Pure Cycle Corp (NASDAQ:PCYO) stock fell 3.25% (As on April 10, 11:33:22 AM UTC-4, Source: Google Finance) after the company in the second quarter of FY25 has reported total revenue of $4.0 million and $3.2 million with $2.6 million and $1.8 million being generated in the water and wastewater resource development segment, $1.3 million and $1.3 million generated by the land development segment, and $0.1 million and $0.1 million reported in the single-family rental business. The company is well positioned with a strong balance sheet and terrific working capital (current assets less current liabilities) of $19.8 million as of February 28, 2025, with $16.8 million of cash and cash equivalents

For the three months ended February 28, 2025 and February 29, 2024, the company sold 52 and 0 water or water and wastewater taps for $2.1 million and $0. As of February 28, 2025, the company have sold 895 water and wastewater taps at Sky Ranch in Phases 1, 2A, and 2B. Based on current prices and engineering estimates, the company believe Phase 2 of Sky Ranch will exceed $20 million in water and wastewater tap fee revenue and cash over the next three years. As of February 28, 2025, the first development phase (509 lots) is complete and the second development phase (1,032 lots) is being developed in five subphases, referred to as Phase 2A (229 lots), Phase 2B (211 lots), Phase 2C (228 lots), Phase 2D (218 lots) and Phase 2E (146 lots). As of February 28, 2025, Phase 2A is 100% complete, Phase 2B is approximately 95% complete, Phase 2C is approximately 48% complete, Phase 2D is approximately 18% complete and Phase 2E is expected to begin development work in fiscal 2025. Phase 2B is substantially completed with some landscaping and warranty items remaining. Phase 2C is expected to be completed by the end of Pure Cycle’s fiscal 2025, Phase 2D is expected to be completed by the end of calendar 2025 and Phase 2E is expected to be completed by the end of Pure Cycle’s fiscal 2026.

Looking forward, Pure Cycle is targeting the development of 2,500 residential units at Sky Ranch, with potential expansion into commercial development opportunities. The company is also exploring new land acquisitions and infrastructure projects, including a new interchange on I-70. The fiscal year 2025 revenue forecast is set at $44.56 million, with an EPS forecast of 0.76 USD.