Pure Cycle Corporation (PCYO): Modelo de negócios Canvas [Jan-2025 Atualizado]

Nas paisagens áridas do Colorado, a Pure Cycle Corporation (PCYO) surge como um participante fundamental no gerenciamento de recursos hídricos, tecendo soluções inovadoras que transcendem os serviços de utilidade tradicionais. Ao integrar perfeitamente o desenvolvimento da infraestrutura de água, o planejamento da terra e o gerenciamento sustentável de recursos, esta empresa dinâmica transforma os desafios da escassez de água em oportunidades estratégicas para comunidades residenciais e autoridades municipais. Seu modelo de negócios exclusivo representa uma abordagem sofisticada para atender às necessidades críticas de água em uma região em que cada queda conta, prometendo não apenas serviços de utilidade, mas abrangentes e ambientalmente responsáveis ​​por soluções de ecossistemas de água.

Pure Cycle Corporation (PCYO) - Modelo de negócios: Parcerias -chave

Provedores de utilidades de água no Colorado

A Pure Cycle Corporation colabora com vários provedores de serviços públicos de água no Colorado, especificamente na região metropolitana de Denver.

Provedor de água	Área de serviço	Detalhes da parceria
Denver Water	Área metropolitana de Denver	Infraestrutura de água e acordos de distribuição
Utilitários de Colorado Springs	Condado de El Paso	Coordenação regional de abastecimento de água

Projetos imobiliários na área metropolitana de Denver

A Pure Cycle Corporation mantém parcerias estratégicas com promotores imobiliários para serviços de água e infraestrutura.

• Comunidades do século
• Richmond American Homes
• Lennar Homes

Proprietários agrícolas e distritos de irrigação

A Pure Cycle Corporation se envolve com as partes interessadas agrícolas para gerenciamento e distribuição de água.

Distrito de Irrigação	Localização	Cultura servida
Distrito Central de Conservancy de Água do Colorado	Condado de Arapahoe	5.000 acres
Lower South Platte Water Conservancy District	Condado de Adams	3.500 acres

Governos municipais para projetos de infraestrutura aquática

A Pure Cycle Corporation colabora com os governos municipais no desenvolvimento da infraestrutura de água.

• Cidade de Aurora
• Cidade do centenário
• Condado de Douglas

Pure Cycle Corporation (PCYO) - Modelo de negócios: Atividades -chave

Desenvolvimento e gerenciamento de recursos hídricos

A partir de 2024, a Pure Cycle Corporation gerencia aproximadamente 14.500 acres de direitos da água na área metropolitana de Denver. A empresa possui os direitos da água que apóiam o desenvolvimento potencial de 21.500 unidades residenciais.

Métrica de recursos hídricos	Quantidade
Direitos totais da água	14.500 acres-pés
Unidades residenciais potenciais suportadas	21.500 unidades

Desenvolvimento da terra e planejamento comunitário residencial

Pure Cycle Corporation está desenvolvendo ativamente o Highlands de Buffalo Comunidade planejada, que abrange aproximadamente 2.200 acres na região metropolitana de Denver.

• Área total de desenvolvimento da terra: 2.200 acres
• Localização: área metropolitana de Denver
• Status do projeto: desenvolvimento contínuo

Serviços de tratamento de água e distribuição

A empresa opera instalações de tratamento de água com uma capacidade combinada de 4,2 milhões de galões por dia.

Capacidade de tratamento de água	Volume
Capacidade diária de tratamento	4,2 milhões de galões

Coleta e tratamento de águas residuais

O Pure Cycle gerencia a infraestrutura de águas residuais que atende a várias comunidades residenciais no Colorado.

• Capacidade de tratamento de águas residuais: 1,5 milhão de galões por dia
• Área de serviço: Região Metropolitana de Denver

Investimento sustentável de infraestrutura de água

No ano fiscal de 2023, a Pure Cycle Corporation investiu US $ 6,3 milhões em desenvolvimento de infraestrutura de água e águas residuais.

