Global Water Resources, Inc 10-Q for FY2025 Q1

Global Water Resources, Inc. (GWRS)

10-Q 2025-05-14 For: 2025-03-31

Added on April 12, 2026

About this 10-Q

Global Water Resources, Inc filed this 10-Q on May 14, 2025, covering the quarter ended March 31, 2025 (FY2025 Q1).

Headline figures

Quarter ended March 31, 2025, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $12.46M; up 7.3% from $11.61M a year earlier
Net income: $591K; down 14.5% from net income of $691K a year earlier
Diluted EPS: $0.02; down 33.3% from $0.03 a year earlier

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Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, par value $0.01 per share	GWRS	The NASDAQ Stock Market, LLC


PART I. FINANCIAL INFORMATION			5
ITEM 1. Financial Statements (Unaudited)			5
Condensed Consolidated Balance Sheets (unaudited)			5
Condensed Consolidated Statements of Operations (unaudited)			6
Condensed Consolidated Statements of Shareholders’ Equity (unaudited)			7
Condensed Consolidated Statements of Cash Flows (unaudited)			8
Notes to the Condensed Consolidated Financial Statements			9
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			19
ITEM 3. Qualitative and Quantitative Disclosures About Market Risk			30
ITEM 4. Controls and Procedures			30
PART II. OTHER INFORMATION			31
ITEM 1. Legal Proceedings			31
ITEM 1A. Risk Factors			31
ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds			31
ITEM 3. Defaults Upon Senior Securities			31
ITEM 4. Mine Safety Disclosures			31
ITEM 5. Other Information			31
ITEM 6. Exhibits			32
Signatures			33


The Company’s Utilities
GW-Santa Cruz			Global Water - Santa Cruz Water Company, Inc.
GW-Palo Verde			Global Water - Palo Verde Utilities Company, Inc.
GW-Farmers			Global Water - Farmers Water Company, Inc.
GW-Hassayampa			Global Water - Hassayampa Utilities Company, Inc.
GW-Belmont			Global Water - Belmont Water Company, Inc.
GW-Turner			Global Water - Turner Ranches Irrigation, Inc.
GW-Saguaro			Global Water - Saguaro District Water Company, Inc. (formerly Global Water - Las Quintas Serenas Water Company, Inc.)
GW-Ocotillo			Global Water - Ocotillo Water Company, Inc. (formerly Global Water - 2024 Acquisition A, Inc.)
Abbreviations and Other
ACC			Arizona Corporation Commission
ADEQ			Arizona Department of Environmental Quality
ADWR			Arizona Department of Water Resources
AFUDC			Allowance for funds utilized during construction
AIAC			Advances in Aid of Construction
ALJ			Administrative Law Judge

ASU			Accounting Standards Update

CC&N			Certificate of Convenience & Necessity
CIAC			Contributions in Aid of Construction
CODM			Chief operating decision maker
Company (we, us, our, “GWRI”)			Global Water Resources, Inc.
CP Water			CP Water Company


EPA			United States Environmental Protection Agency
EPS			Earnings per share
FASB			Financial Accounting Standards Board
GAAP			Accounting principles generally accepted in the United States of America

HUF			Hook-up fee
ICFA			Infrastructure coordination and financing agreement

IT			Information technology
MCL			Maximum contaminant level

Northern Trust			The Northern Trust Company, an Illinois banking corporation
NPDWR			National Primary Drinking Water Regulations
PFAS			Per- and polyfluoroalkyl substances
Revolver			Revolving credit facility with Northern Trust
ROO			Recommended Opinion and Order
RSA			Restricted stock award
RSU			Restricted stock unit

RUCO			The Residential Utility Consumer Office, an office representing the interests of residential utility ratepayers
SEC			Securities and Exchange Commission



