Global Water Resources, Inc. (GWRS): Business Model Canvas [Dec-2025 Updated]

You're trying to map out the engine room of a regulated utility growing fast in the Southwest, and honestly, the Business Model Canvas for Global Water Resources, Inc. (GWRS) tells a clear story of consolidation and infrastructure investment. Having spent two decades analyzing these plays, I can tell you this model hinges on securing regulatory approvals to support its growth, which has already brought in $42.2 million in revenue year-to-date 2025 while they pour $49.6 million into capital expenditures to service their 68,130 active connections. Below, we dissect the nine blocks-from their regulated service contracts to their $401.7 million asset base-to show you precisely how they convert water rights into shareholder returns, so stick around to see the mechanics.

Global Water Resources, Inc. (GWRS) - Canvas Business Model: Key Partnerships

You're looking at the critical external relationships Global Water Resources, Inc. (GWRS) needs to execute its growth strategy as of late 2025. These aren't just vendors; these are regulatory bodies and strategic acquirers that define your operating environment and revenue potential. It's defintely a complex web to manage.

Regulatory Approvals and Utility Acquisitions

The Arizona Corporation Commission (ACC) is central to your regulated subsidiaries' ability to earn a return. You recently navigated a key approval for GW-Farmers. Also, the big Pinal County rate case is moving through the system, which is where the real near-term revenue lift is planned.

The GW-Farmers rate case, Decision No. 80695, is already phasing in its increase, which started on May 1, 2025. Once fully phased, this is set to add approximately $1.1 million in annual revenue. That's money supporting infrastructure enhancements in the Sahuarita community.

Anyway, the larger filing for Global Water - Santa Cruz Water Company, Inc. and Global Water - Palo Verde Utilities Company, Inc. is pending. That application seeks a net annual revenue increase of approximately $6.5 million, though the new rates aren't expected to be implemented until May 2026, at the earliest, in phases.

Here's a quick look at the financial impact of recent regulatory and acquisition activity:

The acquisition of seven water systems from Tucson Water in July 2025 is a major partnership win, adding about 2,200 new service connections. This deal, initially planned for $8.4 million in cash, solidifies your Southern Arizona footprint for future consolidation.

Water Rights and Infrastructure Investment

Your capital deployment is heavily guided by planned infrastructure work, which you fund through construction and engineering firms. Year-to-date through September 30, 2025, you've invested a substantial $49.6 million into infrastructure improvements to support existing utilities and continued growth. That's a lot of concrete and pipe.

For context on that investment pace, you put $20.2 million into infrastructure projects just in the second quarter ending June 30, 2025. This heavy reinvestment is driving higher depreciation and construction-in-progress balances, which is a near-term GAAP pressure point.

Also, keep an eye on the Arizona Department of Water Resources (ADWR). They are now actively accepting applications for the new 'Ag-to-Urban' program as of late September 2025. This program is a potential long-term catalyst because it allows landowners to convert agricultural water rights for new development use.

Key elements of the ADWR partnership environment include:

• ADWR actively accepting 'Ag-to-Urban' applications since late September 2025.
• Program allows conversion of agricultural water rights for new development.
• The majority of 2025 planned investments relate to post-testure projects for the Santa Cruz and Palo Verde utilities, which are being included in the already-filed 2024 rate application.

Finance: draft 13-week cash view by Friday.

Global Water Resources, Inc. (GWRS) - Canvas Business Model: Key Activities

You're looking at the core engine driving Global Water Resources, Inc.'s growth and stability in Arizona's high-demand corridors. These aren't just administrative tasks; these are the daily, high-stakes actions that define the company's value.

Operating regulated water, wastewater, and recycled water utilities is the foundation. As of September 30, 2025, Global Water Resources, Inc. was managing operations across 39 systems, providing water, wastewater, and recycled water service [cite: 1 (from second search)]. The total active service connections stood at 68,130 at that date, representing a 6.6% increase year-over-year. For the nine months ended September 30, 2025, total revenue reached $42.2 million.

The company is actively executing utility consolidation and M&A in Arizona growth areas. A major recent move was closing the acquisition of 7 water systems from Tucson Water in July 2025. This added approximately 2,200 connections and brought about $7.7 million in rate base at a multiple of 1.05x. This acquisition is expected to contribute about $1.5 million in annual revenue.

