Global Water Resources, Inc. ( GWRS ) is a water utility company in Arizona. It is easy to write GWRS off as “too hard to understand.” Its history, valuation, and recent developments together create a complex case. Although the revenue and earningsI focus on investment ideas about companies that pay a (healthy) dividend and have a clear potential for capital appreciation. I like to find good businesses which reward shareholders. The shares of the company should be for a temporary reason undervalued in relat ...

Global Water Resources, Inc. ( GWRS ) is a water utility company in Arizona. It is easy to write GWRS off as “too hard to understand.” Its history, valuation, and recent developments together create a complex case. Although the revenue and earningsI focus on investment ideas about companies that pay a (healthy) dividend and have a clear potential for capital appreciation. I like to find good businesses which reward shareholders. The shares of the company should be for a temporary reason undervalued in relat ...

Core Viewpoint - Global Water Resources reported significant growth in active service connections and capital investments, while facing challenges from rising operating expenses and regulatory lag impacting earnings [4][5][6]. Customer Growth - Total active service connections increased by 6.3% year-over-year to 68,577 as of December 31, 2025, with 3.2% organic growth excluding acquisitions [1][6]. - The company invested $67.3 million in infrastructure improvements to enhance service reliability [1][6]. Capital Investment - The company had a near-record year for capital spending, focusing on projects such as recommissioning a water reclamation facility and acquiring Tucson water systems [2][4]. - The collective rate base increased by $70 million, or 59%, across 2024 and 2025 [3][6]. Financial Performance - Revenue rose by 5.8% to $55.8 million, driven by the Tucson acquisition and organic growth [5][10]. - Operating expenses increased by approximately 12.2% to $48.6 million, leading to a decline in net income to $3.0 million from $5.8 million the previous year [5][12]. Regulatory Developments - The Arizona Corporation Commission (ACC) approved the Tucson acquisition and is reviewing rate relief requests for Santa Cruz and Palo Verde, with a hearing set for August 2026 [5][16][13]. - The company is focused on securing rate relief related to significant capital investments and rising expenses [13]. Market Conditions - Single-family housing permits declined nearly 20% in 2025, but the company anticipates long-term growth in the Phoenix MSA [7][8]. - The City of Maricopa was noted as one of the fastest-growing municipalities, with a growth rate of 7.4% in 2024 [9]. Future Outlook - The company plans to control expenses in 2026 and has reduced the pace of capital investments following heavy spending in 2025 [20]. - Management is exploring the use of artificial intelligence to improve customer service and operational efficiency [19].

Core Viewpoint - The company is experiencing significant changes in its financial strategy and operational performance due to regulatory challenges and market conditions, with a focus on expense control and long-term growth opportunities through legislative changes [1] Financial Performance - Management increased collective rate baseable assets by $70 million or 59% over 2024-2025, driven by the recommissioning of the Southwest plant and the City of Tucson acquisition [1] - The 2025 performance was characterized by 'regulatory lag,' where heavy upfront capital investments increased depreciation and operating expenses before new rates could be approved [1] - A $1.3 million one-time asset write-off occurred due to the recommissioning of the previously mothballed Southwest plant, which was originally built prior to the 2008 recession [1] Operational Challenges - Operating expenses were pressured by unprecedented growth in medical costs and increased personnel requirements following the integration of seven new Tucson water systems [1] Strategic Direction - Management is pivoting 2026 strategy toward strict expense control and a reduced pace of capital investment to mitigate current financial headwinds [1] - The 'Ag-to-Urban' water legislation is expected to drive long-term growth by converting historical farming land into residential developments within the company's service areas [1]

