Slide 1: Earnings Presentation
PURE CYCLE CORPORATION Earnings Presentation For the Three and Nine Months Ended May 31, 2025 Presented by Mark Harding www.purecyclewater.com
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements that are not historical facts contained or incorporated by reference in this presentation are “forward-looking statements” (“FLS”) within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 2
Slide 3: Leadership Team
Leadership Team MARK W. HARDING MARC SPEZIALY SCOTT LEHMAN RACHELLE BEAUDRY DIRK LASHNITS President, CEO, and Director VP, CFO, Principal Accounting Vice Head President, Engineering of Marketing Vice President, Land Development Officer, Principal Financial Officer Mark is an exceptional leader who h
Slide 4: Board of Directors
Board of Directors Mark W. Harding Jeffrey G. Sheets Fredrick A. Fendel III President and CEO Director Director Patrick J. Beirne Susan Heitmann Chair of the Board Director and Chair of the Audit Committee Wanda J. Abel Daniel R. Kozlowski Director and Chair of the Nominating Director and Chair of t
Slide 5: Financials
PURE CYCLE CORPORATION LS FINANCIALS 5
Slide 6: Consolidated Financial Performance Results
Financial Performance Results In Q3 2025, we delivered revenue of $5.1M, gross profit of $3.3M with a 63% gross margin, and net income of $2.3M, translating to $0.09 EPS. METRICS YTD 2025, we delivered revenue of $14.9M, gross profit of $8.5M with a 57% gross margin, and net income of $7M, translati
Slide 7: Financial Performance QoQ: Revenue and Gross Profit
Financial Performance QoQ METRICS In Q3 2025, we reported revenue of $5.1M and gross profit of $3.3M. The decline compared to Q3 2024 was primarily due to a decrease in our lot sales revenue compared to 2024 due to the timing of finished lot deliveries. Figures in Thousands QoQ Q3 Revenue QoQ Q3 Gro
Slide 8: Financial Performance QoQ: Net Income and EPS
Financial Performance QoQ In Q3 2025 we generated net income of $2.3M and EPS of $0.09. The decrease from prior quarters is due to a decrease in our lot sales METRICS revenue and offset by higher tap sales and royalty income which highlights the strength of our earnings through our diverse assets. F
Slide 9: Financial Performance YTD: Revenue and Gross Profit
Financial Performance YTD Year-to-date results for Q3-2025 demonstrate solid progress toward our annual goals. We have achieved $14.9M in revenue and $8.5M in METRICS gross profit, representing 48% and 36% of our full-year 2025 guidance, respectively. Revenues are anticipated to accelerate through t
Slide 10: Financial Performance YTD: Net Income and EPS
Financial Performance YTD METRICS Net income year-to-date totaled $7M, or 56% of our full-year target, while earnings per share reached $0.29, which is 56% of our 2025 EPS guidance. Notably, net income was positively impacted by royalty income YTD. Figures in Thousands NET INCOME EPS Actual to Date
Slide 11: Utilities Financial Performance (QTD)
Financial Performance (QTD) Figures in Thousands UTILITIES Water Revenues By Type (000s) Water Utility Customer Growth $4,000 4,500 $3,621 4,000 $3,500 3,500 $3,000 $1,256 22% Customer CAGR 3,000 $2,500 $2,243 2,500 Avg Cus to m e r Annua l Re ve nue $2,099 $2,000 2,000 $ 1,5 0 0 $581 1,500 $1,500 $
Slide 12: We Provide Raw Water to O&G Operators for Drilling
WE PROVIDE RAW WATER TO O&G OPERATORS FOR DRILLING Oil and Gas Water Sales by Quarter With existing systems, we provide water to $36 in 000s O&G operators. FY 2025 $851 $11 We have also made strategic investments in our system to further our ability to provide water when it is needed, where it is ne