WIFA			Water Infrastructure Finance Authority of Arizona


Condensed Consolidated Balance Sheets (unaudited)			5
Condensed Consolidated Statements of Operations (unaudited)			6
Condensed Consolidated Statements of Shareholders’ Equity (unaudited)			7
Condensed Consolidated Statements of Cash Flows (unaudited)			8
Notes to the Condensed Consolidated Financial Statements			9
1. Description of Business, Basis of Presentation, Significant Accounting Policies, and Recent Accounting Pronouncements			9
2. Acquisitions			9
3. Regulatory Matters			10
4. Revenue Recognition			11
5. Earnings Per Share			12
6. Utility Plant			12
7. Taxes, prepaid expenses and other current assets			13
8. Goodwill			13
9. Equity			13
10. Debt			13
11. Accrued Expenses and Other Current Liabilities			14
12. Fair Value			14
13. Income Taxes			15
14. Share-based Compensation			15
15. Transactions With Related Parties			15
16. Commitments and Contingencies			15
17. Business Segment Information			16
18. Other, Net			18
19. Supplemental Cash Flow Information			18


	March 31, 2025		December 31, 2024
Assets

Utility Plant	$	535,355	$	512,993
Less accumulated depreciation	(157,110)		(153,614)
Net utility plant	378,245		359,379
Current Assets
Cash and cash equivalents	31,467		9,047
Accounts receivable, net of allowance for credit losses of $195 and $163, respectively	3,300		3,233
Unbilled revenue	3,206		3,109
Taxes, prepaid expenses and other current assets	1,919		4,080
Total current assets	39,892		19,469
Other Assets
Goodwill	6,527		9,486
Intangible assets, net	8,427		8,427
Regulatory assets	7,023		4,032
Restricted cash	1,708		2,109
Right-of-use assets	2,017		2,157
Other noncurrent assets	79		78

Total other assets	25,781		26,289
Total Assets	$	443,918	$	405,137
Capitalization and Liabilities
Capitalization
Common stock, $0.01 par value, 60,000,000 shares authorized; 27,796,899 and 24,570,994 shares issued, respectively	$	272	$	240
Treasury stock, 345,921 and 344,978 shares, respectively	(2)		(2)
Additional paid-in capital	76,946		47,366
Retained earnings	—		—
Total shareholders’ equity	77,216		47,604
Long-term debt, net	118,876		118,518
Total Capitalization	196,092		166,122
Current Liabilities
Accounts payable	3,823		2,051
Customer and meter deposits	1,633		1,609
Long-term debt, current portion	3,561		3,926
Leases, current portion	911		871
Accrued expenses and other current liabilities	15,796		13,801
Total current liabilities	25,724		22,258
Other Liabilities

Long-term lease liabilities	1,265		1,450
Deferred revenue - ICFA	21,559		21,517
Regulatory liabilities	5,372		5,386
Advances in aid of construction	131,790		126,467
Contributions in aid of construction, net	36,877		36,834
Deferred income tax liabilities, net	9,860		9,698
Other noncurrent liabilities	15,379		15,405
Total other liabilities	222,102		216,757
Commitments and contingencies (Refer to Note 16)
Total Capitalization and Liabilities	$	443,918	$	405,137


x			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	Three Months Ended March 31,
		2025		2024
Revenue
Water service		$	5,980	$	5,226
Wastewater and recycled water service		6,477		6,384

Total revenue		12,457		11,610
Operating Expenses
Operations and maintenance		3,687		3,284
General and administrative		4,187		4,125
Depreciation and amortization		3,328		2,934
Total operating expenses		11,202		10,343
Operating Income		1,255		1,267
Other Income (Expense)
Interest income		99		238
Interest expense		(1,478)		(1,566)
Other, net		898		1,002
Total other expense		(481)		(326)
Income Before Income Taxes		774		941
Income Tax Expense		(183)		(250)
Net Income		$	591	$	691

Basic earnings per common share		$	0.02	$	0.03
Diluted earnings per common share		$	0.02	$	0.03
Dividends declared per common share		$	0.08	$	0.08

Weighted average number of common shares used in the determination of:
Basic		24,370,052		24,175,699
Diluted		24,434,283		24,295,067


