PCYO

This article first appeared on GuruFocus. Revenue: $8.2 million for Q3 2026. Gross Profit: $4.3 million, with a 52% margin on revenue. Net Income: Reflective of percent complete revenue recognition in advance of Phase 2. Lot Deliveries: Approximately 430 lots delivered in the last 18 months. Industrial Water Sales: Strengthened by better-than-expected sales compared to last year. Tap Fees: Stronger than previous years due to several phases coming online in 2026. Single-Family Rental Units: Adjusted target to high 60s, low 70s units, down from 100 units. Guidance: Gross revenues between $28 million and $32 million, earnings per share around $0.50. Warning! GuruFocus has detected 2 Warning Sign with PCYO. Is PCYO fairly valued? Test your thesis with our free DCF calculator. Release Date: July 09, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Pure Cycle Corp (NASDAQ:PCYO) reported $8.2 million in revenue and $4.3 million in gross profits, reflecting a strong 52% margin. The company has experienced over seven consecutive years of profitable quarters, demonstrating consistent financial performance. Industrial water sales exceeded expectations, driven by increased activity in the oil and gas sector. The company successfully delivered approximately 430 lots in the last 18 months, indicating strong land development progress. Pure Cycle Corp (NASDAQ:PCYO) continues to diversify its revenue streams across water, land development, and single-family rentals, enhancing financial stability. The company faced board member resignations related to a 13D filer, which could indicate potential governance challenges. The housing market is not as strong as it was in 2024, which may impact future land development and sales. There is uncertainty regarding regulatory changes affecting the single-family rental segment, leading to a scale-back in expansion plans. The stock has been flat for the last five years despite strong asset value, suggesting potential market undervaluation. The receivable balance has grown to $59 million, indicating a need for careful management of cash flow and potential reliance on bond markets. Q: In previous presentations, Pure Cycle's assets were estimated to total approximately $655 million to $675 million at full build-out. Is this still a reasonable estimate? A: Mark Harding, President and CEO, explained that the company's water rights are valued at around $30 million on the balance sheet. With 60,000 connections, the potential water revenue is about $2.5 billion. The $650 million estimate is based on Sky Ranch's 5,000 connections, translating to $200 million in tap fee revenue and $500 million from lot sales, demonstrating the earning power of these legacy assets. Q: With Sky Ranch fully developed, will the company still have about 30,000 acre-feet of undeveloped water? A: Yes, Mark Harding confirmed that the company continues to diversify its portfolio, adding valuable renewable water supplies. The company maintains a strong 30,000 acre-feet of water and a conservative estimate of 60,000 connections, providing opportunities for expansion, particularly in the Denver Metro area. Q: Are the expenditures on the interchange going to be reimbursable? A: Yes, Mark Harding stated that the expenditures are expected to be reimbursable through bonding capacity and impact fees. The estimated cost of the interchange is around $40 million, and the company anticipates having the bonding capacity to cover this without advancing funds. Q: Has there been a flattening of the tap fees and wastewater fees? A: Marc Spezialy, CFO, noted that monthly recurring fees increase modestly by 2.5% to 3% per year. Tap fees also increase automatically by the same percentage, but they are reevaluated periodically, with a potential step increase expected in 2027. Q: What is the size of Lowry, and how does it relate to Pure Cycle's service area? A: Mark Harding clarified that Lowry's total footprint is around 27,000 acres, with Pure Cycle having exclusive service rights to 24,000 acres. The remaining 3,000 acres are not obligated to receive service from Pure Cycle but have the option to do so. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Pure Cycle Corporation? Here are five stocks we like better. Pure Cycle posted solid third-quarter results with $8.2 million in revenue, $4.3 million in gross profit, and about a 52% gross margin. Management said the company remains on track to meet full-year guidance of $20 million to $32 million in revenue and roughly $0.50 in EPS, with potential upside in Q4. Water and land development stayed strong, helped by industrial water demand from oil and gas activity and accelerated lot deliveries at Sky Ranch. The company delivered about 430 lots over the past 18 months and said tap fees and industrial water sales should remain firm. Liquidity is improving and long-term asset value looks significant, which could support more share buybacks and future growth projects. Harding highlighted large embedded value in Pure Cycle’s water rights and Sky Ranch holdings, and said an interchange project could unlock additional commercial development revenue. Pure Cycle (NASDAQ:PCYO) reported what Chief Executive Officer Mark Harding called “very