Pure Cycle

Pure Cycle provides water and wastewater services to Colorado families. It develops master-planned communities for home builders and residents. The company also builds and rents out single-family homes.

Where the Water Flows

• Water and Wastewater: Operates production, storage, and distribution systems for residential and industrial users; generated $5.4 million in revenue for the six months ended February 28, 2026.
• Land Development: Handles horizontal infrastructure including roads and parks for neighborhoods like Sky Ranch; generated $8.6 million in revenue for the six months ended February 28, 2026.
• Single-Family Rentals: Manages and leases detached homes under annual rental agreements; generated $0.3 million in revenue for the six months ended February 28, 2026.

Pipelines and Properties

• Acquired 370 acre-feet of water rights in the Lost Creek basin area in June 2022 to expand water supply.
• Settled a 2020 Water Court application to adjudicate 1,635 acre-feet of water from the Box Elder Creek aquifer.
• Launched a debt facility in September 2025 with a new banking partner to fund construction of up to 62 rental homes.
• Advanced the Sky Ranch development into Phase 2D, which reached 78% completion as of February 28, 2026.

The Utility of Land

Pure Cycle integrates land ownership with utility services to capture value from both property development and ongoing water service fees. This model allows the company to reuse reclaimed wastewater for irrigation, reducing the environmental impact of its suburban operations.

Checking the Vitals

• Total revenue reached $14.3 million for the six months ended February 28, 2026, up 47% from the same period in 2025.
• Net income hit $1.1 million in Q2 2026, up 36.6% from the $809,000 reported in Q2 2025.
• Operating income turned positive at $263,000 in Q2 2026, an improvement of 119.8% from a $1.3 million loss in the previous year.
• Free cash flow worsened to negative $4.5 million in Q2 2026, down 221.3% from negative $1.4 million in Q2 2025.

Bottom Line

Pure Cycle has evolved from a passive water rights holder into an integrated developer of utilities, land, and rental housing. This strategy positions the company to benefit from long-term population growth and infrastructure demand in the Denver metropolitan region.