Surging water sales lift Pure Cycle (NASDAQ: PCYO) Q3 2026 profit
Rhea-AI Filing Summary
Pure Cycle Corporation reported strong growth for Q3 and the first nine months of fiscal 2026 and announced a board transition. Net income reached $2.9 million for the quarter and $8.6 million year to date, up 31% and 23% from 2025. Diluted EPS rose to $0.12 for the quarter and $0.36 year to date, increases of 33% and 24%. Total revenue grew to $8.2 million in Q3 and $22.5 million year to date, gains of 60% and 51%, driven by higher land development activity and sharply higher water and wastewater revenue tied to oil and gas demand. The company continues to advance its Sky Ranch development and single-family rental program while maintaining positive EBITDA. Director Daniel R. Kozlowski resigned from the board effective July 7, 2026, with no disagreement reported.
Positive
- Strong top- and bottom-line growth: Q3 revenue rose 60% to $8.2 million and nine‑month revenue grew 51% to $22.5 million, while net income and EPS increased more than 20% versus 2025, highlighting momentum across water, land development, and rental segments.
Negative
- None.
Insights
Pure Cycle posted robust revenue and earnings growth driven by water and land development.
Pure Cycle delivered Q3 revenue of $8.2 million, up 60%, and nine‑month revenue of $22.5 million, up 51% versus 2025. Net income rose to $2.9 million for the quarter and $8.6 million year to date, with diluted EPS of $0.12 and $0.36.
Growth was broad-based. Water and wastewater revenue increased significantly, helped by higher oil and gas water demand, while land development at Sky Ranch drove lot sales. Single‑family rentals added recurring income as 38 homes were rented and more units are under construction.
Working capital was $5.4 million with $8.4 million in cash and cash equivalents as of May 31 2026. The company also has an undrawn $10.0 million credit line and expects about $14.8 million of milestone and lot payments over the next 12 months, supporting ongoing development and infrastructure investment.
8-K Event Classification
Key Figures
Key Terms
EBITDA financial
tap fee revenues financial
working capital financial
non-GAAP financial measure regulatory
deferred revenue financial
Earnings Snapshot
FAQ
How did Pure Cycle (PCYO) perform financially in Q3 2026?
What are Pure Cycle’s year-to-date 2026 results through May 31?
How important were water and wastewater operations to PCYO’s 2026 results?
What progress is Pure Cycle making at its Sky Ranch development?
How is Pure Cycle’s single-family rental segment performing?
Did Pure Cycle announce any board changes in this 8-K filing?
What is Pure Cycle’s liquidity position as of May 31, 2026?
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
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Securities registered pursuant to Section 12(b) of the Act:
(Title of each class) | (Trading Symbol(s)) | (Name of each exchange on which registered) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth Registrant as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth Registrant
If an emerging growth Registrant, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
This current report on Form 8-K is filed by Pure Cycle Corporation (the “Registrant” or “Pure Cycle”), a Colorado corporation, in connection with the matters described herein
Item 2.02 Results of Operations and Financial Condition.
On July 8, 2026, the Registrant issued a press release announcing its financial results for the three and nine months ended May 31, 2026. A copy of the press release is furnished as Exhibit 99.1 hereto, and is incorporated herein by reference.
In accordance with General Instruction B.2 of Form 8-K, the press release furnished as Exhibit 99.1 to this current report on Form 8-K shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall such information or exhibit be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended (the “Securities Act”) or the Exchange Act, except as shall be expressly set forth by specific reference in any such filing.
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
(b) On July 7, 2026, Daniel R. Kozlowski notified the Board of Directors (the “Board”) of the Registrant of his resignation from the Board, effective immediately.
Mr. Kozlowski’s resignation did not result from any disagreement with the Registrant on any matter relating to the Registrant’s operations, policies or practices.
Item 7.01Regulation FD Disclosure
On July 9, 2026, the Registrant presented and posted on its website a presentation summarizing its operations and financial results for the three and nine months ended May 31, 2026 (the “Earnings Presentation”). The Earnings Presentation is furnished as Exhibit 99.2 to this Form 8-K and is incorporated herein by reference.
