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

Did Pure Cycle beat or miss consensus estimates last quarter?

What is Pure Cycle's gross profit margin?

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

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

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

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

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

- **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.


Pure Cycle Corporation (PCYO) Q4 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

PCYO

PCYO fundamentals

You can ask Aime