Operating margins have contracted sharply to 2.9% in 2026Q1 from a 27.8% peak in 2024Q3, reflecting an inability to effectively pass through inflationary cost pressures.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 |
|---|
| Revenue | 56.59M | 55.76M | 52.69M | 53.03M | 44.73M | 41.91M | 38.63M | 35.47M | 35.52M | 31.21M | 29.8M | 31.96M | 32.56M | 33.43M | 33.54M |
| Revenue Growth % | 5.69% | 5.82% | -0.63% | 18.56% | 6.71% | 8.51% | 8.9% | -0.12% | 13.8% | 4.73% | -6.75% | -1.85% | -2.62% | -0.31% | - |
| Cost of Revenue | 23.82M | 30.75M | 13.73M | 12.67M | 10.89M | 10.3M | 9.54M | 8.91M | 8.23M | 7.55M | 8.04M | 9.26M | 10.42M | 11.99M | 11.66M |
| Gross Profit | 32.76M | 25.01M | 38.97M | 40.36M | 33.84M | 31.61M | 29.09M | 26.56M | 27.29M | 23.66M | 21.76M | 22.7M | 22.14M | 21.44M | 21.88M |
| Gross Margin % | 57.9% | 44.86% | 73.95% | 76.11% | 75.66% | 75.43% | 75.3% | 74.87% | 76.83% | 75.81% | 73.02% | 71.03% | 68% | 64.12% | 65.24% |
| Gross Profit Growth % | - | -35.81% | -3.45% | 19.27% | 7.03% | 8.69% | 9.53% | -2.68% | 15.33% | 8.74% | -4.14% | 2.51% | 3.27% | -2.01% | - |
| Operating Expenses | 26.47M | 17.86M | 29.6M | 28.07M | 26.02M | 24.64M | 21.75M | 19.59M | 18.02M | 16.32M | 16.49M | 16.17M | -32.65M | 18.57M | 20.13M |
| Other Operating Expenses | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| EBITDA | 22.3M | 22.52M | 22.47M | 24.05M | 17.89M | 16.47M | 16.37M | 15.31M | 16.74M | 14.25M | 11.55M | 14.74M | 64M | 11.82M | 12.22M |
| EBITDA Margin % | 39.41% | 40.39% | 42.64% | 45.35% | 40% | 39.29% | 42.37% | 43.17% | 47.13% | 45.67% | 38.76% | 46.13% | 196.55% | 35.34% | 36.44% |
| EBITDA Growth % | -2.39% | 0.24% | -6.57% | 34.41% | 8.63% | 0.63% | 6.87% | -8.51% | 17.44% | 23.4% | -21.65% | -76.97% | 441.6% | -3.32% | - |
| Depreciation & Amortization | 16.01M | 15.37M | 13.1M | 11.76M | 10.07M | 9.49M | 9.03M | 8.35M | 7.47M | 6.91M | 6.28M | 8.21M | 9.21M | 9.8M | 10.9M |
| D&A / Revenue % | 28.3% | 27.56% | 24.87% | 22.18% | 22.52% | 22.64% | 23.38% | 23.55% | 21.03% | 22.14% | 21.07% | 25.7% | 28.27% | 29.31% | 32.5% |
| Operating Income (EBIT) | 6.29M | 7.16M | 9.36M | 12.29M | 7.82M | 6.98M | 7.33M | 6.96M | 9.27M | 7.34M | 5.27M | 6.53M | 54.79M | 2.02M | 1.32M |
| Operating Margin % | 11.12% | 12.83% | 17.77% | 23.17% | 17.48% | 16.65% | 18.99% | 19.62% | 26.1% | 23.53% | 17.69% | 20.42% | 168.28% | 6.03% | 3.94% |
| Operating Income Growth % | - | -23.58% | -23.78% | 57.13% | 12.04% | -4.85% | 5.37% | -24.9% | 26.21% | 39.35% | -19.26% | -88.09% | 2619.16% | 52.31% | - |
| Interest Expense | 4M | 5.96M | 6.1M | 4.88M | 4.76M | 5.2M | 5.38M | 5.39M | 5.25M | 5.13M | 11.87M | 8.3M | 9.51M | 0 | 0 |
| Interest Coverage | - | 1.20x | 2.29x | 3.22x | 2.20x | 1.92x | 1.35x | 1.29x | 1.76x | 1.43x | 0.49x | 6.06x | 6.04x | - | - |
| Interest / Revenue % | 7.07% | 10.7% | 11.57% | 9.21% | 10.64% | 12.41% | 13.92% | 15.19% | 14.8% | 16.42% | 39.82% | 25.97% | 29.21% | 0% | 0% |
| Non-Operating Income | -2.82M | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | 1000K | -1000K | -1000K | -1000K |
| Pretax Income | 2.74M | 3.98M | 7.86M | 10.85M | 6.44M | 4.76M | 1.88M | 3.39M | 4.88M | 3.95M | -4.34M | 41.99M | 47.94M | -6.02M | -7.81M |
| Pretax Margin % | 4.84% | 7.14% | 14.92% | 20.47% | 14.4% | 11.35% | 4.86% | 9.55% | 13.75% | 12.66% | -14.57% | 131.39% | 147.23% | -18.02% | -23.3% |
| Income Tax | 738K | 1.03M | 2.07M | 2.87M | 934K | 1.15M | 771K | 1.16M | 1.78M | -601K | -1.49M | 20.62M | -17M | 16K | 30.67M |
| Effective Tax Rate % | 26.95% | 25.76% | 26.37% | 26.46% | 14.5% | 24.16% | 41.1% | 34.32% | 36.48% | -15.22% | 34.3% | 49.12% | -35.45% | -0.27% | -392.46% |
| Net Income | 2M | 2.96M | 5.79M | 7.98M | 5.51M | 3.61M | 1.1M | 2.22M | 3.1M | 4.55M | -2.85M | 21.36M | 64.93M | -6.04M | -38.48M |
| Net Margin % | 3.53% | 5.3% | 10.99% | 15.05% | 12.31% | 8.61% | 2.86% | 6.27% | 8.74% | 14.58% | -9.57% | 66.85% | 199.43% | -18.07% | -114.74% |
