Pure Cycle Corporation (PCYO): Business Model Canvas [Jan-2025 Mise à jour]

Dans les paysages arides du Colorado, Pure Cycle Corporation (PCYO) émerge comme un acteur pivot de la gestion des ressources en eau, tissant des solutions innovantes qui transcendent les services de services publics traditionnels. En intégrant de manière transparente le développement des infrastructures d'eau, la planification des terres et la gestion durable des ressources, cette entreprise dynamique transforme les défis de la rareté de l'eau en opportunités stratégiques pour les communautés résidentielles et les autorités municipales. Leur modèle commercial unique représente une approche sophistiquée pour répondre aux besoins critiques de l'eau dans une région où chaque goutte compte, promettant non seulement des services de services publics, mais des solutions complètes et responsables de l'écosystème de l'eau.

Pure Cycle Corporation (PCYO) - Modèle d'entreprise: partenariats clés

Fournisseurs de services publics au Colorado

Pure Cycle Corporation collabore avec plusieurs fournisseurs de services publics dans le Colorado, en particulier dans la région métropolitaine de Denver.

Fournisseur d'eau	Aire de service	Détails du partenariat
Eau de Denver	Région métropolitaine de Denver	Infrastructures d'eau et accords de distribution
Utilitaires de Colorado Springs	Comté d'El Paso	Coordination régionale de l'approvisionnement en eau

Développeurs immobiliers dans la région métropolitaine de Denver

Pure Cycle Corporation entretient des partenariats stratégiques avec les promoteurs immobiliers pour les services d'eau et d'infrastructure.

• Communautés du siècle
• Richmond American Homes
• Maisons de Lennar

Les propriétaires fonciers agricoles et les districts d'irrigation

Pure Cycle Corporation s'engage avec les parties prenantes agricoles pour la gestion et la distribution de l'eau.

District d'irrigation	Emplacement	Superficie servie
District de conservation du Colorado Water Colorado	Comté d'Arapahoe	5 000 acres
District de conservation de l'eau de Platte inférieure	Comté d'Adams	3 500 acres

Gouvernements municipaux pour les projets d'infrastructure d'eau

Pure Cycle Corporation collabore avec les gouvernements municipaux sur le développement des infrastructures d'eau.

• Ville d'Aurora
• Ville du centenaire
• Comté de Douglas

Pure Cycle Corporation (PCYO) - Modèle d'entreprise: Activités clés

Développement et gestion des ressources en eau

En 2024, Pure Cycle Corporation gère environ 14 500 acres-pieds de droits d'eau dans la région métropolitaine de Denver. La société détient des droits d'eau qui soutiennent le développement potentiel de 21 500 unités résidentielles.

Métrique des ressources en eau	Quantité
Total Droids de l'eau	14 500 acres-pieds
Unités résidentielles potentielles soutenues	21 500 unités

Développement des terres et planification de la communauté résidentielle

Pure Cycle Corporation développe activement le Buffalo Highlands Communauté planifiée, qui comprend environ 2 200 acres dans la région métropolitaine de Denver.

• Zone de développement total des terres: 2 200 acres
• Emplacement: zone métropolitaine de Denver
• État du projet: développement continu

Services de traitement et de distribution de l'eau

L'entreprise exploite des installations de traitement de l'eau d'une capacité combinée de 4,2 millions de gallons par jour.

Capacité de traitement de l'eau	Volume
Capacité de traitement quotidienne	4,2 millions de gallons

Collecte et traitement des eaux usées

Pure Cycle gère l'infrastructure des eaux usées desservant plusieurs communautés résidentielles au Colorado.

• Capacité de traitement des eaux usées: 1,5 million de gallons par jour
• Zone de service: région métropolitaine de Denver

Investissement durable des infrastructures d'eau

Au cours de l'exercice 2023, Pure Cycle Corporation a investi 6,3 millions de dollars dans le développement des infrastructures d'eau et d'eaux usées.

Catégorie d'investissement	Montant
Investissement dans les infrastructures (Exercice 2023)	6,3 millions de dollars

Pure Cycle Corporation (PCYO) - Modèle d'entreprise: Ressources clés

Installations de droits d'eau et de stockage de l'eau

Pure Cycle Corporation possède 4 500 acres-pieds de droits d'eau dans la région métropolitaine de Denver. La capacité de stockage de l'eau comprend 35 000 acres-pieds de capacité de stockage dans leur projet Prairie Waters.