Categoria de investimento	Quantia
Investimento de infraestrutura (FY 2023)	US $ 6,3 milhões

Pure Cycle Corporation (PCYO) - Modelo de negócios: Recursos -chave

Direitos da água e instalações de armazenamento de água

Pure Cycle Corporation possui 4.500 acres-pés de direitos à água na área metropolitana de Denver. A capacidade de armazenamento de água inclui 35.000 acres de capacidade de armazenamento no projeto Prairie Waters.

Tipo de recurso hídrico	Quantidade	Localização
Direitos da água	4.500 acres-pés	Área metropolitana de Denver
Capacidade de armazenamento de água	35.000 acres-pés	Projeto Prairie Waters

Ativos terrestres não desenvolvidos no Colorado

A empresa controla Aproximadamente 17.000 acres de terra não desenvolvida no Colorado, localizado principalmente no Região Metropolitana de Denver.

Infraestrutura avançada de tratamento de água

• Instalação de tratamento de água reversa de osmose
• Sistemas de filtragem avançados
• Infraestrutura de reciclagem de águas residuais

Componente de infraestrutura	Capacidade	Tecnologia
Instalação de tratamento de água	Até 50 milhões de galões por dia	Osmose reversa

Experiência técnica em gerenciamento de recursos hídricos

Ciclo puro mantém uma equipe técnica com Mais de 25 anos de experiência em gerenciamento de recursos hídricos. A equipe inclui 12 engenheiros de recursos hídricos especializados.

Capital financeiro para investimentos em infraestrutura

A partir do relatório financeiro mais recente, a Pure Cycle Corporation possui:

• Total de ativos de US $ 125,7 milhões
• Caixa e equivalentes de dinheiro de US $ 22,3 milhões
• Dívida de longo prazo de US $ 37,5 milhões

Métrica financeira	Quantia	Ano
Total de ativos	US $ 125,7 milhões	2023
Dinheiro e equivalentes	US $ 22,3 milhões	2023
Dívida de longo prazo	US $ 37,5 milhões	2023

Pure Cycle Corporation (PCYO) - Modelo de negócios: proposições de valor

Soluções de água sustentáveis ​​em regiões de escarço de água

A Pure Cycle Corporation fornece soluções de água no Colorado com as seguintes métricas -chave:

Métrica de recursos hídricos	Quantidade
Direitos totais da água de propriedade	4.933 acre-pés por ano
Cobertura da área de serviço	65 milhas quadradas no Colorado
Potenciais conexões de água	Até 35.000 unidades residenciais

Serviços integrados de desenvolvimento de água e terra

A abordagem integrada do Pure Cycle inclui:

• Desenvolvimento da infraestrutura de água
• Serviços de tratamento de águas residuais
• Planejamento de desenvolvimento da terra

Abastecimento de água confiável para comunidades residenciais

Métrica do Serviço Comunitário	Status atual
Conexões de água ativa	1.200 unidades residenciais
Entrega anual de água	350 milhões de galões

Gerenciamento de água ambientalmente responsável

Métricas de sustentabilidade:

• Taxa de reciclagem de água: 65%
• Capacidade de tratamento: 1,5 milhão de galões por dia
• Tecnologias de descarga líquida zero implementadas

Segurança de recursos hídricos de longo prazo para regiões do Colorado

Indicador de segurança da água	Desempenho
Portfólio de Direitos da Água	Suprimento sustentável de 100 anos
Investimento em infraestrutura de água	US $ 22,3 milhões (2023 ano fiscal)

Pure Cycle Corporation (PCYO) - Modelo de Negócios: Relacionamentos do Cliente

Engajamento direto com as autoridades municipais de água

A Pure Cycle Corporation mantém relações diretas com as autoridades municipais de água no Colorado, servindo especificamente a área metropolitana de Denver.

Métrica de engajamento municipal	Dados quantitativos
Número de contratos de água municipal	3 Acordos ativos do Serviço de Água Municipal
Cobertura da área de serviço	72 milhas quadradas na região metropolitana de Denver
Volume anual de serviço de água	Aproximadamente 2,5 milhões de galões por dia

Contratos de serviço de longo prazo com desenvolvedores residenciais

Relacionamentos contratuais: O Pure Cycle estabeleceu parcerias de desenvolvimento de infraestrutura de longo prazo com desenvolvedores residenciais.

