gwrs-20260630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

_____________________________________________________________

FORM 10-Q

_____________________________________________________________

(Mark One)


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

For the quarterly period ended June 30, 2026


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

For the transition period from _______________ to _______________

Commission File Number: 001-37756

______________________________________________________________

Global Water Resources, Inc.

(Exact Name of Registrant as Specified in its Charter)

______________________________________________________________

Delaware

90-0632193

(State or other jurisdiction of
incorporation or organization)

(I.R.S. Employer
Identification No.)

21410 N. 19th Avenue #220

Phoenix,

Arizona

85027

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (480) 360-7775

Securities registered pursuant to Section 12(b) of the Act:

______________________________________________________________


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

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. x Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). x Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☐

Accelerated filer

☐

Non-accelerated filer

Smaller reporting company

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes x No

As of August 7, 2026, the registrant had 28,795,352 shares of common stock, $0.01 par value per share, outstanding.

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Table of Contents

TABLE OF CONTENTS


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 (unaudited)			9
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			20
ITEM 3. Qualitative and Quantitative Disclosures About Market Risk			35
ITEM 4. Controls and Procedures			35
PART II. OTHER INFORMATION			36
ITEM 1. Legal Proceedings			36
ITEM 1A. Risk Factors			36
ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds			36
ITEM 3. Defaults Upon Senior Securities			36
ITEM 4. Mine Safety Disclosures			36
ITEM 5. Other Information			36
ITEM 6. Exhibits			37
Signatures			38

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Table of Contents

DEFINED TERMS

The following is a list of frequently used abbreviations or acronyms that are found in this report:


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.
GW-Ocotillo			Global Water - Ocotillo Water Company, Inc.
Abbreviations and Other
ACC			Arizona Corporation Commission

ADWR			Arizona Department of Water Resources
AFUDC			Allowance for funds utilized during construction
Ag-to-Urban			The June 2025 Arizona Senate Bill 1611, known as the Arizona Assured Water Supply “Ag-to-Urban” program
AIAC			Advances in Aid of Construction
ALJ			Administrative Law Judge


ARO			Asset retirement obligation
ASC			Accounting Standards Codification
ASU			Accounting Standards Update


CIAC			Contributions in Aid of Construction
CODM			Chief operating decision maker
Company (we, us, our, GWRI)			Global Water Resources, Inc.
CP Water			Global Water - CP Water Company, Inc.
DAWS			Designation of Assured Water Supply

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



Northern Trust			The Northern Trust Company, an Illinois banking corporation


Revolver			Revolving credit facility with Northern Trust

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
SOFR			Secured Overnight Financing Rate
Sonoran			Sonoran Utility Services, Inc.
Southwest Plant			All GW-Palo Verde wastewater and GW-Santa Cruz water infrastructure located in Pinal County, southwest of the City of Maricopa (e.g. mains, tanks, water reclamation facility, wells, etc.)


WIFA			Water Infrastructure Finance Authority of Arizona

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Table of Contents

Index to Condensed Consolidated Financial Statements (unaudited)


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 (unaudited)			9
1. Basis of Presentation and Recent Accounting Pronouncements			9
2. Acquisitions			10
3. Regulatory Matters			10
4. Revenue Recognition			12
5. Earnings Per Share			13
6. Prepaid Expenses and Other Current Assets			14
7. Equity			14
8. Debt			14
9. Accrued Expenses and Other Current Liabilities			15
10. Fair Value			15
11. Income Taxes			16
12. Share-based Compensation			16
13. Transactions With Related Parties			16
14. Commitments and Contingencies			16
15. Business Segment Information			17
16. Other, Net			18
17. Supplemental Cash Flow Information			19

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Table of Contents

PART I. FINANCIAL INFORMATION

ITEM 1. Financial Statements (Unaudited)

GLOBAL WATER RESOURCES, INC.

