Pure Cycle Corporation
- Open
- 10.75
- Day high
- 10.85
- Day low
- 10.58
- Prev close
- 10.70
- Volume
- 58K
- Mkt cap
- $257M
- P/E (TTM)
- 17.5
- EPS (TTM)
- $0.61
- P/B
- 1.7
- P/S
- 7.6
- Yield
- —
- Per share
- —
Pure Cycle Corporation (PCYO) is a Utilities company listed on NASDAQ. The stock is up 8% over the past year.
Pure Cycle Corporation (PCYO) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
PCYO earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 9, 2026 | — | $0.12 | — | $8M | — |
| Apr 9, 2026 | — | $0.05 | — | $5M | — |
| Jan 7, 2026 | — | $0.19 | — | $9M | — |
| Nov 12, 2025 | — | $0.25 | — | $11M | — |
| Jul 9, 2025 | — | $0.09 | — | $5M | — |
| Apr 9, 2025 | — | $0.03 | — | $4M | — |
| Jan 8, 2025 | — | $0.16 | — | $6M | — |
| Nov 13, 2024 | — | $0.27 | — | $29M | — |
| Jul 10, 2024 | — | $0.12 | — | $8M | — |
| Apr 10, 2024 | — | $0.00 | — | $3M | — |
| Jan 12, 2024 | — | $0.09 | — | $5M | — |
| Nov 15, 2023 | — | $0.04 | — | $3M | — |
PCYO insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jan 16, 2026 | Kozlowski Daniel Rdirector | Grant | 2,653 | — |
| Jan 15, 2026 | Abel Wanda Jdirector | Grant | 2,653 | — |
| Jan 15, 2026 | Roller Daniel Jdirector, 10 percent owner: | Grant | 2,653 | — |
| Jan 15, 2026 | Heitmann Susan Dianedirector | Grant | 2,653 | — |
| Jan 15, 2026 | BEIRNE PATRICKdirector | Grant | 2,653 | — |
| Jan 15, 2026 | Sheets Jeffrey Gdirector | Grant | 2,653 | — |
| Jan 15, 2026 | FENDEL FREDERICK A. IIIdirector | Grant | 2,653 | — |
| Nov 24, 2025 | Spezialy Marc Stephenofficer: Chief Financial Officer | Grant | 30,000 | $10.75 |
| Nov 19, 2025 | Kozlowski Daniel Rdirector, 10 percent owner: | Sell | 68,778 | $11.01 |
| Nov 18, 2025 | BEIRNE PATRICKdirector | Option | 10,000 | $4.05 |
| Sep 19, 2025 | HARDING MARK Wdirector, officer: CHIEF EXECUTIVE OFFICER | Grant | 10,000 | — |
| Jan 17, 2025 | Abel Wanda Jdirector | Grant | 2,566 | $11.69 |
| Jan 17, 2025 | Kozlowski Daniel Rdirector, 10 percent owner: | Grant | 2,566 | — |
| Jan 17, 2025 | Heitmann Susan Dianedirector | Grant | 2,566 | $11.69 |
| Jan 17, 2025 | FENDEL FREDERICK A. IIIdirector | Grant | 2,566 | $11.69 |
Source: PCYO SEC Form 4 filings, latest Jan 16, 2026. For informational purposes only — not investment advice.
See the full PCYO insider & 13F page →Pure Cycle Corporation company profile
Overview
Pure Cycle Corporation (NASDAQ:PCYO) is a Colorado-based water utility and land development company founded in 1976. The company operates in the Denver metropolitan area and Colorado Front Range, focusing on three complementary business segments: water and wastewater utilities, land development, and single-family rental properties. Pure Cycle has evolved from its origins as a water rights company into a diversified enterprise that leverages its substantial water assets to support residential development and provide essential utility services to growing communities in Colorado's Front Range region.
