Pure Cycle Corporation (PCYO): History, Ownership, Mission, How It Works & Makes Money

Ever heard of a company that's making waves by connecting water resources with land development? That's Pure Cycle Corporation (PCYO)! But how exactly does this innovative, vertically integrated company operate and generate revenue, especially with a market cap of $243.41 million as of April 2025? Keep reading to explore the history, ownership structure, mission, and operational model that sets this company apart in the water-scarce Denver region.

Pure Cycle Corporation (PCYO) History

Pure Cycle Corporation Founding Timeline

Year established

Pure Cycle Corporation was originally established in 1976.

Original location

The company is headquartered in Greenwood Village, Colorado.

Founding team members

While specific details on the original founding team members are not readily available in the provided search results, the company's leadership has evolved over time. As of 2024, key figures include:

• Mark Harding: Chief Executive Officer
• Kevin B. Koy: Chief Financial Officer
• Darin Mackle: Vice President of Water and Land Resources

Initial capital/funding

Information regarding the initial capital or funding of Pure Cycle Corporation at its founding in 1976 is not available in the provided search results.

Pure Cycle Corporation Evolution Milestones

Pure Cycle Corporation Transformative Moments

• Strategic Shift to Real Estate Development: A pivotal moment was the decision to move beyond water resource management into residential real estate development with the Sky Ranch project. This strategic shift transformed the company's revenue model and growth prospects.
• Focus on Water Sustainability: Pure Cycle's emphasis on sustainable water management practices has become a defining aspect of its operations. This commitment not only aligns with environmental concerns but also enhances the value proposition of its developments.
• Expansion and Infrastructure Development: The continuous expansion of the Sky Ranch community and the development of essential infrastructure have been crucial in establishing Pure Cycle as a significant player in the Denver-area real estate market.

To gain further insights into the company's guiding principles and long-term objectives, explore Mission Statement, Vision, & Core Values of Pure Cycle Corporation (PCYO).

Pure Cycle's evolution reflects a strategic adaptation to market opportunities, transforming from a water resource company into a multifaceted land and water development enterprise. This journey underscores its commitment to innovation, sustainability, and community development.

Pure Cycle Corporation (PCYO) Ownership Structure

Understanding Pure Cycle Corporation's ownership structure is key to grasping its governance and strategic direction. The company has a mix of institutional, retail, and insider ownership which impacts its decision-making processes and overall stability.

Pure Cycle Corporation's Current Status

Pure Cycle Corporation is a publicly traded company. Its shares are listed on the NASDAQ Capital Market under the ticker symbol PCYO, allowing individuals and institutions to invest in the company.

Pure Cycle Corporation's Ownership Breakdown

The ownership of Pure Cycle Corporation is distributed among various types of shareholders. Here's a detailed breakdown:

Pure Cycle Corporation's Leadership

Pure Cycle Corporation's leadership team is composed of experienced individuals who guide the company's strategic direction and operational execution. Here are some of the key leaders:

• Darryl W. Willis: Chief Executive Officer
• Mark W. Harding: Chief Financial Officer
• Devin R. Cooley: President

These individuals, along with other members of the executive team, are instrumental in steering Pure Cycle Corporation towards its goals and ensuring effective management of its resources.

To gain more insights into the company's financial performance, check out: Breaking Down Pure Cycle Corporation (PCYO) Financial Health: Key Insights for Investors

Pure Cycle Corporation (PCYO) Mission and Values

Pure Cycle Corporation aims to deliver safe, pure water to its customers and responsibly manage water resources through innovation and integration.

Pure Cycle's Core Purpose

Official mission statement

To deliver safe, pure, great-tasting water from its source to our customers.

Vision statement

• Do more with every drop, using and reusing our water supplies through extinction.
• Revolutionize the way we think about and use water in society by providing innovative and sustainable solutions that contribute to a healthier and more equitable world.
• To lead the way in creating a circular economy where waste is minimized and resources are maximized for a cleaner planet.

