Pure Cycle Posts $5.7M Net Income in H1 2026, Up 19% as Water Revenue Doubles

Pure Cycle Corporation, a water and wastewater utility company based in Colorado, reported net income of $5.67 million for the six months ending February 28, 2026, up 19% from $4.75 million in the same period a year earlier. Diluted earnings per share rose to $0.23 from $0.20. Read more earnings reports.

Revenue for the half jumped 47% to $14.3 million from $9.75 million, driven by a surge in water service revenue, which more than doubled to $7.66 million from $3.46 million. The company's water and wastewater utility operations generated $5.44 million in revenue, up slightly from $5.39 million a year ago.

Gross profit for the period expanded to $9.04 million from $5.19 million, as cost of revenue rose to $5.27 million from $4.55 million. Operating income reached $4.65 million compared to $392,000 in the prior-year period, reflecting improved margins across the company's service lines.

For the three months ending February 28, 2026, Pure Cycle posted net income of $1.11 million, up 37% from $809,000 in the December 2025 quarter. Quarterly revenue totaled $5.17 million, up 29% from $3.99 million a year earlier.

The company's balance sheet showed total assets of $166.6 million as of February 28, 2026, up from $162.3 million at the end of August 2025. Cash and cash equivalents stood at $4.82 million, down sharply from $21.9 million at the fiscal year-end, while total cash including restricted cash fell to $11.6 million from $28.4 million.

Cash from operations turned negative at $5.19 million for the six-month period, compared to positive $4.30 million in the prior year. The company deployed $12.6 million in investing activities, up from $7.20 million a year ago, while financing activities generated $1.05 million.

Total liabilities declined to $17.9 million from $19.5 million at fiscal year-end. Long-term debt stood at $6.48 million as of February 28, 2026. Stockholders' equity increased to $148.7 million from $142.7 million, with retained deficit narrowing to $27.2 million from $32.8 million.

The company had 24.1 million common shares outstanding as of the quarter-end, essentially flat from 24.1 million at the end of August 2025.