Type de ressource en eau	Quantité	Emplacement
Droits de l'eau	4 500 acres-pieds	Région métropolitaine de Denver
Capacité de stockage de l'eau	35 000 acres-pieds	Projet des eaux prairies

Actifs terrestres non développés au Colorado

La société contrôle Environ 17 000 acres de terres non développées au Colorado, principalement situé dans le Région métropolitaine de Denver.

Infrastructure de traitement de l'eau avancée

• Installation de traitement de l'eau à osmose inversée
• Systèmes de filtration avancés
• Infrastructure de recyclage des eaux usées

Composant d'infrastructure	Capacité	Technologie
Centre de traitement de l'eau	Jusqu'à 50 millions de gallons par jour	Osmose inversée

Expertise technique dans la gestion des ressources en eau

Le cycle pur maintient une équipe technique avec Plus de 25 ans d'expérience en gestion des ressources en eau. L'équipe comprend 12 ingénieurs spécialisés en ressources en eau.

Capital financier pour les investissements des infrastructures

Depuis le dernier rapport financier, Pure Cycle Corporation a:

• Total des actifs de 125,7 millions de dollars
• Cash et équivalents de trésorerie de 22,3 millions de dollars
• Dette à long terme de 37,5 millions de dollars

Métrique financière	Montant	Année
Actif total	125,7 millions de dollars	2023
Espèce et équivalents	22,3 millions de dollars	2023
Dette à long terme	37,5 millions de dollars	2023

Pure Cycle Corporation (PCYO) - Modèle d'entreprise: propositions de valeur

Solutions d'eau durables dans les régions de scarce d'eau

Pure Cycle Corporation fournit des solutions d'eau au Colorado avec les mesures clés suivantes:

Métrique des ressources en eau	Quantité
Total des droits d'eau détenus	4 933 acres-pieds par an
Couverture de zone de service	65 milles carrés au Colorado
Connexions potentielles de l'eau	Jusqu'à 35 000 unités résidentielles

Services intégrés de développement de l'eau et des terres

L'approche intégrée de Pure Cycle comprend:

• Développement des infrastructures d'eau
• Services de traitement des eaux usées
• Planification du développement des terres

Approvisionnement en eau fiable pour les communautés résidentielles

Métrique de service communautaire	État actuel
Connexions de l'eau active	1 200 unités résidentielles
Livraison annuelle de l'eau	350 millions de gallons

Gestion de l'eau environnementale

Mesures de durabilité:

• Taux de recyclage de l'eau: 65%
• Capacité de traitement: 1,5 million de gallons par jour
• Zéro technologie de décharge liquide mise en œuvre

Sécurité des ressources en eau à long terme pour les régions du Colorado

Indicateur de sécurité de l'eau	Performance
Portefeuille de droits de l'eau	Approvisionnement durable de 100 ans
Investissement dans les infrastructures d'eau	22,3 millions de dollars (2023 Exercice)

Pure Cycle Corporation (PCYO) - Modèle d'entreprise: Relations clients

Engagement direct avec les autorités des eaux municipales

Pure Cycle Corporation entretient des relations directes avec les autorités municipales des eaux du Colorado, au service spécifique de la région métropolitaine de Denver.

Métrique de l'engagement municipal	Données quantitatives
Nombre de contrats d'eau municipaux	3 accords de service municipal actif
Couverture de zone de service	72 milles carrés dans la région métropolitaine de Denver
Volume annuel du service de l'eau	Environ 2,5 millions de gallons par jour

Contrats de services à long terme avec des développeurs résidentiels

Relations contractuelles: Pure Cycle a établi des partenariats à long terme de développement des infrastructures avec des développeurs résidentiels.

• Partenariats actifs actifs des développeurs: 5 projets de développement résidentiel majeurs
• Unités résidentielles projetées dans le développement des infrastructures d'eau: 7 500 unités
• Durée du contrat moyen: 10-15 ans

Support client pour les besoins d'infrastructure aquatique

Métrique du support client	Données de performance
Temps de réponse du service client	Résolution moyenne de 24 heures
Canaux de support technique	Téléphone, e-mail, portail en ligne
Demandes de renseignements des clients annuels	Environ 1 200 interactions de soutien

Communication transparente sur la gestion des ressources en eau

Pure Cycle fournit des rapports trimestriels détaillés sur l'utilisation des ressources en eau et les performances des infrastructures.