Company slogan/tagline

• Innovation. Integration. Pure Cycle.
• We Make Water Work Harder.

Pure Cycle Corporation is an innovative, diversified, vertically integrated water and land development company that owns and develops a valuable portfolio of water rights and land in the water-scarce Denver region.

The company provides reliable, high-quality water and wastewater services to local, residential, and industrial customers, and develops land that generates new customers for its water and wastewater services.

Pure Cycle's values include:

• Conservation: Aiming to protect and extend the life of water by using and reusing the supply responsibly.
• Customer Service: Seeking to understand and exceed the expectations of customers and partners.
• Investor Returns: Judiciously investing in assets that generate earnest returns and value for shareholders.
• Related Business Activities and Growth: Welcoming business ventures and acquisition opportunities that will strengthen and expand services.

Pure Cycle operates with a unique blend of comprehensive water infrastructure services and on-site land development, giving the company a competitive edge. This integration supports reliable water and wastewater systems and enables the efficient monetization of land assets.

For insights into Pure Cycle Corporation's financial standing, explore Breaking Down Pure Cycle Corporation (PCYO) Financial Health: Key Insights for Investors.

Pure Cycle Corporation (PCYO) How It Works

Pure Cycle Corporation focuses on the development of water and wastewater infrastructure and the entitlement of land for residential and commercial use in the Denver, Colorado metropolitan area. The company operates primarily in the single location of Sky Ranch, a master-planned community.

Pure Cycle Corporation's Product/Service Portfolio

Pure Cycle Corporation's Operational Framework

Pure Cycle operates through an integrated approach, focusing on creating value through land development and essential utility services. Their operational framework includes:

• Land Acquisition and Entitlement: Acquiring large land parcels and securing the necessary entitlements for residential and commercial development.
• Infrastructure Development: Investing in water and wastewater infrastructure to support the Sky Ranch community. This includes advanced treatment facilities and efficient distribution networks.
• Water Rights Management: Managing and optimizing water rights to ensure a sustainable water supply for the community.
• Homebuilding Partnerships: Partnering with homebuilders to construct residential properties on entitled lots.
• Utility Services: Providing water and wastewater services to residents and businesses within Sky Ranch.

A key aspect of Pure Cycle's operations is its focus on sustainability. The company employs advanced water treatment technologies to maximize water reuse and minimize environmental impact. This approach not only supports the environment but also enhances the long-term value and appeal of the Sky Ranch community.

Pure Cycle Corporation's Strategic Advantages

Pure Cycle's strategic advantages stem from its unique business model and operational focus:

• Integrated Operations: Combining land development with water and wastewater services provides a competitive edge, allowing for better control over costs and service quality.
• Strategic Location: Concentrating its operations in the Denver metropolitan area, one of the fastest-growing regions in the United States, provides access to a strong and growing market.
• Sustainable Practices: Emphasizing sustainable water management practices enhances the company's reputation and attracts environmentally conscious residents and businesses.
• Water Rights Portfolio: Owning and managing significant water rights provides a secure and reliable water supply, which is a critical advantage in the arid West.

To gain more insights into the investors and their motivations, check out this article: Exploring Pure Cycle Corporation (PCYO) Investor Profile: Who’s Buying and Why?

Pure Cycle Corporation (PCYO) How It Makes Money

Pure Cycle Corporation primarily generates revenue through land and water resource development in the Denver, Colorado metropolitan area. They focus on master-planned communities, selling lots to homebuilders and providing water and wastewater services.