The information contained in the Earnings Presentation is summary information and should be read in conjunction with Pure Cycle’s filings with the Securities and Exchange Commission and other public announcements that Pure Cycle may make by press release or otherwise from time to time. The Earnings Presentation will be posted in the Investor Relations section of Pure Cycle’s website, www.purecyclewater.com.
The information contained in this Item 7.01 of Form 8-K, including the accompanying Exhibit 99.2 is being furnished, and shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section. The information contained in the presentation shall not be incorporated by reference into any filing under the Securities Act, or the Exchange Act, whether made before or after the date hereof, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01Financial Statements and Exhibits.
(d)Exhibits
Exhibit No. |
| Description |
99.1 | Press Release dated July 8, 2026, announcing earnings for the three and nine months ended May 31, 2026 | |
99.2 | Three and nine months ended May 31, 2026 earnings presentation | |
104 | Cover Page Interactive Data File (the cover page XBRL tags are embedded in the inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: July 9, 2026
| PURE CYCLE CORPORATION | ||
By: | /s/ Marc S. Spezialy | ||
Marc S. Spezialy | |||
Vice President and Chief Financial Officer | |||
Exhibit 99.1
Pure Cycle Announces Financial Results
For the Three and Nine Months Ended May 31, 2026 and Announces a Board of Directors Transition
DENVER, CO / GLOBE NEWSWIRE / July 8, 2026 – 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 $2.9 million and $8.6 million of net income for the three and nine months ended May 31, 2026, respectively, which is a 31% and 23% increase in net income from the same periods in 2025 and marks the twenty-eighth consecutive fiscal quarter with positive net income. Pure Cycle reported $0.12 and $0.36 of earnings per fully diluted common share, which is up from $0.09 and $0.29 in the same periods in 2025, a 33% and 24% increase, respectively. Total revenue for the three and nine months ended May 31, 2026 grew 60% and 51%, respectively, over the prior-year periods, driven by growth across both our land development and water segments. Lot sales revenue increased 19% for the quarter and 78% year to date on accelerated development activity at Sky Ranch, while water and wastewater segment revenue increased 119% and 34%, respectively, on higher oil and gas water demand. Our diversified water and land platform was on full display this quarter, as steady, annual-cadence lot deliveries to our national homebuilder partners were complemented by a sharp increase in water sales to oil and gas operators. Monetizing demand across multiple end markets allows us to grow earnings while navigating cyclical trends in the housing industry.
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 84% complete, Phase 2C is approximately 95% complete, and we expect to substantially complete Phase 2D by the end of fiscal 2026 and collect the related contractual milestone and finished-lot payments with minimal remaining development costs. We have also begun construction activities in Phase 2E, where we expect to complete approximately 159 lots in fiscal 2027, paced to match builder absorption. We typically sign a builder contract before advancing development and recognize revenue under the percentage-of-completion method; with Phase 2E, while we have several builders who have expressed interest, we have chosen to continue development ahead of a signed commitment to take advantage of our seasonal construction windows to be able to complete finished lots for delivery in fiscal 2027. While this departs from our usual process, it reflects our conviction to invest in our business segments developing high demand entry level lots at Sky Ranch and allows us to pace lot construction to Colorado's seasonal construction window.
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
| Ø | 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 (a 60% increase for the three months and a 51% increase for the nine months). |
| Ø | 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 (a 31% increase for the three months and a 23% 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. |
| Ø | 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. |
| Ø | 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 (a 29% increase for the three months and a 21% increase for the nine months) (see table below for reconciliation of net income to EBITDA). |
| Ø | Cash & cash equivalents totaled $8.4 million on May 31, 2026; and |
| Ø | 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.
2
“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 95% of our units leased prior to completion; we continue to manage the pace of new completions given ongoing uncertainty regarding the federal government's plans to regulate institutional ownership of rental homes and are selling a portion of our reserved lots in Phases 2C and 2D to our homebuilder customers," continued Mr. Harding. "A highlight of the quarter was a significant increase in water sales to our oil and gas customers, validating the investments we continue to make in our water rights and delivery systems to capture growing industrial water demand. Strong stewardship of our liquidity and balance sheet continues to allow us to capitalize on these opportunities while reinvesting in our remaining land development phases, our planned I-70 interchange, and the valuable commercial opportunities at Sky Ranch," commented Mr. Harding.
