Wed, Apr 9, 8:01 PM (39 days ago)
**Pure Cycle Corporation (PCYO) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** Q1 2025 revenue was $3.995 million, up 25% from Q1 2024 ($3.197 million). Six-month revenue was $9.747 million, up 14% from $8.583 million in 2024. - **Profit Margins:** Q1 2025 net income was $0.809 million, a 586% increase from $0.118 million in Q1 2024. Six-month net income was $4.746 million, up 117% from $2.183 million in 2024. - **Cash Flow:** Operating activities provided $4.227 million in cash for the six months ended February 28, 2025, a significant improvement from the $1.685 million used in the same period in 2024. **Key Metrics:** - **Earnings Changes:** Q1 2025 EPS was $0.03, up from $0.00 in Q1 2024. Six-month EPS was $0.20, up from $0.09 in 2024. - **Segment Performance:** Water and wastewater resource development revenue increased by 45% in Q1 2025. Land development revenue saw a 11% increase over six months. - **Uncertainties:** The company faces uncertainties due to economic conditions, interest rates, and housing market fluctuations. However, it maintains a positive outlook on land development and housing market growth. **Future Operations Impact:** - **Sky Ranch Development:** The company is actively developing phases 2A, 2B, 2C, and 2D at Sky Ranch. It expects to complete these phases over the next few years, with significant revenue recognition tied to construction progress. - **Single-Family Rentals:** The company plans to expand its single-family rental business, with 17 additional homes under construction and 94 lots reserved for future rentals. - **Water and Wastewater Services:** The company continues to provide water and wastewater services, with a focus on sustainable and environmentally friendly practices. **Trends:** - **Increased Revenue:** The company has seen increased revenue from water and wastewater tap fees, lot sales, and oil and gas royalty income. - **Construction Activity:** The company is actively constructing infrastructure at Sky Ranch, with significant investments in public improvements and land development. - **Market Conditions:** The housing market has stabilized, but the company remains cautious about economic uncertainties and interest rate fluctuations. **Conclusion:** Pure Cycle Corporation reported strong financial performance in Q1 2025, with significant revenue and net income growth. The company is actively developing its Sky Ranch property and expanding its single-family rental business. However, it faces uncertainties due to economic conditions and housing market fluctuations. The company maintains a positive outlook on its future operations and growth prospects.