Pure Cycle Corporation (PCYO) 2025 Financial Results Summary
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Pure Cycle Corporation (PCYO) Q4 2025 Financial Results Summary
Pure Cycle Corporation announced its financial results for the year ended August 31, 2025, on November 12, 2025.
Financial Overview
- Net Income:
- $13.1 million for FY 2025, a 13% increase from $11.6 million in FY 2024.
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This marks the eighth consecutive year and twenty-fifth consecutive fiscal quarter with positive net income.
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Earnings per Fully Diluted Common Share:
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$0.54 in FY 2025, up from $0.48 in FY 2024, reflecting a 12.5% increase.
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Revenue:
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Total revenue declined to $26.1 million in FY 2025 from $28.7 million in FY 2024, a 9% decrease.
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Pre-tax Income:
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Increased to $17.5 million from $15.6 million in FY 2024, representing a 12% increase.
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EBITDA:
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For FY 2025, reported EBITDA was $20.2 million, an 11% increase from $18.2 million in FY 2024.
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Cash and Cash Equivalents:
- Totaled $21.9 million as of August 31, 2025.
Operational Highlights
- Oil and Gas Royalty Income:
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Reported strong royalty income of $6.7 million in FY 2025, compared to $0.8 million in FY 2024, marking an impressive 738% increase.
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Lot Sales and Development:
- Land Development Segment generated $15.3 million in FY 2025, down from $17.6 million in FY 2024.
- Water and Wastewater Segment reported $10.3 million in revenue, slightly down from $10.7 million in FY 2024.
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Single-Family Rentals remained steady with revenues at $0.5 million, consistent with the previous year.
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Tap Sales:
- Sold 182 water and wastewater taps in FY 2025, up from 73 taps in FY 2024.
Fourth Quarter Highlights (Q4 2025)
- Revenue for Q4:
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Reported at $11.2 million with a net income of $6.1 million.
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EBITDA for Q4:
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Stood at $8.9 million, compared to $9.45 million in Q4 2024, indicating a decline.
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Earnings per Share:
- Basic and Diluted EPS for Q4 were both $0.25, down from $0.27 in Q4 2024.
Share Repurchase and Dividend Information
- Pure Cycle continues its share repurchase program, utilizing available liquidity.
- There was no mention of a quarterly dividend declared in the report.
Future Outlook
- The company anticipates continued demand for entry-level lots within their Sky Ranch Master Planned Community.
- They plan to diversify further by partnering with additional national homebuilders, particularly in new phases of lot development.
- Pure Cycle is poised to ramp up its single-family rental segment significantly, projecting to eventually increase rental units well beyond the current count.
Overall, Pure Cycle Corporation continues its trajectory of steady growth while managing the complexities of the housing market. The mixed performance in revenue and earnings reflects broader industry trends, but the company’s diversification strategies may provide resilience moving forward.
Here are the extracted tables from the press release:
Condensed Consolidated Statements of Income (In thousands)
| (In thousands, except share information) | August 31, 2025 | August 31, 2024 |
|---|---|---|
| REVENUES: | ||
| Water and Wastewater | ||
| Water and wastewater activities | $2,997 | $7,283 |
| Water and wastewater tap fees | $7,337 | $3,384 |
| Total water and wastewater | $10,334 | $10,667 |
| Land Development | ||
| Lot sales | $13,691 | $15,998 |
| Project management fees | $781 | $707 |
| Special facility projects and other | $785 | $894 |
| Total land development | $15,257 | $17,599 |
| Single-family rentals | $496 | $481 |
| Total revenues | $26,087 | $28,747 |
| COST OF REVENUES: | ||
| Water and wastewater | $4,781 | $4,426 |
| Lot development | $5,100 | $4,374 |
| Single-family rental | $176 | $188 |
| Total cost of revenues | $10,057 | $8,988 |
| General and administrative expenses | $7,770 | $6,921 |
| Depreciation | $590 | $596 |
| Operating income | $7,670 | $12,242 |
| Other income (expense): | ||
| Interest income | $3,272 | $2,837 |
| Interest expense | -$426 | -$439 |
| Oil and gas royalty income, net | $6,654 | $795 |
| Other, net | $300 | $197 |
| Income from operations before income taxes | $17,470 | $15,632 |
| Income tax expense | -$4,360 | -$4,019 |
| Net income | $13,110 | $11,613 |
| Earnings per common share – basic and diluted | ||
| Basic | $0.54 | $0.48 |
| Diluted | $0.54 | $0.48 |
| Weighted average common shares outstanding: | ||
| Basic | 24,076,317 | 24,083,001 |
| Diluted | 24,167,529 | 24,140,946 |
Condensed Consolidated Balance Sheets (In thousands)
| (In thousands, except shares) | August 31, 2025 | August 31, 2024 |
|---|---|---|
| ASSETS: | ||
| Current Assets: | ||
| Cash and cash equivalents | $21,931 | $22,113 |
| Accounts receivable, net | $1,330 | $1,472 |
| Related party notes receivable, including accrued interest, current portion | $— | $10,100 |
| Prepaid expenses and other assets | $1,004 | $530 |
| Land under development | $7,388 | $3,647 |
| Total current assets | $31,653 | $37,862 |
| Restricted cash | $6,448 | $3,245 |
| Investment in water and wastewater systems, net | $67,523 | $62,290 |
| Land and mineral rights held for development | $4,168 | $4,695 |
| Single-family rental units | $5,240 | $5,330 |
| Related party notes receivable, including accrued interest, less current portion | $45,002 | $32,085 |
| Other assets | $2,245 | $1,847 |
| Total assets | $162,279 | $147,354 |
| LIABILITIES & SHAREHOLDERS’ EQUITY: | ||
| Current Liabilities: | ||
| Accounts payable | $3,518 | $1,948 |
| Accrued and other liabilities | $4,335 | $5,164 |
| Deferred revenue | $3,355 | $2,173 |
| Debt, current portion | $411 | $64 |
| Total current liabilities | $11,619 | $9,349 |
| Debt, less current portion | $6,380 | $6,821 |
| Deferred tax liability, net | $1,541 | $1,395 |
| Lease obligations, less current portion | $1 | $87 |
| Total liabilities | $19,541 | $17,652 |
| Series B preferred shares: par value $0.001 per share, 25 million authorized; 432,513 issued and outstanding (liquidation preference of $432,513) | $— | $— |
| Common shares: par value 1/3 of $.01 per share, 40.0 million authorized; 24,066,805 and 24,063,894 outstanding, respectively | $80 | $80 |
| Additional paid-in capital | $175,448 | $175,125 |
| Accumulated deficit | -$32,790 | -$45,503 |
| Total shareholders’ equity | $142,738 | $129,702 |
| Total | $162,279 | $147,354 |