Pure Cycle Announces Financial Results For the Three and Nine Months Ended May 31, 2026 and Announces a Board of Directors Transition
Rhea-AI Summary
Pure Cycle (NASDAQ: PCYO) reported strong Q3 and nine-month 2026 results, with net income of $2.9 million and $8.6 million, up 31% and 23% year over year. Revenue grew 60% and 51% to $8.2 million and $22.5 million, driven by land development and water sales.
EBITDA rose to $4.7 million for the quarter and $13.6 million year to date. The Sky Ranch Phase 2D and 2E developments advanced, water deliveries to oil and gas customers jumped, and single-family rentals reached 38 leased homes. Director Daniel R. Kozlowski resigned effective July 7, 2026.
Positive
- Revenue up 60% in Q3 and 51% year to date to $8.2M and $22.5M
- Net income up 31% in Q3 and 23% year to date to $2.9M and $8.6M
- EBITDA increased to $4.7M in Q3 and $13.6M year to date
- Water deliveries rose to 631 acre-feet in Q3 and 1,050 year to date
- Lot sales revenue up to $3.0M in Q3 and $10.7M year to date
- Working capital of $5.4M and $8.4M cash plus $10M undrawn credit line
Negative
- Cash balance declined from August 31, 2025 due to higher capital investments
- Single-family rental expansion paused beyond 33 planned additional units
- Phase 2E development proceeding without signed builder contracts, increasing exposure to demand timing
- Housing market described as facing affordability headwinds and soft consumer confidence
- Oil and gas water demand noted as highly variable and dependent on external factors
News Market Reaction – PCYO
In the Jul 9 session, PCYO gained 1.41%, reflecting a mild positive market reaction. Argus tracked a trough of -12.2% from its starting point during tracking. Our momentum scanner triggered 4 alerts that day, indicating moderate trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jun 30 | Earnings schedule | Neutral | -2.0% | Set dates for Q3 2026 results release and annual Investor Day. |
| Apr 08 | Q2 2026 results | Positive | +0.9% | Reported higher Q2 and YTD revenue, net income, and EBITDA versus prior year. |
| Mar 30 | Earnings schedule | Neutral | +1.5% | Announced timing and access details for Q2 2026 earnings presentation. |
| Jan 07 | Q1 2026 results | Positive | +4.8% | Q1 revenue and net income rose year over year; Sky Ranch progressed. |
| Dec 30 | Earnings schedule | Neutral | -0.7% | Provided Q1 2026 earnings release and presentation dates and participation details. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings-related and scheduling headlines have historically produced modest share-price moves that skew slightly positive for Pure Cycle.
Key Terms
ebitda financial
percentage-of-completion method financial
non-gaap financial measure financial
working capital financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
DENVER, July 08, 2026 (GLOBE NEWSWIRE) -- Pure Cycle Corporation (NASDAQ Capital Market: PCYO) (“Pure Cycle”, the “Company”, “we”, “us” or “our”) announced its financial results for the three and nine months ended May 31, 2026. Pure Cycle reported
For the nine months ended May 31, 2026, our cash balance reflected the accelerated pace of land development at Sky Ranch, where an unseasonably mild winter allowed us to advance our construction schedule. Phase 2D is now approximately
Our cash balance during the period was also impacted by continued investment in new water and wastewater infrastructure within the Sky Ranch community and in our single-family rental business. We hold contracts to construct 23 of the 33 additional rental units planned in Phases 2C and 2D, the majority of which we expect to be available for rent in calendar 2026, and as units are completed we will continue to finance them under our SFR Facility Agreement, replenishing the cash advanced during construction. As we have previously disclosed, we have elected to pause further expansion of our single-family rental segment beyond the units currently under contract, both to assess the impact of the administration's comments on potential future regulation and to better evaluate the segment's return on investment and its contribution to shareholder value.
We continue to manage our balance sheet to support growth while returning capital to shareholders. Our ongoing development priorities include land development for future phases at Sky Ranch and investments in water and wastewater infrastructure to support future years of tap sales and to meet the capacity requirements of our oil and gas customers. We intend to continue repurchasing shares under our existing program while reserving sufficient liquidity to fund these projects and selective land acquisitions.
