Pure Cycle Corp (NASDAQ:PCYO), through its subsidiary Sky Ranch Development Company, stock rose (As on April 9, 11:27:00 AM UTC-4, Source: Google Finance) after the company reported robust financial results for the first half of fiscal year 2026, driven by accelerated lot deliveries and favorable weather conditions. The revenue increased 29% year-over-year to $5.2 million, while gross profit surged 82% to $2.8 million. Net income for the quarter reached $1.1 million, representing a 37% increase from Q2 2025’s $809,000. Earnings per share climbed to $0.05 from $0.03 in the prior-year period

Moreover, the water and wastewater segment continues to provide a stable recurring revenue foundation for Pure Cycle. Year-to-date water revenue totaled $5.4 million, with recurring revenue of $3.3 million, O&G sales of $1.1 million, and tap fees of $1.0 million. The company highlighted a 22% customer compound annual growth rate with average customer annual revenue of $1,500, projecting continued expansion as Sky Ranch development progresses. The O&G segment, which provides raw water for drilling operations, has generated $1.1 million in the first half of fiscal 2026, up from $886,000 in the prior year. Pure Cycle can service more than 200 square miles in Adams and Arapahoe Counties, with average water sales of $250,000 per well. The company has supported over 250 wells drilled to date. Land development emerged as the strongest growth driver in the quarter, with year-to-date revenue reaching $8.6 million compared to $4.1 million in the prior year—a 109% increase. Phase 2C, comprising 228 lots, reached 91% completion by Q2 2026, with all $18.3 million in revenue payments received. Phase 2D, consisting of 204 lots, stood at 78% completion with $7.5 million in milestone payments received and $13.4 million remaining for fiscal 2026. Looking ahead, Phase 2E is planned for 159 lots with grading expected to start in Q3 for lot deliveries in fiscal 2027.

In addition, six-month rental revenue reached $281,000 in fiscal 2026, up from $242,000 in the prior year, demonstrating steady growth in this income stream that complements tap fees and land sales. The company maintains $11.6 million in cash and restricted cash, supplemented by a $56.3 million note receivable, providing substantial flexibility for capital allocation decisions. Pure Cycle has continued its stock repurchase program, buying back 11,100 shares year-to-date at an average price of $10.80, bringing total repurchases to 106,526 shares at an average cost of $10.29. The company has 93,474 shares remaining under its current authorization.

Pure Cycle maintains its full-year revenue guidance between $26 million and $30 million, with EPS expected to range from $0.43 to $0.52. The company anticipates that its margins, impacted by upfront investments, will normalize as the year progresses.