8-K
Energy Recovery, Inc. (ERII)
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 25, 2026
| Energy Recovery, Inc. | ||||
|---|---|---|---|---|
| (Exact Name of Registrant as Specified in its Charter) | Delaware | 001-34112 | 01-0616867 | |
| --- | --- | --- | ||
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
1717 Doolittle Dr., San Leandro, CA 94577
(Address of Principal Executive Offices) (Zip Code)
510-483-7370
(Registrant’s telephone number, including area code)
Not applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol | Name of each exchange on which registered |
|---|---|---|
| Common Stock, $0.001 par value per share | ERII | The Nasdaq Stock Market LLC |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Item 2.02 Results of Operations and Financial Condition
On February 25, 2026, Energy Recovery, Inc. (the “Company”) issued an earnings press release announcing its financial results for the fourth quarter and year ended December 31, 2025. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference in its entirety.
The information in this report (including Exhibit 99.1) is being furnished pursuant to Item 2.02 and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act.
Item 2.05 Costs Associated with Exit or Disposal Activities
On February 25, 2026, the Company decided to wind down operations of the CO2 retail grocery business within its Emerging Technologies Segment. Recent discussions with original equipment manufacturers and end user customers have made it increasingly evident that scaled adoption would require significant time, investment, and risk. The Company believes this investment no longer meets capital allocation criteria and thus acted quickly in an effort to maximize shareholder value.
The Company expects to substantially complete the wind down by the end of the first quarter of the fiscal year ended December 31, 2026 and expects to incur approximately $4.5 million to $5.5 million in one-time costs. One-time costs are expected to consist of $1.0 million to $2.0 million in cash severance as well as non-cash expenses, primarily related to a reserve against inventory, impairment of goodwill and other miscellaneous non-cash expenses
Item 2.06 Material Impairments
The information included under Item 2.05 of this report is hereby incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
| Exhibit Number | Description |
|---|---|
| 99.1 | Press release of Energy Recovery, Inc., dated February 25, 2026, to report its financial results for the fourth quarter and year ended December 31, 2025. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: February 25, 2026
| Energy Recovery, Inc. | |
|---|---|
| By: | /s/ William Yeung |
| William Yeung | |
| Chief Legal Officer |
Document
Exhibit 99.1
Energy Recovery Reports its Fourth Quarter 2025 Financial Results
SAN LEANDRO, Calif. - February 25, 2026 – Energy Recovery, Inc. (Nasdaq:ERII) (“Energy Recovery” or the “Company”) today announced its financial results for the fourth quarter and year ended December 31, 2025.
Fourth Quarter Highlights
•Revenue of $66.9 million, a decrease of $0.2 million, as compared to Q4’2024, due to timing of revenue from contracted projects.
•Gross margin of 67.2%, a decrease of 300 bps, as compared to Q4’2024, due primarily to costs related to product mix and tariffs.
•Operating expenses of $13.6 million, a decrease of 36.5%, as compared to Q4’2024, due primarily to a decrease in employee costs, consulting costs and restructuring costs.
•Income from operations of $31.3 million, an increase of 22.3%, as compared to Q4’2024, mainly due to lower operating expenses.
•Net income of $26.9 million and adjusted EBITDA(1) of $33.6 million.
•Cash and investments of $83.3 million, which includes cash, cash equivalents, and short- and long-term investments.
In conjunction with these financial results, management has released a letter to shareholders reviewing business and financial updates from the fourth quarter and discussing our outlook for 2026. This letter is located under “News and Events” in the “Investors” section on the Energy Recovery website (https://ir.energyrecovery.com/news-events/shareholder-letters).
Financial Highlights
| Quarter-to-Date | Year to Date | |||
|---|---|---|---|---|
| Q4’2025 | Q4’2024 | 2025 | 2024 | |
| (In millions, except net income per share, percentages and basis points) | ||||
| Revenue | $66.9 | 67.1 | $135.0 | 144.9 |
| Gross margin | 67.2% | 70.2% | 65.1% | 66.9% |
| Operating margin | 46.8% | 38.2% | 17.7% | 13.6% |
| Net income | $26.9 | 23.5 | $23.0 | 23.1 |
| Diluted net income per share | $0.50 | 0.41 | $0.42 | 0.40 |
| Effective tax rate | 16.8% | 10.4% | ||
| Cash provided by operations | $7.1 | 9.0 | $18.8 | 20.5 |
All values are in US Dollars.