Q3 and YTD 2026 Financial Summary
Revenues
For the three months ended May 31, 2026 and 2025, we reported total revenue of $8.2 million and $5.1 million, respectively, with $4.7 million and $2.1 million being generated in our water and wastewater resource development segment, $3.3 million and $2.9 million in our land development segment, and $0.2 million and $0.1 million in our single-family rental business.
For the nine months ended May 31, 2026 and 2025, we reported total revenue of $22.5 million and $14.9 million, respectively, with $10.1 million and $7.5 million being generated in our water and wastewater resource development segment, $11.9 million and $7.0 million in our land development segment, and $0.5 million and $0.4 million in our single-family rental business.
During the three months ended May 31, 2026 and 2025, the Company sold a total of 66 and 40 water taps, respectively, generating $1.9 million and $1.4 million in tap fee revenues, respectively. During the three months ended May 31, 2026 and 2025, the Company sold a total of 48 and 40 wastewater taps, respectively, generating $0.4 million and $0.3 million in tap fee revenues, respectively. During the nine months ended May 31, 2026 and 2025, the Company sold a total of 161 and 130 water taps, respectively, generating $4.6 million and $4.3 million in tap fee revenues, respectively. During the nine months ended May 31, 2026 and 2025, the Company sold a total of 117 and 127 wastewater taps, respectively, generating $1.0 million and $1.0 million in tap fee revenues, respectively. As of May 31, 2026, we have sold 1,197 water and wastewater taps at Sky Ranch in Phases 1, 2A, 2B, 2C and 2D. Based on current prices and engineering estimates, we believe Phase 2 of Sky Ranch will produce additional revenue of more than $19.0 million in water and wastewater tap fee revenue over the next three years.
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 99% complete, Phase 2C is approximately 95% complete, and Phase 2D is approximately 84% complete. Phases 2B and 2C are substantially completed with some landscaping and warranty items remaining. Phase 2D is expected to be completed in fiscal 2026, and Phase 2E is expected to be completed in fiscal 2027.
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.
3
“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 $5.4 million as of May 31, 2026, with $8.4 million of cash and cash equivalents. The decrease in cash from August 31, 2025 is primarily due to significant investment in single-family rental construction, water and wastewater infrastructure, and advances to the Sky Ranch CAB for public improvements, partially offset by $7.1 million of proceeds from our SFR Facility Agreement. As of May 31, 2026, we have an undrawn capacity of $10.0 million under a working capital line of credit and expect to receive approximately $14.8 million in milestone and finished lot payments from our homebuilder customers over the next 12 months, which, combined with anticipated tap fee payments, we will use to fund our operations and future development obligations.
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 $3.0 million for the three months ended May 31, 2026 compared to $2.5 million in the same period in 2025. Lot sales revenue increased to $10.7 million for the nine months ended May 31, 2026 compared to $6.0 million in the same period in 2025. Favorable weather conditions allowed us to advance our lot development schedule at Sky Ranch during the winter months, which accelerated revenue recognition on a percentage of completion basis during the three and nine months ended May 31, 2026. We expect to be substantially complete with the delivery of all 204 lots in Phase 2D during fiscal 2026. Despite lots being transferred to the homebuilders, we will continue to conduct minor construction activities to complete Phases 2B, 2C and 2D and to turn over the completed infrastructure to the applicable governmental agency for maintenance.
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.
