Pure Cycle(PCYO) - 2026 Q1 - Quarterly Results

Financial Performance - Pure Cycle reported a net income of $4.5 million for the three months ended November 30, 2025, a 16% increase from the same period in 2024[1]. - Earnings per fully diluted common share increased to $0.19, up 19% from $0.16 in the same period in 2024[1]. - Total revenue for the three months ended November 30, 2025, was $9.1 million, representing a 59% increase from $5.8 million in the same period in 2024[4]. - Lot sales revenue increased to $6.0 million for the three months ended November 30, 2025, compared to $2.3 million in the same period in 2024[13]. - The company sold 51 water or wastewater taps for $1.7 million during the three months ended November 30, 2025, compared to 38 taps for $1.5 million in the same period in 2024[7]. Assets and Liabilities - As of November 30, 2025, cash and cash equivalents totaled $17.1 million, with working capital reported at $14.8 million[11]. - Total assets increased to $168,069,000 as of November 30, 2025, up from $162,279,000 on August 31, 2025, representing a growth of approximately 3.4%[18]. - Current assets decreased to $26,263,000 from $31,653,000, a decline of about 17.1%[18]. - The company reported an increase in accounts receivable, net, to $2,502,000, up from $1,330,000, reflecting a growth of approximately 88%[18]. - Total liabilities rose to $20,583,000 from $19,541,000, an increase of about 5.3%[18]. - The accumulated deficit improved to $(28,225,000) from $(32,790,000), indicating a reduction in losses[18]. Business Operations and Development - The company expects to complete Phase 2D of its development in fiscal 2026, with 218 lots currently under construction[10]. - Phase 2 of Sky Ranch is projected to generate over $19.0 million in additional tap fee revenue over the next three years[7]. - The single-family rental business had 19 homes built and rented or available for rent, with plans for an additional 40 homes in Phases 2B and 2C for delivery in fiscal 2026[9]. - The company is investing in improvements, including the construction of a new interchange at I-70 to facilitate further expansion of residential and commercial opportunities at Sky Ranch[5]. - The company operates in three business segments: wholesale water and wastewater services, land development, and single-family home rentals, which contribute to recurring revenues[20]. - The rental of single-family homes at Sky Ranch was launched in 2021, providing long-term recurring revenues and enhancing land development operations[20]. Market Outlook and Risks - The company anticipates future demand for water and wastewater services, as well as home construction by builder customers, which may positively impact revenues[22]. - The company is well-positioned in the market, with expectations for growth in rental units as Sky Ranch develops further[22]. - Forward-looking statements indicate potential risks including home mortgage interest rates and inflation that could affect financial results[22].