Non-GAAP Financial Highlights (1)
| Quarter-to-Date | Year to Date | |||
|---|---|---|---|---|
| Q4’2025 | Q4’2024 | 2025 | 2024 | |
| (In millions, except adjusted net income per share, percentages and basis points) | ||||
| Adjusted operating margin | 48.9% | 45.2% | 23.9% | 26.2% |
| Adjusted net income | $28.2 | 28.3 | $31.2 | 40.7 |
| Adjusted net income per share | $0.53 | 0.50 | $0.58 | 0.71 |
| Adjusted EBITDA | $33.6 | 31.3 | $36.0 | 42.0 |
| Free cash flow | $6.4 | 8.9 | $17.4 | 19.2 |
All values are in US Dollars.
(1)Refer to the sections “Use of Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” for definitions of our non-GAAP financial measures and reconciliations of GAAP to non-GAAP amounts, respectively.
Forward-Looking Statements
Certain matters discussed in this press release and on the conference call are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on information currently available to the Company and on management’s beliefs, assumptions, estimates, or projections and are not guarantees of future events or results. Potential risks and uncertainties include risks relating to the future demand for the Company’s products, risks relating to performance by our customers and third-party partners, risks relating to the timing of revenue, and any other factors that may have been discussed herein regarding the risks and uncertainties of the Company’s business, and the risks discussed under “Risk Factors” in the Company’s Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”) for the year ended December 31, 2024, as well as other reports filed by the Company with the SEC from time to time. Because such forward-looking statements involve risks and uncertainties, the Company’s actual results may differ materially from the predictions in these forward-looking statements. All forward-looking statements are made as of today, and the Company assumes no obligation to update such statements.
Use of Non-GAAP Financial Measures
This press release includes certain non-GAAP financial measures, including adjusted operating margin, adjusted net income, adjusted net income per share, adjusted EBITDA and free cash flow. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either exclude or include amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States of America, or GAAP. These non-GAAP financial measures do not reflect a comprehensive system of accounting, differ from GAAP measures with the same captions, and may differ from non-GAAP financial measures with the same or similar captions that are used by other companies. As such, these non-GAAP measures should be considered as a supplement to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. The Company uses these non-GAAP financial measures to analyze its operating performance and future prospects, develop internal budgets and financial goals, and to facilitate period-to-period comparisons. The Company believes these non-GAAP financial measures reflect an additional way of viewing aspects of its operations that, when viewed with its GAAP results, provide a more complete understanding of factors and trends affecting its business.
Notes to the Financial Results
•Adjusted operating margin is a non-GAAP financial measure that the Company defines as income from operations which excludes i) stock-based compensation; ii) executive transition costs, such as executive search costs, retention costs, one-time severance costs and one-time corporate growth strategy costs; iii) restructuring charges1, and iv) impairment of long-lived assets, divided by revenues.
•Adjusted net income is a non-GAAP financial measure that the Company defines as net income which excludes i) stock-based compensation; ii) executive transition costs; iii) restructuring charges1; iv) impairment of long-lived assets; and v) the applicable tax effect of the excluded items including the stock-based compensation discrete tax item.
•Adjusted net income per share is a non-GAAP financial measure that the Company defines as net income, which excludes i) stock-based compensation; ii) executive transition costs; iii) restructuring charges1; iv) impairment of long-lived assets; and v) the applicable tax effect of the excluded items including the stock-based compensation discrete tax item, divided by basic shares outstanding.
•Adjusted EBITDA is a non-GAAP financial measure that the Company defines as net income which excludes i) depreciation and amortization; ii) stock-based compensation; iii) executive transition costs; iv) restructuring charges1; v) impairment of long-lived assets; vi) other income, net, such as interest income and other non-operating income (expense), net; and vii) provision for income taxes.
•Free cash flow is a non-GAAP financial measure that the Company defines as net cash provided by operating activities less capital expenditures.
1 Restructuring charges are presented net of adjustments
Conference Call to Discuss Financial Results
LIVE CONFERENCE Q&A CALL:
Wednesday, February 25, 2026, 2:00 PM PT / 5:00 PM ET
US / Canada Toll-Free: +1 (877) 709-8150
Local / International Toll: +1 (201) 689-8354
CONFERENCE Q&A CALL REPLAY:
Available approximately three hours after conclusion of the live call.
Expiration: Wednesday, March 25, 2026
US / Canada Toll-Free: +1 (877) 660-6853
Local / International Toll: +1 (201) 612-7415
Access code: 13758280
Investors may also access the live call and the replay over the internet on the “Events” page of the Company’s website located at https://ir.energyrecovery.com/news-events/ir-calendar.