Board of Directors Transition
The Company announced that Daniel R. Kozlowski has notified the Board of his decision to resign as a director of the Company, effective July 7, 2026. As a significant shareholder, Mr. Kozlowski provided valuable insights and direction to the Board throughout his tenure, and his contributions have been greatly appreciated. The Board thanks Mr. Kozlowski for his service and wishes him well in his future endeavors. The Board will conduct a search for Mr. Kozlowski’s successor and believes that a candidate who brings a shareholder perspective will be a valuable member of the Board.
Q3 and YTD 2026 Highlights
- Revenue for the three and nine months ended May 31, 2026 and 2025 of
$8.2 million and$22.5 million , and$5.1 million and$14.9 million , respectively (a60% increase for the three months and a51% increase for the nine months). - Net income for the three and nine months ended May 31, 2026 and 2025 of
$2.9 million and$8.6 million , and$2.3 million and$7.0 million , respectively (a31% increase for the three months and a23% increase for the nine months). Pre-tax income was$3.9 million and$11.4 million , and$3.0 million and$9.3 million , respectively. - Earnings per fully diluted common share for the three and nine months ended May 31, 2026 and 2025 of
$0.12 and$0.36 , and$0.09 and$0.29 , respectively. - EBITDA for the three and nine months ended May 31, 2026 and 2025 of
$4.7 million and$13.6 million , and$3.6 million and$11.3 million , respectively (a29% increase for the three months and a21% increase for the nine months) (see table below for reconciliation of net income to EBITDA). - Cash & cash equivalents totaled
$8.4 million on May 31, 2026; and - For the three and nine months ended May 31, 2026, we delivered 631 and 1,050 acre-feet of water.
Net Income to EBITDA Reconciliation and EPS:
| Three Months Ended | Nine Months Ended | |||||||||||||||
| (In thousands) | May 31, 2026 | May 31, 2025 | May 31, 2026 | May 31, 2025 | ||||||||||||
| Net Income | $ | 2,948 | $ | 2,256 | $ | 8,618 | $ | 7,002 | ||||||||
| Add back: | ||||||||||||||||
| Interest expense | 157 | 101 | 393 | 319 | ||||||||||||
| Taxes | 955 | 737 | 2,827 | 2,275 | ||||||||||||
| Depreciation / amortization | 625 | 534 | 1,747 | 1,677 | ||||||||||||
| EBITDA | $ | 4,685 | $ | 3,628 | $ | 13,585 | $ | 11,273 | ||||||||
| Earnings per common share - basic and diluted | ||||||||||||||||
| Basic | $ | 0.12 | $ | 0.09 | $ | 0.36 | $ | 0.29 | ||||||||
| Diluted | $ | 0.12 | $ | 0.09 | $ | 0.36 | $ | 0.29 | ||||||||
| Weighted average common shares outstanding: | ||||||||||||||||
| Basic | 24,103,966 | 24,076,022 | 24,095,277 | 24,077,188 | ||||||||||||
| Diluted | 24,163,015 | 24,143,534 | 24,159,163 | 24,166,926 | ||||||||||||
EBITDA is a non-GAAP financial measure used by management to compare our performance from period to period without regard to taxes, interest expense and certain non-cash expenses. EBITDA is a supplemental measure of our performance and should be considered together with our results of operation as reported under GAAP.