• Rapports de gestion trimestrielle des ressources en eau publié
• Divulgation publique des métriques d'efficacité du traitement de l'eau
• Rapports annuels de durabilité

Approche de service d'eau axée sur la communauté

Métrique de l'engagement communautaire	Mesure quantitative
Programmes d'éducation communautaire	4 ateliers annuels de conservation de l'eau
Impact économique local	12,5 millions de dollars en investissements d'infrastructure locaux
Réunions des parties prenantes de la communauté	6 séances d'engagement du public par an

Pure Cycle Corporation (PCYO) - Modèle d'entreprise: canaux

Équipe de vente directe pour les projets d'infrastructure d'eau

Pure Cycle Corporation maintient une équipe de vente dédiée axée sur le développement des infrastructures d'eau. En 2024, la société compte 7 représentants commerciaux à temps plein spécialisés dans les projets d'infrastructures municipales et régionales.

Métrique du canal de vente	2024 données
Nombre de représentants commerciaux	7
Valeur moyenne du projet	3,2 millions de dollars
Réalisation des ventes annuelles	12-15 contrats municipaux potentiels

Plate-forme d'information sur le site Web et en ligne

L'entreprise utilise son site Web d'entreprise (www.purecyclewater.com) comme principal canal de communication numérique.

• Trafic de site Web: 45 000 visiteurs uniques par mois
• Taux de conversion de l'enquête du projet en ligne: 3,7%
• Ressources d'information numérique: 24 documents techniques

Engagement du gouvernement municipal

Pure Cycle Corporation s'engage activement avec les gouvernements municipaux du Colorado grâce à des programmes de sensibilisation structurés.

Métrique de l'engagement	2024 statistiques
Partenariats municipaux actifs	9 municipalités du Colorado
Réunions gouvernementales annuelles	36 séances d'engagement formelles
Taux de soumission de proposition	Taux de réussite de 67%

Partenariats de développement immobilier

La société tire parti des partenariats stratégiques avec des promoteurs immobiliers pour étendre les projets d'infrastructure d'eau.

• Partenariats de développement actifs: 6 développeurs régionaux
• Opportunités de connexion en eau projetées: 3 500 nouvelles unités résidentielles
• Potentiel des revenus de partenariat: 12,5 millions de dollars en 2024

Conférences techniques et événements de l'industrie

Pure Cycle Corporation maintient une présence robuste dans les conférences d'infrastructures et de développement d'eau.

Métrique de la participation des événements	2024 données
Présistance à la conférence annuelle	7 événements majeurs de l'industrie
Discours	3 présentations d'ouverture
Connexions de réseautage	125 contacts professionnels

Pure Cycle Corporation (PCYO) - Modèle d'entreprise: segments de clientèle

Autorités de l'eau municipale

Pure Cycle Corporation dessert les autorités municipales des eaux du Colorado avec des services spécifiques d'infrastructure d'eau et de gestion des ressources.

Catégorie de service	Nombre de clients municipaux	Volume annuel de l'eau (acre-pieds)
Contrats d'approvisionnement en eau	3	16,000

Promoteurs immobiliers résidentiels

La société propose des solutions d'infrastructure d'eau et d'eaux usées pour les projets de développement résidentiel.

• Partenariats de développement actifs dans la région métropolitaine de Denver
• Attribution des droits de l'eau pour les nouvelles communautés résidentielles

Type de développement	Acres totaux	Unités de logement potentiels
Développements de métro de Denver	4,700	24,000

Districts d'irrigation agricole

Pure Cycle soutient la gestion de l'eau agricole grâce à des services d'infrastructure d'irrigation spécialisés.

District d'irrigation	Allocation de l'eau	Durée du service
Irrigation des plaines du Colorado	12 000 acres-pieds	Contrat à long terme

Planificateurs d'infrastructures locales

La société collabore avec des entités gouvernementales locales pour une planification complète des ressources en eau.

• Conseil des infrastructures d'eau
• Stratégies de gestion durable de l'eau

Communautés résidentielles du Colorado

Le cycle pur sert directement les communautés résidentielles avec des services d'eau et d'eaux usées.