A key lever for financial health is filing general rate case applications for revenue increases. Management detailed a proposed $4.3 million annual rate increase currently under consideration at the Arizona Corporation Commission (ACC), with an expected conclusion in mid-2026. To be fair, they are already seeing benefits from prior filings; the GW-Farmers general rate case, effective May 1, 2025, is expected to generate an additional $1.1 million in annual revenue. The GW-Saguaro rate case was effective earlier, starting January 1, 2025.

Global Water Resources, Inc. is investing heavily in infrastructure improvements to support this regulated base. Year-to-date through Q3 2025, the company has deployed $49.6 million into infrastructure projects. This significant capital spend is largely directed toward post-test year projects for the Santa Cruz Water Company and Palo Verde Utility Company, which are two of their largest utilities in Pinal County.

Finally, implementing Total Water Management (TWM) for sustainability is a core operational activity. This approach maximizes the beneficial use of recycled water. By using recycled water for outdoor applications, Global Water Resources, Inc. has managed to reduce its fresh water use by 40% [cite: 5 (from second search)]. Water consumption for Q3 2025 remained steady at 1.3 billion gallons.

Here's a quick look at the financial context surrounding these activities for the nine months ended September 30, 2025:

Finance: draft the 2026 capital expenditure plan based on the YTD $49.6M spend by next Wednesday.

Global Water Resources, Inc. (GWRS) - Canvas Business Model: Key Resources

You're looking at the core assets that power Global Water Resources, Inc. (GWRS) operations across Arizona. These aren't just line items; they are the physical and regulatory foundations that allow the business to function and grow in these demanding desert markets.

Physical and Infrastructure Assets

The scale of the physical plant is substantial, representing the long-term investment in the regulated service territory. As of the close of the second quarter on June 30, 2025, the Net utility plant stood at $401,749 thousand, which is $401.749 million. This figure reflects the gross utility plant less accumulated depreciation, which was $(160,518) thousand at that date.

The operational footprint is concentrated in key growth corridors, which is a critical resource in itself. Global Water Resources, Inc. provides water, wastewater, and recycled water utility services across Pinal, Pima, and Maricopa Counties.

The company's resource security is underpinned by specific water rights, particularly in the Maricopa service area. For the City of Maricopa, Global Water Resources, Inc. holds a 100-year designation of assured water supply (DAWS) for approximately 23,000 acre feet per year, though current usage in that area is around 8,000 acre feet per year.

The deployment of technology is a key operational asset, enabling the Total Water Management approach. This includes an automated meter reading system that supports real-time communication for leak detection and usage alerts. The scale of this managed network as of June 30, 2025, included 65,639 total active service connections.

Regulatory and Financial Assets

The ability to recover costs and earn a return is formalized through regulatory approval, making the approved rate base a vital intangible resource. The rate tariffs, billing procedures, and terms of service for all Global Water Resources, Inc. utilities are regulated and approved by the Arizona Corporation Commission (ACC).

Specific rate case filings provide concrete examples of the rate base underpinning these operations. For instance, in a rate case application concerning the Santa Cruz Water Company, Inc. and Palo Verde Utilities Company, Inc., Global Water Resources, Inc. sought to raise its return on a $69 million fair value rate base.

Furthermore, the recent acquisition of seven water systems from Tucson Water, which closed in July 2025, involved assets valued at approximately 1.05 times the current rate base of approximately $7.7 million for those specific assets.

The company's asset base and regulatory standing can be summarized by key financial metrics tied to these regulated assets:

These resources are actively managed through capital investment; the company invested $20.2 million in infrastructure projects during the second quarter of 2025 alone.

The resource base also includes the ability to secure financing, as demonstrated by the revolving credit facility maturity extension to May 2027 and an increased principal amount available for borrowing up to $20 million.

Key operational metrics that reflect the utilization of these resources include:

• Total active service connections at 65,639 as of June 30, 2025.
• Water consumption of 1.2 billion gallons in Q2 2025.
• A 100-year assured water supply designation of 23,000 acre feet per year in Maricopa.
• Recycled water use has saved over 10.7 BILLION gallons of groundwater historically.

The company's focus on growth is also a resource, evidenced by the 3.8% increase in active service connections year-over-year to 65,639 at June 30, 2025.

Global Water Resources, Inc. (GWRS) - Canvas Business Model: Value Propositions

Integrated Total Water Management (TWM) for water scarcity

Global Water Resources, Inc. employs its Total Water Management approach to reduce demand on scarce non-renewable water sources and costly renewable supplies, ensuring sustainability and economic benefit for communities. This approach has resulted in significant water savings over two decades.