Business
Pure Cycle operates in the regulated water utility industry while simultaneously developing residential communities, creating a unique business model that capitalizes on Colorado's water scarcity and growing population. The company's operations are divided into three main segments: Water and Wastewater Utilities (Primary Revenue Driver): This segment represents the company's core utility business, providing water production, storage, treatment, and distribution services, along with wastewater collection and treatment. Pure Cycle owns approximately 30,000 acre-feet of water rights, which provides capacity to serve up to 60,000 connections - currently utilizing only about 5% of this capacity with approximately 1,800 domestic connections. The company charges tap fees of around $40,000 per new connection and generates recurring revenue from water usage at approximately $1,500 per connection annually. Additionally, the utility segment provides substantial water delivery services to oil and gas operations, which can generate millions in revenue during active drilling periods. Land Development (Major Growth Engine): Pure Cycle develops master-planned residential communities, with its flagship Sky Ranch project being a 930-acre development zoned for 3,200 single-family units. The company is currently about 20% complete with this project, having delivered over 1,200 lots to date across multiple phases. Sky Ranch targets the entry-level housing market with homes priced under $500,000, working with four national homebuilders. The development includes community amenities such as Sky Ranch Academy, a K-8 charter school serving 500 students with plans to expand to high school level. Single-Family Rental (Emerging Segment): Pure Cycle retains select lots from its development projects to build and operate rental homes, currently managing 14 units with plans to expand to 200-300 units. This segment maintains high occupancy rates (over 90% renewal rates) and generates both rental income and property appreciation. The company manages these properties in-house and views this as a way to create recurring revenue streams while maintaining exposure to real estate appreciation. The water utility segment typically represents the largest portion of revenue, though land development can generate significant lumpy revenues during active selling periods. Oil and gas water delivery can also contribute materially during periods of active drilling activity.
Revenue model
Pure Cycle generates revenue through multiple complementary streams that leverage its core water assets. The water utility business operates on a traditional utility model, collecting one-time tap fees (currently around $40,000 per connection) when new customers connect to the system, plus ongoing monthly service fees averaging $1,500 annually per connection. The company also sells water in bulk to oil and gas operators, which can generate millions in revenue during active drilling periods - for example, $5.5 million in fiscal 2024. The land development business generates revenue by selling finished lots to homebuilders, with lot prices ranging from $75,000 to $120,000 depending on the phase and location within Sky Ranch. This creates significant but lumpy revenue streams as lots are delivered in batches corresponding to development phases. The company benefits from owning both the land and water rights, allowing it to capture value from both the raw land appreciation and the utility infrastructure required to serve the development. The single-family rental segment provides recurring monthly rental income, with the company targeting properties that generate approximately 20% internal rates of return through a combination of cash flow and property appreciation. Several factors influence Pure Cycle's margins and profitability. Positive margin drivers include Colorado's water scarcity, which supports premium pricing for water rights and tap fees; the company's low historical cost basis in both land and water rights acquired decades ago; population growth in the Denver metropolitan area driving demand for both housing and water services; and the integrated nature of the business model where water utility customers are often residents of company-developed communities. Margin pressures can come from construction cost inflation affecting development expenses; regulatory changes in water rights or utility rate structures; competition from other developers in the affordable housing segment; interest rate fluctuations affecting both development financing and housing demand; and commodity price cycles affecting oil and gas water delivery revenues. The company's customers include homebuilders purchasing finished lots, residential and commercial water utility customers, oil and gas operators requiring water services, and individual renters. The business model benefits from multiple revenue streams that can partially offset cyclical downturns in any single segment.