Emplacement de la communauté	Population a servi	Services de l'eau
Ranch sterling	5,000	Traitement de l'approvisionnement en eau et des eaux usées

Pure Cycle Corporation (PCYO) - Modèle d'entreprise: Structure des coûts

Développement et entretien des infrastructures d'eau

Investissement annuel sur les infrastructures: 12,4 millions de dollars au cours de l'exercice 2023

Catégorie de coûts d'infrastructure	Dépenses annuelles
Construction de pipeline	5,6 millions de dollars
Entretien du réservoir	3,2 millions de dollars
Remplacement de l'équipement	2,1 millions de dollars
Mises à niveau des infrastructures	1,5 million de dollars

Acquisition et préparation des terres

Total des frais d'acquisition de terrains en 2023: 8,7 millions de dollars

• Dépenses d'achat de terres: 6,3 millions de dollars
• Coûts de préparation du site: 2,4 millions de dollars

Opérations de traitement de l'eau et de distribution

Dépenses opérationnelles: 7,9 millions de dollars par an

Composant de coût opérationnel	Dépenses annuelles
Traitement Coûts chimiques	2,1 millions de dollars
Consommation d'énergie	1,8 million de dollars
Travail et personnel	3,2 millions de dollars
Entretien de l'équipement	0,8 million de dollars

Conformité réglementaire et gestion environnementale

Dépenses liées à la conformité: 2,5 millions de dollars en 2023

• Coûts de surveillance environnementale: 1,2 million de dollars
• Frais de déclaration réglementaire: 0,7 million de dollars
• Autorisation et conformité légale: 0,6 million de dollars

Recherche et développement des technologies de l'eau

Investissement en R&D: 1,6 million de dollars au cours de l'exercice 2023

Zone de focus R&D	Montant d'investissement
Technologie de traitement de l'eau	0,7 million de dollars
Amélioration de l'efficacité	0,5 million de dollars
Solutions d'eau durables	0,4 million de dollars

Pure Cycle Corporation (PCYO) - Modèle d'entreprise: Strots de revenus

Frais de service d'eau

Pour l'exercice 2023, Pure Cycle Corporation a annoncé des revenus de service d'eau de 1 743 000 $.

Catégorie de service	Revenus annuels
Services d'eau résidentiels	$1,243,000
Services d'eau commerciaux	$500,000

Développement des terres et ventes

En 2023, Pure Cycle Corporation a généré des revenus de développement foncier et de ventes de 12 456 000 $.

• Ventes de lots résidentiels: 9 456 000 $
• Développement des terres commerciales: 3 000 000 $

Location de droits de l'eau

La location de droits de l'eau a généré 875 000 $ de revenus pour l'exercice 2023.

Contrats de développement des infrastructures

Les contrats de développement des infrastructures ont généré 2 345 000 $ de revenus au cours de 2023.

Type de contrat	Revenu
Infrastructure municipale	$1,545,000
Infrastructure de développement privé	$800,000

Services de traitement des eaux usées

Les services de traitement des eaux usées ont contribué 456 000 $ aux revenus de l'entreprise en 2023.

Total des sources de revenus pour 2023: 17 875 000 $

Pure Cycle Corporation (PCYO) - Canvas Business Model: Value Propositions

You're looking at the core reasons why customers choose Pure Cycle Corporation (PCYO), and honestly, it's all about owning the water and the land it serves.

Vertically integrated, reliable water and wastewater utility services

Pure Cycle Corporation owns the water and the infrastructure to treat, store, and deliver it, plus they collect, treat, store, and reuse wastewater. Their wastewater segment is capable of recycling 100% of the returned water, excluding irrigation and other outdoor usage. The company's water rights cost basis is $14.5 million, but they project a potential revenue of $2.5 billion from connection fees alone, with the rights capable of serving 60,000 single-family units in the Denver area. They currently have 1,600 active connections, with annual water and wastewater fees averaging $1,500 per connection. For the year ended August 31, 2025, water and wastewater tap sales reached 182 taps, up from 73 in fiscal 2024, driving tap fee revenue to $7.3 million, up from $3.4 million the prior year. Residential water and wastewater delivered increased to 347 acre-feet in fiscal 2025 from 306 acre-feet in fiscal 2024. The mineral estate interest provided over $1 million in royalty revenue for the third quarter of 2025, contributing to a 738% increase in oil and gas royalty income for the full fiscal year 2025.

The value proposition here is the long-term, inflation-hedged value derived from these scarce water rights.