• Saved over 10 billion gallons of water in the City of Maricopa over the last 20 years by using recycled water instead of groundwater.
• Using recycled water for outdoor uses has reduced fresh water use by 40%.
• Recycling is the only water source that grows as population does.

The company provides water, wastewater, and recycled water utility services across Pinal, Pima, and Maricopa Counties.

Reliable, high-quality water and wastewater utility service

The company focuses on providing safe and reliable service, supported by significant capital investment in infrastructure projects for existing utilities.

Sustainable water resource management in high-growth corridors

Global Water Resources, Inc. is strategically positioned in high-growth Arizona corridors, planning for future development while managing current resources sustainably. The company has joined with Cities, Indian Communities, and developers to plan over 300 square miles in Pinal County, with similar planning in western Maricopa County, projecting more than 500,000 homes someday.

Consolidation benefits leading to operational efficiencies

The growth strategy includes aggregating water and wastewater utilities through strategic acquisitions and entity consolidation to realize benefits of regionalization and environmental stewardship. The recent acquisition of seven water systems from Tucson Water in July 2025 is part of this strategy. This acquisition added 4,241 connections by September 30, 2025.

The company continues to pursue rate increases as approved by the Arizona Corporation Commission (ACC). The GW-Farmers rate case is expected to generate an approximately $1.1 million increase in annual revenue once fully phased in.

The company declared a monthly cash dividend of $0.02533 per common share, or $0.30396 on an annualized basis, and has raised its dividend for 10 consecutive years.

Global Water Resources, Inc. (GWRS) - Canvas Business Model: Customer Relationships

You're looking at the core of Global Water Resources, Inc.'s (GWRS) relationship with the people it serves, which is heavily dictated by regulation and direct utility management. It's a utility play, so the relationship is less about upselling and more about reliable service delivery under a regulatory framework.

Regulated, long-term monopoly service contracts

Global Water Resources, Inc. operates under the oversight of the Arizona Corporation Commission (ACC), which sets the terms for its service areas. These aren't typical competitive markets; they're regulated monopolies. The company owns and operates 39 systems that deliver water, wastewater, and recycled water service. The relationship is cemented by these long-term service agreements within specific geographic corridors in Pinal, Pima, and Maricopa Counties.

The regulatory environment directly impacts customer rates and service requirements. For instance, the rate case settlement for the Farmers Water Company, which was filed on January 10, 2025, proposed an annual revenue increase of approximately $1.1 million based on 2023 service connections. This increase is being phased in over three stages, with 50% starting on May 1, 2025. To give you a sense of scale, the company's two largest utilities, GW-Santa Cruz Water Company, Inc. and Palo Verde Utilities Company, Inc., which benefit from the new 'Ag-to-Urban' program legislation, collectively represent about 87% of the company's total active service connections.

Direct customer service and billing for utility accounts

The day-to-day relationship is managed through direct interaction for billing and service needs. You're dealing with utility accounts, not just a subscription. As of September 30, 2025, Global Water Resources, Inc. was managing 68,130 active service connections, marking a 6.6% increase from September 30, 2024. Even excluding the recent acquisition of seven water systems from Tucson Water, the organic growth in active connections was 3.5% as of that date. This means the direct service team is handling a growing base of customers who expect accurate monthly bills and responsive support. The company's focus on Total Water Management (TWM) also means customer processes are tied to conservation incentives and technology like remote metering infrastructure.

Here are some key operational metrics defining the customer base as of late 2025:

Monthly cash dividend program for shareholders

While this isn't a direct customer relationship, it's a critical relationship with the investor base, which often includes local stakeholders. Global Water Resources, Inc. maintains a commitment to returning capital monthly. For the dividend declared in November 2025, the monthly cash dividend was set at $0.02533 per common share. This translates to an annualized dividend rate of $0.30396 per share. The forward dividend yield was quoted at 3.50%. They've maintained this monthly payout frequency for at least 9 years.

The dividend schedule is precise, which is what shareholders expect. For example, the dividend declared on November 26, 2025, was payable on December 30, 2025, to holders of record as of December 16, 2025.

Customer assistance programs for affordability

To address affordability within their regulated service areas, Global Water Resources, Inc. partners with local agencies to offer assistance. This is a key part of their social license to operate. Qualifying residential customers can receive up to $350 per year per utility service through these programs. However, a customer who qualifies for more than one program will only receive benefits from one program per year. The Income Assistance Program, for instance, is for short-term relief, requiring household income to be at or below 300% of the Federal Poverty Level. They also offer specific temporary relief for furloughed workers and deployed service members. If you need to discuss payment structure directly, you can contact Customer Service at 866-940-1102 to explore payment plans.