“Our unseasonably mild winter set the stage for a productive third quarter, allowing us to advance Phase 2D toward substantial completion and to begin development of our next 159 lots in Phase 2E. Delivering finished lots to our homebuilder partners ahead of schedule has enabled them to open new model homes and advance their spring and summer selling season at Sky Ranch. We also look forward to opening our new charter high school this fall in partnership with National Heritage Academy, completing a full, walkable K-12 campus that further distinguishes Sky Ranch as one of the most affordable master planned communities in the Denver metropolitan area," commented Mark Harding, CEO of Pure Cycle. "While the housing market continues to experience headwinds from affordability challenges and soft consumer confidence, we continue to pace our lot deliveries to our homebuilder customers in annual, just-in-time increments, which minimizes inventory carry and continues to keep our builders’ costs down for our entry-level product to market, reinforcing the strength of our business model. In our single-family rental segment, demand remains strong, with
Q3 and YTD 2026 Financial Summary
Revenues
For the three months ended May 31, 2026 and 2025, we reported total revenue of
For the nine months ended May 31, 2026 and 2025, we reported total revenue of
During the three months ended May 31, 2026 and 2025, the Company sold a total of 66 and 40 water taps, respectively, generating
As of May 31, 2026, the first development phase (509 lots) is complete and the second development phase (1,031 lots) is being developed in five subphases, referred to as Phase 2A (229 lots), Phase 2B (211 lots), Phase 2C (228 lots), Phase 2D (204 lots) and Phase 2E (159 lots). As of May 31, 2026, Phase 2A is complete, Phase 2B is approximately
As of May 31, 2026, the single-family rental business had 39 homes built in Sky Ranch, with 38 rented and one available for sale. We are currently under contract with several national homebuilders to construct 23 of the 33 additional single-family rental homes planned in Phases 2C and 2D at Sky Ranch, the majority of which we expect to be available for rent in calendar 2026.
“Our third quarter results highlight the strength and diversification of our asset base, as strong lot sales to our national homebuilder partners were complemented by a significant increase in water deliveries to our oil and gas customers. We continued to grow net income through the first nine months of fiscal 2026 while navigating a dynamic housing market, underscoring the resilience of our land development, water and wastewater utilities, and single-family rental segments," stated Marc Spezialy, CFO of Pure Cycle. "With Phase 2D nearing completion, we have begun development of the 159 lots in Phase 2E, which we are actively marketing to our national homebuilder partners. We also continue to scale our single-family rental segment, having completed and rented 38 homes to date and working toward a total of 71 as we add units in Phases 2C and 2D," concluded Mr. Spezialy.
Working Capital
We reported working capital (current assets less current liabilities) of
Q3 and YTD 2026 Operational Summary
Water and Wastewater
Water deliveries increased for the three months ended May 31, 2026 to 631 acre-feet delivered as compared to 76 acre-feet delivered in the same period in 2025. Water deliveries increased for the nine months ended May 31, 2026 to 1,050 acre-feet delivered as compared to 443 acre-feet delivered in the same period in 2025. The increase in water deliveries is primarily due to an increase in demand from our oil and gas customers. Oil and gas operations are highly variable and dependent on oil prices, demand for gas, and timing of development of other leases in our service areas; however, our current expectation is for continued demand for oil and gas water sales for the remainder of 2026. As Sky Ranch continues to develop, we anticipate continued growth in our residential water and wastewater service revenues. Water or water and wastewater tap sales increased in 2026 to 66 taps compared to 40 taps in 2025 for the three months ended May 31 and increased in 2026 to 161 taps compared to 130 taps in 2025 for the nine months ended May 31, primarily due to the timing of finished lot deliveries at Sky Ranch. Water and wastewater taps are sold to homebuilders at the time a building permit is issued and are dependent on when the homebuilder constructs homes; therefore, the timing of tap sales will fluctuate from quarter to quarter.
Land Development
Lot sales revenue increased to
Single Family Rentals
As of May 31, 2026, Pure Cycle has 38 single-family homes, paired homes or townhomes which are rented under separate lease agreements, with one additional home available for sale. Pure Cycle generally rents its single-family properties under non-cancelable one-year lease agreements. Pure Cycle has contracts for the construction of 23 of the 33 additional rental homes planned in Phases 2C and 2D, the majority of which the Company believes will be available for rent in calendar 2026. When combined with the 38 units already built and rented, these 33 additional homes will bring the total single-family rental homes to 71.
