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Essentially a specialized water utility like American Water Works (AWK), but uniquely positioned as a master-planned community developer in Colorado, leveraging its significant water rights.

Similar to a master-planned community developer like Howard Hughes Corporation (HHC), but with the distinct advantage of owning the crucial water rights necessary for its projects in a water-scarce region.

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• Water and Wastewater Utilities: Provides essential water and wastewater services to residential and commercial customers.
• Master-Planned Community Development: Develops and sells residential lots within master-planned communities, primarily in the Denver metropolitan area.

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Pure Cycle Corporation (PCYO) sells primarily to other companies for a significant portion of its revenue, specifically through its land development segment. These major customers are large national homebuilders.

According to Pure Cycle's most recent 10-K filing for fiscal year 2023, two customers accounted for 92% of its total lot sales revenue. While Pure Cycle does not publicly disclose the specific names of these top two customers, they are characterized as large national homebuilders.

Examples of public national homebuilders that frequently operate in master-planned communities like Pure Cycle's Sky Ranch, and represent the type of customer Pure Cycle serves for its land development, include:

• Lennar Corporation (Symbol: LEN)
• D.R. Horton, Inc. (Symbol: DHI)
• Meritage Homes Corporation (Symbol: MTH)
• MDC Holdings, Inc. (which operates as Richmond American Homes) (Symbol: MDC)
• Toll Brothers, Inc. (Symbol: TOL)

In addition to selling lots to homebuilders, Pure Cycle also operates a water and wastewater resource development segment. This segment primarily provides water and wastewater services directly to individual households and commercial establishments within its service area, most notably in its Sky Ranch community.

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Mark W. Harding

President, CEO, and Director

Mark W. Harding joined Pure Cycle in 1990. During his tenure, he has been responsible for the acquisition of over $100 million of water and land interests. Mr. Harding serves as a director on several advisory boards related to water and wastewater issues in the Denver region. He holds a Bachelor's in Computer Science and a Master's in Business Administration, both from the University of Denver. Prior to joining Pure Cycle, Mr. Harding worked for Price Waterhouse from 1988 to 1990, where he provided public finance and investment banking services to clients. He has also served as President and Director at Rangeview Metropolitan District, Director at HMN Resources, Inc., President and Director at Red Sky Ranch Metropolitan District (Colorado), Director at Sky Ranch Community Authority Board (Colorado), and President at South Metro Water Supply Authority.

Marc Spezialy

Vice President, Chief Financial Officer, Principal Accounting Officer and Principal Financial Officer

Marc Spezialy joined Pure Cycle in 2023. He brings over 20 years of accounting and finance experience to the company. Prior to Pure Cycle, Mr. Spezialy was the VP, Controller, of Pulte Mortgage LLC, a subsidiary of PulteGroup, Inc. He also served as VP Finance for Alviere, a financial services technology platform, and as Chief Financial Officer of Equinox, a land development and water management company. Mr. Spezialy began his career with PricewaterhouseCoopers in San Francisco, working in the Audit and Advisory Business Services group and was promoted to Audit Manager. He earned a bachelor's degree in both Accounting and Finance from the University of San Francisco and is a licensed Certified Public Accountant in California.

Brent Brouillard

Vice President, Engineering

Brent Brouillard joined Pure Cycle in 2017. As Vice President of Engineering, he oversees the planning, design, construction, and operations of water and wastewater systems in the Denver-Metro area. He is a Professional Engineer (PE) with fifteen years of experience in the water resources sector. Mr. Brouillard received his Bachelor's in Civil Engineering from the University of Wyoming and obtained a Master of Science in Hydrology and a PhD in Civil Engineering from Colorado School of Mines.

Dirk Lashnits

Vice President, Land Development

Dirk Lashnits joined Pure Cycle in 2017 and serves as the Vice President of Land Development. He holds a degree in Civil Engineering from the Colorado School of Mines and possesses over 20 years of experience developing land across the Front Range of Colorado. Mr. Lashnits is involved in establishing corporate objectives, mitigating risks, and optimizing results for the company. He has extensive experience with major homebuilders.

Patrick Beirne

Chairman of the Board, Director

Patrick Beirne is an independent director and the Chairman of the Board of Pure Cycle. He is a homebuilding executive with nearly three decades of experience in operational excellence and strategic planning for businesses requiring infrastructure and business development. Mr. Beirne is currently the President of Nelson Pipeline Constructors. Previously, he worked at Pulte Group, Inc. for 29 years, serving in various roles including Central Area President and as a member of Pulte Group's executive team, where he contributed to long-term vision strategies and oversaw operations in 10 states. Mr. Beirne earned a BS degree from Michigan State University.