	Common Stock Shares	Common Stock		Treasury Stock Shares	Treasury Stock		Additional Paid-in Capital		Retained Earnings		Total Equity
Balance as of December 31, 2024	24,570,994	$	240	(344,978)	$	(2)	$	47,366	$	—	$	47,604
Dividend declared $0.08 per share	—	—		—	—		(1,332)		(591)		(1,923)
Issuance of common stock, net	3,220,000	32		—	—		30,751		—		30,783

Share-based compensation	5,905	—		(943)	—		161		—		161
Net income	—	—		—	—		—		591		591
Balance as of March 31, 2025	27,796,899	$	272	(345,921)	$	(2)	$	76,946	$	—	$	77,216



















Balance as of December 31, 2023	24,492,918	$	240	(317,677)	$	(2)	$	47,585	$	797	$	48,620
Dividend declared $0.08 per share	—	—		—	—		(1,128)		(691)		(1,819)

Share option exercise	5,277	—		(4,405)	—		198		—		198

Net income	—	—		—	—		—		691		691
Balance as of March 31, 2024	24,498,195	$	240	(322,082)	$	(2)	$	46,655	$	797	$	47,690


	Three Months Ended March 31,
	2025		2024
Cash Flows from Operating Activities:
Net income	$	591	$	691
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	3,328		2,934
Share-based compensation	174		275
Deferred income tax expense	183		252


Operating lease expense	108		90
Other adjustments	(224)		36
Changes in assets and liabilities

Accounts receivable and other current assets	1,967		714
Accounts payable and other current liabilities	1,405		1,380
Other noncurrent assets	(67)		(17)
Other noncurrent liabilities	12		1,713
Net cash provided by operating activities	7,477		8,068
Cash Flows from Investing Activities:
Capital expenditures	(15,216)		(5,761)


Other cash flows used in investing activities	—		(4)
Net cash used in investing activities	(15,216)		(5,765)
Cash Flows from Financing Activities:
Dividends paid	(1,841)		(1,819)
Advances and contributions in aid of construction	725		372






Line of credit repayments	—		(2,315)
Loan borrowings	—		20,000

Issuance of common stock, net of issuance costs	31,041		—
Financing costs of debt and equity transactions	(34)		(370)






Other financing activities	(133)		(62)
Net cash provided by financing activities	29,758		15,806
Increase in cash, cash equivalents, and restricted cash	22,019		18,109
Cash, cash equivalents, and restricted cash — Beginning of period	11,156		4,763
Cash, cash equivalents, and restricted cash — End of period	$	33,175	$	22,872


	March 31, 2025		December 31, 2024
Contract assets
Accounts receivable, net	$	3,300	$	3,233
Total contract assets	$	3,300	$	3,233
Contract liabilities
Deferred revenue - ICFA	$	21,559	$	21,517


Total contract liabilities	$	21,559	$	21,517


	March 31, 2025		December 31, 2024
Billed receivables	$	3,495	$	3,396
Less provision for credit losses	(195)		(163)
Accounts receivable, net	$	3,300	$	3,233


	March 31, 2025		December 31, 2024
Beginning of Period	$	(163)	$	(122)
Credit Loss Expense	(30)		(103)
Write Offs	1		90
Recoveries	(3)		(28)
End of Period	$	(195)	$	(163)


	December 31, 2024 Balance		Payments Allocated to Deferred Revenue		Revenue Recognized		March 31, 2025 Balance
Deferred Revenue - ICFA	$	21,517	$	42	$	—	$	21,559


	Three Months Ended March 31,
(In thousands)		2025	2024
Basic weighted average common shares outstanding		24,370	24,176
Effect of dilutive securities:
Option grants		48	80
Restricted stock awards		16	39
Total dilutive securities		64	119
Diluted weighted average common shares outstanding		24,434	24,295
Anti-dilutive shares excluded from earnings per diluted shares		—	—


	March 31, 2025		December 31, 2024
Transmission and distribution plant	$	326,067	$	321,075
Equipment	70,081		67,917
Office buildings and other structures	68,339		67,313
Construction work-in-progress	68,557		54,388
Land	2,311		2,300
Total utility plant	$	535,355	$	512,993


