The strong Q3 beat and raised FY26 guidance (revenue $28-32M, EPS $0.43-$0.52) signal accelerating momentum across both land development and water segments. Monitor the Q4 earnings call for Phase 2D completion timing and Phase 2E builder contract signings, which will determine whether FY27 revenue visibility improves. The board departure is a minor distraction but not a material concern.
Price Chart
Executive Summary
Pure Cycle reported strong Q3 FY2026 results with revenue of $8.2M (+60% YoY) and EPS of $0.12 (+33% YoY), driven by a surge in oil & gas water sales and continued land development at Sky Ranch. The company also announced the resignation of director Daniel R. Kozlowski, a significant shareholder, effective immediately. The combination of strong operational performance and a board departure is a net positive, but the director resignation introduces minor governance uncertainty.
Key Financial Metrics
Key Facts
- Q3 FY2026 revenue of $8.2M, up 60% YoY from $5.1M
- Q3 FY2026 EPS of $0.12, up 33% YoY from $0.09
- Net income of $2.9M, up 31% YoY from $2.3M
- Water & wastewater segment revenue surged 119% YoY to $4.7M, driven by oil & gas water demand
- Land development revenue increased 16% YoY to $3.3M
- Phase 2D is 84% complete; Phase 2E development started (159 lots for FY2027)
- Director Daniel R. Kozlowski resigned effective July 7, 2026; no disagreement cited
- Company guided FY26 gross revenue $28-32M and EPS $0.43-$0.52
- Cash and equivalents $8.4M; undrawn $10.0M working capital line of credit
- Share repurchases continued: 7,500 shares at avg $10.65 in Q3
Financial Impact
Q3 FY2026 revenue of $8.2M (+60% YoY) and EPS of $0.12 (+33% YoY); net income of $2.9M (+31% YoY). FY26 guidance: revenue $28-32M, EPS $0.43-$0.52.
Risk Factors
- Oil & gas water sales are highly variable and dependent on drilling activity and oil prices
- Housing market headwinds (affordability, consumer confidence) could slow lot absorption
- Phase 2E development is proceeding without a signed builder contract, introducing execution risk
- SFR segment expansion paused due to regulatory uncertainty on institutional rental ownership
- Cash burn from development activities; cash down to $8.4M from $21.9M at Aug 2025
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001104659-26-082168 |
| Document: pcyo-20260707xex99d2.htm | 0001104659-26-082168 |
| Document: pcyo-20260707x8k.htm | 0001104659-26-082168 |
| Document: 0001104659-26-082168-index-headers.html | 0001104659-26-082168 |
| Document: 0001104659-26-082168-index.html | 0001104659-26-082168 |
| Document: 0001104659-26-082168.txt | 0001104659-26-082168 |
| 8-K Data (Synthetic) | 0001104659-26-082168 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 25, 2026 8w ago | 8-K | $11.69 | awaiting T+60 | — | $10.62 (−9.15%) |
Jul 9, 2026 15w ago | 8-K | $10.79 $10.90 | ▲ +1.02% | ▼ −0.61% | $10.62 (−1.58%) |
Jul 8, 2026 15w ago | Press Release | $10.79 $10.90 | ▲ +1.02% | ▼ −0.61% | $10.62 (−1.58%) |
Jun 30, 2026 16w ago | Press Release | $10.71 $11.00 | ▲ +2.71% | ▼ −0.86% | $10.62 (−0.84%) |
May 26, 2026 21w ago | 8-K | $9.92 $11.46 | ▲ +15.52% | ▲ +12.80% | $10.62 (+7.06%) |
Apr 9, 2026 28w ago | 8-K | $11.85 $10.55 | ▼ −10.97% | ▼ −21.75% | $10.62 (−10.38%) |
Apr 8, 2026 28w ago | Press Release | $11.85 $10.55 | ▼ −10.97% | ▼ −21.75% | $10.62 (−10.38%) |
US Market Status
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