future new technologies successfully.
  • Risks Related to our General Business
  • Our operating results may fluctuate significantly, making our future operating results difficult to predict and causing our operating
  • results to fall below expectations.
  • Our sales cycles can be long and unpredictable, and our sales efforts require considerable time and expense. As a result, our
  • sales are difficult to predict and may vary substantially from quarter to quarter, which may cause our operating results to fluctuate.
  • Our Water contracts often contain holdback provisions of up to 10% of the contract price. If we are unable to collect unbilled
  • receivables, which are caused in part by these holdback provisions, our operating results could be adversely affected.
  • We depend on a limited number of suppliers for some of our components. If our suppliers are not able to meet our demand and/or
  • requirements, our business could be harmed.
  • We are subject to manufacturing risks, particularly related to new products, which could lead to excessive scrap, quality defects,
  • warranty claims in excess of our warranty provision or result in a significant or a large number of warranty or other claims in any
  • Parts of our inventory may become excess or obsolete, which would increase our cost of revenues.
  • We may not generate positive returns on our research and development and our corporate growth strategy.
  • Business interruptions may damage our facilities or those of our suppliers.
  • We are, from time to time, involved in legal proceedings and may be subject to additional future legal proceedings that may result
  • in material adverse outcomes.
  • Our actual operating results may differ significantly from our guidance.
  • In preparing our financial statements we make certain assumptions, judgments and estimates that affect amounts reported in our
  • consolidated financial statements, which, if not accurate, may significantly impact our financial results.
  • Our global operations expose us to risks and challenges associated with conducting business internationally, and our results of
  • operations may be adversely affected by our efforts to comply with the laws of other countries, as well as U.S. laws which apply to
  • international operations, such as the U.S. Foreign Corrupt Practices Act (“FCPA”) and U.S. export control laws.
  • Our failure to maintain appropriate sustainability practices and disclosures could result in reputational harm, a loss of customer
  • and investor confidence, and adverse business and financial results.
  • We must comply with a variety of existing and future laws and regulations, such as sustainability initiatives, that could impose
  • substantial costs on us and may adversely affect our business.
  • We may seek to expand through acquisitions of and investments in other businesses, technologies, and assets. These acquisition
  • activities may be unsuccessful or divert management’s attention.
  • Our success depends, in part, on key personnel whose continued service is not guaranteed.
  • Risks Related to Economic Conditions and Geopolitical Conflicts
  • Uncertainty in the global geopolitical landscape and macro-economic environment may impact our operations outside the U.S.,
  • including in the Middle East where many of our water megaprojects are planned.
  • Risks Related to Information Technology
  • We may have risks associated with security of our information technology systems.
  • Our actual or perceived failure to adequately protect personal data could adversely affect our business, financial condition and
  • results of operations.
  • Risks Related to Intellectual Property
  • If we are unable to protect our technology or enforce our intellectual property rights, our competitive position could be harmed, and
  • we could be required to incur significant expenses to enforce our rights.
  • Claims by others that we infringe their proprietary rights could harm our business.
  • Risks Related to Tax and Governmental Regulations
  • The enactment of legislation implementing changes in taxation of international business activities, the adoption of other corporate
  • tax reform policies, or changes in tax legislation or policies could materially impact our financial position and results of operations.
  • Changes in tax laws or regulations that are applied adversely to us or our customers may have a material adverse effect on our
  • business, cash flow, financial condition or results of operations.
  • The U.S. Congress and Incumbent Administration may make substantial changes to fiscal, regulation and other federal policies that
  • may adversely affect our business, financial condition, operating results and cash flows.
  • Unanticipated changes in our tax provisions or exposure to additional income tax liabilities could affect our profitability and cash
  • Changes in U.S. policy, including the imposition of or increases in tariffs, changes to existing trade agreements and any resulting
  • changes in international trade relations, such as reciprocal tariffs or trade wars may have a material adverse impact on impact on
  • our business, results of operations, or financial condition.
  • Risks Related to our Internal Controls
  • Changes in the U.S. generally accepted accounting principles could adversely affect our financial results and may require
  • significant changes to our internal accounting systems and processes.
  • We are required to evaluate the effectiveness of our internal control over financial reporting and publicly disclose material
  • weaknesses in our controls. Any adverse results from such evaluation may adversely affect investor perception, and our stock
  • Risks Related to our Common Stock
  • Insiders and principal stockholders will likely have significant influence over matters requiring stockholder approval.
  • The market price of our common stock may continue to be volatile.
  • We cannot guarantee that our share repurchase programs will enhance long-term shareholder value, and share repurchases could
  • increase the volatility of the price of our common stock.
  • Anti-takeover provisions in our charter documents and under Delaware law could discourage, delay, or prevent a change in control
  • of our company and may affect the trading price of our common stock.

Legal proceedings

See Note 7, “Commitments and Contingencies – Litigation” of the Notes which is incorporated by reference into this Item 3, for a

description of the lawsuits pending, if any, against us.

The opening of Item 3, Legal Proceedings.18

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