| Net Income Growth % | -64.84% | -48.92% | -27.47% | 44.97% | 52.56% | 226.61% | -50.31% | -28.33% | -31.82% | 259.57% | -113.35% | -67.1% | 1175.02% | 84.3% | - |
| EPS (Diluted) | 0.07 | 0.11 | 0.24 | 0.33 | 0.24 | 0.16 | 0.05 | 0.10 | 0.15 | 0.23 | -0.15 | 1.17 | 3.55 | -0.33 | -2.10 |
| EPS Growth % | -70.6% | -54.17% | -27.27% | 37.5% | 50% | 226.53% | -51% | -33.33% | -34.78% | 253.33% | -112.82% | -67.04% | 1175.76% | 84.29% | - |
| EPS (Basic) | - | 0.11 | 0.24 | 0.33 | 0.24 | 0.16 | 0.05 | 0.10 | 0.15 | 0.23 | -0.15 | 1.17 | 3.55 | -0.33 | -2.10 |
| Diluted Shares Outstanding | 28.76M | 27.08M | 24.3M | 24.13M | 23.33M | 22.9M | 22.57M | 21.53M | 20.51M | 19.64M | 19.15M | 18.3M | 18.3M | 18.33M | 18.33M |
High regulatory and operational sensitivity
According to recent financial disclosures, GWRS reported quarterly revenue of $13.3 million in 2026Q1, reflecting a 6.7% growth rate, yet the inconsistency in top-line expansion suggests that revenue remains highly sensitive to the timing of rate case approvals rather than purely organic volumetric demand.
The revenue trajectory appears heavily dependent on the Arizona Corporation Commission's rate-making cycles, which can create significant quarterly fluctuations. Investors should monitor whether the current growth is sustainable or if it merely reflects the periodic recovery of deferred capital investments through authorized rate adjustments.
As reported in financial statements, the company's operating margin contracted to 2.9% in 2026Q1, a sharp decline from the 27.8% peak observed in 2024Q3, indicating that inflationary pressures on pumping and treatment costs are not being offset by timely regulatory recovery mechanisms.
The significant volatility in operating margins suggests that the utility faces substantial regulatory lag when attempting to pass through rising electricity and maintenance costs. This disconnect between operational expenditure and rate recovery may indicate a period of heightened working capital strain for the company.
Based on reported figures, GWRS recorded a net loss of $366,000 in 2026Q1, representing a 152.5% decline in EPS growth, which highlights the difficulty in maintaining consistent profitability when non-recurring items and regulatory adjustments dominate the bottom line results.
The shift to negative net income suggests that the core regulated earnings power may be obscured by the heavy reliance on regulatory assets and liabilities. Analysts should investigate whether these losses are temporary accounting artifacts or a sign of structural deterioration in the company's ability to earn its authorized return.
As indicated by the 2026Q1 data, the company's reliance on regulatory accounting, including the use of AFUDC, may mask the true cash-generating capability of the business, as evidenced by the net loss despite the ongoing capital-intensive expansion of the Phoenix-area water infrastructure.
The income statement appears to hide the potential for future financing costs that will arise once current construction projects are placed into the rate base. Investors should be wary that the current earnings profile may be artificially supported by non-cash income items that do not reflect long-term operational sustainability.
Quick answers to the most common questions about buying GWRS stock.
For fiscal year 2025, Global Water Resources, Inc. (GWRS) reported total revenue of $55.8M. This represents a 66.3% increase compared to $33.5M in 2012.
Global Water Resources, Inc. (GWRS) is profitable, generating $3.0M in net income for the fiscal year ending 2025 with a net profit margin of 5.3%.
Global Water Resources, Inc. (GWRS) reported an operating income of $7.2M, resulting in an operating profit margin of 12.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Global Water Resources, Inc. (GWRS) generated $25.0M in gross profit for the year, representing a gross profit margin of 44.9%. This demonstrates the company's core pricing power and production efficiency.