solid results” for its fiscal third quarter, citing revenue growth, accelerated lot development at its Sky Ranch project and stronger liquidity following earlier development spending. During the company’s third-quarter 2026 earnings presentation, Harding said Pure Cycle generated $8.2 million in revenue and $4.3 million in gross profit, representing a gross margin of about 52%. He said net income and earnings per share reflected the company’s percent-complete revenue recognition and the accelerated timing of Phase 2 development work. → SK Hynix’s Nasdaq Listing Could Reset the AI Memory Trade “This kind of is a bit more indicative of sort of an even flow revenue and earnings cycle, which is not all that typical for us just because of the seasonality of the construction schedules here in Colorado,” Harding said. Harding said the company remains ahead of its typical schedule for annual guidance and expects to finish the year strongly. He said Pure Cycle continues to expect gross revenue within its previously discussed guidance range of $20 million to $32 million and earnings per share around $0.50, with possible upside depending on fourth-quarter results. → 2 Short Squeezes for Summer Speculation: What the Bears Are Getting Wrong Harding said Pure Cycle’s water business continued to benefit from its ownership of water rights in Colorado, where water availability is a key factor in land development. The company provides potable water to retail customers, including homeowners, businesses and industrial users, and also supplies raw water for industrial use, primarily in oil and gas. He said industrial water sales have been stronger than expected compared with last year, helped by oil and gas operators that had accumulated well permits and are now executing drilling plans. Harding said the company expects strength in industrial water sales to continue over the next several years as operators drill permitted wells and evaluate additional sites. → How TeraWulf’s Anthropic Deal Booted Up a $19B AI Empire “We continue to make sure that we’re investing in that production capacity,” Harding said. “As they continue to dial up that drilling program and the opportunity to capitalize on the price of oil, we certainly are ready to meet that demand.” Tap fees also remained strong, Harding said, as several development phases came online and were delivered in fiscal 2026. He said tap fee strength is likely to continue through the current fiscal year and into next year. Pure Cycle’s land development segment also contributed to quarterly performance. Harding said the company delivered approximately 430 lots over the last 18 months, reflecting a development ramp-up initiated when the housing market was stronger in 2024. Harding said Phase 2D was accelerated because of mild winter weather, allowing the company to deliver lots earlier than expected and giving new builders a head start. He said Pulte and Oakwood Homes have been added to the company’s builder portfolio and are moving forward with model homes and construction activity. Phase 2E, the company’s next phase, is smaller than a typical phase at roughly 159 to 160 lots, compared with the company’s usual range of about 230 to 250 lots per phase. Harding said the company is pacing finished lot development with homebuilder absorption, noting that the broader housing market faces headwinds tied in part to consumer confidence. “We want to make sure that we don’t over-invest into what is a very expensive lot delivery mechanism that ends up creating high inventory for our home builders,” Harding said. He said lot deliveries through the third quarter were nearly 70% better than last year, though he added that some of that benefit was related to the mild winter and should even out by fiscal year-end. Harding said Pure Cycle has scaled back its single-family rental housing plans after previously considering a portfolio of about 100 homes through Phase 2E. The company now expects to pause expansion in the high 60s to low 70s of completed units. He said the decision reflected a desire to better assess the regulatory environment around institutional ownership of single-family homes and to evaluate the return on investment for the portfolio. Pure Cycle may monetize a small number of homes to test market values and validate assumptions, Harding said. The company has nearly 40 homes completed and approximately 30 more under contract, with deliveries expected through calendar 2026. Harding said demand has been strong, with nearly all delivered homes leased and some homes leased before expected delivery later in the year. Harding said Pure Cycle’s liquidity is improving after dipping in the second quarter as the company accelerated development ahead of its typical flow-funding agreements with homebuilders. He said liquidity should continue to strengthen through year-end and may support increased share repurchases. “As that builds, we’ll continue to be more aggressive with those share repurchases to continue to return value to the shareholders,” Harding said. In response to an analyst question, Harding discussed the company’s long-term water and land assets, saying Pure Cycle carries water rights on its balance sheet at about $30 million