Pure Cycle Corporation Reports Strong Revenue Growth

Pure Cycle ( (PCYO) ) has released its Q1 earnings. Here is a breakdown of the information Pure Cycle presented to its investors.

Pure Cycle Corporation, a Colorado-based company, operates within the water resources industry, providing water and wastewater services, and engaging in land development activities. The company is notably involved in the development of the Sky Ranch master-planned community.

In its latest earnings report for the quarter ending November 30, 2024, Pure Cycle Corporation announced significant revenue growth driven by increased water and wastewater tap fees, lot sales, and project management fees. The company’s net income nearly doubled compared to the same period in the previous year, demonstrating strong operational performance.

Key financial highlights include total revenues of $5.8 million, up from $5.4 million in the same quarter last year. This increase was fueled by a rise in water and wastewater tap fees, as well as revenue from lot sales and project management fees related to the Sky Ranch development. Pure Cycle reported a net income of $3.9 million, a substantial increase from $2.1 million in the prior year, attributed to higher oil and gas royalty income.

The company’s balance sheet shows a strong liquidity position with $19 million in cash and cash equivalents, although there was a decrease from the previous quarter due to investments in water systems and land development. The ongoing development at Sky Ranch continues to be a focal point, with further phases under construction, positioning Pure Cycle well for future growth.

Looking ahead, Pure Cycle Corporation remains optimistic about its growth prospects, particularly with the expansion of its single-family rental business and continued development at Sky Ranch. The company anticipates further increases in revenue streams from both its water resources and real estate operations.