Financial Data and Key Metrics Changes - Total revenue for 2025 was $55.8 million, an increase of $3.1 million or 5.8% compared to 2024 [12] - Operating expenses increased approximately $5.3 million or 12.2% to $48.6 million compared to $43.3 million in 2024 [12] - Net income for 2025 was $3 million or $0.11 per diluted share, down from $5.8 million or $0.24 per diluted share in 2024 [14] - Adjusted EBITDA decreased 0.7% to $26.5 million from $26.7 million in the prior year [15] Business Line Data and Key Metrics Changes - The company increased its collective rate base by $70 million or 59% over 2024 and 2025 [4] - Total active service connections increased 6.3% to 68,577 at December 31, 2025 [9] - The company invested $67.3 million into infrastructure improvements in existing utilities [10] Market Data and Key Metrics Changes - The single-family dwelling unit market in the Phoenix Greater Metro Area saw a decrease of nearly 20% in building permits from 2024 to 2025 [10] - The Maricopa market realized 600 building permits in 2025, representing a 39% decrease from the same period in 2024 [11] - Despite the decline in permits, the company achieved a 3.2% year-over-year organic increase in active connections [11] Company Strategy and Development Direction - The company aims to control expenses in 2026 and has reduced the pace of capital investments [6] - The Arizona Governor signed water legislation known as Ag-to-Urban, expected to improve aquifer sustainability and support growth [7] - The company is focused on expanding its Total Water Management platform and applying expertise to new utilities [18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the need for new rates to keep up with investments and inflation [6] - The company believes the decline in permits is temporary and remains well-positioned for long-term growth in the Phoenix MSA [11] - Management expressed pride in the team's execution in 2025 and commitment to growth despite challenges [18] Other Important Information - The company faced increased operating expenses due to higher medical costs, legal expenses, and elevated municipal licensing fees [13] - Other expenses for 2025 were $3.2 million, up from $1.5 million in 2024, primarily due to a loss on asset disposals [14] - The company is actively engaging with regulatory stakeholders regarding rate relief for capital investments [16] Q&A Session Summary Question: Inquiry about future rate cases and potential changes - Management acknowledged the frustration with the current rate case process and noted the unique circumstances surrounding the recommissioning of the Southwest Plant [23][24] - They emphasized the importance of learning from each rate case and maintaining communication with regulatory stakeholders [26] Question: Use of AI in operations - Management discussed potential AI applications, particularly in call centers to improve customer service and operational efficiency [27][28] Question: Options for re-filing if the current rate case does not go as hoped - Management is evaluating options for re-filing and considering the best course of action if necessary [30] Question: Clarification on the rate base-able assets - Management reiterated that the $70 million of rate base-able assets are now in service, indicating a matter of timing for rate case outcomes [32]

Financial Data and Key Metrics Changes - Total revenue for 2025 was $55.8 million, an increase of $3.1 million or 5.8% compared to 2024 [12] - Operating expenses increased approximately $5.3 million or 12.2% to $48.6 million compared to $43.3 million in 2024 [12] - Net income for 2025 was $3 million or $0.11 per diluted share, down from $5.8 million or $0.24 per diluted share in 2024 [14] - Adjusted EBITDA decreased 0.7% to $26.5 million from $26.7 million in the prior year [15] Business Line Data and Key Metrics Changes - The company increased its collective rate base by $70 million or 59% over 2024 and 2025 [4] - Total active service connections increased 6.3% to 68,577 at December 31, 2025 [9] - The company invested $67.3 million into infrastructure improvements in existing utilities [10] Market Data and Key Metrics Changes - The single-family dwelling unit market in the Phoenix Greater Metro Area saw a decrease of nearly 20% in building permits from 2024 [10] - The Maricopa market experienced a 39% decrease in building permits from the previous year [11] - Despite the decline in permits, the company achieved a 3.2% year-over-year organic increase in active connections [11] Company Strategy and Development Direction - The company aims to control expenses in 2026 and has reduced the pace of capital investments [6] - The Arizona Governor signed significant water legislation known as Ag-to-Urban, expected to improve aquifer sustainability and support growth [7] - The company is focused on expanding its Total Water Management platform and applying expertise to new utilities [18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges of regulatory lag and the need for new rates to keep up with investments and inflation [5] - The company believes the decline in permits is temporary and remains well-positioned for long-term growth in the Phoenix MSA [11] - Management expressed confidence in the future, stating it is a matter of when, not if, the rate case will be resolved favorably [32] Other Important Information - The company faced increased operating expenses due to higher medical costs, professional fees, and utility costs [13] - Other expenses for 2025 were $3.2 million, up from $1.5 million in 2024, primarily due to asset disposals [14] - The company is actively engaging with regulatory stakeholders regarding rate relief for significant capital investments [16] Q&A Session Questions and Answers Question: Analysis on future rate cases - Management acknowledged the frustration with the current rate case and noted the unique circumstances surrounding the recommissioning of the Southwest Plant [23][24] Question: Use cases for AI in operations - Management discussed potential AI applications in call centers and operational efficiencies, emphasizing security considerations before broader implementation [27][28] Question: Options if the rate case does not go as hoped - Management is evaluating options for potential re-filing if necessary, but no specific plans were announced [30]