Competitive moat
Pure Cycle possesses a strong economic moat primarily derived from its substantial water rights holdings and strategic positioning in Colorado's water-scarce environment. The company's most significant competitive advantage is its ownership of approximately 30,000 acre-feet of water rights acquired over several decades at historically low costs. In Colorado's prior appropriation water system, these senior water rights are extremely valuable and difficult to replicate, as new water rights are increasingly scarce and expensive - management notes that water rights prices have increased approximately 50% in recent years. The company's integrated business model creates additional moat characteristics. By owning both the water rights and developing the communities that use the water, Pure Cycle captures value at multiple points in the development process while creating natural customer synergies. The utility business provides predictable recurring revenue streams with regulated rate structures, while the land development business benefits from having guaranteed water access - a critical advantage in Colorado where water availability can constrain development. Regulatory and infrastructure barriers also strengthen the moat. Water utility operations require significant regulatory approvals and infrastructure investments that create high barriers to entry. The company's existing treatment facilities, distribution systems, and regulatory relationships provide operational advantages over potential competitors. However, the moat faces some limitations. The land development business operates in a competitive market where other developers can acquire land and water rights, albeit at higher costs. The company's focus on entry-level housing puts it in competition with larger national builders who may have cost advantages. Additionally, the single-family rental segment faces competition from institutional investors and other rental operators, though Pure Cycle's advantage lies in its low land cost basis and integrated development approach. Potential disruption could come from significant changes in Colorado water law, major shifts in Denver area population growth patterns, or large-scale water recycling or desalination technologies that could reduce water scarcity premiums. However, these risks appear relatively low given Colorado's continued population growth and the physical limitations of alternative water sources in the region.
Risks & safety
Pure Cycle demonstrates a strong margin of safety with minimal financial risk and conservative capital structure. Liquidity and Solvency: • Cash position of $16.8 million as of Q2 2025, down from $22.1 million in Q4 2024 due to development investments • Current ratio of 3.76, indicating strong short-term liquidity • Debt-to-equity ratio of only 5.2%, reflecting minimal leverage • No significant debt maturities or cash burn concerns in core operations Valuation Metrics: • Trading at 86.6x P/E ratio based on recent quarter, though this reflects lumpy earnings pattern • EV/EBITDA of 37.5x appears elevated but reflects substantial asset base and development potential • Price-to-book ratio of 2.08x seems reasonable given asset quality and growth prospects • Graham number suggests potential undervaluation relative to asset base Other Considerations: • Substantial asset base of $149.7 million with minimal liabilities provides significant downside protection • Water rights and land holdings likely worth significantly more than book value • Diversified revenue streams reduce single-point-of-failure risks • Management's conservative approach to capital allocation and debt usage
Recent development
Over the past few years, Pure Cycle has executed a focused strategy of expanding its integrated water utility and land development business model. The company has significantly accelerated development of its Sky Ranch master-planned community, progressing from 18% completion in 2024 to approximately 20% currently, with multiple phases (2A, 2B, 2C, 2D) under simultaneous development. This represents the company's largest growth initiative, with the potential to generate an estimated $600 million in total revenue over the project's full buildout. Strategic expansion into single-family rentals has emerged as a key growth driver, with the company building its rental portfolio from 3 units in 2022 to 14 units currently, targeting 200-300 units long-term. This build-to-rent strategy allows Pure Cycle to retain ownership of select properties while generating recurring rental income and benefiting from property appreciation. The company has also made significant investments in community infrastructure and amenities, including the opening of Sky Ranch Academy, a K-8 charter school that now serves 500 students and plans to expand to high school level by 2026-2027. This educational amenity enhances the attractiveness of the Sky Ranch community and supports premium pricing for both lot sales and rental properties. Water utility expansion has continued with tap fee increases from $28,000 to approximately $40,000 per connection, reflecting the increasing value of water rights in Colorado. The company has also benefited from substantial oil and gas water delivery contracts, generating $5.5 million in fiscal 2024 from these industrial customers. Looking forward, Pure Cycle is preparing for commercial development opportunities at Sky Ranch, expecting to begin commercial transactions in 2026 with significant monetization in 2027. The company is also exploring development of its Lowry Ranch property in partnership with the State of Colorado Land Board, potentially focusing on affordable housing initiatives. Additionally, management continues to evaluate strategic land and water rights acquisitions to expand the company's development pipeline beyond Sky Ranch.
PCYO company profile · for informational purposes only — not investment advice.
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