but believes they can support about 60,000 connections. He said tap fees of about $40,000 per connection imply roughly $2.5 billion of potential water revenue, while recurring revenue per connection could be about $1,500 to $1,700 annually. Harding also said Sky Ranch is zoned for about 5,000 connections, including 3,400 residential units and commercial development equivalent to about 1,600 connections. At $40,000 per tap, he said that represents about $200 million in tap fee revenue. He added that the company expects to make about $100,000 per lot, or roughly $500 million, at Sky Ranch, which is carried on the balance sheet at about $5 million. Asked about Lowry, Harding clarified that the total Lowry property footprint is about 27,000 acres, while Pure Cycle’s exclusive service rights cover 24,000 acres. The remaining acreage is not obligated to receive service from Pure Cycle but could potentially be served by the company. Harding said Pure Cycle continues to work with Arapahoe County and the Colorado Department of Transportation on permitting for an interchange project that would support commercial development near Sky Ranch. He said the company hopes to have the permit issued early next year, with construction potentially beginning in late 2027. In the question-and-answer session, Harding said the estimated cost of the interchange is about $40 million. He said Pure Cycle expects bonding capacity and impact fees to cover the project, though any company obligation, if needed, would be “relatively light” and reimbursable. Harding said commercial development could eventually add a revenue layer comparable to the company’s residential lot development business, which he described as having the potential for about $25 million per year during the build-out cycle. The company also noted board changes during the call. Harding said two directors associated with a 13D filer resigned from the board, adding that there was “no drama” surrounding the departures and thanking them for their service. Pure Cycle Corporation (NASDAQ:PCYO) is a Colorado-based utility and real estate development company focused on water resource management and land development along the Front Range. The company's core operations involve the acquisition, treatment and distribution of potable water, as well as the collection and treatment of wastewater, serving suburban and rural communities in the Denver metropolitan area. Pure Cycle holds substantial water rights and operates distribution and treatment facilities under a regulated utility model, providing essential services to residential and commercial customers. In addition to its water utility business, Pure Cycle engages in real estate development, leveraging its water assets to create fully serviced residential communities. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Pure Cycle Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

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 $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 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). 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. 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 (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). 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: 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 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 RevenuesFor 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. “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 CapitalWe 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 WastewaterWater 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 DevelopmentLot 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 RentalsAs 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. 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): The following table presents our consolidated financial position as of May 31, 2026 (unaudited) and August 31, 2025 (audited): 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 [email protected]. 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

DENVER, June 30, 2026 (GLOBE NEWSWIRE) -- Pure Cycle Corporation (NASDAQ: PCYO) will release financial results for the three and nine months ended May 31, 2026, on Wednesday, July 8, 2026, and hold an earnings presentation on Thursday, July 9, 2026, to discuss the results. Pure Cycle is also pleased to announce it will host its annual Investor Day on Wednesday, July 15, 2026. The in-person event will take place from 10:00 a.m. to 2:00 p.m. MST at Sky Ranch, the Company’s master planned community. The meeting location will be the Company’s corporate headquarters at 34501 E. Quincy Ave, Building 1, Suite D, Watkins, CO 80137. For an interactive earnings presentation experience, including the ability to ask questions and view the slide presentation, please register and join via the link below. See below for full event details, including registration information for Investor Day. Q3 2026 Earnings Presentation 2026 Investor Day In addition to the Q3 earnings presentation, Pure Cycle will host its annual Investor Day the following week at Sky Ranch, as detailed below. CEO/President Mark Harding, along with members of senior