The rate case settlement for GW-Santa Cruz is the most important catalyst — it provides a clearer path to rate recovery and earnings growth in late 2026, but the GW-Palo Verde delay pushes material wastewater recovery to 2027-2028. Monitor the August ALJ hearings and any additional rate case filings for other utilities. The slowing organic connection growth (1.9% ex-acquisition) and declining cash position warrant caution near-term.
Price Chart
Executive Summary
Global Water Resources reported Q1 2026 revenue of $13.3M (+6.7% YoY), slightly below the $14.1M consensus, but posted a narrower-than-expected GAAP net loss of -$0.01 per share versus the -$0.02 consensus estimate. The net loss widened YoY from +$0.02 to -$0.01 due to elevated depreciation and interest from the 2025 capital plan, though adjusted EBITDA held steady at $5.6M. The key positive is the April 28 ACC rate case settlement for GW-Santa Cruz, which provides a clearer path to a ~$2.3M annual revenue increase effective November 1, 2026, but the GW-Palo Verde case was withdrawn and refiled for 2027, delaying recovery on the largest wastewater utility.
Key Financial Metrics
Key Facts
- Q1 2026 total revenue $13.3M, +6.7% YoY, vs consensus $14.1M (miss)
- GAAP net loss -$0.4M or -$0.01 per share, vs consensus -$0.02 (beat), vs prior year +$0.02
- Adjusted EBITDA unchanged at $5.6M YoY
- Active connections +5.7% YoY to 68,885; organic growth ex-acquisition slowed to 1.9%
- ACC rate case settlement filed April 28: GW-Santa Cruz ~$2.3M annual revenue increase, effective Nov 1, 2026
- GW-Palo Verde rate case withdrawn, to be refiled in 2027 using 2026 test year
- Operating cash flow $4.5M vs $7.5M in prior year Q1
- Cash & equivalents $1.8M, down from $4.1M at year-end 2025; revolver borrowings of $1.0M outstanding
- Dividend maintained at $0.02533/month ($0.30396 annualized)
Financial Impact
Revenue miss of ~$0.8M vs consensus; EPS beat of $0.01 vs -$0.02 estimate; rate case settlement adds ~$2.3M annual revenue from Nov 2026
Risk Factors
- GW-Palo Verde rate case delay pushes wastewater revenue recovery to 2027+
- Organic connection growth slowing to 1.9% from 3.2% in FY2025
- Cash burn: operating cash flow $4.5M vs $7.5M prior year; cash down to $1.8M
- Elevated depreciation and interest expense will continue to pressure GAAP earnings
- No formal guidance provided; forward-looking statements are aspirational
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-034666 |
| Document: gwrs-20260513.htm | 0001628280-26-034666 |
| Document: 0001628280-26-034666-index-headers.html | 0001628280-26-034666 |
| Document: 0001628280-26-034666-index.html | 0001628280-26-034666 |
| Document: 0001628280-26-034666.txt | 0001628280-26-034666 |
| 8-K Data (Synthetic) | 0001628280-26-034666 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 21, 2026 5w ago | Insider Cluster | $9.36 $8.29 | ▼ −11.43% | ▼ −12.75% | $8.13 (−13.14%) |
Aug 13, 2026 7w ago | Press Release | $8.89 $8.71 | ▼ −2.02% | ▼ −0.28% | $8.13 (−8.55%) |
Jul 31, 2026 9w ago | Press Release | $7.16 $9.13 | ▲ +27.51% | ▲ +24.53% | $8.13 (+13.55%) |
May 29, 2026 18w ago | Press Release | $7.29 $7.25 | ▼ −0.55% | ▲ +1.25% | $8.13 (+11.52%) |
May 22, 2026 18w ago | Insider Cluster | $7.73 $7.07 | ▼ −8.54% | ▼ −6.59% | $8.13 (+5.17%) |
May 22, 2026 18w ago | Insider Cluster | $7.73 $7.07 | ▼ −8.54% | ▼ −6.59% | $8.13 (+5.17%) |
May 18, 2026 19w ago | Press Release | $6.80 $6.85 | ▲ +0.74% | ▼ −0.25% | $8.13 (+19.56%) |
May 13, 2026 20w ago | 8-K | $6.94 $7.01 | ▲ +1.01% | ▲ +1.87% | $8.13 (+17.23%) |
May 4, 2026 21w ago | 8-K | $7.06 $7.38 | ▲ +4.53% | ▼ −1.11% | $8.13 (+15.16%) |
Apr 30, 2026 22w ago | 8-K | $7.11 $7.40 | ▲ +4.08% | ▼ −0.89% | $8.13 (+14.35%) |
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