Disclosure Information
Energy Recovery uses the investor relations section on its website as means of complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor Energy Recovery’s investor relations website in addition to following Energy Recovery’s press releases, SEC filings, and public conference calls and webcasts.
About Energy Recovery
Energy Recovery (Nasdaq: ERII) designs and manufactures world-class energy-saving technology for critical infrastructure that communities rely on every day, driving a more resilient and sustainable future. Grounded in more than 30 years of leadership in the desalination industry, today we use our proprietary pressure exchanger technology to help customers in multiple industries improve their operations and lower their emissions. Headquartered in the San Francisco Bay Area, we operate manufacturing and R&D facilities throughout California, with sales and on-site technical support available globally. For more information, please visit www.energyrecovery.com
Contact
Investor Relations
ir@energyrecovery.com
ENERGY RECOVERY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
| December 31,<br>2025 | December 31,<br>2024 | |||
|---|---|---|---|---|
| (In thousands) | ||||
| ASSETS | ||||
| Cash, cash equivalents and investments | $ | 83,283 | $ | 99,851 |
| Accounts receivable and contract assets | 78,286 | 66,842 | ||
| Inventories, net | 24,260 | 24,906 | ||
| Prepaid expenses and other assets | 3,416 | 3,889 | ||
| Property, equipment and operating leases | 20,635 | 25,119 | ||
| Goodwill | 12,790 | 12,790 | ||
| Deferred tax assets and other assets | 8,844 | 9,395 | ||
| TOTAL ASSETS | $ | 231,514 | $ | 242,792 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
| Liabilities | ||||
| Accounts payable, accrued expenses, and other liabilities, current | $ | 13,784 | $ | 20,837 |
| Contract liabilities and other liabilities, non-current | 2,109 | 628 | ||
| Lease liabilities | 9,429 | 11,317 | ||
| Total liabilities | 25,322 | 32,782 | ||
| Stockholders’ equity | 206,192 | 210,010 | ||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 231,514 | $ | 242,792 |
ENERGY RECOVERY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
| Three Months Ended December 31, | Years Ended December 31, | |||||||
|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |||||
| (In thousands, except per share data) | ||||||||
| Revenue | $ | 66,871 | $ | 67,075 | $ | 134,987 | $ | 144,948 |
| Cost of revenue | 21,910 | 19,955 | 47,056 | 48,015 | ||||
| Gross profit | 44,961 | 47,120 | 87,931 | 96,933 | ||||
| Operating expenses | ||||||||
| General and administrative | 6,012 | 8,303 | 29,769 | 33,074 | ||||
| Sales and marketing | 4,946 | 6,754 | 20,926 | 25,423 | ||||
| Research and development | 2,914 | 3,972 | 13,034 | 16,236 | ||||
| Restructuring charges | (226) | 2,476 | 313 | 2,476 | ||||
| Total operating expenses | 13,646 | 21,505 | 64,042 | 77,209 | ||||
| Income from operations | 31,315 | 25,615 | 23,889 | 19,724 | ||||
| Other income, net | 821 | 1,240 | 3,706 | 6,011 | ||||
| Income before income taxes | 32,136 | 26,855 | 27,595 | 25,735 | ||||
| Provision for income taxes | 5,222 | 3,384 | 4,633 | 2,685 | ||||
| Net income | $ | 26,914 | $ | 23,471 | $ | 22,962 | $ | 23,050 |
| Net income per share | ||||||||
| Basic | $ | 0.51 | $ | 0.41 | $ | 0.43 | $ | 0.40 |
| Diluted | $ | 0.50 | $ | 0.41 | $ | 0.42 | $ | 0.40 |
| Number of shares used in per share calculations | ||||||||
| Basic | 52,915 | 56,629 | 53,802 | 57,213 | ||||
| Diluted | 53,360 | 57,236 | 54,158 | 57,822 |
ENERGY RECOVERY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| Years Ended December 31, | |||||
|---|---|---|---|---|---|
| 2025 | 2024 | ||||
| (In thousands) | |||||
| Cash flows from operating activities: | |||||
| Net income | $ | 22,962 | $ | 23,050 | |
| Non-cash adjustments | 11,945 | 16,214 | |||
| Net cash used in operating assets and liabilities | (16,137) | (18,742) | |||
| Net cash provided by operating activities | 18,770 | 20,522 | |||
| Cash flows from investing activities: | |||||
| Net investment in marketable securities | 35,305 | (14,489) | |||
| Capital expenditures | (1,330) | (1,298) | |||
| Proceeds from sales of fixed assets | 10 | 133 | |||
| Net cash provided by (used in) investing activities | 33,985 | (15,654) | |||
| Cash flows from financing activities: | |||||
| Net proceeds from issuance of common stock | 1,796 | 7,100 | |||
| Repurchase of common stock and payment of excise tax | (36,330) | (50,384) | |||
| Net cash used in financing activities | (34,534) | (43,284) | |||
| Effect of exchange rate differences | 98 | (52) | |||
| Net change in cash, cash equivalents and restricted cash | $ | 18,319 | $ | (38,468) | |
| Cash, cash equivalents and restricted cash, end of year | $ | 48,076 | $ | 29,757 |
ENERGY RECOVERY, INC.
