AG˹ٷ

STOCK TITAN

Pure Cycle Announces Financial Results For the Three and Nine Months Ended May 31, 2025

Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Neutral)
Tags

Pure Cycle Corporation (NASDAQ:PCYO) reported strong Q3 2025 financial results, marking its 24th consecutive quarter of positive net income. The company achieved $2.3M in net income for Q3 and $7.0M for the nine months ended May 31, 2025. Revenue reached $5.1M for Q3 and $14.9M for the nine months.

The company continues developing its Sky Ranch Master Planned Community, with Phase 2A completed, Phase 2B at 96% completion, and Phase 2C at 68% completion. Pure Cycle maintains a strong financial position with $14.4M in cash and cash equivalents and working capital of $18.1M. Notable growth was seen in water and wastewater tap fees, increasing to $5.3M from $1.2M year-over-year for the nine-month period.

Pure Cycle Corporation (NASDAQ:PCYO) ha riportato solidi risultati finanziari per il terzo trimestre 2025, segnando il suo 24° trimestre consecutivo di utile netto positivo. La società ha raggiunto un utile netto di 2,3 milioni di dollari nel terzo trimestre e di 7,0 milioni di dollari nei primi nove mesi terminati il 31 maggio 2025. I ricavi hanno toccato i 5,1 milioni di dollari nel terzo trimestre e 14,9 milioni di dollari nei nove mesi.

L'azienda prosegue nello sviluppo della sua Sky Ranch Master Planned Community, con la Fase 2A completata, la Fase 2B al 96% di completamento e la Fase 2C al 68%. Pure Cycle mantiene una solida posizione finanziaria con 14,4 milioni di dollari in liquidità e equivalenti e un capitale circolante di 18,1 milioni di dollari. Si è registrata una crescita significativa nelle tariffe per allacciamenti idrici e fognari, salite a 5,3 milioni di dollari rispetto a 1,2 milioni nello stesso periodo dell'anno precedente.

Pure Cycle Corporation (NASDAQ:PCYO) reportó sólidos resultados financieros para el tercer trimestre de 2025, marcando su 24º trimestre consecutivo con ingresos netos positivos. La compañía alcanzó un ingreso neto de 2,3 millones de dólares en el tercer trimestre y 7,0 millones de dólares en los nueve meses terminados el 31 de mayo de 2025. Los ingresos llegaron a 5,1 millones de dólares en el tercer trimestre y 14,9 millones en los nueve meses.

La empresa continúa desarrollando su Sky Ranch Master Planned Community, con la Fase 2A completada, la Fase 2B al 96% y la Fase 2C al 68% de avance. Pure Cycle mantiene una sólida posición financiera con 14,4 millones de dólares en efectivo y equivalentes y un capital de trabajo de 18,1 millones. Se observó un notable crecimiento en las tarifas por conexiones de agua y aguas residuales, que aumentaron a 5,3 millones desde 1,2 millones año tras año en el periodo de nueve meses.

Pure Cycle Corporation (NASDAQ:PCYO)� 2025� 3분기 강력� 재무 실적� 보고하며 24분기 연속 순이� 달성� 기록했습니다. 회사� 3분기� 230� 달러� 순이��, 2025� 5� 31� 종료� 9개월 동안 700� 달러� 순이�� 달성했습니다. 매출은 3분기� 510� 달러, 9개월 동안 1490� 달러� 이르렀습니�.

회사� Sky Ranch 마스� 플랜 커뮤니티 개발� 계속 진행 중이�, 2A 단계� 완료되었� 2B 단계� 96%, 2C 단계� 68% 완료되었습니�. Pure Cycle은 1440� 달러� 현금 � 현금� 자산1810� 달러� 운전자본으로 강력� 재무 상태� 유지하고 있습니다. 수도 � 폐수 연결 수수료가 전년 동기 대� 120� 달러에서 530� 달러� 크게 증가하는 � 눈에 띄는 성장� 있었습니�.

