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Feb 28, 2025
Pure Cycle Q2 2025 Earnings Report
Pure Cycle reported steady performance in Q2 2025 with positive net income and revenue growth driven by tap sales and royalty income.
Key Takeaways
Despite seasonal slowdowns, Pure Cycle posted a profitable Q2 2025 with growth in water tap sales and continued revenue from oil and gas royalties. Residential demand at Sky Ranch remained strong, supporting ongoing development.
Net income reached $809,000 during a seasonally low construction quarter.
Revenue grew to $4,000,000, with water tap sales contributing significantly.
Royalty income surged to $1,910,000, reflecting gains from new wells.
EBITDA reached $1,802,000, indicating strong operational profitability.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Pure Cycle expects continued lot deliveries and rising rental demand at Sky Ranch to drive growth, supported by infrastructure expansion and strong capital reserves.
Positive Outlook
- Development in Phase 2C and 2D advancing on schedule.
- Expected completion of Phase 2C by fiscal end 2025.
- Grading for Phase 2D finalized; delivery expected by calendar end 2025.
- Strong demand for entry-level housing at Sky Ranch.
- Royalty revenues bolstered by new producing wells.
Challenges Ahead
- Winter weather continues to cause seasonal slowdowns.
- Water deliveries dropped due to less oil and gas demand.
- Land development revenue slightly down due to increased estimated costs.
- Tap sales depend on timing of construction phases.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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