4
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
5
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 |
6
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 $0.001 per share, 25 million authorized; | |
| — | |
| — |
Common shares: par value 1/3 of $.01 per share, 40.0 million authorized; | |
| 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 |
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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
8
| PURE CYCLE Exhibit 99.2 CORPO:RATION FINANC AL RESULTS Q3-2026 - EARNINGS PRESENTATION Presented By: MARK HARDING |
| PURE CYCLE CORPORATION PAGE 2 FORWARD LOOKING STATEMENT Statements that are not historical tacts contained or incorporated by reference in this presentation are "forward-looking statements" ("FLS"} within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21 C of the Securities Exchange Act of 1934 as amended. FLS involve risks and uncertainties that could cause actual results to differ from projected results. The words "anticipate," "believe,'' "estimate," "expect," "plan," "intend" and similar expressions, as they relate to us, are intended to identify FLS. Such statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions. We are not able to predict all factors that may affect future results. We cannot assure you that any of our expectations will be realized. Our actual results could differ materially from those discussed in or implied by these forward-looking statements. Factors that may cause actual rnsults to dirffer materially from those contemplated by such FLS include, without limitation: the ri sk factors discussed in our most recent Annual Report on Form 10-K; the timingr of new home construction and other development in the areas where we may sell our water, which in turn may be impacted by credit availability; popt.Jllation growth; employment rates; greneraI1 economic conditions; the market price of water; changes in customer consumption patterns; changes in applicable statutory and regulatory requirements; changes in governmental policies and procedures; uncertainties in the estimation of water available under decrees; uncertainties in the estimation of costs of delivery of water and treatment of wastewater; uncertainties in the estimation of the servi'Ce life of our systems; uncertainties in the estimation of costs of construction projects; uncertainties in the amount and timingr of reimbursable public improvement payments: uncertainty in the single family home rental market and our ability to rent homes in a timely manner or at the amount we project; the strength and financial resources of our competitors; our ability to find and retain skilled personnel; climatic and weather conditions, including flood, droughts and freezing conditions; labor relations; availability and cost of labor, material and equipment; delays in anticipated permit and construction dates; environmental risks and regulations; our ability to raise capital; our ability to negotiate contracts with new customers; and uncertainties in water court rulings; and other factors discussed from time to time in our press releases, public statements and documents filed or furniished with the SEC. |
| MARK W. HARDING President, CEO, and Director Mark is an exceptional leader who has significantly shaped Pure Cycle's success. Under his 36-year tenure, the company has successfully acquired over $160 million in water and land interests. His vision and strategic acumen have been instrumental in the company's growth and impact. MARC SPEZIALY VP, CFO, Principal Accounting Officer, Principal Financial Officer Marc brings over 20 years of financial expertise. He manages our financial operations and single-family rentals. Marc obtained his bachelor's degree in Accounting and Finance from the University of San Francisco and is a licensed Certified Public Accountant. BRENT BROUILLARD Vice President, Engineering Brent Brouillard, Vice President of Engineering at Pure Cycle since 2017, oversees the planning, design, and operation of water and wastewater systems in the Denver-Metro area. A licensed Professional Engineer with fifteen years’ experience, he holds degrees in Civil Engineering and Hydrology from the University of Wyoming and Colorado School of Mines. DIRK LASHNITS Vice President, Land Development Dirk is a seasoned leader with a Civil Engineering background and over two decades of local land development experience. He skillfully guides land development, entitlements, and construction, playing a vital role in advancing corporate objectives, risk management, and project success. PURE CYCLE CORPORATION PAGE 3 Management Team |