SUPPLEMENTAL FINANCIAL INFORMATION
(Unaudited)
Channel Revenue
| Three Months Ended December 31, | Years Ended December 31, | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | vs. 2024 | 2025 | 2024 | vs. 2024 | |||||
| (In thousands, except percentages) | ||||||||||
| Megaproject | $ | 49,647 | $ | 46,475 | up 7% | $ | 82,885 | $ | 95,399 | down 13% |
| Original equipment manufacturer | 10,620 | 16,315 | down 35% | 31,940 | 31,525 | up 1% | ||||
| Aftermarket | 6,604 | 4,285 | up 54% | 20,162 | 18,024 | up 12% | ||||
| Total revenue | $ | 66,871 | $ | 67,075 | no change | $ | 134,987 | $ | 144,948 | down 7% |
Segment Activity
| Three Months Ended December 31, | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | |||||||||||||||
| Water | Emerging Technologies | Corporate | Total | Water | Emerging Technologies | Corporate | Total | |||||||||
| (In thousands) | ||||||||||||||||
| Revenue | $ | 66,871 | $ | — | $ | — | $ | 66,871 | $ | 66,959 | $ | 116 | $ | — | $ | 67,075 |
| Cost of revenue | 22,113 | (203) | — | 21,910 | 19,756 | 199 | — | 19,955 | ||||||||
| Gross profit (loss) | 44,758 | 203 | — | 44,961 | 47,203 | (83) | — | 47,120 | ||||||||
| Operating expenses | ||||||||||||||||
| General and administrative | 1,372 | 355 | 4,285 | 6,012 | 2,490 | 913 | 4,900 | 8,303 | ||||||||
| Sales and marketing | 3,535 | 1,053 | 358 | 4,946 | 4,324 | 1,856 | 574 | 6,754 | ||||||||
| Research and development | 1,742 | 1,172 | — | 2,914 | 1,205 | 2,767 | — | 3,972 | ||||||||
| Restructuring charges | (105) | (76) | (45) | (226) | 1,147 | 832 | 497 | 2,476 | ||||||||
| Total operating expenses | 6,544 | 2,504 | 4,598 | 13,646 | 9,166 | 6,368 | 5,971 | 21,505 | ||||||||
| Operating income (loss) | $ | 38,214 | $ | (2,301) | $ | (4,598) | 31,315 | $ | 38,037 | $ | (6,451) | $ | (5,971) | 25,615 | ||
| Other income, net | 821 | 1,240 | ||||||||||||||
| Income before income taxes | $ | 32,136 | $ | 26,855 | ||||||||||||
| Years Ended December 31, | ||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2025 | 2024 | |||||||||||||||
| Water | Emerging Technologies | Corporate | Total | Water | Emerging Technologies | Corporate | Total | |||||||||
| (In thousands) | ||||||||||||||||
| Revenue | $ | 134,702 | $ | 285 | $ | — | $ | 134,987 | $ | 144,310 | $ | 638 | $ | — | $ | 144,948 |
| Cost of revenue | 46,923 | 133 | — | 47,056 | 47,389 | 626 | — | 48,015 | ||||||||
| Gross profit | 87,779 | 152 | — | 87,931 | 96,921 | 12 | — | 96,933 | ||||||||
| Operating expenses | ||||||||||||||||
| General and administrative | 5,686 | 2,350 | 21,733 | 29,769 | 8,127 | 3,821 | 21,126 | 33,074 | ||||||||
| Sales and marketing | 13,664 | 5,449 | 1,813 | 20,926 | 15,683 | 7,340 | 2,400 | 25,423 | ||||||||
| Research and development | 6,344 | 6,690 | — | 13,034 | 4,523 | 11,713 | — | 16,236 | ||||||||
| Restructuring charges | 105 | 47 | 161 | 313 | 1,147 | 832 | 497 | 2,476 | ||||||||
| Total operating expenses | 25,799 | 14,536 | 23,707 | 64,042 | 29,480 | 23,706 | 24,023 | 77,209 | ||||||||
| Operating income (loss) | $ | 61,980 | $ | (14,384) | $ | (23,707) | 23,889 | $ | 67,441 | $ | (23,694) | $ | (24,023) | 19,724 | ||
| Other income, net | 3,706 | 6,011 | ||||||||||||||
| Income before income taxes | $ | 27,595 | $ | 25,735 |
Stock-based Compensation
| Three Months Ended December 31, | Years Ended December 31, | |||||||
|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |||||
| (In thousands) | ||||||||
| Stock-based compensation expense charged to: | ||||||||
| Cost of revenue | $ | 91 | $ | 96 | $ | 543 | $ | 1,076 |
| General and administrative | 841 | 641 | 3,307 | 4,013 | ||||
| Sales and marketing | 651 | 722 | 2,859 | 3,489 | ||||
| Research and development | 30 | 351 | 1,010 | 1,744 | ||||
| Total stock-based compensation expense | $ | 1,613 | $ | 1,810 | $ | 7,719 | $ | 10,322 |
ENERGY RECOVERY, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (1)
(Unaudited)
This press release includes certain non-GAAP financial information because we plan and manage our business using such information. The following table reconciles the GAAP financial information to the non-GAAP financial information.
