Pure Cycle Corporation Reports 59% Revenue Growth to $9.1 Million for Three Months Ending November 30, 2025

Pure Cycle Corporation reported significant financial performance for the three months ending November 30, 2025, with total revenues reaching $9.1 million, a 59% increase from $5.8 million in the same period last year. The company’s net income also rose to $4.6 million, compared to $3.9 million in the prior year, resulting in earnings per share of $0.19, up from $0.16. This growth was primarily driven by a substantial increase in land development revenue, particularly from lot sales, which surged to $6.0 million from $2.3 million year-over-year.

The company experienced notable changes in its operational metrics. Water and wastewater revenues decreased to $2.5 million from $2.9 million, largely due to a decline in water sales to oil and gas operators. However, water and wastewater tap fee revenues increased by 14%, reflecting a growing demand for water services as the company sold 51 water taps compared to 38 in the previous year. The total number of single-family rental units remained at 19, with rental revenues slightly increasing to $131,000 from $124,000.

Strategically, Pure Cycle has continued to develop its Sky Ranch Master Planned Community, which is expected to include up to 3,200 homes and significant commercial space. As of November 30, 2025, the first phase of development is complete, and the second phase is progressing, with phases 2A and 2B nearing completion. The company has also retained lots for its single-family rental business, with plans to construct an additional 40 rental homes in the upcoming phases. The company anticipates that these developments will enhance its market position and revenue streams.

In terms of financial health, Pure Cycle's total assets increased to $168.1 million from $162.3 million, with cash and cash equivalents at $17.1 million. The company’s working capital was reported at $14.7 million, indicating sufficient liquidity to support ongoing operations and development activities. The company has also entered into a financing agreement to fund its participation in the Water Infrastructure Supply Efficiency Partnership, which is expected to require an investment of up to $2 million over the next year.

Looking ahead, Pure Cycle remains optimistic about its growth prospects despite challenges in the housing market, including rising interest rates and economic uncertainty. The company plans to continue monitoring market conditions and adjust its construction timelines accordingly. With a strong pipeline of projects and a focus on sustainable water management, Pure Cycle aims to capitalize on the long-term demand for housing and water services in the Denver metropolitan area.