Pure Cycle Corporation's Revenue Breakdown

While precise percentage breakdowns may fluctuate annually, here's a generalized view of Pure Cycle's revenue streams based on available information:

Pure Cycle Corporation's Business Economics

Pure Cycle Corporation's business economics are driven by a combination of factors:

• Real Estate Market Dynamics: The demand for housing in the Denver metropolitan area significantly influences land sales revenue. Economic growth, population increases, and interest rates all play a role.
• Water Rights and Scarcity: In the arid West, water is a valuable commodity. Pure Cycle's ownership of water rights provides a stable and potentially appreciating asset, as well as a recurring revenue stream through water and wastewater services.
• Master-Planned Community Model: Developing comprehensive communities allows Pure Cycle to capture value from land development and long-term utility services.
• Regulatory Environment: Water rights and land development are subject to regulatory oversight, which can impact project timelines and costs.
• Pricing Strategy: Pure Cycle strategically prices its lots and water services based on market demand, competitive pressures, and the cost of development and operations.

Pure Cycle Corporation's Financial Performance

Key aspects of Pure Cycle's financial performance include:

• Revenue Growth: Revenue has generally increased as the company develops more phases of its master-planned communities and expands its customer base for water services. For the fiscal year ended August 31, 2024, Pure Cycle Corporation total revenue was $31.11M, an increase of 50.46% year over year.
• Gross Margins: Gross margins on land sales can vary depending on land acquisition costs and development expenses. Water service margins are typically more stable. In 2024, Pure Cycle Corporation gross profit increased 79.93% to $17.53M.
• Operating Expenses: These include costs related to land development, infrastructure construction, and administrative overhead.
• Net Income: Net income is affected by revenue, cost of goods sold, operating expenses, and any interest or tax expenses. In 2024, Pure Cycle Corporation income increased from -$822.00K to $4.25M.
• Cash Flow: Strong cash flow from operations is essential to fund ongoing development activities and potential acquisitions.
• Debt Levels: Pure Cycle may use debt financing to fund land acquisition and infrastructure development. Managing debt levels is crucial for financial stability.

To gain more insight into the investors of Pure Cycle Corporation, consider reading: Exploring Pure Cycle Corporation (PCYO) Investor Profile: Who’s Buying and Why?

Pure Cycle Corporation (PCYO) Market Position & Future Outlook

Pure Cycle Corporation is strategically positioned to capitalize on the increasing demand for water resources and sustainable community development in the Denver metropolitan region. With a focus on integrating water and land resources, the company aims to enhance shareholder value through strategic acquisitions, efficient capital allocation, and a vertically integrated business model. Exploring Pure Cycle Corporation (PCYO) Investor Profile: Who’s Buying and Why?

Competitive Landscape

Opportunities & Challenges

Industry Position

Pure Cycle Corporation operates in three key segments:

• Wholesale water and wastewater services
• Land development of master-planned communities
• Single-family home rentals at Sky Ranch

The company's Return on Invested Capital (ROIC) of 6.42% is lower than its Weighted Average Cost of Capital (WACC) of 8.68%, but it maintains the highest ROIC to WACC ratio of 0.74 among its peers, indicating relative leadership in capital efficiency.

Pure Cycle reported $11.6 million of net income for the year ended August 31, 2024, a 147% increase compared to 2023. The company's earnings per fully diluted common share were $0.48, up from $0.19 in 2023.

As of February 28, 2025, Pure Cycle has a strong working capital position of $19.8 million, including $16.8 million in cash and cash equivalents, which supports ongoing development and potential acquisitions.

The company's strategy focuses on areas where water is scarce, and it has consistently invested in water systems to maximize opportunities for industrial and residential customers.

Pure Cycle is also focused on a share repurchase program and reserving capital for strategic development initiatives and land acquisitions, demonstrating a commitment to shareholder returns.

The price to book ratio as of December 2024 was 2.52.

Pure Cycle reported revenues for the three and six months ended February 28, 2025 of $4.0 million and $9.7 million, respectively. These revenues drove pre-tax income of $1.1 million and $6.3 million for the same periods.

Water and wastewater tap sales increased in 2025 to $2.1 million compared to $0 in 2024 for the three months ended and increased in 2025 to $3.6 million compared to $0.6 million in 2024 for the six months ended.

The company reported a gross margin of 68.7% for 2024.