management, will present an in-depth review of Pure Cycle, its current and long-term growth strategies, development at Sky Ranch, and growth in its water utility segment. Additionally, Pure Cycle will host a tour of its Lowry Ranch service area and its development at Sky Ranch, which will focus on Phase 2 of the development, the single-family rental units, and its state-of-the-art water reclamation facility. Lunch will be provided. To ensure Pure Cycle has proper space available for transportation and lunch, advanced registration is required. To register, visit www.purecyclewater.com/contact. Please complete the inquiry form, select “Investor Relations”, and type “Attending July 15, 2026 Investor Day” in the message field before submitting. For those that are unable to attend in person, we will host a Q&A session via Teams at 1pm MST. To register to participate in the virtual Q&A, please visit https://www.purecyclewater.com/investorday-2026, or email us at [email protected] and we can add you to the calendar invite. Company InformationPure Cycle continues to strengthen its operations, expand its balance sheet, and increase 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. This business provides long-term recurring revenues, supports our land development operations, and adds 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 [email protected]. SOURCE: Pure Cycle Corporation

This article first appeared on GuruFocus. Release Date: April 09, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Pure Cycle Corp (NASDAQ:PCYO) reported a strong quarter with $5.1 million in revenue and $2.8 million in gross profit, driven by lot deliveries ahead of schedule. The company has seen a 36% increase in net income, largely due to growth in all segments, including land, water, and single-family rentals. Industrial water sales to oil and gas operators have increased significantly, contributing to strong performance in the water segment. The land development segment is progressing well, with Phase 2C and 2D nearing completion and plans to start Phase 2E, which will deliver 160 lots by summer 2027. Pure Cycle Corp (NASDAQ:PCYO) maintains a strong balance sheet and liquidity position, allowing for continued investment in infrastructure and development projects. The timeline for the completion of the new interchange has slipped slightly, now expected in 2028 instead of late 2027. There is uncertainty in the data center market in Colorado due to inconsistent state policies on tax incentives and power supply challenges. The company has decided to slow the growth of its single-family rental segment due to concerns about corporate ownership and housing affordability. Recurring revenue from some commercial customers has shown a slight decline due to fluctuations in demand from off-site governmental buildings. The oil and gas segment's revenue is subject to variability, as contracts are not take-or-pay, meaning demand can fluctuate with oil prices. Warning! GuruFocus has detected 6 Warning Signs with PCYO. Is PCYO fairly valued? Test your thesis with our free DCF calculator. Q: Could you provide a detailed update on the completion of the new interchange? A: Mark Harding, CEO: The interchange is progressing through the 1,601 permit process with the Colorado Department of Transportation. We are at about 30% design completion, with plans to submit the full permit by June. Construction is expected to start in 2027, with completion in 2028. This timeline has slipped slightly from previous estimates but aligns with our commercial development plans. Q: What is the status of the data center opportunities you mentioned previously? A: Mark Harding, CEO: We continue to pitch data center opportunities, but Colorado faces challenges with tax incentives and power availability. We are also exploring other commercial opportunities, such as water bottling and distribution centers, which are heavy water users. Q: How much water does Pure Cycle currently have, and what is the potential for future connections? A: Mark Harding, CEO: Our water portfolio has increased by about 10%, now totaling approximately 33,000 acre-feet. This supports over 60,000 potential connections, translating to a significant long-term revenue opportunity. Q: Are you actively marketing commercial opportunities before the interchange is completed? A: Mark Harding, CEO: Yes, we are marketing commercial opportunities now to align with the interchange timeline. We aim to attract users who can start development with the existing interchange, ensuring readiness when the new interchange is completed. Q: Can you explain the economics of the single-family rental program and the decision to de-emphasize it? A: Mark Harding, CEO: The rental program involves homes costing around $350,000 to build, appraising at about $530,000. Rentals cover debt service and provide a margin, with returns in the 8-10% range. We are pausing growth to evaluate performance and ensure it meets investment thresholds. