Pure Cycle Corporation · NASDAQ:PCYO
Pure Cycle — Q1 2026 Earnings Presentation
36 slides from Pure Cycle's earnings presentation, Jan 8, 2026
Slide 1: Financial Results Q1-2026 Earnings Presentation
QC) BuRe CYCLE QC) BBR Sy chon FINANCIAL q| RESULTS Q1-2026 EARNINGS PRESENTATION Presented By: MARK HARDING WWW.PURECYCLEWATER.COM
Slide 2: Pure Cycle Corporation Page 2
PURE CYCLE CORPORATION PAGE 2
Slide 3: Management Team
MARK W. HARDING MARC SPEZIALY RACHELLE BRENT BEAUDRY BROUILLARD DIRK LASHNITS President, CEO, and Director VP, CFO, Principal Accounting Vice President, Engineering Head of Marketing Vice President, Land Development Officer, Principal Financial Officer Mark is an exceptional leader who has Marc brin
Slide 4: Board of Directors
BOARD OF DIRECTORS Mark W. Harding Jeffrey G. Sheets Frederick A. Fendel III President and CEO Director Director Patrick J. Beirne Susan D. Heitmann Director and Chair of the Audit Chair of the Board Committee Wanda J. Abel Daniel R. Kozlowski Director and Chair of the Nominating Director and Chair
Slide 5: Investment Snapshot
INVESTMENT SNAPSHOT 26 Straight Profitable Recurring Revenue Base Quarters Pure Cycle has posted net income for six Stable earnings from water and wastewater consecutive years, demonstrating a durable utilities, rental income, and service fees and resilient earnings model. underwrite financial predi
Slide 6: Consolidated Metrics: Q1 Revenue and Gross Profit
CONSOLIDATED METRICS 1 st Quarter Results Q1 2026 results reflect higher revenue and gross profit driven primarily by the timing of finished lot deliveries, with revenue recognition shifting into the quarter. QoQ Q1 Revenue QoQ Q4 Gross Profit 10,000 $9,135 7,000 $6,251 9,000 6,000 8,000 7,000 5,000
Slide 7: Consolidated Metrics: Q1 Net Income and EPS
CONSOLIDATED METRICS 1 st Quarter Results Q1 2026 net income increased approximately 16% to $4.6 million, and EPS increased approximately 19% to $0.19, reflecting higher profitability year over year. QoQ Q1 Net Income QoQ Q1 EPS $0.20 $0.19 5,000 $4,565 $0.18 $0.16 4,500 $3,937 4,000 $0.16 3,500 $0.
Slide 8: Year to Date Results: Revenue and Gross Profit
CONSOLIDATED METRICS YEAR TO DATE RESULTS As of Q1 2026, approximately 31% of the full-year revenue forecast and 32% of the gross profit forecast have been achieved. This compares favorably to prior years, reflecting stronger early-year contribution driven by the timing of finished lot deliveries. R
Slide 9: Year to Date Results: Net Income and EPS
CONSOLIDATED METRICS YEAR TO DATE RESULTS As of Q1 2026, approximately 37% of the full-year net income and EPS forecasts have been achieved, representing a stronger early-year contribution compared to FY 2025, when earnings were more back-half weighted. NET INCOME EPS Actual to Date Remaining Foreca
Slide 10: Water Utilities
Water Utilities
Slide 11: Water and Wastewater Performance
WATER & WASTEWATER DOMESTIC PERFORMANCE Base utility fees and service charges add steady income, smoothing quarterly earnings volatility INDUSTRIAL Industrial water sales to oil & gas operations generate incremental, high-margin income tied to drilling and fracking, further strengthening the return
Slide 12: Water Revenue
CONSOLIDATED METRICS WATER REVENUE Recurring water and wastewater revenue increased approximately 26% from Q1 2024 to Q1 2026, demonstrating consistent growth in the core utility business. At the same time, tap fee revenue nearly tripled over the same period, reflecting increased development- driven
Slide 13: 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 are driven by drilling activity and can vary meaningfully quarter to quarter. While volumes declined in FY 2025 and early FY 2026 due to reduced drilling, the underlying infrastructure, service area, and per-well economics re
Slide 14: Capacity and Production
CAPACITY AND PRODUCTION PORTFOLIO CAPACITY Acre Feet Production Q1-2026 At Buildout Current Remaining Capacity Sold To Date 2.8% 100% 80% 2,848 95.5% 4.5% 60% 40% 2.3% 20% 147 0% AF Used AF Available We estimate our portfolio can serve approximately 60,000 We continue to invest in our systems with a
Slide 15: Land Development
Land Development
Slide 16: Land Development
LAND DEVELOPMENT Phase 2C: 228 Lots: 89% FY2026 continued Lot complete by Q1 2026; all Production: Phase 2E – 159 $17.3M revenue payments lots grading to start Q3 for lot received. deliveries in FY’27. Phase 2D: 204 Lots: 65% Visibility into FY26: Revenue complete by Q1 2026; $4.5M growth expected t
Slide 17: Land Development Revenue
LAND DEVELOPMENT REVENUE Land development revenue increased significantly in Q1 2026, driven by higher finished lot deliveries. Revenue was primarily generated from Phase 2D, with additional contributions from Phase 2C, reflecting the continued progression of later-stage development phases. Quarter-
Slide 18: Phase 2A, 2B, 2C and 2D
PHASE 2A PHASE 2B 229 Lots 211 Lots +$18.4M Lot Revenue +$17.3M Lot Revenue +$6.3M Tap Fees +$7.3M Tap Fees +$300K/yr SFR Rents +$510K/yr SFR Rents +$343K/yr W/WW Sales +$316K/yr W/WW Sales 2A 2B 2C 2D PHASE 2C PHASE 2D 228 Lots 204 Lots +$17.3M Lot Revenue +$19.0M Lot Revenue +$8.3M Tap Fees +$7.5M
Slide 19: Land Development Timeline
LAND DEVELOPMENT TIMELINE Our land development continues to advance on schedule across Phases 2C through 2E. Phase 2C is now substantially complete, Phase 2D is well underway with wet utilities finishing in early fiscal 2026, and Phase 2E is entering the entitlement and grading phase, setting up con
Slide 20: Phase 2E
PHASE 2E 159 Lots This phase will add an estimated • $14M Lot Revenue • $4.3M Tap Fees • $300K/yr SFR Rents • $225K/yr W/WW Sales PURE CYCLE CORPORATION PAGE 20
Slide 21: Groundbreaking on High School
GROUNDBREAKING ON HIGH SCHOOL PURE CYCLE CORPORATION 2121 PAGE Pg.