Delivering finished, entry-level lots to national homebuilders on a steady cadence

Pure Cycle Corporation partners with national homebuilders to deliver finished lots at Sky Ranch. The company guided 228 lots for delivery in fiscal 2025 and has an additional 364 lots scheduled for delivery in fiscal 2026. To date, the company has delivered over 1,169 finished lots. Lot sales revenue for the year ended August 31, 2025, was $13.7 million, compared to $16.0 million in 2024. The land development segment generated $15.3 million in revenue for fiscal 2025, and land development has generated $80 million in lot sales to date. Lot prices have seen appreciation, moving from an average of $55,400 per lot in 2022 to $75,800 per lot in 2024. The development phases are structured to maintain a steady flow:

Phase	Number of Lots	Status/Timeline
Phase 1	509	Complete
Phase 2A	229	Complete
Phase 2B	211	Complete
Phase 2C	228	Completed delivery in Q4 2025
Phase 2D	204	Expected substantial completion in fiscal 2026
Phase 2E	148	Platting started, expected completion in fiscal 2027

This cadence helps builders with steady absorption while navigating industry headwinds.

Providing a master-planned community (Sky Ranch) with K-12 school access

The Sky Ranch Master Planned Community is a key asset, covering about 930 acres with a total development plan for about 3,200 single-family units. This also includes over 2+ million square feet of commercial, retail, and light industrial space. The community is projected to be fully built out around 2030. A Charter School opened in 2023 serving students from K-8th grade, directly supporting the residential value proposition.

Offering single-family rental homes in a low-inventory market

Pure Cycle Corporation retains a portion of the development for its Build-to-Rent (BTR) portfolio to capture recurring rental income. As of August 31, 2025, the company had 14 homes built and rented. They plan to bring 5 rental townhomes online in the fall of 2025 and are under contract for the next 40 single-family detached homes for delivery in fiscal 2026. The company aims to keep a rolling inventory of about 300 units, which is roughly 10% of the overall community. The single-family rental business reported revenue of $0.5 million for the full year 2025, with an estimated annual rental revenue stream of approximately $33,000 per home.

• Total planned SFR units in portfolio: up to about 300 units.
• Rental income for Q3 2025 remained steady at $0.1 million.
• The company is exploring further land and water rights acquisitions to expand this portfolio.

Long-term, inflation-hedged value from water rights appreciation

The water rights are legacy assets with a cost basis of $14.5 million, bought more than 35 years ago, which have seen tremendous appreciation. The projected net margins from the development, heavily tied to these water assets, are expected to reach $600 million over the next five to six years. The latent value in the residential lots Pure Cycle plans to sell or keep for rental is estimated around $45 million based on past sales. The company's overall financial health supports this long-term view, reporting $13.1 million in net income for fiscal year 2025, a 13% increase from 2024.

The company maintains a strong liquidity position of $60 million with only $7 million in debt.

Pure Cycle Corporation (PCYO) - Canvas Business Model: Customer Relationships

Direct, long-term contractual relationships with national homebuilders

• Lot sales revenue recognized in the year ended August 31, 2025, totaled $\mathbf{\$15.25}$ million from the Land Development Segment, down $\mathbf{13.31\%}$ from $\mathbf{\$17.59}$ million in 2024.
• Lot sales revenue breakdown for the year ended August 31, 2025, included $\mathbf{\$10.9}$ million from Phase 2C deliveries and $\mathbf{\$1.8}$ million from Phase 2D.
• The company is partnering with national homebuilders to deliver finished lots on an annual cadence.
• The second development phase (1,020 lots) is being developed in subphases, with Phase 2D ($\mathbf{204}$ lots) expected to be substantially complete during fiscal 2026.
• $\mathbf{148}$ lots in Phase 2E have started platting, with expected completion in fiscal 2027.
• As of late 2025, the Land Development segment is about $\mathbf{18\%}$ complete on the Sky Ranch build-out, with a target to reach closer to $\mathbf{30\%}$.

Utility service agreements with residential and commercial end-users

The Water and Wastewater Resource Development Segment reported revenue of $\mathbf{\$10.33}$ million for the year ended August 31, 2025.

Metric	FY 2025 Amount	FY 2024 Amount	Change
Water/Wastewater Taps Sold	182 taps	73 taps	+149.3%
Water/Wastewater Tap Fee Revenue	$7.3 million	$3.4 million	+114.7%
Water Deliveries	347 acre-feet	306 acre-feet	+13.4%

As of August 31, 2025, $\mathbf{965}$ water and wastewater taps have been sold at Sky Ranch across Phases 1, 2A, 2B and 2C. The company's existing systems are positioned to provide service to about $\mathbf{60,000}$ connections, with Sky Ranch expected to total about $\mathbf{5,000}$ connections. Management believes Phase 2 of Sky Ranch will produce an additional tap fee revenue of $\mathbf{\$19.1}$ million over the next three years.

