© 2017 Elsevier B.V. Energy-recovery linacs (ERLs) are promising for advanced synchrotron light sources, high-power free electron lasers (FELs), high-brightness gamma-ray sources, and electron–ion colliders. To demonstrate the critical technology of ERL-based light sources, we have designed and constructed a test accelerator, the compact ERL (cERL). Using advanced technology that includes a photocathode direct current (DC) electron gun and two types of 1.3-GHz-frequency superconducting cavities, the cERL was designed to be capable of recirculating low emittance (≤1 mm⋅ mrad) and high average-current (≥10 mA) electron beams while recovering the beam energy. During initial commissioning, the cERL demonstrated successful recirculation of high-quality beams with normalized transverse emittance of ∼0.14 mm⋅ mrad and momentum spread of ∼1.2 × 10−4 (rms) at a beam energy of 20 MeV and bunch charge below 100 fC. Energy recovery in the superconducting main linac was also demonstrated for high-average-current continuous-wave beams. These results constitute an important milestone toward realizing ERL-based light sources.