Pure Cycle Announces Financial Results For the Three and Six Months Ended February 28, 2026
Rhea-AI Summary
Pure Cycle (NASDAQ: PCYO) reported results for the three and six months ended February 28, 2026, with Q2 revenue $5.2M and YTD revenue $14.3M, representing increases of 29% and 47% versus prior year. Net income was $1.1M for Q2 and $5.7M YTD; diluted EPS was $0.05 and $0.23, respectively.
EBITDA rose to $2.21M (Q2) and $8.90M (YTD). Cash and cash equivalents were $4.8M with working capital of $3.8M. Sky Ranch development advanced (Phase 2D ~78% complete; Phase 2C ~91%), a December 2025 water-right settlement added 1,635 acre-feet, and 159 Phase 2E lots are planned for fiscal 2027.
Positive
- Revenue +29% (Q2) and +47% (YTD)
- Net income +37% (Q2) and +20% (YTD)
- EBITDA +23% (Q2) and +16% (YTD)
- New water right: 1,635 acre-feet added
- Undrawn working capital line of $9.9M
- Expected $18.9M milestone and finished-lot payments
Negative
- Cash down to $4.8M due to development and infrastructure investments
- Working capital modest at $3.8M versus near-term obligations
- Single-family rental expansion intentionally slowed due to regulatory uncertainty
News Market Reaction – PCYO
In the Apr 9 session, PCYO gained 0.94%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Mar 30 | Earnings date notice | Neutral | +1.5% | Announced timing and access details for upcoming Q2 2026 earnings presentation. |
| Jan 07 | Quarterly results | Positive | +4.8% | Reported Q1 2026 results with higher net income, EPS, and strong revenue growth. |
| Dec 30 | Earnings date notice | Neutral | -0.7% | Set release and call dates for Q1 2026 financial results and presentation. |
| Nov 12 | Annual results | Positive | -1.6% | Full-year 2025 results with higher net income, EPS, and EBITDA despite lower revenue. |
| Jul 09 | Quarterly results | Positive | -2.3% | Q3 2025 results showing continued positive net income and growing revenues. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings and earnings-related announcements have historically produced modest average moves (~0.34%), with both positive and negative single-day reactions.
Over the past several earnings-related events, Pure Cycle has repeatedly highlighted profitable growth and progress at its Sky Ranch development. Prior quarters showed rising net income, strong revenue expansion, and ongoing tap fee and lot sale activity. Price reactions have been mixed, with some positive moves on quarterly results and occasional pullbacks even on solid annual numbers. Today’s Q2 and year-to-date 2026 results continue the narrative of sustained profitability and advancing development phases, extending the streak of consecutive profitable quarters.
Key Terms
ebitda financial
acre-feet technical
working capital financial
single-family rental financial
water and wastewater taps technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
DENVER, April 08, 2026 (GLOBE NEWSWIRE) -- Pure Cycle Corporation (NASDAQ Capital Market: PCYO) (“Pure Cycle”, “we”, “us” or “our”) announced its financial results for the three and six months ended February 28, 2026. Pure Cycle reported
For the six months ended February 28, 2026, our cash balance was impacted by the acceleration of development activities at Sky Ranch as a result of the unseasonably mild winter, with Phase 2D now approximately
Our capital management and balance sheet strategy remains focused on growth and shareholder returns. We are prioritizing investment in our ongoing development projects, while utilizing available liquidity to continue our share repurchase program and reserving sufficient capital for strategic development initiatives and land acquisitions.
Q2 and YTD 2026 Highlights
- Revenue for the three and six months ended February 28, 2026 and 2025 of
$5.2 million and$14.3 million , and$4.0 million and$9.7 million , respectively (a29% increase for the three months and a47% increase for the six months). - Net income for the three and six months ended February 28, 2026 and 2025 of
$1.1 million and$5.7 million , and$0.8 million and$4.7 million , respectively (a37% increase for the three months and a20% increase for the six months). Pre-tax income was$1.5 million and$7.5 million , and$1.1 million and$6.3 million , respectively. - Earnings per fully diluted common share for the three and six months ended February 28, 2026 and 2025 of
$0.05 and$0.23 , and$0.03 and$0.20 , respectively. - EBITDA for the three and six months ended February 28, 2026 and 2025 of
$2.2 million and$8.9 million , and$1.8 million and$7.6 million , respectively (a23% increase for the three months and a16% increase for the six months) (see table below for reconciliation of net income to EBITDA); and - Cash & cash equivalents totaled
$4.8 million on February 28, 2026. - For the three and six months ended February 28, 2026, we delivered 272 and 418 acre-feet of water.