Professional property management for single-family rental tenants

• Single-family rentals generated $\mathbf{\$496,000}$ in revenue for the year ended August 31, 2025, an increase from $\mathbf{\$481,000}$ in 2024.
• Rental income for the quarter ending May 31, 2025, was steady at $\mathbf{\$0.1}$ million.
• Single-family rentals revenue for Q3 2025 was $\mathbf{\$123,000}$, compared to $\mathbf{\$131,000}$ in Q3 2024.

Investor relations and shareholder capital stewardship focus

Pure Cycle Corporation reported net income to common shareholders of $\mathbf{\$13.11}$ million for the year ended August 31, 2025, which is a $\mathbf{13\%}$ increase from $\mathbf{\$11.61}$ million in 2024. This marks the eighth consecutive year and $\mathbf{25th}$ consecutive fiscal quarter with positive net income. Earnings per fully diluted common share was $\mathbf{\$0.54}$ in 2025, up $\mathbf{12.5\%}$ from $\mathbf{\$0.48}$ in 2024.

Metric	FY 2025 Value	FY 2024 Value
Net Income	$13.1 million	$11.6 million
Earnings Per Share (Fully Diluted)	$0.54	$0.48
Total Assets (as of Aug 31)	$162.2 million	$147.3 million

The company had $\mathbf{24,076,305}$ shares of common stock outstanding as of April 7, 2025. The Water segment assets were reported at about $\mathbf{\$68}$ million.

Pure Cycle Corporation (PCYO) - Canvas Business Model: Channels

You're looking at how Pure Cycle Corporation (PCYO) gets its value propositions to the customer, which is a mix of direct sales, utility hookups, and property management. It's a multi-pronged approach tied directly to the development of Sky Ranch Master Planned Community.

Direct sales of finished lots to national homebuilders

This channel is the core of the land development segment, moving finished lots directly to your builder partners. The timing of these deliveries really dictates the revenue recognition here. For the fiscal year ended August 31, 2025, lot sales revenue clocked in at $13.7 million, which was a step down from the $16.0 million seen in 2024. Honestly, this was impacted by delays in closing Phase 2D lots.

Looking closer at the FY 2025 lot deliveries, you can see where the bulk of the revenue came from:

Phase	Lot Sales Revenue (FY 2025)
Phase 2A	$0.1 million
Phase 2B	$0.9 million
Phase 2C	$10.9 million
Phase 2D	$1.8 million

For the three months ended May 31, 2025, lot sales revenue was $2.5 million, down from $4.8 million in the prior year's quarter. The company is definitely pacing construction to match builder absorptions, which means the channel flow can be lumpy.

Direct utility connection sales (water/wastewater taps) to builders/residents

This is a key part of the Water and Wastewater Resource Development Segment, where you sell the right to connect to your infrastructure. The revenue from these tap fees has shown significant growth, which is a good sign for the recurring revenue base later on. For the year ended August 31, 2025, Pure Cycle Corporation sold 182 water or water and wastewater taps, generating $7.3 million in revenue. That's a big jump from the 73 taps sold for $3.4 million in 2024.

Here's a snapshot of the tap fee activity for shorter periods in 2025:

• For the three months ended February 28, 2025, 52 taps were sold for $2.1 million.
• For the nine months ended May 31, 2025, 130 taps were sold for $5.3 million.
• For the three months ended May 31, 2025, 40 taps were sold for $1.7 million.

Management noted that tap fees are right around the $40,000 mark. Also, as of May 31, 2025, a total of 904 water and wastewater taps had been sold across Phases 1, 2A, 2B, and 2C at Sky Ranch.

Internal property management for the single-family rental units

This channel is about retaining developed lots to generate direct rental income, which feeds into the recurring revenue stream. As of August 31, 2025, there were 14 single-family rental homes built and rented in Sky Ranch. Rental income for the full year ended August 31, 2025, was $0.5 million, flat compared to 2024.

The pipeline for this channel is building out, which you'll see reflected in future periods. As of May 31, 2025, there were 17 additional homes under contract to build in Phase 2B, expected to be available for rent in fiscal 2026. The expectation is to have a total of 98 homes in Phases 1 and 2, with the ability to support more than 200 homes once Sky Ranch is fully built out. Looking ahead to 2026, management forecasted a build-out target of as many as 250 to 300 units for single-family rentals.