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Strong first-half results: Pure Cycle reported about $5.1M of revenue, $2.8M gross profit and just over $1M net income (up ~36%) through H1, is tracking roughly 50% of full-year guidance and reiterated full-year revenue guidance of $26–30M and EPS of $0.43–0.52 with upside tied to lot deliveries and industrial water sales. Industrial water driving upside: Management said industrial water sales are “up significantly” on increased oil-and-gas activity, supported by a multi-year contract and a dedicated drilling rig that could sustain volumes for roughly three years, and they may exceed current-year guidance for that segment. Sky Ranch development advancing: Land development is running ahead of schedule (Phase 2C/2D nearly complete, Phase 2E grading starting ~160 lots for 2027 delivery), the interstate interchange is in CDOT’s 1601 permit process with construction penciled for 2027–28, and potential bond refinancing/Phase 3 work could unlock $10–20M of additional reimbursables. Interested in Pure Cycle Corporation? Here are five stocks we like better. Pure Cycle (NASDAQ:PCYO) executives pointed to strong first-half results and accelerated development activity at the company’s Sky Ranch community, aided by a mild winter that allowed construction work to continue through a period that is typically slower due to weather. Management said revenue for the first six months totaled about $5.1 million, with roughly $2.8 million in gross profit, driven largely by percent-completion accounting tied to lot deliveries. The company also reported net income of a little over $1 million, or about $0.05 per share, which it said was up roughly 36% and “driven by all segments,” led by land, along with contributions from water and single-family rentals. → 3 Surprising S&P 500 Outperformers of 2026 The company said it is tracking at about 50% of full-year guidance through the first half—an unusual seasonal pattern for Pure Cycle given that winter quarters are usually weaker. Management cited about $14.3 million in total revenue against full-year guidance of roughly $30 million, and about $9 million in profit compared with about $19 million in guidance. Management described the company as a “HALO” business—“heavy asset, low obsolescence”—highlighting the durability of water utility assets. Executives said the water business spans domestic potable water, industrial water sales to oil and gas operators, and one-time connection fees paid by homebuilders. → Microsoft’s Copilot Problem Isn’t What You Think On a year-to-date basis, the company reported continued customer growth and connection-fee revenue, while oil and gas-related water revenue was “up significantly” year over year. Executives attributed the increase to last year being “largely a permitting year” for its largest operator, who was seeking “as many as 200 permits” in and around Pure Cycle’s service area. That work, they said, translated into increased drilling and fracking activity this year. Management said it expects a “very strong performance” in industrial water sales and indicated it may exceed its current-year guidance. The company noted it has a multi-year contract with operators and cited a dedicated drilling rig working through the permitted inventory, which management estimated could take “somewhere around the 3 years” to drill. At the same time, executives emphasized that oil and gas demand is variable, and later in the Q&A they said they do not have “very fixed” take-or-pay provisions; rather, the operators pay a premium for flexibility, with industrial water priced at about three times residential rates. → With Nike Shares Near a 12-Year Low, Is Now the Time to Be Brave? Pure Cycle also discussed its participation in WISE, a regional partnership among 12 water providers in the Denver area. Management said the company’s subscription is about 900 acre-feet, with 3 million gallons per day of pipeline capacity, and described the ability to both draw additional water in periods of higher demand and sell water to other participants when the company’s own demands are lower. Executives said they are evaluating regional storage partnerships over time. In land development, Pure Cycle highlighted construction progress at Sky Ranch, including a K-12 campus being developed with charter school operator National Heritage Academy. Management said community interest and relocation decisions are influenced by the school campus and noted the high school is expected to open in August for the 2026-2027 school year. On lot deliveries, the company said it is “punching out” Phase 2C (about 228 lots) and is about 95% complete, while Phase 2D is almost 80% complete. Executives said some lot deliveries are as much as six months ahead of schedule, which helped builders put up model homes for the spring selling season. The company also emphasized the depth of its builder roster, naming major homebuilders including Lennar, D.R. Horton, KB Home, Taylor Morrison, Challenger, Pulte, and Oakwood. Management said Phase 2 began with about 780 homes but has grown to a little over 1,000 lots due to product diversification and increased density. Executives said higher density can increase assessed value, which may support additional bonding capacity within the district and potentially help repay reimbursable infrastructure investments. Management said the company expects land development pace to “normalize” through the remainder