Slide 22: Development Encroachment To Lowry Ranch
Development Encroachment To Lowry Ranch Lowry Ranch Service Area PURE CYCLE CORPORATION PAGE Pg. 2222
Slide 23: Single-Family Rentals
Single-Family Rentals
Slide 24: Segment Performance – Single-Family Rentals
Segment Performance – E Single-Family Rentals • 19 Homes Completed - Rental units built at Sky Ranch now fully leased, generating stable recurring income. A B • 40 Additional Homes Under Contract - Next phase of single-family rentals progressing, with occupancy expected through FY2026. • Steady Rent
Slide 25: Single-Family Rentals
SINGLE-FAMILY RENTALS Single-family rental revenue increased approximately 20% from Q1 2024 to Q1 2026, driven by increasing units and rents. Asset values have also increased over the same period, with fair market value growing faster than net book assets, underscoring ongoing appreciation and long-
Slide 26: SFR Portfolio
SFR Portfolio 95 Homes 105 Homes $3.1M Rent/Yr $37.2M Assets Sky Ranch Phase 1 & 2 $2.9M Rent/Yr $57M FMV $33.7M Assets $52.5M FMV 10 71 Homes $2.1M Rent/Yr $25.3M Assets 24 Added in Phase Prior Phases $37.3M FMV 31 Homes 40 $930K Rent/Yr 95 $11.3M Assets 14 Homes $16.3M FMV 71 $420K Rent/Yr 4 Homes
Slide 27: Capital Allocation & Shareholder Value
Capital Allocation & Shareholder Value
Slide 28: Strong Balance Sheet
STRONG BALANCE SHEET $70.4M Total Assets $11.0M Total Assets $7.8M Total Assets $67.7M Total Liquidity $8.9M in Wastewater Systems $2.9M of Land for Development $10M in Fair Market Value $23.9M in Cash and Restricted $31.6M Water Rights Portfolio $7.8M developed land for sale $51.8M in Receivable f
Slide 29: Recurring Revenue Strength
Recurring Revenue Strength Utilities Revenue Stability: Recurring Rental Income from 19 Homes: Fully Diversified Earnings Mix: Blending utility SFR Synergy with Land Development: water and wastewater revenue offer leased homes generating monthly cash income with residential rent yields lowers Rental
Slide 30: 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 31: Profitability Trends
PROFITABILITY TRENDS Water Taps & O&G Land Development Recurring Revenue $60,000 $6,000 PROJECTED Water Taps/O&G/Land Development Revenue $5,174 $50,000 $5,000 $40,000 $4,000 Recurring Revenue $43,063 $30,000 $2,214 $2,554 $2,703 $3,000 $20,000 $2,000 $1,383 $17,599 $16,682 $15,257 $10,000 $7,565 $1
Slide 32: Valuation Sensitivity Scenarios
Valuation Sensitivity Scenarios FY26 Gross Revenue: $26–30M Range: Scenario modeling based on timing of Phase 2D/2E milestone completions and builder uptake. FY26 EPS Sensitivity: $0.43–$0.52: EPS estimates vary with lot closings pace and rental unit lease-up timing. Upside in Timing Acceleration: I
Slide 33: Stock Repurchase Program Update
Stock Repurchase Program Update Maximum Number of Shares that Total Number of Average Price Paid per Fiscal Period May Yet Be Purchased Under the Shares Purchased Share Plans or Programs The Company continues to invest in itself Q1 2024 20,000 9.92 180,000 through its approved stock repurchase Q2 20
Slide 34: Short-Term (3–5 Years)
Short-Term (3–5 Years) • Water Utilities: Customer base expected to grow to ~2,500 accounts with consistent tap sales across remaining Sky Ranch phases. Base utility fees and service charges continue to provide predictable, recurring revenue, with annual tap fee increases of ~3%. • Land Development:
Slide 35: Long-Term Outlook (Sky Ranch Buildout & Beyond)
Long-Term Outlook (Sky Ranch Buildout & Beyond) •Water Utilities: Buildout to ~5,000 total connections at Sky Ranch and expansion into adjacent service areas (e.g., Lowry Ranch, Arapahoe County parcels). Continued investment in infrastructure enhances recurring revenue streams and long- term shareho
Slide 36: Q&A
PURE CYCLE CORPORATION Earnings Presentation Q&A www.purecyclewater.com