Global Water Resources Reports $13.3 Million Revenue with 6.7% Growth, Faces Net Loss

Global Water Resources, Inc. (GWRI) reported a total revenue of $13.3 million for the three months ended March 31, 2026, marking a 6.7% increase from $12.5 million in the same period of the previous year. The growth in revenue was primarily driven by an increase in active water and wastewater connections, which rose by 5.7% to 68,885, and higher water consumption due to unseasonably warm and dry weather. However, the company experienced a net loss of $366,000, compared to a net income of $591,000 in the prior year, resulting in a basic and diluted loss per share of $0.01.

Operating expenses for the first quarter of 2026 totaled $12.9 million, an increase of 15.1% from $11.2 million in the same quarter of 2025. This rise in expenses was attributed to higher personnel costs, increased utility and maintenance expenses, and a significant increase in depreciation and amortization costs, which were up 28% due to a 20.1% increase in depreciable fixed assets. The company's operating income fell to $389,000, down 69% from $1.3 million in the previous year, reflecting the impact of rising costs on profitability.

In terms of strategic developments, GWRI completed the acquisition of seven water systems from Tucson Water in July 2025 for approximately $8.1 million, which added about 2,200 service connections and is expected to generate approximately $1.5 million in annual revenue. The company is also actively pursuing regulatory approvals for rate increases, with a settlement agreement filed with the Arizona Corporation Commission (ACC) that includes a $2.3 million annual revenue requirement increase for its GW-Santa Cruz utility, effective November 1, 2026.

Operationally, GWRI's customer base has expanded, with active water connections increasing to 39,007 and active wastewater connections to 29,878. The company has also reported a 7.9% increase in water consumption, totaling approximately 902.8 million gallons for the quarter. Despite the challenges posed by rising operational costs and a net loss, GWRI remains optimistic about its growth trajectory, particularly in the Phoenix metropolitan area, which is projected to see significant population growth in the coming years.

Looking ahead, GWRI anticipates continued organic growth driven by the expansion of its service areas and the integration of acquired systems. The company is also monitoring macroeconomic factors that could impact its operations, including inflation and construction activity in its service areas. Management believes that the long-term outlook remains positive, supported by ongoing infrastructure investments and regulatory developments that could enhance revenue generation capabilities.