Here's a quick look at the assistance structure:

• Maximum annual benefit per service: $350
• Income threshold for Income Assistance Program: $\le$ 300% of Federal Poverty Level
• Customer contact for payment plans: 866-940-1102
• Benefit limit: Only one program benefit per customer per year

The company defintely structures these programs to ensure essential service access while managing regulatory expectations.

Finance: draft 13-week cash view by Friday.

Global Water Resources, Inc. (GWRS) - Canvas Business Model: Channels

Global Water Resources, Inc. (GWRS) serves its customers through a multi-faceted channel strategy centered on its physical utility assets in Arizona and digital service interfaces.

Directly owned and operated utility systems in Arizona

Global Water Resources, Inc. (GWRS) operates its utility systems across growth corridors in the Phoenix and Tucson areas of Arizona. As of September 30, 2025, the company managed a total of 32 systems. The scale of these operations is reflected in the customer base and capital deployment.

The total active service connections across these systems reached 68,130 as of September 30, 2025. This represented a year-over-year increase of 6.6% at that date. For the nine months ended September 30, 2025, the company invested $49.6 million in infrastructure projects supporting these existing utilities and continued growth.

The following table summarizes key operational metrics for the directly operated utility systems as of the third quarter of 2025:

The acquisition of seven water systems from Tucson Water was completed in July 2025, adding to the physical footprint.

Online customer portals for billing and service requests

The digital channel supports the customer base of over 68,130 active service connections as of September 30, 2025. The portal facilitates transactions for this customer base.

Key digital channel activities include:

• Handling billing inquiries for 68,130 connections.
• Processing service requests across all Arizona service areas.
• Providing access to account information for customers in Pinal County and the Tucson area.

Local service centers and field operations teams

Field operations teams are responsible for maintaining the infrastructure that supports the 68,130 active service connections. These teams manage the assets that required $49.6 million in investment over the first nine months of 2025. The field teams support the 32 systems owned and operated by Global Water Resources, Inc. (GWRS).

Field operations metrics include:

• Managing infrastructure across multiple utility entities, including GW-Santa Cruz and Palo Verde Utility Company.
• Supporting operations following the integration of seven newly acquired water systems.
• Executing capital improvement plans, such as the investment of $20.2 million in Q2 2025 alone.

Global Water Resources, Inc. (GWRS) - Canvas Business Model: Customer Segments

You're looking at the core customer base for Global Water Resources, Inc. (GWRS) as of the third quarter of 2025. The foundation of the business rests on serving end-users across its regulated water and wastewater systems, primarily in the growth corridors around metropolitan Phoenix and Tucson, Arizona. As of September 30, 2025, the company reported a total of 68,130 active service connections. This figure represents a 6.6% increase year-over-year from the 63,889 connections at September 30, 2024.

Here's a quick breakdown of where those connections come from, showing the impact of recent strategic moves:

The largest portion of the customer base is the Residential customers segment. This group drives the majority of the 68,130 active connections reported at the end of Q3 2025. The company serves approximately 82,000 people across approximately 32,000 homes overall.

Next up, you have the Commercial and industrial businesses in service areas. While specific connection counts for this group aren't broken out separately from the total, they represent a key component of the utility service base alongside residential users. The company's focus on Total Water Management (TWM) and regional consolidation is designed to serve this diverse base more efficiently.

Growth in the customer base is heavily influenced by the Real estate developers driving organic connection growth. The company remains optimistic about this area, especially with Arizona's economic outlook supporting job growth of an expected 1.3% annually through 2033, which is more than three times the national average. Still, the near-term reality shows a pullback; for Q3 2025, the single-family dwelling unit market in the Phoenix Greater Metropolitan Statistical Area realized 4,724 building permits, a 29% decrease from Q3 of the prior year.

A significant recent addition to the customer roster comes from the Municipalities via acquired systems, like the Tucson acquisition. Global Water Resources, Inc. completed the acquisition of seven water systems from Tucson Water, the City of Tucson's water utility, in July 2025. This transaction added approximately 2,200 water service connections. The assets were acquired at a value equivalent to approximately 1.05 times the current rate base of approximately $7.7 million and are expected to generate about $1.5 million in revenue annually.

