Loading...
•
May 31
Pure Cycle Q3 2025 Earnings Report
Pure Cycle reported solid Q3 2025 earnings with consistent profitability and ongoing progress in land development and water services.
Key Takeaways
Pure Cycle posted a profitable quarter with $2.3M in net income and continued development at Sky Ranch. Water and wastewater tap sales rose significantly, and royalty income from oil and gas contributed meaningfully to results.
Achieved net income of $2.3 million, marking the 24th consecutive profitable quarter.
Delivered 76 acre-feet of water in Q3 2025.
Water and wastewater tap fee revenue increased nearly threefold year-over-year.
Development in Phase 2B and 2C of Sky Ranch is progressing, with Phase 2B nearly complete.
Pure Cycle
Pure Cycle
Pure Cycle Revenue by Segment
Pure Cycle Revenue by Geographic Location
Revenue by Segment
Municipal water usage Revenue
CapyFin.comWastewater treatment Revenue
CapyFin.comTap fees Revenue
CapyFin.comLot sales Revenue
CapyFin.comOther Revenue
CapyFin.comRevenue by Geographic Location
Sky Ranch Revenue
CapyFin.com Forward Guidance
Pure Cycle expects continued growth from Sky Ranch development and stable recurring revenues from water services and rentals.
Positive Outlook
- Phase 2C expected to be completed by fiscal year-end 2025.
- Phase 2D development underway with completion expected in fiscal 2026.
- 17 new single-family rentals under construction, expanding recurring income base.
- Ongoing demand for entry-level housing supporting steady lot sales.
- Strong balance sheet with $18.1 million in working capital enables strategic expansion.
Challenges Ahead
- Lot sales revenue declined year-over-year due to timing of deliveries.
- Reduced water deliveries due to lower oil and gas demand.
- Potential impact from continued market volatility and weakening consumer confidence.
- Lot revenue may remain lumpy depending on construction and contract timing.
- Continued reliance on entry-level housing demand to sustain growth.