Net Income to EBITDA Reconciliation:
| Three Months Ended | Six Months Ended | |||||||||||
| (In thousands) | February 28, 2026 | February 28, 2025 | February 28, 2026 | February 28, 2025 | ||||||||
| Net Income | $ | 1,105 | $ | 809 | $ | 5,670 | $ | 4,746 | ||||
| Add back: | ||||||||||||
| Interest expense | 142 | 109 | 236 | 218 | ||||||||
| Taxes | 407 | 267 | 1,872 | 1,538 | ||||||||
| Depreciation / amortization | 556 | 618 | 1,122 | 1,143 | ||||||||
| EBITDA | $ | 2,210 | $ | 1,803 | $ | 8,900 | $ | 7,645 | ||||
| Earnings per common share - basic and diluted | ||||||||||||
| Basic | $ | 0.05 | $ | 0.03 | $ | 0.24 | $ | 0.20 | ||||
| Diluted | $ | 0.05 | $ | 0.03 | $ | 0.23 | $ | 0.20 | ||||
| Weighted average common shares outstanding: | ||||||||||||
| Basic | 24,101,754 | 24,083,718 | 24,090,861 | 24,077,780 | ||||||||
| Diluted | 24,171,858 | 24,196,178 | 24,158,145 | 24,177,677 | ||||||||
“While our unseasonably warm and dry winter in Denver may have impacted the ski season, it allowed us to significantly advance construction of Phase 2D lots ahead of schedule with
Q2 and YTD 2026 Financial Summary
Revenues
For the three months ended February 28, 2026 and 2025, we reported total revenue of
For the six months ended February 28, 2026 and 2025, we reported total revenue of
For the three and six months ended February 28, 2026 and 2025, we sold 44 and 95 water or water and wastewater taps and 52 and 90 water or water and wastewater taps, respectively, for
As of February 28, 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 February 28, 2026, Phase 2A is complete, Phase 2B is approximately
As of February 28, 2026, the single-family rental business had 19 homes built and rented or available for rent in Sky Ranch. We are currently under contract with several national home builders to construct 39 additional single-family homes in Phases 2B and 2C at Sky Ranch for delivery in fiscal 2026.
“We continued to achieve strong lot sales revenue in the second quarter by expanding our partnerships with national homebuilders and capitalizing on mild winter weather to maintain steady development activity year-round,” stated Marc Spezialy, CFO of Pure Cycle. “As our main development activities come to completion in the third quarter for Phase 2D, we will begin development activities on 159 lots in Phase 2E, which we are actively marketing to our national homebuilder partners," concluded Mr. Spezialy.
Working Capital
We reported working capital (current assets less current liabilities) of
Q2 and YTD 2026 Operational Summary
Water and Wastewater
Water deliveries increased for the three months ended February 28, 2026 to 272 acre-feet delivered as compared to 64 acre-feet delivered in the same period in 2025. Water deliveries increased for the six months ended February 28, 2026 to 418 acre-feet delivered as compared to 367 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 in the coming years. As Sky Ranch continues to develop, we anticipate continued growth in our residential water and wastewater service revenues. The water or water and wastewater tap sales decreased in 2026 to 44 taps compared to 52 taps in 2025 for the three months ended February 28 and increased in 2026 to 95 taps compared to 90 taps in 2025 for the six months ended February 28, primarily due to the timing of development activities in Phase 2C. Water and wastewater taps are sold to home builders at the time a building permit is issued and are dependent on when the home builder 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 February 28, 2026, Pure Cycle has 19 single-family detached homes which are rented under separate lease agreements. Pure Cycle generally rents its single-family properties under non-cancelable one-year lease agreements. Pure Cycle has contracts for the construction of 39 additional rental homes in Phases 2B and 2C, all of which the Company believes will be available for rent in fiscal 2026.
