Pure Cycle (PCYO) investor relations material

Executive summary

• Achieved 27 consecutive profitable quarters, with Q2 net income of $1.1 million and six-month net income of $5.7 million, reflecting a resilient earnings model and strong performance across all segments.

• Revenue for Q2 2026 increased 29% year-over-year to $5.2 million, and six-month revenue rose 47% to $14.3 million, driven by accelerated lot development, favorable weather, and robust water sales to oil and gas operators.

• Earnings per share for Q2 was $0.05, up from $0.03 year-over-year, with six-month EPS at $0.23–$0.24.

• Strong recurring revenue base from water utilities, land development, and single-family rentals underpins financial predictability and asset expansion.

• Continued investment in water infrastructure and single-family rentals, with 39 units under construction and 19 completed and leased.

Financial highlights

• Q2 2026 revenue: $5.2–$5.17 million (up 29% YoY); six-month revenue: $14.3 million (up 47% YoY).

• Q2 net income: $1.1 million (up 37% YoY); six-month net income: $5.7 million (up 20% YoY).

• Q2 gross profit: $2.8–$3.2 million; six-month gross profit: $9.0 million.

• Q2 EPS: $0.05 (up from $0.03 YoY); six-month EPS: $0.23–$0.24.

• Cash and cash equivalents at period end: $4.8 million; working capital: $3.8 million; undrawn $9.9 million credit line.

Outlook and guidance

• On track to meet or exceed FY2026 guidance: revenue $26–$30 million, EPS $0.43–$0.52, with even revenue pacing due to accelerated lot deliveries.

• Expect substantial completion of Phase 2D in Q3 2026 and Phase 2E in fiscal 2027, with $18.9 million in milestone and lot payments anticipated over the next 12 months.

• Continued strong demand for single-family rentals, with 95% of units leased prior to completion.

• Projected growth in water sales to oil and gas customers due to higher oil prices.

• 2027 guidance to be provided in Q3 as visibility on phase II-E and oil/gas deliveries improves.