Financial Data and Key Metrics Changes - Total revenue for 2025 was $55.8 million, an increase of $3.1 million or 5.8% compared to 2024, driven by the City of Tucson acquisition, organic growth in connections, and higher rates [12] - Operating expenses rose by approximately $5.3 million or 12.2% to $48.6 million, with notable increases in depreciation and amortization expenses [12][13] - Net income for 2025 was $3 million or $0.11 per diluted share, down from $5.8 million or $0.24 per diluted share in 2024 [15] Business Line Data and Key Metrics Changes - The company increased its collective rate base by $70 million or 59% over 2024 and 2025, reflecting significant capital investments [4] - Total active service connections grew by 6.3% to 68,577 as of December 31, 2025, with a 3.2% growth rate excluding the Tucson acquisition [9][10] Market Data and Key Metrics Changes - The single-family dwelling unit market in the Phoenix Greater Metro Area saw a decrease of nearly 20% in building permits from 2024 to 2025, with Maricopa experiencing a 39% decrease [10][11] - Despite the decline in permits, the company reported a 3.2% year-over-year organic increase in active connections, indicating resilience in the market [11] Company Strategy and Development Direction - The company aims to control expenses in 2026 while reducing the pace of capital investments, focusing on long-term value creation [6] - The Arizona Governor signed the Ag-to-Urban water legislation in 2025, which is expected to enhance aquifer sustainability and support growth in service areas [7] - The company is committed to expanding its Total Water Management platform and applying expertise to new utilities, which is seen as beneficial for stakeholders [19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by rising expenses and the need for new rates to keep pace with investments and inflation [5][6] - The company remains optimistic about long-term growth in the Phoenix MSA, despite temporary declines in permit activity [11] Other Important Information - Adjusted net income for 2025 was $3.9 million or $0.14 per diluted share, down from $6.3 million or $0.26 per diluted share in 2024 [15] - Adjusted EBITDA decreased by 0.7% to $26.5 million from $26.7 million in the prior year [16] Q&A Session Summary Question: Inquiry about future rate cases and potential changes - Management acknowledged the frustration with the current rate case process and emphasized the uniqueness of the situation regarding the recommissioning of the Southwest Plant [24][26] Question: Use of AI in operations - Management discussed potential AI applications, particularly in call centers, to improve customer service and operational efficiency, while noting security considerations [28][29] Question: Options if the rate case does not proceed as hoped - Management is evaluating options for a potential refiling if necessary, but no specific announcements were made [30]

Exhibit 99.1 Global Water Resources Reports Full Year 2025 Results PHOENIX, AZ – March 4, 2026 – Global Water Resources, Inc. (NASDAQ: GWRS), a pure-play water resource management company, reported results for the full year ended December 31, 2025. Unless otherwise noted, all comparisons are to the corresponding period in the prior year. The company will hold a conference call at 1:00 p.m. Eastern time tomorrow to discuss the results (see dial-in information below). Financial Highlights Operational Highligh ...

