The stock may react positively to the strong revenue and earnings beat, especially given the acceleration in lot deliveries and rising water sales to oil and gas. Investors should monitor upcoming milestone payments (~$18.9M expected in next 12 months) and Phase 2E development timing for further upside.
Price Chart
Executive Summary
Pure Cycle Corporation reported strong Q2 and YTD fiscal 2026 results with revenue up 29% YoY to $5.2M and net income up 37% to $1.1M, driven by accelerated lot development at Sky Ranch due to favorable weather. Earnings per share rose to $0.05 from $0.03, and the company highlighted continued growth in land development and water sales, particularly to oil and gas customers.
Key Financial Metrics
Key Facts
- Revenue for Q2 (three months ended February 28, 2026) was $5.2 million, a 29% increase from $4.0 million in the same period of 2025.
- Net income rose 37% to $1.1 million from $0.8 million in the prior year period.
- Earnings per diluted share increased to $0.05 from $0.03 YoY.
- Land development revenue surged to $2.1 million from $1.3 million (59% growth) due to accelerated lot deliveries in Phase 2D.
- Water deliveries tripled to 272 acre-feet from 64 due to higher demand from oil and gas customers.
- Company expects to complete Phase 2D in Q3 2026 and begin development on 159 lots in Phase 2E in 2027.
- Cash balance was $4.8 million as of February 28, 2026, down from $21.9M due to construction investments and infrastructure spending.
Financial Impact
Revenue increased by $1.2 million YoY, net income by $296K, with EBITDA up 23% to $2.2M.
Risk Factors
- Cash balance declined significantly due to self-financed construction and infrastructure investments.
- Revenue from oil and gas water sales is volatile and tied to commodity prices.
- Future rental home expansion has been slowed due to regulatory uncertainty around institutional ownership.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3270484 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 25, 2026 9w ago | 8-K | $11.69 | awaiting T+60 | — | $10.47 (−10.44%) |
Jul 9, 2026 15w ago | 8-K | $10.79 $10.90 | ▲ +1.02% | ▼ −0.61% | $10.47 (−2.97%) |
Jul 8, 2026 15w ago | Press Release | $10.79 $10.90 | ▲ +1.02% | ▼ −0.61% | $10.47 (−2.97%) |
Jun 30, 2026 17w ago | Press Release | $10.71 $11.00 | ▲ +2.71% | ▼ −0.86% | $10.47 (−2.24%) |
May 26, 2026 22w ago | 8-K | $9.92 $11.46 | ▲ +15.52% | ▲ +12.80% | $10.47 (+5.54%) |
Apr 9, 2026 28w ago | 8-K | $11.85 $10.55 | ▼ −10.97% | ▼ −21.75% | $10.47 (−11.65%) |
Apr 8, 2026 28w ago | Press Release | $11.85 $10.55 | ▼ −10.97% | ▼ −21.75% | $10.47 (−11.65%) |
US Market Status
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