Slide 13: Development Financial Performance (YTD)
Financial Performance (YTD) DEVELOPMENT Phase Lots SFR Lots Progress Phase 1 505 4 100% Phase 2A 219 10 100% Revenue Contribution by Phase Phase 2B 194 17 96% 2025 YTD Phase 2C 188 40 68% Phase 2D 191 27 29% $121 1297 98 $1,215 $557 QoQ Land Development Revenue $4,088 $4,795 $3,160 $2,526 LAND Phase
Slide 14: Rentals Financial Performance (QTD)
Financial Performance (QTD) R E N T A L S QUARTERLY RENT COMPLETED GROSS REVENUE HOMES MARGIN $131k 14 69% QoQ Rent 140 Appreciating Assets $131 S I N G L E - FA M I LY $123 $8,000 120 100 $6,000 80 $4,000 60 40 $34 $2,000 20 $- 0 Q3 2023 Q3 2024 Q3 2025 FY 2022 FY 2023 FY 2024 Rent Net Book Assets
Slide 15: Overview
PURE CYCLE CORPORATION ER OVERVIEW LA 15
Slide 16: Water & Wastewater, Land Development, Single-Family Rentals
SINGLE- WATER & LAND FAMILY WASTEWATER DEVELOPMENT RENTALS Build single-family homes in the Own over 30K acre-feet of water rights Own highly-appreciated property in W E O P E R AT E Denver metro area in (surface and ground water) attractive and easily accessible I-70 neighborhoods we are deve
Slide 17: New Water
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Slide 18: Water Segment
WATER SEGMENT WATER SYSTEMS Our water rights portfolio can provide water to as WASTEWATER many as 60,000 SYSTEMS connections. This would allow ample room for WATER RIGHTS PORTFOLIO growth within our current water system, which $65.0 M presently supports roughly TOTA L W AT E R A S S E T S 2,500 conn
Slide 19: Current System Capacity
CURRENT SYSTEM CAPACITY TAP FEES - PORTFOLIO CAPACITY (60,000) ACRE-FOOT PRODUCTION PER YEAR AMOUNT AF Used AF Available UTILITIES 2,554 440 YTD 5/31/25 At Buildout Current Remaining Capacity Sold To Date WATER We continue to invest in our systems with a current book value of We estimate our portfol
Slide 20: Development Encroachment To Lowry Range
Development Encroachment To Lowry Range Pg. 20
Slide 21: Land Development
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Slide 22: History & Strategy
History & Strategy DEVELOPMENT Pure Cycle Corporation has a strategic history of entering the land development industry, driven by its Metrics of Completed vision to enhance shareholder value and create Phases integrated communities. Initially focused on water utility services, the company recognize
Slide 23: Development Phases 2A-2D
PHASE 2A PHASE 2B DEVELOPMENT 229 Lots 211 Lots Land development is Land development is substantially complete. substantially complete. Out of 229 homes, 229 Out of 211 homes, 115 are are finished and finished and sold. occupied. 2A 2B 2C 2D PHASE 2C PHASE 2D 228 Lots 218 Lots Paving nearly complete
Slide 24: Groundbreaking on High School
GROUNDBREAKING ON HIGH SCHOOL Pg. 24
Slide 25: Sky Ranch Capacity Projections
SKY RANCH CAPACITY PROJECTIONS DEVELOPMENT Remaining 18% Pure Cycle’s land Sold Not Started Under Construction acquisition cost for Sky Completed Ranch was $3.7 million, Lot Revenue (000s) but with over $600 million in potential development 0% $617,250 revenue expected in the 22% coming years, it hi
Slide 26: Rentals
PURE CYCLE CORPORATION EV RENTALS FIN 26
Slide 27: Overview of Operations
OVERVIEW OF OPERATIONS 1 Maximizing Land Development Opportunities: By R E N T A L S Pure Cycle Corporation developing single-family homes for rent within our master planned community, the company can enhance the value entered the single-family of its landholdings and generate consistent income. ren
Slide 28: Single-Family Rentals