Service Connections and Growth - As of December 31, 2025, the total active service connections across the company's utilities reached 68,577, with a service area of 418 square miles [45]. - The City of Maricopa experienced a 3.5% annualized growth in active service connections, adding 9,008 connections from December 2021 to December 2025 [46]. - GW-Saguaro and GW-Farmers served 1,565 and 3,510 active connections, respectively, as of December 31, 2025, in Pima County [55]. - GW-Belmont has agreements to serve approximately 100,000 anticipated home sites, indicating significant future growth potential [52]. Revenue and Rate Cases - GW-Santa Cruz and GW-Palo Verde contributed approximately 40.2% and 48.7% to the company's total revenue for the year ended December 31, 2025, respectively [47]. - The company has approved rate cases with an approved return on equity of 9.20% for GW-Santa Cruz, GW-Palo Verde, GW-Belmont, and GW-Turner, effective July 1, 2022 [76]. - GW-Farmers has an approved incremental annual revenue of $1.1 million, with rates effective from May 1, 2025 [76]. - The final phase-in of rates under the rate case was effective January 1, 2024, with the majority of the revenue increase phased in on January 1, 2025 [78]. - The company is in the process of a rate case for GW-Santa Cruz, with details pending [76]. Water Supply and Management - The company has obtained a Designation of Assured Water Supply (DAWS) in the Maricopa/Casa Grande region for approximately 22,900 acre-feet of water use, with 9,501 acre-feet utilized in 2025 [88][89]. - A new DAWS for part of the Pima County service territory was obtained in December 2024, covering approximately 5,300 acre-feet of water use, with 985 acre-feet pumped in 2025 [90]. - The Ag-to-Urban program, effective September 26, 2025, allows landowners to convert agricultural water rights for new development, potentially supporting over 1 million new homes [93]. - The company relies predominantly on groundwater and recycled water, with plans to augment supplies with surface water in the future [98]. - The company employs a Total Water Management model, achieving lower per-unit potable water use rates compared to average developments [89]. Regulatory Compliance and Environmental Relations - Compliance with the National Primary Drinking Water Regulations (NPDWR) is expected to require increased capital expenditures for PFAS-contaminated water treatment [69]. - Regulatory compliance is critical, with ongoing relationships with environmental agencies to ensure adherence to water quality and safety standards [83][94]. Competition and Market Dynamics - The company faces competition for new service areas and acquisitions from other water utilities, including EPCOR Water Arizona Inc. and Arizona Water Company [103]. - Customer demand for water is higher during warmer months due to increased irrigation and outdoor use, which can affect revenue based on weather conditions [105]. Workforce and Employee Relations - As of December 31, 2025, the company employed 126 full-time and 3 part-time employees, reflecting a 3% increase from the previous year due to hiring for newly acquired water systems [108]. - The company offers a comprehensive compensation and benefits package, including share-based compensation and a Company matched 401(k) plan, to attract and retain top talent [107]. - The company considers its employee relations to be good, with no employees participating in collective bargaining agreements [108]. - The company has expanded its workforce primarily due to the acquisition of water systems from the City of Tucson [108]. Company History and Structure - The company was organized in 2003 to manage a portfolio of water and wastewater utilities in the southwestern U.S. [109]. - The company completed its initial public offering in Canada on December 30, 2010, with its common shares listed on the Toronto Stock Exchange [110]. - On May 3, 2016, the company underwent a reorganization transaction, merging with GWR Global Water Resources Corp., resulting in the latter ceasing to exist [111]. - The company is governed by the corporate laws of the State of Delaware following its reorganization [111]. Technology and Innovation - The comprehensive technology platform includes SCADA, AMI, and GIS technologies, enhancing operational efficiency and customer service [100]. - The company has focused on innovation and standardization as key contributors to its success [107].

Core Viewpoint - Global Water Resources, Inc. reported a 5.8% increase in total revenue for the year ended December 31, 2025, driven by acquisitions and organic growth, despite a significant decrease in net income due to increased expenses related to capital investments and operational costs [8][22][24]. Financial Highlights - Total revenue rose to $55.8 million from $52.7 million in 2024, primarily due to the acquisition of seven water systems and increased consumption [8][14]. - Net income decreased by 48.9% to $3.0 million, or $0.11 per share, compared to $5.8 million, or $0.24 per share in 2024 [22][45]. - Adjusted net income fell to $3.9 million, or $0.14 per diluted share, down from $6.3 million, or $0.26 per diluted share in 2024 [24][48]. - Adjusted EBITDA decreased by 0.7% to $26.5 million from $26.7 million in 2024 [23][48]. - The company declared three monthly cash dividends of $0.02533 per common share, totaling $0.30396 on an annualized basis [25]. Operational Highlights - The company achieved a 6.3% increase in total active service connections, reaching 68,577 by December 31, 2025 [27]. - Water consumption increased by 5.9% year-over-year to 4.28 billion gallons in 2025 [8]. - Capital investments for the year totaled $67.3 million, with $17.7 million invested in Q4 2025 alone [8][14]. Management Commentary - The CEO highlighted successful initiatives that grew the rate base and emphasized the need for new rates to keep pace with investments and inflation [4][6]. - The company is working through the commission's rate case process for its largest utilities, anticipating a resolution in 2026 [7][10]. Business Strategy - The near-term growth strategy focuses on increasing service connections, improving operational efficiencies, and pursuing strategic acquisitions [26]. - The company aims to consolidate operations and rates across its customer base to enhance efficiency and value [14]. Industry Context - Arizona's economy is projected to grow, with an expected increase of 486,000 jobs through 2033, significantly impacting demand for water services [13]. - The Phoenix metropolitan area is experiencing population growth, with projections of reaching 5.8 million by 2030 and 6.5 million by 2040 [28].