Pure Cycle(PCYO) - 2025 Q4 - Annual Results

Financial Performance - Pure Cycle reported a net income of $13.1 million for the year ended August 31, 2025, representing a 13% increase from 2024[1]. - Earnings per fully diluted common share increased to $0.54, up 12.5% from $0.48 in 2024[1]. - Total revenue for the year was $26.1 million, a 9% decrease from $28.7 million in 2024, while pre-tax income rose 12% to $17.5 million[3]. - Net income increased to $13,110,000 for 2025, compared to $11,613,000 in 2024, representing a growth of 12.9%[19]. - Basic and diluted earnings per share rose to $0.54 in 2025, up from $0.48 in 2024, reflecting an increase of 12.5%[19]. - The company reported an increase in interest income to $3,272,000 in 2025, compared to $2,837,000 in 2024, marking a growth of 15.4%[19]. Revenue Sources - Oil and gas royalty income surged by 738% to $6.7 million, compared to $0.8 million in 2024[3]. - Water and wastewater tap sales increased to 182 taps sold for $7.3 million, up from 73 taps for $3.4 million in 2024[8]. - Lot sales revenue decreased to $13.7 million in 2025 from $16.0 million in 2024 due to delays in Phase 2D[15]. - The land development segment generated $15,257,000 in revenues for 2025, down 13.3% from $17,599,000 in 2024[19]. Assets and Liabilities - Total assets as of August 31, 2025, were $162,279,000, an increase of 10.1% from $147,354,000 in 2024[21]. - Cash and cash equivalents totaled $21.9 million as of August 31, 2025[3]. - Cash and cash equivalents decreased slightly to $21,931,000 in 2025 from $22,113,000 in 2024[21]. - Total liabilities increased to $19,541,000 in 2025 from $17,652,000 in 2024, an increase of 10.7%[21]. - Working capital was reported at $20 million as of August 31, 2025[13]. Future Plans and Growth - The company expects to complete Phase 2D by the end of fiscal 2026 and Phase 2E by the end of fiscal 2027[9]. - Pure Cycle plans to ramp up its single-family rental segment, with 40 additional homes under contract for delivery in fiscal 2026[12]. - Future growth is anticipated through the development of rental units and expansion of land development operations at Sky Ranch[25]. - The company continues to expand its operations in the water and wastewater service sector, which remains a core business segment[23].