PCYONasdaqWater SupplyUS GAAP · USD

Pure Cycle Corporation

Pure Cycle Corp is a U.S.-based water infrastructure and real estate company focused on the Denver, Colorado area. Its business combines wholesale water and wastewater services, land development for master planned communities, and single-family homes built for rental use through its wholly owned subsidiaries.

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Revenue26.1m USD
−9.3 %y/y
Operating profit (EBIT)7.7m USD
−37.3 %y/y
EBIT margin29.4%
−13.2 ppy/y
Net income13.1m USD
+12.9 %y/y
Free cash flow13.2m USD
+495.1 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

0102030m USD2020: 26 m USD2020: EBIT 1.5 m USD20202021: 17 m USD2021: EBIT 5.3 m USD20212022: 23 m USD2022: EBIT 10 m USD20222023: 15 m USD2023: EBIT 2.1 m USD20232024: 29 m USD2024: EBIT 12 m USD20242025: 26 m USD2025: EBIT 7.7 m USD2025267.7
RevenueOperating profit (EBIT)
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Business

Share of revenue
Water and wastewater services35 %

Wholesale water delivery, wastewater service, and related tap and usage fees in the Denver area.

Land development45 %

Development of owned land into finished lots and master planned community infrastructure.

Single-family rental10 %

Construction and rental of single-family homes within its development areas.

Project management and other income10 %

Project management fees and other ancillary income tied to development activities.

Products

Reported · share of revenue
52.5%22.6%11.5%FY2025100 %
  • Lot Sales52.5 %
  • Water Tap Fees Recognized Excluding Waste Water Tap Fee22.6 %
  • Water and Wastewater Activities11.5 %
  • Wastewater Tap Fee5.4 %
  • Special Facility Projects3.1 %
  • Other4.9 %

Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.

Customers

Pure Cycle sells primarily to water district customers, homebuilders, and developers tied to its Colorado service areas. It also earns rental income from tenants in its single-family home portfolio and may receive water sales tied to industrial drilling activity within its service area. The customer base is therefore a mix of utility users, residential developers, and housing tenants, with demand linked to local growth and land absorption.

Rangeview District customers

Wholesale water and wastewater users served through the Rangeview District; they drive most utility revenue.

Homebuilders and lot buyers

Builders purchasing finished lots and paying tap fees to connect homes to utility systems.

Single-family rental tenants

Households leasing newly built homes in Pure Cycle's rental portfolio.

Oil and gas service operators

Operators buying water for drilling-related uses within the service area.

Strategy

Pure Cycle's strategy is to combine water rights, utility infrastructure, and land ownership so that each business supports the others. The company develops land in phases, aligns infrastructure spending with builder demand, and expands its water and wastewater systems as the surrounding community grows. It also uses its rental homes and ancillary income streams to diversify cash generation within the same development footprint.

Phased development of Sky RanchMedium term

Phasing reduces excess capacity and aligns capital deployment with builder demand.

Expand water and wastewater capacityMedium term

Utility infrastructure supports future residential growth and recurring tap and usage revenue.

Monetize land through lot sales and rentalsLong term

Finished lots and rental homes convert owned land into recurring and transaction-based income.

Geography

Pure Cycle's operations are concentrated in the Denver, Colorado area, especially along the Colorado Front Range. Its water, land, and rental assets are located in the same regional development corridor, which ties performance to local housing demand, permitting, and water supply conditions. The company does not describe a broad national operating footprint in the available filings.

Risks

Pure Cycle is exposed to concentration in the Colorado Front Range, where local housing demand, zoning, and regulatory approvals can affect development timing and asset values. Its water sales have also been tied to a limited set of oil and gas-related customers, while construction and subcontractor execution risks can affect lot delivery and warranty costs. Because the business depends on phased development and public approvals, delays or cost overruns can materially affect results.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Geographic concentration in Colorado Front Range1Oil and gas customer concentration2Permitting and regulatory delays3Construction and subcontractor execution4
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Geographic concentration in Colorado Front RangeImpact: HighLikelihood: High

    All assets and operations are located in one regional market, so local downturns hit the whole business.

    ExposureHousing demandZoningLocal economic conditions
  2. Oil and gas customer concentrationImpact: HighLikelihood: High

    Water sales to drilling-related operators can fluctuate with commodity prices and drilling activity.

    Exposure: Industrial water sales

  3. Permitting and regulatory delaysImpact: MediumLikelihood: High

    Water and land projects require multiple government approvals that can slow sales and construction.

    Exposure: Land development and utility expansion

  4. Construction and subcontractor executionImpact: MediumLikelihood: Medium

    Defective work or materials can increase repair, warranty, and completion costs.

    Exposure: Homebuilding and infrastructure construction

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Accounting

Judgemental items
Percentage-of-completion accounting for land development

Revenue and profit recognition depend on estimated progress and total project costs.

Impact: Can shift revenue and margin recognition between periods

Tap fee timing

Tap fees are recognized when permits are granted, so builder activity affects quarterly revenue.

Impact: Creates timing volatility in utility revenue

Estimates for notes receivable and accrued liabilities

The company uses judgment to assess collectability and project-related obligations.

Impact: Can affect asset values and expense recognition

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Last updated: 24/09/2026