Pure Cycle Corporation (NASDAQ:PCYO) a publié de solides résultats financiers pour le troisième trimestre 2025, marquant son 24e trimestre consécutif de bénéfice net positif. La société a réalisé un bénéfice net de 2,3 millions de dollars au troisième trimestre et 7,0 millions de dollars sur les neuf premiers mois se terminant le 31 mai 2025. Le chiffre d'affaires a atteint 5,1 millions de dollars au troisième trimestre et 14,9 millions de dollars sur les neuf mois.

L'entreprise poursuit le développement de sa communauté planifiée Sky Ranch, avec la phase 2A achevée, la phase 2B à 96 % d'achèvement et la phase 2C à 68 %. Pure Cycle conserve une solide position financière avec 14,4 millions de dollars en liquidités et équivalents et un fonds de roulement de 18,1 millions de dollars. Une croissance notable a été observée dans les frais de branchement d'eau et d'eaux usées, passant de 1,2 million à 5,3 millions de dollars en glissement annuel sur la période de neuf mois.

Pure Cycle Corporation (NASDAQ:PCYO) meldete starke Finanzergebnisse für das dritte Quartal 2025 und verzeichnete damit das 24. Quartal in Folge mit positivem Nettogewinn. Das Unternehmen erzielte im dritten Quartal einen Nettogewinn von 2,3 Millionen US-Dollar und für die neun Monate bis zum 31. Mai 2025 7,0 Millionen US-Dollar. Der Umsatz betrug 5,1 Millionen US-Dollar im dritten Quartal und 14,9 Millionen US-Dollar in den neun Monaten.

Das Unternehmen entwickelt weiterhin seine Sky Ranch Master Planned Community, wobei Phase 2A abgeschlossen ist, Phase 2B zu 96 % und Phase 2C zu 68 % fertiggestellt sind. Pure Cycle verfügt über eine starke finanzielle Position mit 14,4 Millionen US-Dollar an liquiden Mitteln und einem Working Capital von 18,1 Millionen US-Dollar. Besonders stark wuchsen die Gebühren für Wasser- und Abwasseranschlüsse, die im neunmonatigen Vergleich von 1,2 Millionen auf 5,3 Millionen US-Dollar anstiegen.

Positive
  • None.
Negative
  • None.

Insights

Pure Cycle reports 24th consecutive profitable quarter with solid performance across diverse revenue streams despite market volatility.

Pure Cycle has delivered its twenty-fourth consecutive quarter of positive net income, reporting $2.3 million for Q3 2025, though this represents a year-over-year decrease from $2.8 million in Q3 2024. Total revenue for the quarter was $5.1 million, down from $7.6 million in the comparable period last year.

The company's business model demonstrates resilience through diversified revenue streams across three segments:

  • Water and wastewater resource development ($2.3 million in Q3)
  • Land development ($2.7 million in Q3)
  • Single-family rental business ($0.1 million in Q3)

Notably, water and wastewater tap fees showed remarkable growth, increasing to $1.7 million from $0.6 million in the same quarter last year. This 183% increase highlights the ongoing development at Sky Ranch. Meanwhile, lot sales revenue decreased to $2.5 million from $4.8 million, reflecting timing differences in finished lot deliveries rather than fundamental weakness.

The company's oil and gas royalty income has become a significant contributor, reaching $1.1 million for the quarter, substantially higher than the $392,000 reported in Q3 2024. This increase is attributed to six additional wells completed in 2024 that began producing during this fiscal year.

Pure Cycle maintains a strong balance sheet with $14.4 million in cash and working capital of $18.1 million, providing financial flexibility in a volatile market. This liquidity supports their ongoing development activities and potential acquisition opportunities.

The company continues to execute its multi-phase development strategy at Sky Ranch with varied completion percentages across different phases: Phase 2A (100%), Phase 2B (96%), Phase 2C (68%), and Phase 2D (29%). This phased approach allows Pure Cycle to adapt to market conditions while maintaining progress on their long-term development plans.

While water deliveries decreased to 76 acre-feet compared to 394 acre-feet in the prior year, this reduction was primarily due to decreased water sales to oil and gas operations, which are inherently variable. As Sky Ranch continues to develop, management expects residential water and wastewater service revenues to grow consistently.

