Pure Cycle Q3 2026 Earnings Call: Complete Transcript

Pure Cycle (NASDAQ: PCYO ) held its third-quarter earnings conference call on Thursday.

Below is the complete transcript from the call.

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The full earnings call is available at Summary Pure Cycle Corporation reported strong Q3 results with $8.2 million in revenue and $4.3 million in gross profits, achieving a 52% profit margin.

The company accelerated the development of phase 2D due to favorable weather, refreshing liquidity, and allowing early product delivery.

Pure Cycle's water revenues strengthened, driven by increased industrial water sales and tap fees, with expectations for continued growth.

The land development segment delivered approximately 430 lots in the last 18 months, and Phase 2E is underway with 159-160 lots.

Single-family rental segment adjusted its expansion plans due to regulatory considerations, scaling back to 70 units.

Management remains optimistic about fiscal year-end results, with potential to exceed guidance, and plans to continue share repurchases.

The company is diversifying revenue streams across water, land development, and rentals, ensuring stability across market conditions.

Pure Cycle is actively pursuing commercial opportunities and aims to start commercial development in late 2027 after receiving necessary permits.

Full Transcript OPERATOR Good morning everyone and welcome to Pure Cycle Corporation's third quarter 2026 earnings presentation.

We've started the presentation with everybody on mute as our CEO Mark Harding goes through our financial results.

At the end of the presentation we will open up the lines for Q and A and with that I'll turn the mic over to our CEO Mark Harding.

Mark Harding, President, CEO Thank you, Mark.

And I'll add my welcome as well.

With me is Marc Spezialy, he's our CFO and he'll give you kind of the detail on some of the technology questions as we get into the Q&A portion of this.

Also with me is our controller, Irina Finnegan.

So if you guys have any drill-down questions on the accounting, I'll share the mic with her and have her walk through some of those.

As Mark sort of announced, this is our Q3 presentation and we're delighted to be able to bring you some very solid results here.

As we start the presentation, we'll start with our forward-looking statement.

I'm sure most of you are familiar with that, but statements that are not historical facts contained or incorporated by reference in this presentation are forward-looking statements.

Continuing on, you know, it's my pleasure and really the company's benefit to continue to work with a great management team.

You know, a ton of experience on this team and really bringing value to the shareholders on a day-to-day basis at the board.

Update on board composition.

We have had a couple of resignations.

Two board members are related to a 13B filer on the board that you've likely seen.

There's no drama with these.

They represented an FPV vehicle which holds about 13% of the stock and are working really in the best interest of the limited partnerships for the FPV and then combining with the restrictions that come on with the board.

So I think we'd like to acknowledge their service and their contributions and thank them for their efforts and wish them the very best.

Taking a little bit on the overview, another great quarter and continued execution of our business.

Most notable really was refreshing of our liquidity.

After accelerating the development timeline of our phase 2D.

We had kind of two phases that we're kind of developing at the same time.

And because of the mild winter, we really did continue to reinvest on that, accelerate that, deliver those lots a little bit early, allow a couple of our new builders to get a head start on what we were looking at on delivery of that product towards this summer.