stockrowEnergy Recovery, Inc.
ERII Industrials Pollution & Treatment Controls
Energy Recovery, Inc.’s revenue for fiscal 2025 (year ended December 2025) was $135.0 million, down 6.87% from fiscal 2024.
- Revenue
- −57.2%
- EPS
- −250.0%
- Free cash flow
- +284.7%
Quarter to June 2026, against a year earlier
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Energy Recovery, Inc. (ERII) Beneish M-score
Energy Recovery, Inc.'s Beneish M-score for fiscal 2025 is −2.24; values above −1.78 are the model's flag for possible earnings manipulation — a statistical screen, not a finding.
Beneish M-score, annual
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Annual newest first
| Period | Beneish M-score | Change (points) |
|---|---|---|
| FY2025 | −2.24 | (0.13) |
| FY2024 | −2.11 | 0.01 |
| FY2023 | −2.12 | (0.40) |
| FY2022 | −1.72 | 0.01 |
| FY2021 | −1.73 | 0.46 |
| FY2020 | −2.19 | (0.19) |
| FY2019 | −2.00 | (0.06) |
| FY2018 | −1.94 | 0.10 |
| FY2017 | −2.04 | 0.57 |
| FY2016 | −2.61 | 2.30 |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Days’ sales in receivables index | 1.28 | — | 1.18 | |
| Gross margin index | 1.03 | — | 0.54 | |
| Asset quality index | 0.73 | — | 0.29 | |
| Sales growth index | 0.93 | — | 0.83 | |
| Depreciation index | 0.71 | — | 0.08 | |
| SG&A index | 0.93 | — | −0.16 | |
| Total accruals to total assets | 0.02 | — | 0.08 | |
| Leverage index | 0.78 | — | −0.25 | |
| Beneish M-score | Low — no pattern the model associates with manipulation | −2.24 | ||
How the Beneish M-score works
M = −4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI (Beneish, 1999): eight changes in the accounts from one fiscal year to the next, which the model weighs for the pattern seen in companies that later restated their earnings. Higher is worse.
| below −2.22 | Low — no pattern the model associates with manipulation |
|---|---|
| −2.22 to −1.78 | Elevated |
| above −1.78 | Flagged by the model |
−1.78 is the cut-off usually quoted from the paper, −2.22 a common conservative one. A statistical screen, not a finding of wrongdoing.
When asset quality, depreciation or SG&A cannot be worked out, that index is set to 1, as Beneish did, and the breakdown says so; with all three missing there is no score. Depreciation includes amortisation, and asset quality leaves out securities. Not worked out for banks, insurers and REITs.
Beneish M-score against peers
| Company | Beneish M-score |
|---|---|
| ADUR Aduro Clean Technologies Inc. compare | −4.3× |
| FTEK Fuel Tech, Inc. compare | −3.6× |
| BCHT Birchtech Corp. compare | −3.5× |
| CDZI Cadiz, Inc. compare | −2.6× |
| ERII Energy Recovery, Inc. | −2.2× |
| CECO CECO Environmental Corp. compare | −2.1× |
| ARQ Arq, Inc. compare | — |
| PCT PureCycle Technologies, Inc. compare | — |
| SCWO 374Water Inc. compare | — |
What Beneish M-score is
The Beneish M-Score combines eight year-on-year changes in the accounts into a statistical screen for patterns seen in companies that overstated earnings.
−4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI