I study the impact of floods and flood risk exposure on the firms’ and establishments’ performances in the US. Using high-resolution satellite data, I construct a novel dataset at the establishment level with flooding history and flood risk based on FEMA flood maps. I find that flood risk reduces establishments’ employment levels due to the expected direct damages, and a decreased labor supply driven by changes in workers’ location choices and reduced real wages in the local region. In the year of a flood event, there are significant negative impacts on establishments’ employment. However, in the subsequent years, these impacts become significantly positive. The potential channels include flood insurance, disaster aid, and community resilience but are not due to reasons such as survivorship bias. In addition, I find significant negative stock market reactions to flood occurrences. The negative reaction is more pronounced for firms lacking prior flood risk disclosures, those without existing establishments in high-risk areas, and those with no prior experience of major flooding events.