SINGLE-FAMILY RENTALS COMPLETED Pure Cycle contracts to build HOMES NBV single-family homes in its Sky Ranch Master Planned HOMES UNDER Community to hold for rentals. CONSTRUCTION Lot development costs are fully recovered (horizontal costs and tap fees). Each unit covers $7.4 M financing costs and p
Slide 29: SFR Portfolio
SFR Portfolio 98 Homes $3M Rent/Yr Sky Ranch Phase 1 & 2 $35M Assets M e t r i c s $52.5M FMV 71 Homes $2.1M Rent/Yr 27 $24.9M Assets $37.3M FMV Added in Phase Prior Phases C u m u l a t i v e 31 Homes 40 $930K Rent/Yr $10.9M Assets 14 Homes $16.3M FMV 71 $420K Rent/Yr 4 Homes $5.3M Assets 17 $120K
Slide 30: Liquidity
LIQUIDITY CASH, INVESTMENTS, and Restricted cash Pure Cycle has a strong balance sheet with liquidity to support our business segments. Pure Cycle maintains a significant cash position RECEIVABLE as well as a receivable from the Sky FROM CAB Ranch CAB for approved reimbursements for public improveme
Slide 31: Outlook
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Slide 32: Housing Market Update
Housing Market Update Overall Market HEADWINDS Weakening consumer confidence Mortgage rates Affordability Rising inventory OPPORTUNITIES Market segmentation Low inventory at entry level Phased deliveries Sky Ranch Phase 2A Delivery 229 lots 8/31/23 Sold Homes 200 8/31/24 Phase 2B Delivery 221 lots 8
Slide 33: Company Outlook: Water Utilities
COMPANY OUTLOOK SHORT TERM OUTLOOK (3-5 YEARS) • Customer growth to 2,500 accounts • Consistent tap sales over the remaining phases adding to the recurring customer base WATER • Annual tap fee increases at 3% UTILITIES LONG TERM OUTLOOK (SR Buildout) • Buildout of Sky Ranch 5,000 total residential a
Slide 34: Company Outlook: Land Development
COMPANY OUTLOOK SHORT TERM OUTLOOK (3-5 YEARS) • Steady lot sales over the next 5 years through the completion of Sky Ranch with opportunities to expand portfolio • Increasing lot margins as lot costs are expected to remain LAND consistent through the remainder of Sky Ranch Development • Most valuab
Slide 35: Company Outlook: Single-Family Rentals
COMPANY OUTLOOK SHORT TERM OUTLOOK (3-5 YEARS) • Expansion of segment to over 100 homes in the next 5 years SINGLE • Increased efficiencies as segment continues to scale • Sustained population growth, particularly in suburban areas, FAMILY will drive continued demand for single-family rentals RENTAL
Slide 36: Profitability Trends
Profitability Trends Water Taps & O&G Land Development Recurring Revenue $60,000 $6,000 PROJECTED 62,313 $5,174 $50,000 $5,000 $40,000 $4,000 Recurring Revenue $3,246 $43,063 Gross Revenue $3,108 $30,000 30,850 $3,000 28,747 $20,000 $1,850 $2,000 $16,705 $19,281 14,586 $10,000 $7,098 $1,000 $14,076
Slide 37: Shareholder Value
Shareholder Value Pure Cycle has shown consistent growth in both recurring revenue (with contributions from water services and an increasing SFR component) and total assets over recent years, suggesting a strong financial position for continued expansion and growing returns on investments. Annual Re
Slide 38: Stock Repurchase Program Update
Stock Repurchase Program Update The Company continues to invest in itself, through its approved stock repurchase program. We believe our shares remain considerably undervalued – maybe more than ever given our momentum and we will continue to be in the market repurchasing shares opportunistically. We
Slide 39: Earnings Presentation Q&A
PURE CYCLE CORPORATION Earnings Presentation Reminder Investor day is July 16 Starts at 10 am MST followed by a virtual Q&A Q&A www.purecyclewater.com