PCYO earnings analysis
What we found in PCYO's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Pure Cycle Corporation reported a substantial increase in total revenue for Q3 2026, reaching $8.2 million, a significant rise of 60% year-over-year compared to $5.1 million in Q3 2025. With net income climbing to $2.9 million, up from $2.3 million a year earlier, the company achieved a diluted EPS of $0.12, reflecting ongoing strengths in its water and wastewater, land development, and single-family rental segments despite macroeconomic challenges.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Surges Significantly
- Total revenue reached $8.22 million for Q3 2026, a 60% increase from $5.14 million in Q3 2025.
- Strong Net Income Growth
- Net income grew to $2.9 million in Q3 2026 from $2.3 million in Q3 2025.
- EPS Improvement
- Diluted EPS improved to $0.12, up from $0.09 in the same period last year.
- Land Development Driving Growth
- Lot sales revenue increased 19% to $3.006 million from $2.526 million in Q3 2025.
- Excellent Performance in Water Revenue
- Water and wastewater revenue increased to $4.659 million from $2.129 million, driven by increased oil and gas operations.
- Cash Position Maintained Despite Growth
- As of May 31, 2026, cash and cash equivalents stood at $8.4 million, demonstrating robust liquidity.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- High Cash Burn From Expansion
- Operating cash flow was negative at -$1.7 million for the first nine months of 2026 compared to positive cash flow of $3.9 million for the same period in 2025.
- Increased Capital Expenditures
- Investing activities led to cash usage of $19.16 million, compared to $8.43 million in the prior year, indicating higher capital intensity.
- Regulatory Risks From New Legislation
- The 21st Century ROAD to Housing Act could potentially limit demand for single-family rentals as it seeks to restrict institutional investors.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.12
- Segment
- Water and Wastewater: $4.659 million
- Segment
- Land Development: $3.006 million
- Segment
- Single-family Rentals: Revenue not specified
What they said about what is next.
Management anticipates sustained demand for services but flagged potential headwinds from inflation and geopolitical factors.
The filing reads better than the one before it.
What came before.
- 10-Q · April 8, 2026
- Pure Cycle reported Q2 revenue of $5,169,000, up from $3,995,000 in the prior-year quarter, with operating income of $263,000 turning positive from an operating loss of $(1,327,000) a year earlier. Diluted EPS was $0.05…
- 10-Q · January 7, 2026
- Pure Cycle reported quarterly revenue of $9,135,000 and diluted EPS of $0.19 for the three months ended November 30, 2025, driven by a large increase in land development activity. Gross margin expanded to 68.4% and…
- 10-Q · April 9, 2025
- Pure Cycle reported Q2 revenue of $3.995M and diluted EPS of $0.03 for the three months ended February 28, 2025. Revenue rose 25% year-over-year from $3.197M, driven by water & wastewater tap fees and higher other…
- 10-Q · July 10, 2024
- For the third quarter ending May 31, 2024, Pure Cycle Corporation reported revenues of $7.6 million, an 11% increase compared to the same period last year, attributed primarily to increased lot sales and project…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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