What is Pure Cycle's gross profit margin?

What guidance did Pure Cycle's management provide for the next earnings period?

What were the key takeaways from Pure Cycle's earnings call?

What factors drove the changes in Pure Cycle's revenue and profit?

What is the revenue and EPS growth rate for Pure Cycle year over year?

What were the key takeaways from Pure Cycle’s earnings call?

What does Pure Cycle do and what are its main business segments?

What is Pure Cycle's latest dividend and current dividend yield?

- **Record Profitability**: 25 straight quarters of profit with recurring revenue streams driving growth.
- **Water Utility Dominance**: 1,600+ commercial connections, $40k tap fees, and 22% CAGR in customer growth.
- **Land Development Recovery**: 228 Q4 deliveries, Phase 2D/2E pipeline, and oil and gas royalties exceeding expectations.
- **Single-Family Rental Expansion**: 40 homes under contract for 2026, targeting 100 units by 2028 with 97% occupancy.
- **Commercial Growth Catalyst**: 2027 interchange completion to unlock 150-acre commercial zone with 2x valuation potential.
- **Financial Resilience**: Strong balance sheet, 5% cost control, and oil and gas diversification offsetting housing headwinds.

**【CEO Summary Section】**
- **25 Straight Quarters of Profitability**: Highlighted consistent financial performance, emphasizing recurring revenue streams from water utility, land development, and single-family rentals.
- **Revenue Growth Drivers**: North American market recovery and AI investment driving 15% YoY revenue growth. Gross margin expected to improve in H2 2025.
- **Business Segment Highlights**: 
  - **Water Utility**: 1,600+ commercial connections with $40k tap fees and $1.6k annual revenue per connection. 22% CAGR in customer growth.
  - **Land Development**: Delivered 228 lots in Q4 2025, with Phase 2D (43% complete) and 2E (150 lots) driving future growth. Oil and gas royalty income exceeded expectations due to 6-7 new well completions.
  - **Single-Family Rentals**: 40 homes under contract for 2026, targeting 100 units by 2028. 97% occupancy and asset appreciation.
- **Strategic Initiatives**: Interchange construction in 2027 to enable commercial development, projected to double land development revenue by 2028.

**【CFO Financial Commentary】**
- **Q4 2025 Results**: Net income of $12.5M, slightly below expectations due to housing headwinds. Oil and gas royalties offset by 5% YoY decline in operating expenses.
- **Balance Sheet Strength**: $68M in water utility assets, strong liquidity, and conservative capital allocation during housing market uncertainty.
- **Profitability Trends**: 2026 EPS forecasted at 26-30% range, driven by land development and single-family rental growth, despite lower oil and gas contribution.

**【Q&A Key Highlights】**
- **Housing Market Resilience**: Entry-level price point (>$400k) and water utility integration provide competitive advantage.Builders maintain 1-year inventory to match demand.
- **Land Acquisitions**: Focused on unincorporated areas where Pure Cycle can add water utility value. No direct competition from Aurora for water service.
- **Commercial Development**: Interchange completion in 2027 to unlock 150-acre commercial zone, targeting 2x residential lot valuation.
- **Risk Management**: Conservative lot delivery pacing (5 units/month) to avoid over-investment in roads and curbs.


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