of the year as it finishes Phase 2D and begins grading for Phase 2E. Phase 2E: Management said grading contractors are mobilizing and work will begin this month on roughly 160 lots. The company expects these to be “2027 lots,” with delivery anticipated in summer 2027. Economics cited: Executives described Phase 2E as an infill site with much of the main infrastructure already in place and estimated approximately $14 million in lot revenues, about $4.3 million in tap fees, and around $240,000 in recurring revenue associated with new customers. In discussing housing demand, management acknowledged volatility tied to interest rates and consumer confidence, but said builders’ primary incentive remains mortgage buydowns, targeting rates “right below that 5% range,” such as 4.99%. Pure Cycle said it is taking a more measured approach to its single-family rental segment, citing increased political scrutiny of corporate ownership of homes and a desire to better evaluate investment returns as the portfolio stabilizes. Management said it reduced its planned growth from about 90 units to about 60 units by reselling some previously identified lots back to homebuilders. The company said it has 19 homes completed to date and “they are all completely rented,” with management describing “extremely strong demand” and noting that homes are being rented as they come to market. Period-over-period revenues in the rental segment were said to be up 20%, primarily due to additional units. During Q&A, management provided more detail on economics, saying builders are constructing homes for Pure Cycle at around $350,000 in vertical construction cost and that homes typically appraise around $530,000, implying about $180,000 of margin that includes embedded equity in the lot and water. Management said the company uses a fixed-rate credit facility—currently about 6.5%—and that homes rent for around $3,000 per month, varying by size and bedroom count. Executives estimated an unlevered return “somewhere in the 8%-10% range,” while emphasizing they want to “dial that in” and evaluate capital appreciation and overall return thresholds before deciding on future expansion. Management reiterated the importance of a new interstate interchange to support Sky Ranch’s commercial opportunities and longer-term development. In response to investor questions, executives said the project is in Colorado’s “1601 permit process” with the Colorado Department of Transportation (CDOT) and is now at about a 30% design stage. The company expects to submit the 1601 application to CDOT in June, then move toward final design through year-end, with bonding to fund the project and a construction timeline of 2027 with completion in 2028. Management acknowledged that is “a little” later than prior expectations of late 2027 completion. Even ahead of interchange completion, management said Pure Cycle is actively marketing commercial properties using retail and industrial brokers and is pursuing a mix of potential users, including distribution centers and “heavy water users.” In a separate Q&A exchange, executives addressed prior discussion of data centers, saying Colorado has been less attractive for certain hyperscale projects due to policy uncertainty around incentives and challenges adding power capacity, though the company said it continues to compete for opportunities. On future reimbursements and liquidity, management said the next monetization opportunity is likely in 2027. Executives discussed the potential refinancing of Phase 2 bonds and a financing for the interchange, noting the first Phase 2 bonds were financed at about 780 units and that growth to roughly 1,000–1,030 units could increase assessed value and reimbursement potential. In Q&A, management estimated $10–$12 million of additional reimbursables from refinancing what has already been financed, and said that moving into Phase 3 could bring “as much as $20 million” of additional financing. Pure Cycle reiterated its full-year revenue guidance range of $26 million to $30 million and EPS guidance of $0.43 to $0.52, with management citing potential upside tied to the timing of lot deliveries and industrial water sales. The company said it continues to repurchase shares, arguing the stock is “significantly undervalued,” and noted it adjusted trading windows to provide more flexibility for repurchases. Pure Cycle Corporation (NASDAQ:PCYO) is a Colorado-based utility and real estate development company focused on water resource management and land development along the Front Range. The company's core operations involve the acquisition, treatment and distribution of potable water, as well as the collection and treatment of wastewater, serving suburban and rural communities in the Denver metropolitan area. Pure Cycle holds substantial water rights and operates distribution and treatment facilities under a regulated utility model, providing essential services to residential and commercial customers. In addition to its water utility business, Pure Cycle engages in real estate development, leveraging its water assets to create fully serviced residential communities. The article "Pure Cycle Q2 Earnings Call Highlights" was originally published by MarketBeat.

