Global Water Resources Reports Q3 2025 Revenue Growth of 8.4% to $15.5 Million

Global Water Resources, Inc. (GWRI) reported its financial results for the third quarter of 2025, revealing a total revenue of $15.5 million, an increase of 8.4% from $14.3 million in the same period last year. The growth was primarily driven by the acquisition of seven water systems from the City of Tucson, which added approximately 2,200 service connections, and organic growth in active connections. However, net income for the quarter decreased by 41.3% to $1.7 million, compared to $2.9 million in the prior year, resulting in basic and diluted earnings per share of $0.06, down from $0.12.

For the nine months ending September 30, 2025, GWRI's total revenue reached $42.2 million, a 7.0% increase from $39.4 million in the same period of 2024. The company attributed this growth to higher water consumption and increased rates from recent rate cases for its GW-Farmers and GW-Saguaro utilities. Operating expenses also rose, totaling $35.4 million, up from $31.4 million, largely due to increased personnel costs and operational expenses associated with the newly acquired systems. Consequently, operating income fell to $6.8 million from $8.0 million year-over-year.

In terms of operational metrics, GWRI reported a total of 68,130 active service connections as of September 30, 2025, reflecting a 6.6% increase from 63,889 connections a year earlier. The company continues to focus on expanding its footprint in Arizona, particularly in Pima County, where the recent acquisition is expected to generate approximately $1.5 million in annual revenue. The company also noted that 87.2% of its active connections are serviced by its GW-Santa Cruz and GW-Palo Verde utilities.

Strategically, GWRI has been active in the capital markets, raising approximately $13.1 million through a private placement of common stock on September 30, 2025, and $32.2 million from a public offering completed in March 2025. The company has also increased its capital expenditures significantly, totaling $57.7 million for the nine months ended September 30, 2025, compared to $19.2 million in the prior year, primarily due to investments in infrastructure and the recent acquisition. Looking ahead, GWRI anticipates continued growth driven by the expanding population in the Phoenix metropolitan area and ongoing investments in its water management systems, despite potential macroeconomic challenges.