Earnings Presentation Information
Pure Cycle will host an earnings presentation on Thursday, July 9, 2026, at 8:30AM Eastern (6:30AM Mountain) to discuss the financial results and answer questions. For an interactive experience, including the ability to ask questions and view the slide presentation, please register and join the event via the link below. Call in access will be in listen-only mode. See below for event details. Additionally, we will post a detailed slide presentation on our website, which will provide an overview of Pure Cycle and present summary financial results and can be accessed at www.purecyclewater.com.
| When: | 8:30AM Eastern (6:30AM Mountain) on July 9, 2026 |
| Event link: | https://www.purecyclewater.com/Q32026 |
| Call in number: | 872-240-8702 (access code: 491 324 508# ) |
| Replay: | https://www.purecyclewater.com/investors/news-events/ir-calendar |
Other Important Information
The table below presents our consolidated results of operations for the three and nine months ended May 31, 2026 and 2025 (unaudited):
| Three Months Ended | Nine Months Ended | |||||||||||||||
| (In thousands, except share information) | May 31, 2026 | May 31, 2025 | May 31, 2026 | May 31, 2025 | ||||||||||||
| REVENUES: | ||||||||||||||||
| Water and Wastewater: | ||||||||||||||||
| Water and wastewater activities | $ | 2,401 | $ | 429 | $ | 4,542 | $ | 2,228 | ||||||||
| Water and wastewater tap fees | 2,258 | 1,700 | 5,554 | 5,292 | ||||||||||||
| Total water and wastewater | 4,659 | 2,129 | 10,096 | 7,520 | ||||||||||||
| Land Development: | ||||||||||||||||
| Lot sales | 3,006 | 2,526 | 10,664 | 5,981 | ||||||||||||
| Project management fees | 137 | 138 | 644 | 507 | ||||||||||||
| Special facility projects and other | 189 | 216 | 610 | 506 | ||||||||||||
| Total land development | 3,332 | 2,880 | 11,918 | 6,994 | ||||||||||||
| Single-family Rentals | 231 | 131 | 512 | 373 | ||||||||||||
| Total revenues | 8,222 | 5,140 | 22,526 | 14,887 | ||||||||||||
| COST OF REVENUES: | ||||||||||||||||
| Water and Wastewater | 1,943 | 1,195 | 4,598 | 3,363 | ||||||||||||
| Land Development | 1,916 | 648 | 4,433 | 2,941 | ||||||||||||
| Single-family Rentals | 78 | 40 | 175 | 133 | ||||||||||||
| Total cost of revenues | 3,937 | 1,883 | 9,206 | 6,437 | ||||||||||||
| General and administrative expenses | 1,940 | 1,798 | 5,997 | 6,295 | ||||||||||||
| Depreciation | 231 | 125 | 563 | 429 | ||||||||||||
| Operating income | 2,114 | 1,334 | 6,760 | 1,726 | ||||||||||||
| Other income (expense): | ||||||||||||||||
| Interest income | 943 | 627 | 2,798 | 1,898 | ||||||||||||
| Interest expense | (157 | ) | (101 | ) | (393 | ) | (319 | ) | ||||||||
| Oil and gas royalty income, net | 977 | 1,140 | 2,236 | 5,857 | ||||||||||||
| Other, net | 26 | (7 | ) | 44 | 115 | |||||||||||
| Income from operations before income taxes | 3,903 | 2,993 | 11,445 | 9,277 | ||||||||||||
| Income tax expense | (955 | ) | (737 | ) | (2,827 | ) | (2,275 | ) | ||||||||
| Net income | $ | 2,948 | $ | 2,256 | $ | 8,618 | $ | 7,002 | ||||||||
| Earnings per common share - basic and diluted | ||||||||||||||||
| Basic | $ | 0.12 | $ | 0.09 | $ | 0.36 | $ | 0.29 | ||||||||
| Diluted | $ | 0.12 | $ | 0.09 | $ | 0.36 | $ | 0.29 | ||||||||
| Weighted average common shares outstanding: | ||||||||||||||||
| Basic | 24,103,966 | 24,076,022 | 24,095,277 | 24,077,188 | ||||||||||||
| Diluted | 24,163,015 | 24,143,534 | 24,159,163 | 24,166,926 | ||||||||||||
The following table presents our consolidated financial position as of May 31, 2026 (unaudited) and August 31, 2025 (audited):
| (In thousands, except shares) | May 31, 2026 | August 31, 2025 | ||||||
| ASSETS: | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 8,440 | $ | 21,931 | ||||
| Accounts receivable, net | 2,486 | 1,330 | ||||||
| Prepaid expenses and other assets | 554 | 1,004 | ||||||
| Land under development | 4,131 | 7,388 | ||||||
| Total current assets | 15,611 | 31,653 | ||||||
| Restricted cash | 6,193 | 6,448 | ||||||
| Investment in water and wastewater systems, net | 72,272 | 67,523 | ||||||
| Land and mineral rights held for development | 5,718 | 4,168 | ||||||
| Single-family rental units | 14,565 | 5,240 | ||||||