Performance was driven by a mild winter that allowed for unseasonal concrete and asphalt work, pulling lot deliveries forward by as much as 6 months. The Land Development segment achieved significant revenue growth through high percent-completion rates, enabling homebuilders to start model homes ahead of the spring selling season. Industrial water sales to oil and gas operators saw a substantial uptick as customers moved from a permitting phase in the prior year to active drilling and fracking. Management is pivoting the Single-Family Rental strategy to a more measured growth approach, scaling back from 90 to 60 units to better evaluate long-term returns on investment. Strategic positioning remains focused on 'heavy asset, low obsolescence' (HALO) utility infrastructure, with current water assets only 4% developed despite generating significant margins. The company maintains a 'hawkish' stance on equity, funding operations through the balance sheet and internal cash flow without issuing new shares for over 15 years. Fiscal 2026 guidance remains at $26 million to $30 million in total revenue, with upside potential depending on the timing of lot deliveries and oil and gas activity. A major new highway interchange is slated for construction in 2027 with completion in 2028, which is expected to unlock significant commercial and industrial land value. Management anticipates a $10 million to $12 million reimbursement in 2027 through the refinancing of municipal bonds as home density and assessed values increase. Industrial water demand is expected to remain robust through 2026 and 2027, supported by a dedicated rig operating on a backlog of approximately 200 well permits. The company is actively marketing commercial parcels for retail and distribution centers, aiming to parallel development with the interchange timeline. The decision to slow the rental segment was partly a reaction to political rhetoric regarding corporate ownership of single-family homes and its impact on affordability. Interest rate volatility is being mitigated by homebuilders offering mortgage buy-downs to the 4.99% range to maintain first-time buyer conversion rates. Data center recruitment faces headwinds in Colorado due to inconsistent state tax incentive policies and challenges in securing high-capacity power for hyperscale facilities. A mild winter, while beneficial for construction, has led to dry conditions that may challenge regional water supplies, though the company maintains a strong portfolio position. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. The project is currently at 30% design with a 1601 permit submission expected by June and final design by year-end. Construction is scheduled for 2027 with a 2028 completion; funding will be secured through specific mills set aside for bonding within the community. Homes cost approximately $350,000 to build vertically but appraise near $530,000, creating significant equity value. Unlevered rates of return are estimated between 8% and 10%, with homes renting for approximately $3,000 per month. Management is pausing growth at 60 units to verify if these returns and asset appreciation meet internal investment thresholds. Management dismissed concerns of a demand gap, noting they have expanded their portfolio to include more national builders. New builders are 'short' on inventory and seeking 2027 deliveries, which allows Pure Cycle to continue grading new phases despite some existing builders being 'long' on current lots. The next major liquidity event is expected in 2027 when 2022 bonds reach their 5-year call provision. Refinancing existing bonds and issuing new debt for Phase III could result in $20 million to $30 million in total reimbursements to the company. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.