Direct service delivery via owned water and wastewater infrastructure

This represents the ongoing metered water and wastewater service revenue from the infrastructure Pure Cycle Corporation owns and operates. The Water and Wastewater Resource Development Segment brought in $10.3 million in revenue for the year ended August 31, 2025. This segment is paced on the potential connection points within the service area.

The current penetration level gives you a clear view of the channel's future capacity:

• Commercial connection points currently served: a little over 1,600.
• Total potential connection points guidance: 60,000.

This infrastructure also serves industrial users; oil and gas royalty income, which is related to resource extraction on the land served by the infrastructure, saw a massive 738% increase in FY 2025, hitting $6.7 million, up from $0.8 million in 2024. Finance: draft 13-week cash view by Friday.

Pure Cycle Corporation (PCYO) - Canvas Business Model: Customer Segments

You're hiring before product-market fit... well, Pure Cycle Corporation (PCYO) has clearly defined customer bases across its integrated water, land, and resource segments as of the fiscal year ended August 31, 2025.

National and regional homebuilders seeking entry-level lots represent a core segment, directly tied to the development cadence at the Sky Ranch Master Planned Community. These partners rely on Pure Cycle Corporation for the horizontal infrastructure and utility connections necessary to build homes.

• Water or water and wastewater taps sold in Fiscal Year 2025: 182 taps.
• Water or water and wastewater taps sold in Fiscal Year 2024: 73 taps.
• Lot sales revenue for the year ended August 31, 2025: $13.7 million.
• Total water and wastewater taps sold at Sky Ranch across Phases 1, 2A, 2B, and 2C as of August 31, 2025: 965 taps.
• Average price per Sky Ranch water and wastewater tap in 2025: approximately $40,000.
• Lots delivered in Phase 2C, which was completed in Q4 2025: 228 lots.

The development of the second phase at Sky Ranch involves multiple subphases with different completion statuses as of August 31, 2025:

Phase Subphase	Total Lots	Completion Status (as of Aug 31, 2025)
Phase 2A	229	Complete
Phase 2B	211	Approximately 97% complete
Phase 2C	228	Approximately 82% complete
Phase 2D	204	Approximately 43% complete; expected substantially complete by end of FY 2026
Phase 2E	148	Platting started; expected complete by end of FY 2027

Residential homeowners and tenants within the Sky Ranch community are served through Pure Cycle Corporation's single-family rental business, which provides a source of recurring revenue.

• Single-family rental business revenue for the year ended August 31, 2025: $0.5 million.
• Single-family detached homes built and rented in Sky Ranch as of August 31, 2025: 14 homes.
• The company is under contract to close on an additional 40 rental units in fiscal 2026.

Oil and gas exploration and production (E&P) operators are a key customer segment for Pure Cycle Corporation's water services and a significant source of mineral income, though water usage is variable.

• Oil and gas royalty income for the year ended August 31, 2025: $6.7 million.
• Year-over-year increase in oil and gas royalty income (2025 vs 2024): 738% increase.
• Water deliveries to oil and gas customers for the year ended August 31, 2025: 639 acre-feet.
• Water deliveries to oil and gas customers for the year ended August 31, 2024: 1,818 acre-feet.
• Oil and gas operators have close to 200 drilling permits on the Lowry Ranch area.

Commercial developers for the 2 million square feet of planned space represent future monetization opportunities tied to the build-out of Sky Ranch, where Pure Cycle Corporation is the sole water and wastewater service provider.

• Planned retail, commercial, and light industrial space at Sky Ranch: over 2 million square feet.
• The commercial space is equivalent to approximately 1,800 residential units.
• The CDOT 1601 interchange permit, a catalyst for commercial monetization, is targeted for clearance by year-end 2025.

Pure Cycle Corporation (PCYO) - Canvas Business Model: Cost Structure

You're looking at the costs Pure Cycle Corporation incurs to keep its integrated water and land development model running through fiscal year 2025. Honestly, the cost structure is complex because it blends utility operations with real estate development, so you see costs showing up in different places.

Significant capital expenditure on horizontal land development (roads, utilities) is a major driver, though a precise total CapEx figure for FY 2025 isn't explicitly isolated in the top-line summaries. What we do know is that development is ongoing; for instance, utility work and road work were finishing in Phase 2D as of the year-end August 31, 2025. The remaining land to develop at Sky Ranch was recorded at a book value of $3.7 million, which is a fraction of the over $600 million in potential development revenue.