DENVER, CO / / July 9, 2025 / Pure Cycle Corporation (NASDAQ Capital Market:PCYO) announced its financial results for the three and nine months ended May 31, 2025. Pure Cycle reported $2.3M of net income for the three months ended May 31, 2025, which marks our twenty-fourth consecutive fiscal quarter with positive net income. Pure Cycle is continuing to develop its Sky Ranch Master Planned Community, despite volatility in the market. We believe our segment pricing (entry level) lots and the low inventory of entry level housing in the Denver market continues to help Sky Ranch navigate a changing market better than other surrounding and significantly higher priced communities. We have completed the development of Phase 2A, and we are finishing our landscaping and warranty work on Phase 2B as our national homebuilder partners have begun construction in Phase 2B with nearly 75% of homes either sold or under construction. We are actively developing Phase 2C, with final paving underway, and we anticipate delivering finished lots by the end of fiscal 2025. Additionally, we have begun the utility work in Phase 2D and expect to complete these lots in the first half of fiscal 2026. Finally, we have started platting our next subphase, Phase 2E. We expect to have lots in Phase 2E ready for our national homebuilder partners by the end of calendar 2026 but plan to pace construction to match builder absorptions. Pure Cycle continues to drive income from its resource rich asset base and in the three and nine months ended May 31, 2025, we reported an increase in our royalty revenues from our oil and gas mineral interest at Sky Ranch, where an additional six wells were completed in 2024 that began producing during this fiscal year.

Our capital management and balance sheet strategy remains focused on growth and shareholder returns. We are prioritizing investment in our ongoing development projects while utilizing available liquidity to continue our share repurchase program and reserving sufficient capital for strategic development initiatives and land acquisitions.

Q3 and YTD 2025 Highlights

  • Revenues for the three and nine months ended May 31, 2025 of $5.1 million and $14.9 million, which drove pre-tax income of $3.0 million and $9.3 million;

  • Net income for the three and nine months ended May 31, 2025 of $2.3 million and $7.0 million;

  • Royalty income for the three and nine months ended May 31, 2025 of $1.1 million and $5.9 million;

  • EBITDA for the three and nine months ended May 31, 2025 of $3.6 million and $11.3 million (see table below for reconciliation of net income to EBITDA);

  • Cash & cash equivalents totaled $14.4 million as of May 31, 2025;

  • For the three and nine months ended May 31, 2025, we delivered 76 and 443 acre-feet of water.

Net Income to EBITDA Reconciliation

We continue our profitability as shown in the table below:

Three Months Ended

Nine Months Ended

(In thousands)

May 31, 2025

May 31, 2024

May 31, 2025

May 31, 2024

Net Income

$

2,256

$

2,825

$

7,002

$

5,008

Add back:
Interest expense, net

101

109

319

328

Taxes

737

1,027

2,275

1,805

Depreciation / amortization

534

561

1,677

1,579

EBITDA

$

3,628

$

4,522

$

11,273

$

8,720

Earnings per common share - basic and diluted
Basic

$

0.09

$

0.12

$

0.29

$

0.21

Diluted

$

0.09

$

0.12

$

0.29

$

0.21

Weighted average common shares outstanding:
Basic

24,076,022

24,087,170

24,077,188

24,085,578

Diluted

24,143,534

24,143,039

24,166,926

24,146,361

"We believe that with market volatility and weakening consumer confidence, our strong balance sheet, significant cash liquidity, entry level market segmentation and our just in time delivery of finished lots to our homebuilder partners continues to differentiate us as one of the regions premier land developers," commented Mark Harding, CEO of Pure Cycle. "Based on market data, very few land developers in the Denver market deliver finished lots and partner with homebuilders to deliver lots in annual just in time quantities which has led to our return buyer retention among our national homebuilder customers. We are pleased to continue to serve our homebuilder customers and deliver an outstanding master planned community," continued Mr. Harding.

Q3 and YTD 2025 Financial Summary

Revenues

For the three months ended May 31, 2025 and 2024, we reported total revenue of $5.1 million and $7.6 million with $2.3 million and $2.5 million being generated in our water and wastewater resource development segment, $2.7 million and $5.0 million generated by our land development segment, and $0.1 million and $0.1 million reported in our single-family rental business.