| Related party notes receivable, including accrued interest, less current portion | 59,060 | 45,002 | ||||||
| Other assets | 2,559 | 2,245 | ||||||
| Total assets | $ | 175,978 | $ | 162,279 | ||||
| LIABILITIES & SHAREHOLDERS’ EQUITY: | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 2,670 | $ | 3,518 | ||||
| Accrued and other liabilities | 3,307 | 4,335 | ||||||
| Deferred revenue | 2,753 | 3,355 | ||||||
| Debt, current portion | 1,454 | 411 | ||||||
| Total current liabilities | 10,184 | 11,619 | ||||||
| Debt, less current portion | 12,669 | 6,380 | ||||||
| Deferred tax liability, net | 1,541 | 1,541 | ||||||
| Lease obligations, less current portion | — | 1 | ||||||
| Total liabilities | 24,394 | 19,541 | ||||||
| Series B preferred shares: par value 432,513 issued and outstanding (liquidation preference of | — | — | ||||||
| Common shares: par value 1/3 of $.01 per share, 40.0 million authorized; 24,097,370 and 24,066,805 outstanding, respectively | 80 | 80 | ||||||
| Additional paid-in capital | 175,876 | 175,448 | ||||||
| Accumulated deficit | (24,372 | ) | (32,790 | ) | ||||
| Total shareholders’ equity | 151,584 | 142,738 | ||||||
| $ | 175,978 | $ | 162,279 | |||||
Company Information
Pure Cycle continues to grow and strengthen its operations, grow its balance sheet, and drive recurring revenues. We operate in three distinct business segments, each of which complements the others. At our core, we are an innovative and vertically integrated wholesale water and wastewater service provider. In 2017, we launched our land development segment, which develops master planned communities on land we own and to which we provide water and wastewater services. In 2021, we launched our newest line of business, the rental of single-family homes located at Sky Ranch, which provides long-term recurring revenues, furthers our land development operations, and adds more customers to our water resource segment.
Additional information, including our recent press releases and SEC filings, is available at www.purecyclewater.com, or you may contact our President, Mark W. Harding, or our CFO, Marc Spezialy, at 303-292-3456 or info@purecyclewater.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are all statements, other than statements of historical facts, included in this press release that address activities, events or developments that we expect or anticipate will or may occur in the future, such as statements about the following: the timing of completion and availability for rent of our rental units; the number of rental units we may add as Sky Ranch builds out; timing of development at Sky Ranch, including timing of delivery of finished lots and plans to pace construction to match builder absorptions; future water and wastewater tap sales and revenues; expected receipt of milestone and other payments; and anticipated future economic conditions; the strength of the Sky Ranch market, including the demand for entry-level and rental homes; future demand for oil and gas water; and forecasts about our expected financial results. The words "anticipate," "likely," "may," "should," "could," "will," "believe," "estimate," "expect," "plan," "intend," "potential" and similar expressions are intended to identify forward-looking statements. Investors are cautioned that forward-looking statements are inherently uncertain and involve risks and uncertainties that could cause actual results to differ materially. Factors that could cause actual results to differ from projected results include, without limitation, changes in interest rates, inflation, trade policies, tariffs, conflicts in the Middle East, and other factors impacting the housing market, home sales, the demand for water by the oil and gas industry and other aspects of our business; uncertainties regarding our ability to continue our development activities as anticipated; the risk factors discussed in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended August 31, 2025; and other factors discussed from time to time in our press releases, public statements and documents filed or furnished with the U.S. Securities and Exchange Commission.
SOURCE: Pure Cycle Corporation
