Global Water Resources (GWRS) investor relations material

Executive summary

• Revenue increased 6.7% year-over-year to $13.3 million for Q1 2026, driven by acquisitions, organic growth, increased consumption, and higher rates, including the acquisition of seven Tucson water systems in July 2025.

• Net loss was $0.4 million ($0.01 per diluted share), compared to net income of $0.6 million ($0.02 per share) in Q1 2025, mainly due to higher operating, maintenance, depreciation, and interest expenses from recent capital investments.

• Adjusted EBITDA remained stable at $5.6 million year-over-year.

• Active service connections grew 5.7% year-over-year to 68,885 as of March 31, 2026, reflecting both organic growth and acquisition-related expansion.

• Focus remains on achieving long-term earnings growth and enhancing shareholder value, despite near-term headwinds from increased expenses due to significant capital investments in 2025.

Financial highlights

• Operating expenses rose 15.1% year-over-year to $12.9 million, mainly from higher personnel, utilities, maintenance, and depreciation costs.

• Operating income declined to $0.4 million from $1.3 million in Q1 2025.

• Basic and diluted EPS were $(0.01), down from $0.02 in Q1 2025.

• Cash provided by operating activities was $4.5 million, down from $7.5 million in the prior year, mainly due to lower net income and working capital changes.

• Capital expenditures were $6.3 million, a planned decrease from $15.2 million in Q1 2025.

Outlook and guidance

• Management anticipates years of meaningful earnings growth as new rates are implemented and capital investments are recovered.

• Additional rate case activity is planned for other utilities in upcoming quarters.

• Expects to maintain solid revenue and earnings growth through rate increases and organic expansion, supported by population and job growth in the Phoenix MSA.

• Construction on the State Route 347 Improvement Project is expected to support further growth in the City of Maricopa.

• The company believes it has adequate water supply for current and future demand and remains well-positioned for anticipated regional growth.