For the nine months ended May 31, 2025 and 2024, we reported total revenue of $14.9 million and $16.2 million with $8.0 million and $7.6 million being generated in our water and wastewater resource development segment, $6.5 million and $8.3 million generated by our land development segment, and $0.4 million and $0.4 million reported in our single-family rental business.

For the three months ended May 31, 2025 and 2024, we sold 40 and 20 water or water and wastewater taps for $1.7 million and $0.6 million. For the nine months ended May 31, 2025 and 2024, we sold 130 and 35 water or water and wastewater taps for $5.3 million and $1.2 million. As of May 31, 2025, we have sold 904 water and wastewater taps at Sky Ranch in Phases 1, 2A, 2B and 2C. Based on current prices and engineering estimates, we believe Phase 2 of Sky Ranch will generate more than $20 million in water and wastewater tap fee revenue and cash over the next three years.

As of May 31, 2025, the first development phase (509 lots) is complete and the second development phase (1,032 lots) is being developed in five subphases, referred to as Phase 2A (229 lots), Phase 2B (211 lots), Phase 2C (228 lots), Phase 2D (218 lots) and Phase 2E (146 lots). As of May 31, 2025, Phase 2A is 100% complete, Phase 2B is approximately 96% complete, Phase 2C is approximately 68% complete, Phase 2D is approximately 29% complete and Phase 2E is expected to begin development work in fiscal 2026. Phase 2B is substantially completed with some landscaping and warranty items remaining. Phase 2C is expected to be substantially completed by the end of Pure Cycle's fiscal 2025, Phase 2D is expected to be completed in fiscal 2026, and Phase 2E is expected to be completed by the end of calendar 2026.

As of May 31, 2025, the single-family rental business had 14 homes built and rented in Sky Ranch and 17 additional homes under contract to build in Phase 2B, all of which the Company believes will be available for rent in fiscal 2026. As noted in the prior quarters, due to the overwhelming demand for rental homes at Sky Ranch, we expect to have a total of 98 homes in Phases 1 and 2 with the ability to support more than 200 homes once Sky Ranch is built out.

"Pure Cycle is well positioned in the market to scale our land development activities to match market demands as we navigate a volatile market. Our earnings continue to showcase the strength and diversity of our portfolio of assets through royalty income and our water and wastewater infrastructure with high margins in water and wastewater tap sales," stated Marc Spezialy, CFO of Pure Cycle. "We are also pleased to announce that we have begun construction on our next group of 17 single-family homes to be built in Phase 2B, which will be available for rent in fiscal 2026," concluded Mr. Spezialy.

Working Capital

With the recent uncertainty in the capital markets our Company is well positioned with a strong balance sheet and working capital (current assets less current liabilities) of $18.1 million as of May 31, 2025, which includes $14.4 million of cash and cash equivalents. This allows us not only to execute delivering lots to our homebuilder customers but to capitalize on acquisition opportunities as they may become available.

Q3 and YTD 2025 Operational Summary

Water and Wastewater Resource Development

Water deliveries decreased for the three months ended May 31, 2025, to 76 acre-feet delivered as compared to 394 acre-feet delivered for 2024. Water deliveries decreased for the nine months ended May 31, 2025, to 443 acre-feet delivered as compared to 1,422 acre-feet delivered for 2024.The decreases were due to a decrease in water sold to oil and gas operations, which is not part of our recurring water revenue to residential customers. Oil and gas operations are highly variable and dependent on oil prices, demand for gas, and the timing of development of other leases in our service areas. As Sky Ranch continues to develop, we anticipate continued growth in our residential water and wastewater service revenues. The water and wastewater tap sales increased in 2025 to $1.7 million compared to $0.6 million in 2024 for the three months ended and increased in 2025 to $5.3 million compared to $1.2 million in 2024 for the nine months ended, primarily due to the timing of development activities in Phase 2B.