The customer segments are characterized by:

• Reliance on organic growth in Phoenix/Tucson corridors.
• Integration of acquired municipal systems for footprint expansion.
• Focus on consolidation to realize efficiency benefits.
• Exposure to cyclical new home construction permits.

Finance: draft 13-week cash view by Friday.

Global Water Resources, Inc. (GWRS) - Canvas Business Model: Cost Structure

The Cost Structure for Global Water Resources, Inc. is heavily weighted toward infrastructure maintenance and growth-related expenses, reflecting its utility nature and recent expansion activities. You see this clearly when looking at the year-to-date figures through September 30, 2025.

Capital expenditures (Capex) for infrastructure show a significant outlay to support existing utilities and continued growth, including the integration of recently acquired systems. For the first six months of 2025, capital expenditures totaled approximately $35.4 million (in thousands, for the six months ended June 30, 2025). This heavy reinvestment drives up related non-cash expenses.

Depreciation and amortization expense directly reflects these increased fixed assets placed in service. For the nine months ended September 30, 2025, the depreciation and amortization expense was $10.200 million. This increase, year-over-year, is noted as a primary factor impacting GAAP profitability, even as Adjusted EBITDA remains resilient.

Operating expenses for the nine months ended September 30, 2025, totaled $35.420 million. This represents a year-to-date increase of approximately $4 million or 12.8% compared to the same period in 2024.

The breakdown of these operating costs includes personnel and other service provider expenses:

• Personnel costs increased by approximately $971,000 year-to-date 2025.
• Other operations and maintenance (O&M) and general and administrative (G&A) costs increased by approximately $1.2 million year-to-date 2025.

Here's a quick look at the key nine-month expenses through September 30, 2025 (amounts in thousands):

Financing costs include interest expense on long-term debt. For the nine months ended September 30, 2025, the interest expense was ($4.464 million). This is viewed against the balance sheet, where the net debt, accounting for cash and equivalents, stood at $116.803 million as of June 30, 2025.

Regulatory and legal compliance costs for rate cases are a recurring, though often non-cash or deferred, cost component. The company has active regulatory matters with the Arizona Corporation Commission (ACC) that impact its cost structure through associated legal and filing expenses, as well as the resulting regulatory assets and liabilities on the balance sheet. As of September 30, 2025, regulatory liabilities totaled $5.353 million. Furthermore, the company is seeking rate increases that, if approved, would generate significant annual revenue, such as a proposed $6.5 million net increase for GW-Santa Cruz and GW-Palo Verde utilities.

Global Water Resources, Inc. (GWRS) - Canvas Business Model: Revenue Streams

Regulated water and wastewater service fees from 68,130 connections.

As of September 30, 2025, total active service connections reached 68,130, representing a 6.6% increase compared to September 30, 2024 (63,889).

Total revenue for the third quarter of 2025 was $15.5 million, an 8.4% increase year-over-year. For the nine months ended September 30, 2025, total revenue was $42.2 million, up 7.0%.

Revenue is also driven by organic connection growth, increased consumption, and higher rates across utilities.

Revenue from approved rate increases:

• Revenue from GW-Farmers utility adding approximately $1.1 million in annual revenue once fully phased in.
• The GW-Farmers rate increase implementation stages: 50% effective May 1, 2025, 25% on November 1, 2025, and the final 25% on May 1, 2026.
• The Tucson Water systems adopted rate structure includes a 5% rate increase effective July 7, 2025, and another 5% increase scheduled for July 6, 2026.
• Rate case applications pending for GW-Santa Cruz and GW-Palo Verde utilities seeking a net revenue increase of $6.5 million.

Growth premiums and connection fees from new development contribute to revenue growth.

Buckeye growth premiums contributed an income of $0.5 million for the year ended December 31, 2024, offsetting other expenses. However, Buckeye growth premiums caused a lower income in the year-to-date period ending September 30, 2025, compared to the same period in 2024.

Acquisition revenue from the Tucson systems:

The acquisition of seven water systems from Tucson Water in July 2025 is expected to generate approximately $1.5 million in annual revenue.

This acquisition added approximately 2,200 water service connections. The assets were acquired at a value equivalent to approximately 1.05 times the current rate base of approximately $7.7 million.

The contribution of these revenue sources to the nine months ended September 30, 2025, total revenue of $42.2 million:

The company's total active service connections as of June 30, 2025, were 65,639.

For the second quarter of 2025, total revenue was $14.2 million.

The GW-Farmers utility served 3,494 active water connections as of the end of 2024.