Earnings Presentation Information
Pure Cycle will host an earnings presentation on Thursday, April 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 April 9, 2026 | |
| Event link: | https://www.purecyclewater.com/Q22026 | |
| Call in number: | 872-240-8702 (access code: 415 477 947# ) | |
| 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 six months ended February 28, 2026 and 2025 (unaudited):
| Three Months Ended | Six Months Ended | |||||||||||||||
| (In thousands, except share information) | February 28, 2026 | February 28, 2025 | February 28, 2026 | February 28, 2025 | ||||||||||||
| REVENUES: | ||||||||||||||||
| Water and Wastewater | ||||||||||||||||
| Water and wastewater activities | $ | 1,329 | $ | 408 | $ | 2,141 | $ | 1,799 | ||||||||
| Water and wastewater tap fees | 1,626 | 2,126 | 3,296 | 3,592 | ||||||||||||
| Total water and wastewater | 2,955 | 2,534 | 5,437 | 5,391 | ||||||||||||
| Land Development | ||||||||||||||||
| Lot sales | 1,634 | 1,136 | 7,658 | 3,455 | ||||||||||||
| Project management fees | 211 | 116 | 507 | 369 | ||||||||||||
| Special facility projects and other | 219 | 91 | 421 | 290 | ||||||||||||
| Total land development | 2,064 | 1,343 | 8,586 | 4,114 | ||||||||||||
| Single-family rentals | 150 | 118 | 281 | 242 | ||||||||||||
| Total revenues | 5,169 | 3,995 | 14,304 | 9,747 | ||||||||||||
| COST OF REVENUES: | ||||||||||||||||
| Water and wastewater | 1,543 | 1,107 | 2,655 | 2,168 | ||||||||||||
| Lot development | 800 | 1,336 | 2,517 | 2,293 | ||||||||||||
| Single-family rental | 42 | 25 | 97 | 93 | ||||||||||||
| Total cost of revenues | 2,385 | 2,468 | 5,269 | 4,554 | ||||||||||||
| General and administrative expenses | 2,348 | 2,705 | 4,057 | 4,497 | ||||||||||||
| Depreciation | 173 | 149 | 332 | 304 | ||||||||||||
| Operating income | 263 | (1,327 | ) | 4,646 | 392 | |||||||||||
| Other income (expense): | ||||||||||||||||
| Interest income | 906 | 539 | 1,855 | 1,271 | ||||||||||||
| Interest expense | (142 | ) | (109 | ) | (236 | ) | (218 | ) | ||||||||
| Oil and gas royalty income, net | 519 | 1,910 | 1,259 | 4,717 | ||||||||||||
| Other, net | (34 | ) | 63 | 18 | 122 | |||||||||||
| Income from operations before income taxes | 1,512 | 1,076 | 7,542 | 6,284 | ||||||||||||
| Income tax expense | (407 | ) | (267 | ) | (1,872 | ) | (1,538 | ) | ||||||||
| Net income | $ | 1,105 | $ | 809 | $ | 5,670 | $ | 4,746 | ||||||||
| Earnings per common share - basic and diluted | ||||||||||||||||
| Basic | $ | 0.05 | $ | 0.03 | $ | 0.24 | $ | 0.20 | ||||||||
| Diluted | $ | 0.05 | $ | 0.03 | $ | 0.23 | $ | 0.20 | ||||||||
| Weighted average common shares outstanding: | ||||||||||||||||
| Basic | 24,101,754 | 24,083,718 | 24,090,861 | 24,077,780 | ||||||||||||
| Diluted | 24,171,858 | 24,196,178 | 24,158,145 | 24,177,677 | ||||||||||||
The following table presents our consolidated financial position as of February 28, 2026 (unaudited) and August 31, 2025 (audited):
| (In thousands, except shares) | February 28, 2026 | August 31, 2025 | ||||||
| ASSETS: | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 4,815 | $ | 21,931 | ||||
| Accounts receivable, net | 2,755 | 1,330 | ||||||
| Prepaid expenses and other assets | 637 | 1,004 | ||||||
| Land under development | 5,547 | 7,388 | ||||||
| Total current assets | 13,754 | 31,653 | ||||||
| Restricted cash | 6,782 | 6,448 | ||||||
| Investment in water and wastewater systems, net | 71,298 | 67,523 | ||||||
| Land and mineral rights held for development | 4,957 | 4,168 | ||||||
| Single-family rental units | 11,204 | 5,240 | ||||||
| Related party notes receivable, including accrued interest, less current portion | 56,289 | 45,002 | ||||||
| Other assets | 2,352 | 2,245 | ||||||
| Total assets | $ | 166,636 | $ | 162,279 | ||||
| LIABILITIES & SHAREHOLDERS’ EQUITY: | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 2,415 | $ | 3,518 | ||||
| Accrued and other liabilities | 3,201 | 4,335 | ||||||
| Deferred revenue | 2,815 | 3,355 | ||||||
| Debt, current portion | 1,488 | 411 | ||||||
| Total current liabilities | 9,919 | 11,619 | ||||||
| Debt, less current portion | 6,478 | 6,380 | ||||||
| Deferred tax liability, net | 1,541 | 1,541 | ||||||
| Lease obligations, less current portion | — | 1 | ||||||
| Total liabilities | 17,938 | 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; 24,103,908 and 24,066,805 outstanding, respectively | 80 | 80 | ||||||
| Additional paid-in capital | 175,859 | 175,448 | ||||||
| Accumulated deficit | (27,241 | ) | (32,790 | ) | ||||
| Total shareholders’ equity | 148,698 | 142,738 | ||||||
| $ | 166,636 | $ | 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 other. 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 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