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The key risks to Pure Cycle (PCYO) business largely stem from its core operations in water resource management and its significant exposure to the cyclical nature of the housing market. The company operates in three segments: Water and Wastewater Resource Development, Land Development, and Single-Family Rental.

1. Water Resource and Regulatory Uncertainties: Pure Cycle's foundational business relies heavily on its water rights and the ability to effectively manage and deliver water and wastewater services. Key risks include uncertainties in the estimation of available water under decrees, potential adverse water court rulings, and the impact of climatic and weather conditions such as droughts and floods. Furthermore, changes in environmental regulations and the complexities of government procedures and official turnover can cause delays and impact operations.
2. Housing Market Sensitivity: A significant portion of Pure Cycle's business involves land development and single-family rentals. This exposes the company to substantial risks associated with the broader housing market and economic conditions. Factors such as fluctuating home mortgage interest rates, inflation, and weakening consumer confidence directly impact home sales and the demand for developed lots and rental properties.
3. Operational and Project Execution Risks: The company faces risks related to the planning and execution of its development and infrastructure projects. These include uncertainties in estimating construction costs, the service life of their systems, and the ability to recover reimbursable costs. Challenges in finding and retaining skilled personnel can also impact their operational efficiency and project timelines.

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Pure Cycle Corporation (PCYO) operates primarily in the Denver metropolitan area and Colorado, focusing on water and land resource development.

The addressable markets for Pure Cycle's main products and services are as follows:

• Wholesale Water and Wastewater Services: The U.S. water and wastewater treatment market size was approximately $64.27 billion in 2024 and is projected to grow to about $123.76 billion by 2034. Pure Cycle estimates a potential of $2.3 billion in water tap fees in its Colorado/Denver service area.
• Land Development: The land development industry in the U.S. generates approximately $11 billion in annual revenues. Pure Cycle estimates a potential of over $600 million in land development revenue from its holdings in the Colorado/Denver area.
• Oil and Gas Leasing: Pure Cycle also generates revenue through oil and gas leasing on its land holdings and providing water for oil and gas operations. The U.S. oil and gas market is estimated at $142.81 billion in 2025 and is expected to reach $178.91 billion by 2030.
• Single-Family Rentals: Pure Cycle estimates a potential of $7 million in annual rental income from its single-family rental segment in the Colorado/Denver area.

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Pure Cycle (NASDAQ: PCYO) is expected to drive future revenue growth over the next 2-3 years through several key initiatives across its integrated business segments:

1. Expansion of Water and Wastewater Services: The company anticipates continued revenue growth from its wholesale water and wastewater service provision. This includes an increase in water and wastewater tap fees, which saw a significant rise in Q3 2025. Additionally, growth in water sales to oil and gas customers has contributed to a substantial increase in water and wastewater revenue, as noted in Q2 2024 results, with a strong outlook for the second half of 2024. Pure Cycle aims to significantly increase its customer base, targeting 2,500 accounts.
2. Ongoing Land Development at Sky Ranch: The development of its master-planned community, Sky Ranch, is a central driver. Pure Cycle is actively working on and delivering finished lots in phases 2A, 2B, and 2C, with homebuilders expected to begin construction in Phase 2C during fiscal 2025 and Phase 2D in fiscal 2026. Lot sales contributed significantly to quarterly revenue in the past.
3. Growth of Single-Family Rental Portfolio: Pure Cycle plans to expand its portfolio of single-family rental homes at Sky Ranch. This segment provides long-term recurring revenues and complements its land development operations by adding more customers to its water resource segment. The company aims to expand single-family connections at Sky Ranch to 5,000 and potentially grow revenue from recurring sources from $2.5 million to $15 million.

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Share Repurchases

• Pure Cycle's Board of Directors approved an open-ended stock repurchase program on November 2, 2022, authorizing the repurchase of up to an aggregate of 200,000 shares of common stock in the open market.
• From Q1 2024 through Q3 2025, the company repurchased a total of 87,926 shares at an average price of $10.27 per share, amounting to approximately $903,950.
• As of Q3 2025, 112,074 shares remained authorized for repurchase under the program.

Share Issuance

• As of January 7, 2025, there were 24,076,909 shares of common stock outstanding, and as of April 7, 2025, there were 24,076,305 shares outstanding, indicating no significant share issuance in the most recent periods.

Capital Expenditures

• Pure Cycle prioritizes investment in its ongoing development projects, strategic development initiatives, and land acquisitions.
• The company is actively developing its Sky Ranch Master Planned Community, having completed Phase 2A, nearing completion of Phase 2B, actively developing Phase 2C with anticipated lot delivery by the end of fiscal 2025, and commencing utility work for Phase 2D with expected completion in the first half of fiscal 2026.
• Capital expenditures also include investments in the single-family rental segment, which began in fiscal 2021 and has completed 14 homes with 17 under construction and plans for 40 more.