	Three Months Ended				Favorable (Unfavorable)
	March 31,				2025 vs. 2024
	2025		2024		$		%
Water service
Basic charge	$	3,508	$	3,383	$	125	3.7	%
Consumption	2,346		1,723		623		36.2	%
Other	126		120		6		5.0	%
Total water service	5,980		5,226		754		14.4	%
Wastewater and recycled water service
Basic	6,205		6,178		27		0.4	%
Consumption	193		121		72		59.5	%
Other	79		85		(6)		(7.1)	%
Total wastewater and recycled water service	6,477		6,384		93		1.5	%
Total regulated revenue	12,457		11,610		847		7.3	%

Total revenue	$	12,457	$	11,610	$	847	7.3	%

Active water connections	36,130		34,715		1,415		4.1	%
Active wastewater connections	29,033		27,736		1,297		4.7	%
Total active connections	65,163		62,451		2,712		4.3	%

Consumption (in million gallons)
Water service	836,122		673,228		162,894		24.2	%
Recycled water	110,084		68,987		41,097		59.6	%


Exhibit Number	Description of Exhibit	Method of Filing





3.1	Second Amended and Restated Certificate of Incorporation of Global Water Resources, Inc.	Incorporated by reference to Exhibit 3.1 of the Company’s Form 8-K filed May 4, 2016.
3.2	Amended and Restated Bylaws of Global Water Resources, Inc.	Incorporated by reference to Exhibit 3.2 of the Company’s Form 8-K filed May 4, 2016.


		Global Water Resources, Inc.

Date:	May 14, 2025	By:	/s/ Michael J. Liebman
			Michael J. Liebman
			Chief Financial Officer and Corporate Secretary
			(Duly Authorized Officer and Principal Financial and Accounting Officer)


	March 31, 2025		December 31, 2024
Prepaid expense	$	736	$	648
Buckeye growth premiums receivable	609		738
Prepaid insurance	323		533
Income tax receivable	149		149
ICFA receivable	—		1,871







Other current assets	102		141
Taxes, prepaid expenses and other current assets	$	1,919	$	4,080


	March 31, 2025		December 31, 2024
Accrued project liabilities	$	6,960	$	5,858
Interest	1,986		1,180
AIAC refunds, current portion	1,431		1,431
Other taxes	1,059		1,648
Accrued payroll	903		991
Dividend payable	695		614
Customer prepayments	553		556
Accrued professional fees	369		66
Accrued license fees	333		353
Accrued equity issuance costs	225		—


Other accrued liabilities	1,282		1,104
Total accrued expenses and other current liabilities	$	15,796	$	13,801


	March 31, 2025								December 31, 2024
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
HUF Funds - restricted cash	$	650	$	—	$	—	$	650	$	870	$	—	$	—	$	870

Certificate of Deposit - Restricted	1,058		—		—		1,058		1,239		—		—		1,239
Total	$	1,708	$	—	$	—	$	1,708	$	2,109	$	—	$	—	$	2,109
Liabilities:
Contingent Consideration	—		—		1,864		1,864		—		—		1,942		1,942
Total	$	—	$	—	$	1,864	$	1,864	$	—	$	—	$	1,942	$	1,942


Period	Total Number of Shares Purchased(1)	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs
January 1 to January 31, 2025	—	$	—	—	$	—
February 1 to February 28, 2025	—	—		—	—
March 1 to March 31, 2025	725	11.35		—	—
Total	725			—	$	—


1.			I have reviewed this Quarterly Report on Form 10-Q of Global Water Resources, Inc.;


2.			Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;


3.			Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;


4.			The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:


			a.			Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;


			b.			Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;


			c.			Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and


			d.			Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and


			a.			All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and


			b.			Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.



By:			/s/ Ron L. Fleming
			Ron L. Fleming
			President, Chief Executive Officer and Chairman of the Board


1.			The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and


2.			The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.