PURE CYCLE CORP SEC 10-Q Report

Pure Cycle Corp, a company specializing in water and wastewater resource development and land development, has released its Form 10-Q report for the third quarter of fiscal year 2025. The report highlights significant financial and operational metrics, providing insights into the company's performance and future outlook.

Financial Highlights

Total Revenue: $5.1 million, decreased by 32% compared to the same period last year due to a decline in land development revenue.

Total Revenue: $14.9 million, decreased by 8% for the nine months ended May 31, 2025, primarily due to a decrease in land development revenue.

Operating Income: $1.3 million, decreased by 57% for the three months ended May 31, 2025, due to lower land development revenue.

Net Income: $2.3 million, decreased by 20% for the three months ended May 31, 2025, primarily due to a decrease in land development revenue.

Net Income: $7.0 million, increased by 40% for the nine months ended May 31, 2025, primarily due to an increase in oil and gas royalty income.

Basic EPS: $0.09, decreased by 25% for the three months ended May 31, 2025.

Diluted EPS: $0.09, decreased by 25% for the three months ended May 31, 2025.

Basic EPS: $0.29, increased by 38% for the nine months ended May 31, 2025.

Diluted EPS: $0.29, increased by 38% for the nine months ended May 31, 2025.

Business Highlights

Revenue Segments: The company operates in two main segments: Water and Wastewater Resource Development, and Land Development. The Water and Wastewater segment includes providing services to municipal and commercial customers, while the Land Development segment focuses on developing the Sky Ranch Master Planned Community.

Sales Units: During the nine months ended May 31, 2025, the company sold 130 water taps and 127 wastewater taps, primarily at Sky Ranch and Wild Pointe. Additionally, 442 acre-feet of water were sold, generating significant revenue from metered water and wastewater treatment fees.

Single-Family Rentals: The company has 14 single-family homes rented under one-year lease agreements and is expanding this business line with 17 additional homes under construction in Phase 2B of Sky Ranch, expected to be available for rent in fiscal 2026.

Land Development Progress: The Sky Ranch development is progressing with Phase 2A completed, Phase 2B approximately 96% complete, Phase 2C 68% complete, and Phase 2D 29% complete. Phase 2E is expected to begin in fiscal 2026.

Future Outlook: The company anticipates continued growth in its land development and single-family rental segments, with plans to expand the Sky Ranch community and increase the number of rental homes. The company is also evaluating the impact of the One Big Beautiful Bill Act on its operations.

Operational Challenges: The housing market faces challenges due to high mortgage interest rates and macroeconomic conditions, but the company remains optimistic about long-term growth due to favorable demographics and a supply-demand imbalance in the housing market.

Water and Wastewater Operations: The company continues to provide wholesale water and wastewater services, leveraging its extensive water rights and infrastructure to serve the Denver metropolitan area, with a focus on sustainable and reliable service delivery.

SEC Filing: PURE CYCLE CORP [ PCYO ] - 10-Q - Jul. 09, 2025