| PURE CYCLE CORPORATION PAGE 4 BOARD OF DIRECTORS Mark W. Harding Patrick J. Beirne Susan D. Heitmann Wanda J. Abel Frederick A. Fendel III President and CEO Chair of the Board Director and Chair of the Audit Committee Jeffrey G. Sheets Director Director and Chair of the Nominating Director and Governance Committee I I I I I I |
| INVESTMENT SNAPSHOT PURE CYCLE CORPORATION PAGE 5 Pure Cycle has posted net income for seven consecutive years, demonstrating a durable and resilient earnings model. Revenues from water and wastewater utilities, rental income, and service fees underwrite financial predictability. As of Q3 ‘26, $14.6M in cash and restricted cash. $59.1M Note Receivable enabling flexibility in capital allocation decisions. Phases 1 & 2 development of approximately 1,500 lots across multiple years ensures revenue continuity into FY26 and beyond. 28 Straight Profitable Quarters Recurring Revenue Base Sky Ranch Development Visibility Capital Position & Liquidity |
| 3rd Quarter Results PURE CYCLE CORPORATION PAGE 6 CONSOLIDATED METRICS Q3 2026 results reflect higher revenue, driven primarily by an increase in water sales to oil and gas operators and continued land development of Phase 2D. Gross profit was affected by land development costs, which can fluctuate from quarter to quarter based on the types of costs incurred and the percentage of costs eligible for reimbursement. $7,604 $5,140 $8,222 $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 Q3 2024 Q3 2025 Q3 2026 QoQ Q3 Revenue Revenue $4,866 $3,257 $4,285 $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 Q3 2024 Q3 2025 Q3 2026 QoQ Q3 Gross Profit ■ ■ Gross Profit |
| PURE CYCLE CORPORATION PAGE 7 CONSOLIDATED METRICS Q3 2026 net income increased approximately 31% year over year to $2.9 million, with EPS of $0.12, up from $0.09 in Q3 2025, reflecting higher profitability. $2,825 $2,256 $2,948 $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 Q3 2024 Q3 2025 Q3 2026 QoQ Q3 Net Income Net Income $0.12 $0.09 $0.12 $0.00 $0.02 $0.04 $0.06 $0.08 $0.10 $0.12 $0.14 Q3 2024 Q3 2025 Q3 2026 QoQ Q3 EPS EPS 3rd Quarter Results ■ ■ |
| YEAR TO DATE RESULTS PURE CYCLE CORPORATION PAGE 8 CONSOLIDATED METRICS As of Q3 2026, approximately 77% of the full-year revenue guidance and 69% of the gross profit forecast have been achieved. This compares favorably to prior years, reflecting stronger early-year contribution driven by the timing of finished lot deliveries and strong water sales to oil and gas operators. $26,087 $22,526 $6,633 $29,159 2025 2026 REVENUE Actual to Date Remaining Forecast Total Forecast $16,030 $13,320 $5,954 $19,274 2025 2026 GROSS PROFIT Actual to Date Forecast Remaining Total Forecast ■ ■ ■ ■ |
| YEAR TO DATE RESULTS PURE CYCLE CORPORATION PAGE 9 CONSOLIDATED METRICS As of Q3 2026, approximately 71% of the full-year net income and 71% of the EPS guidance have been achieved, representing a stronger early-year contribution compared to FY 2025, when earnings were more back-half weighted. $13,110 $8,618 $3,586 $12,204 2025 2026 NET INCOME Actual to Date Remaining Forecast Total Forecast $0.54 $0.36 $0.15 $0.51 2025 2026 BASIC EPS Actual to Date Total Total Forecast ■ ■ - - |
| Water Utilities |
| Base utility fees and service charges add steady income, smoothing quarterly earnings volatility. Industrial water sales to oil & gas operations generate incremental, high-margin income tied to drilling and fracking, further strengthening the return on Pure Cycle’s water assets. Incremental taps deliver high-margin contribution as infrastructure investment outpaced tap connections. WATER & WASTEWATER SEGMENT PERFORMANCE PURE CYCLE CORPORATION PAGE 11 DOMESTIC INDUSTRIAL CONNECTIONS Recurring Utility Revenues Oil & Gas Water Sales Customer Growth |
