Pure Cycle Announces Financial Results for the Three Months Ended November 30, 2025

Core Insights - Pure Cycle Corporation reported a net income of $4.5 million for the three months ended November 30, 2025, representing a 16% increase from the same period in 2024, marking the twenty-sixth consecutive fiscal quarter with positive net income [1] - The company achieved earnings of $0.19 per fully diluted common share, up from $0.16 in the same period in 2024, reflecting a 19% increase [1] - Revenue for the same period was $9.1 million, a 59% increase compared to $5.8 million in 2024, driven by strong demand for entry-level lots at the Sky Ranch Master Planned Community [6][8] Financial Performance - Net income for Q1 2026 was $4.6 million, up from $3.9 million in Q1 2025, a 16% increase [6] - EBITDA for the three months ended November 30, 2025, was $6.7 million, down 12% from $7.6 million in the same period in 2024 [6] - Cash and cash equivalents totaled $17.1 million as of November 30, 2025 [6][13] Land Development - The company completed the delivery of the remaining finished lots in Phase 2C and closed on the initial plat payment with a new homebuilder partner in Phase 2D [2] - Phase 2D is expected to be substantially complete by the end of fiscal 2026, with 218 lots currently under construction [12] - The company has started platting an additional 159 lots in Phase 2E, expected to be completed in fiscal 2027 [2] Water and Wastewater Segment - Water and wastewater revenue for the three months ended November 30, 2025, was $2.5 million, compared to $2.9 million in the same period in 2024 [8][20] - The company sold 51 water or wastewater taps for $1.7 million during the quarter, an increase from 38 taps sold for $1.5 million in the same period in 2024 [9][15] - The average price of a Sky Ranch water and wastewater tap held at approximately $42,000 per tap during fiscal 2026 [15] Single-Family Rentals - The single-family rental business had 19 homes built and rented or available for rent as of November 30, 2025 [11] - Five townhomes were brought online during the first quarter, and the company is under contract with several national home builders to construct an additional 40 single-family detached homes [11][17] Strategic Partnerships - Pure Cycle has diversified its land development segment by partnering with two new national homebuilders, bringing the total to seven national builders [2] - The company continues to collaborate with established builders like Pulte Group and Oakwood to produce entry-level homes in the Denver metropolitan area [7]