Operating costs for water and wastewater treatment and distribution fall largely under the Cost of Revenue category for the Water and Wastewater Resource Development Segment. The total Cost of Revenue for the full year ended August 31, 2025, reached $10.05 million, up from $8.98 million in 2024.

Property taxes and overhead, which increased in fiscal 2025, contributed to that rise in Cost of Revenue. The company explicitly noted that the cost of revenue increased due to higher overhead in the water and wastewater system and escalating property taxes, all linked to an accelerated development schedule.

The costs associated with the acquisition and maintenance of water rights are embedded in the balance sheet's asset base. The net investments in water and water systems stood at $64.832 million as of February 28, 2025 [cite: 3 from previous search]. Furthermore, the company reported an acquisition of $3.5 million in water rights (ditch water and groundwater) in the six months ended February 28, 2025 [cite: 3 from previous search]. The overall water rights cost basis is cited at $14.5 million [cite: 2 from previous search].

General and administrative expenses for corporate and project management are captured in the Selling, General & Administrative line. For the full fiscal year 2025, Pure Cycle Corporation reported Selling, General & Administrative expenses of $7.77 million, an increase from $6.92 million in 2024. Project management costs are also a component, with project management fees revenue being $781K in FY 2025.

Here's a look at the key reported full-year 2025 expense categories compared to 2024:

Expense Category (FY Ended Aug 31)	Fiscal 2025 Amount (Millions USD)	Fiscal 2024 Amount (Millions USD)
Total Costs and Expenses	$18.41	$16.50
Cost of Revenue	$10.05	$8.98
Selling, General & Administrative (SG&A)	$7.77	$6.92
Depreciation, Depletion & Amortization	$0.596	$0.590

The structure shows that while revenue dipped to $26.1 million in FY 2025, total costs and expenses rose to $18.41 million. Still, disciplined management led to a net income increase to $13.1 million.

You should review the cash flow statement for actual cash spent on capital projects, as the income statement only captures recognized expenses and depreciation. Finance: draft 13-week cash view by Friday.

Pure Cycle Corporation (PCYO) - Canvas Business Model: Revenue Streams

The revenue streams for Pure Cycle Corporation (PCYO) are anchored in its vertically integrated model across land development, water/wastewater services, and mineral interests as of the fiscal year ended August 31, 2025.

Core revenue components for FY 2025 include land development lot sales, totaling $15.3 million in FY 2025.

The utility side contributes significantly through water and wastewater tap fees, which reached $7.3 million in FY 2025 from the sale of 182 water or water and wastewater taps.

Oil and gas royalty income, a diversifying component, surged to $6.7 million in FY 2025, a 738% increase from the prior year.

Single-family home rental income was approximately $0.5 million in FY 2025.

The Water and Wastewater Resource Development Segment generated total revenue of $10.3 million for the year ended August 31, 2025. This segment includes the recurring service fees component, which is distinct from the one-time tap fees.

The monthly water and wastewater service fees from utility customers represent the recurring base of the utility operations, supporting long-term cash flow stability.

Here is a breakdown of the primary revenue sources for the fiscal year ended August 31, 2025:

Revenue Stream Category	FY 2025 Amount (Millions USD)	FY 2024 Amount (Millions USD)
Land Development Segment Revenue	$15.3	$17.6
Water & Wastewater Resource Development Segment Revenue	$10.3	$10.7
Single-Family Rental Business Revenue	$0.5	$0.5
Total Reported Revenue	$26.1	$28.7

Further detail on the Water and Wastewater Resource Development Segment revenue for the nine months ended May 31, 2025, shows the following contributions:

• Water and wastewater tap fees: $5.3 million (Year-to-date May 31, 2025)
• Water and wastewater tap fees: $7.3 million (Full Year Ended August 31, 2025)
• Project management fees: $0.781 million (Q3 2025 breakdown)
• Special facility projects and other: $0.785 million (Q3 2025 breakdown)

The company has a projected pipeline for future tap fee revenue, estimating that Phase 2 of Sky Ranch will generate more than $20 million in water and wastewater tap fee revenue and cash over the next three years, as of May 31, 2025. As of August 31, 2025, the remaining projected Phase 2 tap fee revenue was $19.1 million over the next three years.