| WATER REVENUE PURE CYCLE CORPORATION PAGE 12 CONSOLIDATED METRICS - 1,000 2,000 3,000 4,000 5,000 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 WATER UTILITY CUSTOMER GROWTH Actual Projected $992 $1,331 $1,612 $4,770 $897 $2,930 $1,162 $5,292 $5,554 $6,924 $7,520 $10,096 YTD 2024 YTD 2025 YTD 2026 WATER REVENUES BY TYPE (000S) Recurring W/WW O&G Tap Fees 22% Customer CAGR Avg Customer Annual Revenue $1,500 Recurring water and wastewater revenue increased approximately 21% from 9mo 2025 to 9mo 2026, demonstrating consistent growth in the core utility business. Water segment revenues remain strong consisting of tap fee revenue from multiple phases of Sky Ranch being delivered as well as increased demand for Industrial water sales due to drilling in our service area. This combination supports a growing recurring base while capturing near-term value from system expansion. ■ ■ ■ ■ ■ |
| PURE CYCLE CORPORATION PAGE 13 $2,647 $5,550 $939 $2,930 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 FY 2023 FY 2024 FY 2025 FY 2026 Oil and Gas Water Sales by Quarter (in 000s) 9 mo FY 26 > 250 WELLS DRILLED TO DATE OIL RIG CAN DRILL 60 WELLS PER YEAR WE CAN PROVIDE WATER TO MORE THAN 200 SQUARE MILES IN ADAMS & ARAPAHOE COUNTIES AVERAGE $250,000 OF WATER SALES PER WELL WE PROVIDE RAW WATER TO O&G OPERATORS FOR DRILLING Oil and gas water sales are driven by drilling activity and can vary meaningfully year to year. While volumes declined in FY 2025 and early FY 2026 due to reduced drilling, activity has resumed with a dedicated rig to Lowry through the remainder of 2026 and strong oil prices bolstering the remaining year’s activity. |
| PURE CYCLE CORPORATION PAGE 14 We continue to invest in our systems with a current book value of $60.5M which can produce over 3.0M gallons of water per day. We estimate our portfolio can serve approximately 60,000 connections, generating approximately $2.3 billion in revenues based on current rates. To date, we have added around 1,818 connections, representing 3.0% of our overall capacity. 95.5% 2.3% 2.8% 4.5% PORTFOLIO CAPACITY At Buildout Current Remaining Capacity Sold To Date CAPACITY AND PRODUCTION 0% 20% 40% 60% 80% 100% 1050 2577 Yearly Acre Feet Production as of Q3-2026 AF Used AF Available ■ ■ , , ,, , , , , _,,/ , , , , ,, ,, , ■ |
| Land Development |
| PURE CYCLE CORPORATION PAGE 16 LAND DEVELOPMENT Phase 2D: 204 Lots: 84% complete by Q3 2026; $11.1M milestone payments received, $9.7M remaining. Visibility into FY27: Land development continuing as final 2D and 2E milestones are completed. FY2026 continued Lot Production: Phase 2E – 159 lots grading nearly 60% with lot deliveries in FY’27. Phase 2C: 228 Lots: 95% complete by Q3 2026; $17.3M revenue payments received. |
| PURE CYCLE CORPORATION PAGE 17 LAND DEVELOPMENT REVENUE $8,906 $6,994 $11,918 $- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 YTD 2024 YTD 2025 YTD 2026 YTD Total Land Development Revenue (000s) $687 $2,150 Lot Revenue Contribution by Phase Q3 2026 (000s) Phase 2B Phase 2C Phase 2D Land development revenue increased significantly in the first 9 months of FY 2026, driven by higher finished lot deliveries. Revenue was primarily generated from Phase 2D, with some landscaping completion in Phase 2C, reflecting the continued progression of Phase 2 development. Period-over-period land development revenue increased to $11.9 million, up materially from prior-year periods due to delivery timing. ■ ■ ■ |
| PAGE 18 Phase 2A & 2B — Complete +$18.4M Lot Revenue +$6.3M Tap Fees +$300K/yr SFR Rents +$343K/yr W/WW Sales ✓ COMPLETE +$17.3M Lot Revenue +$7.3M Tap Fees +$510K/yr SFR Rents +$316K/yr W/WW Sales ✓ COMPLETE PHASE 2A 229 Lots PHASE 2B 211 Lots |
| PAGE 19 +$20.7M Lot Revenue +$8.1M Tap Fees +$60K/yr SFR Rents +$306K/yr W/WW Sales PHASE 2C 228 Lots PHASE 2D 204 Lots +$17.8M Lot Revenue +$8.6M Tap Fees +$870K/yr SFR Rents +$342K/yr W/WW Sales PHASE 2E 159 Lots +$14.0M Lot Revenue +$4.3M Tap Fees No SFR Rents +$240K/yr W/WW Sales Phase 2C, 2D & 2E — In Progress IN PROGRESS IN PROGRESS IN PROGRESS |