Land Development

For the three months ended May 31, 2025, lot sales revenue decreased to $2.5 million as compared to $4.8 million in 2024. For the nine months ended May 31, 2025, lot sales revenue decreased to $6.0 million as compared to $7.9 million in 2024. The decrease in lot sales revenue for the three and nine months is primarily due to the timing of finished lot deliveries. When we transfer title to lots to homebuilders under contracts where we remain obligated to deliver finished lots, the sales of such lots are recognized using the percentage of completion method. Therefore, revenue will fluctuate due to timing of construction activities as well as the number of lots under milestone payment contracts throughout Phase 2.

Single-Family Rentals

Rental income for the three and nine months ended May 31, 2025 and 2024 was consistent at $0.1 million for the three months ended and $0.4 million for the nine months ended as both periods represented the 14 completed homes in our portfolio. An additional 17 homes are under contract to be built in Phase 2B, which the Company believes will be available for rent in fiscal 2026.

Earnings Presentation Information

Pure Cycle will host an earnings presentation on Thursday July 10, 2025, at 8:30AM Eastern (6:30AM Mountain) to discuss the financial results and answer questions. For an interactive experience, including the ability to ask questions and view the slide presentation, please register and join the event via the link below. Call in access will be in listen-only mode. See below for event details. Additionally, we will post a detailed slide presentation on our website, which will provide an overview of Pure Cycle and present summary financial results and can be accessed at .

When: 8:30AM Eastern (6:30AM Mountain) on July 10, 2025

Event link:

Call in number: 872-240-8702 (access code: 339 096 271#)

Replay:

Other Important Information

The table below presents our consolidated results of operations for the three and nine months ended May 31, 2025 and 2024 (unaudited):

Three Months Ended

Nine Months Ended

(In thousands, except share information)

May 31, 2025

May 31, 2024

May 31, 2025

May 31, 2024

Revenues:
Metered water usage from:
Municipal customers

$

148

$

145

$

507

$

458

Commercial customers

149

1,432

1,324

5,045

Wastewater treatment fees

102

85

284

258

Water and wastewater tap fees

1,700

581

5,292

1,162

Lot sales

2,526

4,795

5,981

7,906

Project management fees

138

221

507

362

Single-family rentals

131

123

373

357

Special facility projects and other

246

222

619

639

Total revenues

5,140

7,604

14,887

16,187

Cost of revenues:
Water service operations

533

564

1,418

1,628

Wastewater service operations

237

173

642

513

Land development construction costs

437

1,192

2,060

1,961

Project management costs

106

154

360

401

Single-family rental costs

40

71

133

161

Depletion and depreciation

409

410

1,248

1,132

Other

121

174

576

406

Total cost of revenues

1,883

2,738

6,437

6,202

General and administrative expenses

1,798

1,647

6,295

5,082

Depreciation

125

151

429

447

Operating income

1,334

3,068

1,726

4,456

Other income (expense):
Interest income - related party

417

217

1,223

1,156

Interest income - Investments

210

279

675

873

Oil and gas royalty income, net

1,140

392

5,857

479

Oil and gas lease income, net

-

18

-

56

Other, net

(7

)

(13

)

115

121

Interest expense, net

(101

)

(109

)

(319

)

(328

)

Income from operations before income taxes

2,993

3,852

9,277

6,813

Income tax expense

(737

)

(1,027

)

(2,275

)

(1,805

)

Net income

$

2,256

$

2,825

$

7,002

$

5,008

Earnings per common share - basic and diluted
Basic

$

0.09

$

0.12

$

0.29

$

0.21

Diluted

$

0.09

$

0.12

$

0.29

$

0.21

Weighted average common shares outstanding:
Basic

24,076,022

24,087,170

24,077,188

24,085,578

Diluted

24,143,534

24,143,039

24,166,926

24,146,361

The following table presents our consolidated financial position as of May 31, 2025 (unaudited) and August 31, 2024 (audited):

(In thousands, except shares)

May 31, 2025

August 31, 2024

ASSETS:

(unaudited)