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 $1.1 million and $5.7 million of net income for the three and six months ended February 28, 2026, respectively, marking the twenty-seventh consecutive fiscal quarter with positive net income. Pure Cycle reported $0.05 and $0.23 of earnings per fully diluted common share for the three and six months ended February 28, 2026, up from $0.03 and $0.20 in the same periods in 2025. By partnering with our national home builder customers, we deliver finished lots on an annual cadence that allows for steady absorption while navigating cyclical housing industry trends. A mild winter in the Denver area allowed us to capitalize on favorable conditions and advance our lot development schedule at Sky Ranch, which accelerated our revenue recognition during the period. 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 78% complete and Phase 2C approximately 91% complete. We expect to substantially complete Phase 2D in the third quarter of fiscal 2026 and collect contractual milestone and finished lot payments with minimal remaining development costs. Pure Cycle will begin construction activities in Phase 2E, with approximately 159 lots expected to be completed in fiscal 2027, paced to match builder absorptions. Our cash balance was also impacted during the six months by the investments in new water and wastewater infrastructure within the Sky Ranch community and a new water right obtained through a December 2025 Water Court settlement that added 1,635 acre feet of adjudicated water from the Box Elder Creek Alluvial aquifer to our water portfolio. Additionally, we continued to invest in our single-family rental business, with 39 additional units under construction in Phases 2B and 2C that we expect to be available for rent in fiscal 2026. Through February 28, 2026, we incurred $5.0 million of these construction costs, which were self-financed. Once a unit is completed, we anticipate financing the unit under our SFR Facility Agreement and using the loan proceeds to replenish the cash advanced during construction. 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 (a 29% increase for the three months and a 47% 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 (a 37% increase for the three months and a 20% 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 (a 23% increase for the three months and a 16% 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: “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 70% of the lots being delivered at the end of Q2 and the remaining lots expected to be delivered by the end of Q3. This has helped our builders to construct new model homes in Phase 2D for the spring selling season. In addition to allowing us to deliver lots ahead of schedule, the mild winter has also enabled us to advance construction of our new high school ahead of schedule, and we look forward to welcoming new high school students in the fall,” commented Mark Harding, CEO of Pure Cycle. “While the housing market continues to experience headwinds due to low consumer confidence and affordability challenges, we continue to pace our lot deliveries to our homebuilder customers on annual deliveries, which minimizes inventory carry and continues to bring entry level product to the market, reinforcing the strength of our business model. Another example of the flexibility of our business model is that we slowed expansion of our Single-Family Rental home completions due to uncertainty regarding the administration’s plans to regulate institutional ownership of rental homes. We are in the process of selling approximately 30 reserved lots in Phase 2C and 2D to our home builder customers while completing the units we had permitted and that were under construction in 2B and 2C. Our home rental segment continues to see very strong demand with 95% of our units being leased prior to completion,” continued Mr. Harding. “Strong stewardship of our liquidity and balance sheet continues to allow us to capitalize on opportunities such as those presented by the mild winter, which allowed us to complete lots early for our home builder customers. The customers were then able to advance their construction schedules and improve their margins. Additionally, we are investing in our water rights and delivery systems to position ourselves to capture stronger industrial water demand from higher oil prices this year,” commented Mr. Harding. Q2 and YTD 2026 Financial Summary Revenues For the three months ended February 28, 2026 and 2025, we reported total revenue of $5.2 million and $4.0 million, respectively, with $3.0 million and $2.5 million being generated in our water and wastewater resource development segment, $2.1 million and $1.3 million in our land development segment, and $0.2 million and $0.1 million in our single-family rental business. For the six months ended February 28, 2026 and 2025, we reported total revenue of $14.3 million and $9.7 million, respectively, with $5.4 million and $5.4 million being generated in our water and wastewater resource development segment, $8.6 million and $4.1 million in our land development segment, and $0.3 million and $0.2 million in our single-family rental business. 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 $1.6 million and $3.3 million and $2.1 million and $3.6 million, respectively. As of February 28, 2026, we have sold 1,131 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 tap fee revenue of more than $19.0 million in water and wastewater tap fee revenue over the next three years. 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 98% complete, Phase 2C is approximately 91% complete, and Phase 2D is approximately 78% 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 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 $3.8 million as of February 28, 2026, with $4.8 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 $1.4 million of proceeds from our SFR Facility Agreement. As of February 28, 2026, we have an undrawn capacity of $9.9 million under a working capital line of credit and expect to receive approximately $18.9 million in milestone and finished lot payments from our home builder customers over the next 12 months, which, combined with anticipated tap fee payments, we will use to fund our obligations. 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 $1.6 million for the three months ended February 28, 2026 compared to $1.1 million in the same period in 2025. Lot sales revenue increased to $7.7 million for the six months ended February 28, 2026 compared to $3.5 million in the same period in 2025. Favorable weather conditions have 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 six months ended February 28, 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 and 2C and to turn over the completed infrastructure to the applicable governmental agency for maintenance. 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. 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): The following table presents our consolidated financial position as of February 28, 2026 (unaudited) and August 31, 2025 (audited): 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 [email protected]. 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