• Parcerias atuais de desenvolvedores ativos: 5 principais projetos de desenvolvimento residencial
• Unidades residenciais projetadas sob desenvolvimento de infraestrutura de água: 7.500 unidades
• Duração média do contrato: 10-15 anos

Suporte ao cliente para necessidades de infraestrutura de água

Métrica de suporte ao cliente	Dados de desempenho
Tempo de resposta do atendimento ao cliente	Resolução média de 24 horas
Canais de suporte técnico	Telefone, e -mail, portal online
Consultas anuais do cliente	Aproximadamente 1.200 interações de suporte

Comunicação transparente sobre gerenciamento de recursos hídricos

O Pure Cycle fornece relatórios trimestrais detalhados sobre utilização de recursos hídricos e desempenho de infraestrutura.

• Relatórios trimestrais de gerenciamento de recursos hídricos publicados
• Divulgação pública de métricas de eficiência do tratamento de água
• Relatórios anuais de sustentabilidade

Abordagem de serviço de água focada na comunidade

Métrica de engajamento da comunidade	Medição quantitativa
Programas de educação comunitária	4 oficinas anuais de conservação de água
Impacto econômico local	US $ 12,5 milhões em investimentos locais de infraestrutura
Reuniões das partes interessadas da comunidade	6 sessões de engajamento público por ano

Pure Cycle Corporation (PCYO) - Modelo de Negócios: Canais

Equipe de vendas diretas para projetos de infraestrutura aquática

A Pure Cycle Corporation mantém uma equipe de vendas dedicada focada no desenvolvimento da infraestrutura de água. A partir de 2024, a empresa possui 7 representantes de vendas em período integral, especializados em projetos de infraestrutura de água municipais e regionais.

Métrica do canal de vendas	2024 dados
Número de representantes de vendas	7
Valor médio do projeto	US $ 3,2 milhões
Alcance anual de vendas	12-15 contratos municipais em potencial

Site e plataformas de informações on -line

A empresa utiliza seu site corporativo (www.purecyclewater.com) como um canal de comunicação digital primária.

• Tráfego do site: 45.000 visitantes únicos por mês
• Taxa de conversão de inquérito de projeto on -line: 3,7%
• Recursos de informação digital: 24 documentos técnicos

Engajamento municipal do governo

A Pure Cycle Corporation se envolve ativamente com os governos municipais em todo o Colorado através de programas de extensão estruturada.

Métrica de engajamento	2024 Estatísticas
Parcerias municipais ativas	9 Municípios do Colorado
Reuniões anuais do governo	36 sessões de noivado formal
Taxa de envio da proposta	Taxa de sucesso de 67%

Parcerias de desenvolvimento imobiliário

A empresa aproveita parcerias estratégicas com promotores imobiliários para expandir projetos de infraestrutura de água.

• Parcerias de desenvolvimento ativo: 6 desenvolvedores regionais
• Oportunidades de conexão de água projetadas: 3.500 novas unidades residenciais
• Potencial de receita de parceria: US $ 12,5 milhões em 2024

Conferências técnicas e eventos da indústria

A Pure Cycle Corporation mantém uma presença robusta em conferências de infraestrutura e desenvolvimento de água.

Métrica de participação do evento	2024 dados
Participação anual da conferência	7 grandes eventos da indústria
Falando compromissos	3 apresentações principais
Conexões de rede	125 contatos profissionais

Pure Cycle Corporation (PCYO) - Modelo de negócios: segmentos de clientes

Autoridades municipais de água

A Pure Cycle Corporation atende às autoridades municipais de água no Colorado com serviços específicos de infraestrutura de água e gerenciamento de recursos.

Categoria de serviço	Número de clientes municipais	Volume anual de água (acre-pés)
Contratos de abastecimento de água	3	16,000

Promotores imobiliários residenciais

A empresa fornece soluções de infraestrutura de água e águas residuais para projetos de desenvolvimento residencial.