Current assets:
Cash and cash equivalents

$

14,392

$

21,946

Trade accounts receivable, net

1,331

1,472

Income taxes receivable

633

-

Prepaid expenses and other assets

781

530

Land under development

8,068

3,647

Reimbursable public improvements and project management fees

-

10,100

Total current assets

25,205

37,695

Restricted cash

6,065

3,412

Investments in water and water systems, net

64,954

60,486

Construction in progress

2,473

3,161

Single-family rental units

4,891

5,059

Land and mineral rights:
Held for development

4,513

3,683

Held for investment purposes

-

451

Held for sale

352

-

Other assets

1,326

1,164

Notes receivable - related parties, including accrued interest
Reimbursable public improvements and project management fees

40,600

30,864

Other

1,222

1,221

Operating leases - right of use assets

138

158

Total assets

$

151,739

$

147,354

LIABILITIES:
Current liabilities:
Accounts payable

$

2,607

$

1,948

Accrued liabilities

2,303

1,514

Accrued liabilities - related parties

911

2,208

Income taxes payable

-

1,442

Deferred lot sales revenue

984

2,173

Deferred water and other sales revenue

2

-

Debt, current portion

346

64

Total current liabilities

7,153

9,349

Debt, less current portion

6,512

6,821

Deferred tax liability, net

1,395

1,395

Lease obligations - operating leases, less current portion

4

87

Total liabilities

15,064

17,652

Commitments and contingencies
SHAREHOLDERS' EQUITY:
Series B preferred shares: par value $0.001 per share, 25 million authorized;
432,513 issued and outstanding (liquidation preference of $432,513)

-

-

Common shares: par value 1/3 of $.01 per share, 40.0 million authorized;
24,074,305 and 24,063,894 outstanding, respectively

80

80

Additional paid-in capital

175,419

175,125

Accumulated deficit

(38,824

)

(45,503

)

Total shareholders' equity

136,675

129,702

Total liabilities and shareholders' equity

$

151,739

$

147,354

Company Information

Pure Cycle continues to grow and strengthen its operations, grow its balance sheet, and drive recurring revenues. We operate in three distinct business segments, each of which complements the other. At our core, we are an innovative and vertically integrated wholesale water and wastewater service provider. In 2017, we launched our land development segment which develops master planned communities on land we own and to which we provide water and wastewater services. In 2021, we launched our newest line of business, the rental of single-family homes located at Sky Ranch, which provides long-term recurring revenues, furthers our land development operations, and adds more customers to our water resource segment.

Additional information, including our recent press releases and SEC filings, is available at , or you may contact our President, Mark W. Harding, or our CFO, Marc Spezialy, at 303-292-3456 or [email protected].

Forward-Looking Statements

This press release contains 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. Forward-looking statements are all statements, other than statements of historical facts, included in this press release that address activities, events or developments that we expect or anticipate will or may occur in the future, such as statements about the following: factors that differentiate us in the market and our belief that we are well positioned in the market; the timing of completion and availability for rent of our rental units; the number of rental units we may be able to add as Sky Ranch builds out; timing of development at Sky Ranch, including timing of delivery of finished lots and plans to pace construction to match builder absorptions; future water and wastewater tap sales and revenues; timing of future home construction by our home builder customers; the strength of the Sky Ranch market, including the demand for entry-level and rental homes; and forecasts about our expected financial results. The words "anticipate," "likely," "may," "should," "could," "will," "believe," "estimate," "expect," "plan," "intend," "potential" and similar expressions are intended to identify forward-looking statements. Investors are cautioned that forward-looking statements are inherently uncertain and involve risks and uncertainties that could cause actual results to differ materially. Factors that could cause actual results to differ from projected results include, without limitation: home mortgage interest rates, inflation, trade policies, tariffs, and other factors impacting the housing market and home sales; the risk factors discussed in Part I, Item 1A of our most recent Annual Report on Form 10-K for the fiscal year ended August 31, 2024; and those factors discussed from time to time in our press releases, public statement and documents filed or furnished with the U.S. Securities and Exchange Commission.

SOURCE: Pure Cycle Corporation



View the original on ACCESS Newswire

Pure Cycle Corp

NASDAQ:PCYO

PCYO Rankings

PCYO Latest News

PCYO Latest SEC Filings

PCYO Stock Data

265.56M
22.22M
3.5%
64.13%
0.8%
Utilities - Regulated Water
Water Supply
United States
WATKINS