| PURE CYCLE CORPORATION PAGE 20 LAND DEVELOPMENT TIMELINE Our land development continues to advance on schedule across Phases 2C through 2E. Phase 2C is now substantially complete; Phase 2D is well underway, with landscape work beginning in the second half of fiscal 2026; and Phase 2E is finishing up the grading phase, setting up continued lot deliveries through 2027. Fiscal Year 2025 2026 QUARTER Q1 ,Q,2 ,Q3 Q4 Q1 Q2 Q3, ,Q4 Phase 2 C ANISHED Phase 2 D WET I ANISHED (Phase 2 E D |
| Pg. 21 HIGH SCHOOL OPENING THIS AUGUST PURE CYCLE CORPORATION PAGE 21 |
| PURE CYCLE CORPORATION Pg. PAGE 2222 Lowry Ranch Service Area Lowry Ranch Service Area Development Encroachment To Lowry Ranch = Tie•ln Pipeli - NewWISEP ...,, ,--,,~-- WaterStorag ~ Lowry RidgeS [:JReservoirS-Au c=] ReserY<JirS(FinalSt c::J ReservolrC c:J ReserY<JirC(Final Stage) Servlce Afea C' ,I Lowry Range C,IAr.ip.,hoeCountyFairgrounds C'.I SkvRanch ~ ... , |
| Single-Family Rentals |
| PURE CYCLE CORPORATION PAGE 24 SFR Strategy Update: Measured Growth Approach What Changed • Reduced number of homes retained for SFRs in Sky Ranch • Increased selectivity on new SFR investments • Adjusted pacing of future SFR phases • SFR remains a strategic component of the development mix • Ability to shift between build-to-rent and for-sale as conditions warrant • Preserves balance sheet strength while maintaining upside exposure Going Forward • Maintain flexibility in capital allocation • Elevated uncertainty on Institutional Ownership • Focus on highest return opportunities Why It Changed |
| PURE CYCLE CORPORATION PAGE 25 Segment Performance – Single -Family Rentals • 39 Homes Completed - Rental units built at Sky Ranch, with 38 leased and one available for sale (95% leased prior to completion), generating stable recurring income. • 23 of 33 Additional Homes Under Contract - Next phase of single -family rentals progressing, with occupancy expected in calendar 2026, bringing the total to 71 homes. • Steady Rental Income Stream - Rentals complement tap fees and land sales, creating diversification across revenue types. |
| PURE CYCLE CORPORATION PAGE 26 Single-family rental revenue increased approximately 43% from 9m 2024 to 9m 2026, driven by increasing units and rents. Asset values have also increased over the same period, with fair market value growing faster than net book assets, underscoring ongoing appreciation and long-term value creation. SINGLE-FAMILY RENTALS $357 $373 $512 $- $100 $200 $300 $400 $500 $600 9mo 2024 9mo 2025 9mo 2026 9mo Rent Revenue Rent $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Appreciating Assets (000s) ■ ■ Net Book Assets □ FMV |
| 4 14 31 66 4 10 17 35 6 Phase 1 Phase 2A Phase 2B Phase 2C Phase 2D Added in Phase Prior Phases 14 Homes $420K Rent/Yr $5.3M Assets $7.4M FMV 31 Homes $930K Rent/Yr $11.3M Assets $16.3M FMV 4 Homes $120K Rent/Yr $1.4M Assets $2.1M FMV 72 Homes $2.2M Rent/Yr $25.6M Assets SFR Portfolio $37.8M FMV Sky Ranch Phase 1 & 2 PURE CYCLE CORPORATION PAGE 27 66 Homes $2.0M Rent/Yr $23.5M Assets $34.7M FMV |
| Capital Allocation & Shareholder Value |
| PURE CYCLE CORPORATION PAGE 29 $75.4M Total Assets $11.8M in Wastewater Systems $32.9M Water Rights Portfolio $27.6M in Water Systems $3.1M in other assets Water rights portfolio supports up to 60,000 connections, providing significant capacity for growth beyond the 1,700 currently served. $9.8M Total Assets $5.7M of Land for Development $4.1M developed land for sale 930-acre Sky Ranch community east of Denver, planned for up to 3,200 homes and 2M sq. ft. of commercial space, located 15 mi from downtown and 4 mi south of DIA. $14.7M Total Assets $20M in Fair Market Value (39 units) Pure Cycle develops and retains single-family rentals at Sky Ranch, recovering all lot and tap costs while generating positive cash flow and strong asset appreciation. $73.7M Cash & Receivables $14.6M in Cash and Restricted $59.1M Receivable CAB/ Rangeview Strong balance sheet with liquidity to support operations, significant cash and receivables from the Sky Ranch CAB and Rangeview. STRONG BALANCE SHEET ----------------------- % Total Asset : 42% % Developed : 6% ----------------------- % Total Asset : 6% % Developed : 20% ----------------------- % Total Asset : 10% ----------------------- % Total Asset : 42% ll&U . ., . . ~ . : . . . |