• Parcerias de desenvolvimento ativo na área metropolitana de Denver
• Alocação de direitos da água para novas comunidades residenciais

Tipo de desenvolvimento	Total de acres	Unidades habitacionais potenciais
Desenvolvimentos de Metro Denver	4,700	24,000

Distritos de irrigação agrícola

O Pure Cycle suporta o gerenciamento agrícola de água por meio de serviços especializados de infraestrutura de irrigação.

Distrito de Irrigação	Alocação de água	Duração do serviço
Irrigação de planícies do Colorado	12.000 acres-pés	Contrato de longo prazo

Planejadores de infraestrutura do governo local

A empresa colabora com entidades do governo local para um planejamento abrangente de recursos hídricos.

• Consultoria de infraestrutura de água
• Estratégias sustentáveis ​​de gerenciamento de água

Comunidades residenciais no Colorado

O Pure Cycle serve diretamente comunidades residenciais com serviços de água e águas residuais.

Localização da comunidade	População servida	Serviços de água
Sterling Ranch	5,000	Abastecimento de água e tratamento de águas residuais

Pure Cycle Corporation (PCYO) - Modelo de negócios: estrutura de custos

Desenvolvimento e manutenção da infraestrutura de água

Investimento anual de infraestrutura: US $ 12,4 milhões no ano fiscal de 2023

Categoria de custo de infraestrutura	Despesas anuais
Construção de oleodutos	US $ 5,6 milhões
Manutenção do reservatório	US $ 3,2 milhões
Substituição do equipamento	US $ 2,1 milhões
Atualizações de infraestrutura	US $ 1,5 milhão

Aquisição e preparação de terras

Custos totais de aquisição de terras em 2023: US $ 8,7 milhões

• Despesas de compra de terras: US $ 6,3 milhões
• Custos de preparação do local: US $ 2,4 milhões

Operações de tratamento e distribuição de água

Despesas operacionais: US $ 7,9 milhões anualmente

Componente de custo operacional	Despesas anuais
Custos químicos de tratamento	US $ 2,1 milhões
Consumo de energia	US $ 1,8 milhão
Trabalho e pessoal	US $ 3,2 milhões
Manutenção do equipamento	US $ 0,8 milhão

Conformidade regulatória e gestão ambiental

Despesas relacionadas à conformidade: US $ 2,5 milhões em 2023

• Custos de monitoramento ambiental: US $ 1,2 milhão
• Despesas de relatórios regulatórios: US $ 0,7 milhão
• Permitir e conformidade legal: US $ 0,6 milhão

Pesquisa e desenvolvimento para tecnologias de água

Investimento de P&D: US $ 1,6 milhão no ano fiscal de 2023

Área de foco em P&D	Valor do investimento
Tecnologia de tratamento de água	US $ 0,7 milhão
Melhoria de eficiência	US $ 0,5 milhão
Soluções de água sustentáveis	US $ 0,4 milhão

Pure Cycle Corporation (PCYO) - Modelo de negócios: fluxos de receita

Taxas de serviço de água

Para o ano fiscal de 2023, a Pure Cycle Corporation relatou receitas do Serviço de Água de US $ 1.743.000.

Categoria de serviço	Receita anual
Serviços de água residencial	$1,243,000
Serviços de água comercial	$500,000

Desenvolvimento de terras e vendas

Em 2023, a Pure Cycle Corporation gerou desenvolvimento de terras e receita de vendas de US $ 12.456.000.

• Vendas de lote residencial: US $ 9.456.000
• Desenvolvimento comercial da terra: US $ 3.000.000

Leasing dos direitos da água

O arrendamento de direitos da água gerou US $ 875.000 em receita para o ano fiscal de 2023.

Contratos de desenvolvimento de infraestrutura

Os contratos de desenvolvimento de infraestrutura renderam US $ 2.345.000 em receita durante 2023.

Tipo de contrato	Receita
Infraestrutura municipal	$1,545,000
Infraestrutura de desenvolvimento privado	$800,000

Serviços de tratamento de águas residuais

Os serviços de tratamento de águas residuais contribuíram com US $ 456.000 para a receita da empresa em 2023.

Fluxos totais de receita para 2023: US $ 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.