| Quarter-to-Date | Year to Date | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Q4'2025 | Q4'2024 | 2025 | 2024 | ||||||||||
| (In millions, except shares, per share and percentages) | |||||||||||||
| Operating margin | 46.8 | % | 38.2 | % | 17.7 | % | 13.6 | % | |||||
| Stock-based compensation | 2.4 | 2.7 | 5.7 | 7.1 | |||||||||
| Executive transition costs | — | 0.7 | — | 3.7 | |||||||||
| Restructuring charges | (0.3) | 3.7 | 0.2 | 1.7 | |||||||||
| Impairment of long-lived assets | — | — | 0.3 | — | |||||||||
| Adjusted operating margin | 48.9 | % | 45.2 | % | 23.9 | % | 26.2 | % | |||||
| Net income | $ | 26.9 | $ | 23.5 | $ | 23.0 | $ | 23.1 | |||||
| Stock-based compensation | 1.6 | 1.8 | 7.7 | 10.3 | |||||||||
| Executive transition costs (2) | — | 0.4 | — | 4.8 | |||||||||
| Restructuring charges (2) | (0.2) | 2.2 | 0.3 | 2.2 | |||||||||
| Impairment of long-lived assets (2) | — | — | 0.3 | — | |||||||||
| Stock-based compensation discrete tax item | (0.2) | 0.4 | (0.1) | 0.3 | |||||||||
| Adjusted net income | $ | 28.2 | $ | 28.3 | $ | 31.2 | $ | 40.7 | |||||
| Net income per share | $ | 0.51 | $ | 0.41 | $ | 0.43 | $ | 0.40 | |||||
| Adjustments to net income per share (3) | 0.02 | 0.09 | 0.15 | 0.31 | |||||||||
| Adjusted net income per share | $ | 0.53 | $ | 0.50 | $ | 0.58 | $ | 0.71 | |||||
| Net income | $ | 26.9 | $ | 23.5 | $ | 23.0 | $ | 23.1 | |||||
| Stock-based compensation | 1.6 | 1.8 | 7.7 | 10.3 | |||||||||
| Depreciation and amortization | 0.9 | 1.0 | 3.8 | 4.0 | |||||||||
| Executive transition costs | — | 0.4 | — | 5.4 | |||||||||
| Restructuring charges | (0.2) | 2.5 | 0.3 | 2.5 | |||||||||
| Impairment of long-lived assets | — | — | 0.4 | — | |||||||||
| Other income, net | (0.8) | (1.2) | (3.7) | (6.0) | |||||||||
| Provision for income taxes | 5.2 | 3.4 | 4.6 | 2.7 | |||||||||
| Adjusted EBITDA | $ | 33.6 | $ | 31.3 | $ | 36.0 | $ | 42.0 | |||||
| Free cash flow | |||||||||||||
| Net cash provided by operating activities | $ | 7.1 | $ | 9.0 | $ | 18.8 | $ | 20.5 | |||||
| Capital expenditures | (0.7) | (0.1) | (1.3) | (1.3) | |||||||||
| Free cash flow | $ | 6.4 | $ | 8.9 | $ | 17.4 | $ | 19.2 |
(1)Amounts may not total due to rounding.
(2)Amounts presented are net of tax.
(3)Refer to the sections “Use of Non-GAAP Financial Measures” for description of items included in adjustments.