Start here if you're new
what it is
Pure Cycle builds a master-planned community and sells the water and wastewater service that community needs to exist.
how it gets paid
Last year Pure Cycle made $26M in revenue. residential lot sales was the main engine at $14.0M, or 54% of sales.
why growth slowed
Full-year revenue fell 9.3% to $26M. The latest quarter was a different story— up ~59% vs. prior year on a tiny base— so do not blend FY% and quarter% in one breath.
what just happened
The latest quarter showed a sharp rebound, with revenue hitting $9M, up 59% vs. prior year.
At a glance
B+ balance sheet — decent shape, but not bulletproof
35/100 earnings predictability — expect surprises
20.7x trailing p/e — priced about right
8.9% return on capital — nothing to write home about
$0.54 fy2025 eps est
xvary composite: 63/100 — average
What they do
Pure Cycle builds a master-planned community and sells the water and wastewater service that community needs to exist.
Pure Cycle owns both the dirt and the pipes. That matters because Sky Ranch is planned for up to 3,200 homes, and the same company that develops the land also provides the water and wastewater service. You are not just betting on home lots. You are betting on a setup where each new rooftop can feed land sales first and utility revenue later.
How they make money
$26M
annual revenue · their business grew -9.3% last year
residential lot sales
$14.0M
12.0%
water tap fees
$4.5M
+8.0%
wastewater tap fees
$3.5M
+6.0%
recurring water and wastewater service
$2.5M
+10.0%
other land and resource revenue
$1.5M
15.0%
The products that matter
regulated utility operations
Water & wastewater (taps + service)
~$10.5M · ~40% of revenue
Rolls up tap fees, wastewater taps, and recurring service from the revenue table (~$4.5M + $3.5M + $2.5M). That is the steadier pipe-and-meter story next to lot sales.
recurring base
master-planned community development
Land & lot sales
~$15.5M · ~60% of revenue
Residential lots (~$14M) plus other land/resource (~$1.5M) from the bridge. Sky Ranch Phase 2B is 97% complete, so monetizing that progress still drives the swing factor.
97% complete
capital return
Share Repurchase Program
$74K in Q4 2025
The company spent $74K on buybacks in Q4 2025. That is up 236% from the prior period, but it is still tiny next to the $247M market cap.
small signal
Key numbers
$0.54
fy2025 eps est
$26M
fy2025 rev est
20.7x
trailing p/e
68.4%
gross margin
Gross profit kept about 68.4% of each revenue dollar.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 2 — safer than 80% of stocks
- price stability 60 / 100
- long-term debt $8M (3% of capital)
B+ — light leverage for a land/water story; earnings stay lumpy quarter to quarter.
Total return vs. market
Return history isn't available for PCYO right now.
source: institutional data · return history unavailable
What just happened
beat estimates
The latest quarter showed a sharp rebound, with revenue hitting $9M, up 59% vs. prior year.
EPS rose to $0.19 from the prior year's comparable quarter, up 19%. The weird part is the contrast: the quarter looked strong even though full-year revenue still fell 9.3% to $26M.
$9M
quarter revenue
$0.19
quarter EPS
68.4%
gross margin
the number that mattered
Revenue growth of 59% mattered most because this company is tiny, so a few extra closings can change the whole year.
source: company earnings report, 2026
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What could go wrong
The #1 risk here is Sky Ranch concentration — one development engine carries too much of the story.
high
Sky Ranch does most of the heavy lifting
Land and community development produced $17.7M of $26M total revenue last year. If lot sales slow, the majority of the business slows with it.
major revenue exposure
high
Revenue is already moving the wrong way
Annual revenue declined 9.1% last year to $26M. The company stayed profitable, but you cannot cut your way into a growth story forever.
pressures valuation multiple
med
The utility segment is not big enough to carry the stock alone
Water and wastewater services generated $8.3M, or 32% of revenue. That helps stabilize the model, but it does not fully offset a development slowdown.
limited downside cushion
low
Governance changes add noise at the wrong time
The cooperation agreement around board changes on jan 14, 2026 does not break the thesis by itself. It does raise the cost of any operating miss from here.
execution sensitivity rises
With $17.7M of $26M revenue tied to land and community development, this is not a diversified utility story. It is a concentrated real estate cycle with water assets attached.
source: institutional data · regulatory filings · risk analysis
Pay attention to
revenue conversion
Watch whether the 97% completion turns into recognized sales
Construction progress is nearly done. From here, the market wants closed lot sales and reported revenue, not another progress update.
next earnings
Check if Q1's pace still supports full-year guidance
Management said the company reached roughly one-third of annual revenue guidance in the first quarter. The next report will either confirm that pace or walk it back.
segment mix
See whether utility revenue becomes a bigger stabilizer
Water and wastewater services is only $8.3M today. If that base does not grow, the stock stays exposed to development timing.
capital allocation
Keep buybacks in perspective
Q4 2025 buybacks rose to $74K. That is directionally positive, but you need a larger program or stronger operating growth before capital return becomes part of the thesis.
Analyst rankings
earnings predictability
35 / 100
In human-speak, analysts do not view this as a smooth earnings story. Development-heavy revenue arrives in chunks, so surprises come with the territory.
risk rank
2
That points to below-average financial risk. Translation: the balance sheet looks calmer than the business model.
price stability
60 / 100
Middle of the road. You are not buying a bunker stock, but this is not a pure rollercoaster either.
source: institutional data
Institutional activity
institutional ownership data for PCYO is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$12
current price
n/a
target midpoint · n/a from current
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