| Recurring Revenue Strength Utilities Revenue Stability: Recurring water and wastewater revenue offer consistent contribution across cycles Rental Income from 38 Homes: Fully leased homes generating monthly cash flows; 20 units came online in Q3 and an additional 12 units expected for Q4 and additional 21 units expected to expand income in FY27 Diversified Earnings Mix: Blending utility income with residential rent yields lowers overall earnings volatility and cash flows SFR Synergy with Land Development: Rental strategy monetizes lots internally, capturing additional value from Sky Ranch development PURE CYCLE CORPORATION PAGE 30 |
| $1,218 $1,733 $2,058 $1,956 $165 $481 $496 $747 $1,383 $2,214 $2,554 $2,703 $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 Annual Recurring Revenue (000s) Recurring Water Revenue SFR Revenue $- $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 2019 2020 2021 2022 2023 2024 2025 2026 Asset Growth (000s) Assets Shareholder Value Pure Cycle has shown consistent growth in both recurring revenue (with contributions from water services and an increasing SFR component) and total assets over recent years, suggesting a strong financial position for continued expansion and growing returns on investments. Forecast Forecast PURE CYCLE CORPORATION PAGE 31 ■ ■ ■ |
| PURE CYCLE CORPORATION PAGE 32 $5,638 $8,934 $8,276 $9,774 $7,565 $17,599 $15,257 $16,682 $1,383 $2,214 $2,554 $2,703 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 2023 2024 2025 2026 Recurring Revenue Water Taps/O&G/Land Development Revenue Fiscal Year Water Taps & O&G Land Development Recurring Revenue $.20 $0.48 RoE* 4.16% 9.82% $0.54 ** 10.11% ** $0.51 8.55% EPS Total Revenue $14,586 $28,747 $26,087 $29,159 PROJECTED PROFITABILITY TRENDS *RoE calculated using beginning SE equity and NI / **EPS and ROE for FY 2025 was impacted by Oil and Gas Royalties of $6.7M which were non-recurring. - - |
| PURE CYCLE CORPORATION PAGE 33 FY26 Gross Revenue: $28–32M Range: Scenario modeling based on timing of Phase 2D finished lot payment. FY26 EPS Sensitivity: $0.43–$0.52: EPS estimates vary with lot closings pace and rental unit lease-up timing. Upside in Timing Acceleration: Local commercial, improved O&G pricing, industrial water sales beat vs baseline estimates. Valuation Sensitivity Scenarios |
| Stock Repurchase Program Update The Company continues to invest in itself through its approved stock repurchase program. We believe our shares remain considerably undervalued – maybe more than ever given our momentum and we will continue to be in the market repurchasing shares opportunistically. We continue to demonstrate the value of our assets and execution in our core businesses, both creating outstanding shareholder value. Fiscal Period Total Number of Shares Purchased Average Price Paid per Share Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs Q1 2024 20,000 9.92 180,000 Q2 2024 10,000 9.94 170,000 Q3 2024 15,000 9.48 155,000 Q4 2024 14,926 9.34 140,074 Q1 2025 10,000 10.73 130,074 Q2 2025 16,000 12.31 114,074 Q3 2025 2,000 10.19 112,074 Q4 2025 7,500 9.87 104,574 Q2 2026 11,100 10.80 93,474 Q3 2026 7,500 10.65 85,974 Total 114,026 10.32 85,974 PURE CYCLE CORPORATION PAGE 34 |
| Short-Term (3–5 Years) • Water Utilities: Customer base expected to grow to ~2,500 accounts with consistent tap sales across remaining Sky Ranch phases. Base utility fees and service charges continue to provide predictable, recurring revenue, with annual tap fee increases of ~3%. • Land Development: Ongoing lot deliveries and steady absorption at Sky Ranch drive near-term growth. Lot margins are expected to remain healthy as costs stabilize, with commercial parcels set through completion of Interchange to monetize providing additional upside. • Single-Family Rentals: Realignment of our rental strategy around measured portfolio growth with an emphasis on operational efficiency. We will grow to approximately 71 homes through Phase 2 and will evaluate unit economics and scalability before committing to further expansion. PURE CYCLE CORPORATION PAGE 35 Legend 8 - - = Existing Right-of-Way v-v = Retaining Wall ---- = Bridge Railing Colfax Avenue / --- /i / / - -- 1:-r-~ I 1 -~ I I -- I --- ----------- -~ ---.....: -----......: --- |
| SKY RANCH UPDATE |
| Earnings Presentation Q&A PURE CYCLE CORPORATION www.purecyclewater.com |
