Global Water | 10-Q: FY2025 Q3 Revenue Misses Estimate at USD 15.52 M

Revenue: As of FY2025 Q3, the actual value is USD 15.52 M, missing the estimate of USD 15.55 M.

EPS: As of FY2025 Q3, the actual value is USD 0.06, missing the estimate of USD 0.085.

EBIT: As of FY2025 Q3, the actual value is USD 4.367 M.

Segment Revenue

• Water Service Revenue: $8,481,000 for the three months ended September 30, 2025, compared to $7,493,000 for the same period in 2024, representing a 13.2% increase. For the nine months ended September 30, 2025, water service revenue was $21,829,000, up from $19,387,000 in 2024, a 12.6% increase.
• Wastewater and Recycled Water Service Revenue: $7,038,000 for the three months ended September 30, 2025, compared to $6,828,000 for the same period in 2024, a 3.1% increase. For the nine months ended September 30, 2025, revenue was $20,388,000, up from $20,054,000 in 2024, a 1.7% increase.

Operational Metrics

• Net Income: $1,717,000 for the three months ended September 30, 2025, compared to $2,925,000 for the same period in 2024, a decrease of 41.3%. For the nine months ended September 30, 2025, net income was $3,920,000, down from $5,346,000 in 2024, a 26.7% decrease.
• Operating Income: $2,922,000 for the three months ended September 30, 2025, compared to $3,984,000 for the same period in 2024, a decrease of 26.7%. For the nine months ended September 30, 2025, operating income was $6,797,000, down from $8,048,000 in 2024, a 15.5% decrease.

Cash Flow

• Net Cash Provided by Operating Activities: $17,476,000 for the nine months ended September 30, 2025, compared to $15,796,000 for the same period in 2024.
• Net Cash Used in Investing Activities: - $57,727,000 for the nine months ended September 30, 2025, compared to - $19,171,000 for the same period in 2024.
• Net Cash Provided by Financing Activities: $46,670,000 for the nine months ended September 30, 2025, compared to $20,690,000 for the same period in 2024.

Unique Metrics

• Active Service Connections: Increased by 6.6% to 68,130 as of September 30, 2025, compared to 63,889 as of September 30, 2024.

Future Outlook and Strategy

• Core Business Focus: The company continues to experience organic growth with a 3.5% year-over-year increase in active connections as of September 30, 2025. The Phoenix MSA is expected to grow to 5.8 million people by 2030 and 6.5 million by 2040, supporting long-term growth prospects.
• Non-Core Business: The acquisition of seven water systems from the City of Tucson is expected to generate approximately $1.5 million in annual revenue, with plans to integrate these systems using advanced metering infrastructure.