Condensed Consolidated Balance Sheets (unaudited)


(in thousands, except share and per share amounts)	June 30, 2026		December 31, 2025
Assets
Utility Plant	$	623,595	$	610,766
Less: accumulated depreciation	(177,826)		(168,915)
Net utility plant	445,769		441,851
Current Assets
Cash and cash equivalents	1,458		4,080
Accounts receivable, net of allowance for credit losses of $235 and $244, respectively	3,746		3,746
Unbilled revenue	4,128		3,409
Prepaid expenses and other current assets	2,444		3,388
Total current assets	11,776		14,623
Other Assets
Goodwill	6,512		6,512
Intangible assets, net	5,938		6,062
Regulatory assets	7,022		7,003
Restricted cash	3,419		2,755
Right-of-use assets, net	3,601		3,990
Other noncurrent assets	117		117

Total other assets	26,609		26,439
Total Assets	$	484,154	$	482,913
Capitalization and Liabilities
Capitalization
Common stock, $0.01 par value, 60,000,000 shares authorized; 29,170,113 and 29,116,183 shares issued, respectively	$	286	$	285
Treasury stock, 374,761 and 359,329 shares, respectively	(2)		(2)
Additional paid-in capital	85,328		87,294
Retained deficit	(768)		(961)
Total shareholders’ equity	84,844		86,616
Long-term debt, net	127,828		129,756
Total Capitalization	212,672		216,372
Current Liabilities
Accounts payable	1,042		2,251
Customer and meter deposits	1,707		1,725
Long-term debt, current portion	3,947		3,942
Leases, current portion	638		850
Accrued expenses and other current liabilities	9,892		10,457
Total current liabilities	17,226		19,225
Other Liabilities
Revolver borrowings	5,800		—
Long-term lease liabilities	3,528		3,741
Deferred revenue - ICFA	21,919		22,772
Regulatory liabilities	5,178		5,214
Advances in aid of construction	155,659		155,414
Contributions in aid of construction, net	39,931		37,857
Deferred income tax liabilities, net	9,768		9,699
Hook-up fee liabilities	8,218		8,410
Other noncurrent liabilities	4,255		4,209
Total other liabilities	254,256		247,316
Commitments and contingencies (Refer to Note 14)
Total Capitalization and Liabilities	$	484,154	$	482,913

See accompanying notes to the Condensed Consolidated Financial Statements (unaudited)

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GLOBAL WATER RESOURCES, INC.

Condensed Consolidated Statements of Operations (unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands, except share and per share amounts)	2026		2025		2026		2025
Revenue
Water service	$	8,404	$	7,368	$	15,010	$	13,348
Wastewater and recycled water service	7,252		6,873		13,932		13,350
Unregulated revenue	2,111		—		2,111		—
Total revenue	17,767		14,241		31,053		26,698
Operating Expenses
Operations and maintenance	4,556		3,917		8,739		7,604
General and administrative	4,304		4,387		8,757		8,574
Depreciation, amortization and accretion	4,401		3,317		8,662		6,645
Total operating expenses	13,261		11,621		26,158		22,823
Operating Income	4,506		2,620		4,895		3,875
Other Income (Expense)
Interest income	46		216		85		315
Interest expense	(1,690)		(1,496)		(3,340)		(2,974)
Other, net	862		889		1,613		1,787
Total other expense	(782)		(391)		(1,642)		(872)
Income Before Income Taxes	3,724		2,229		3,253		3,003
Income tax expense	(977)		(617)		(872)		(800)
Net Income	$	2,747	$	1,612	$	2,381	$	2,203

Basic earnings per common share	$	0.10	$	0.06	$	0.08	$	0.08
Diluted earnings per common share	$	0.10	$	0.06	$	0.08	$	0.08
Dividends declared per common share	$	0.08	$	0.08	$	0.15	$	0.15

Weighted average number of common shares used in the determination of:
Basic	28,781,145		27,463,169		28,769,816		25,925,155
Diluted	28,809,269		27,504,578		28,804,360		25,986,878

See accompanying notes to the Condensed Consolidated Financial Statements (unaudited)

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GLOBAL WATER RESOURCES, INC.

Condensed Consolidated Statements of Shareholders’ Equity (unaudited)


(in thousands, except share and per share amounts)	Common Stock Shares	Common Stock		Treasury Stock Shares	Treasury Stock		Additional Paid-in Capital		Retained Deficit		Total Equity
Balance as of December 31, 2025	29,116,183	$	285	(359,329)	$	(2)	$	87,294	$	(961)	$	86,616
Dividend declared $0.08 per share	—	—		—	—		(2,186)		—		(2,186)


Share-based compensation	7,672	1		(892)	—		169		—		170
Net Loss	—	—		—	—		—		(366)		(366)
Balance as of March 31, 2026	29,123,855	286		(360,221)	(2)		85,277		(1,327)		84,234
Dividend declared $0.08 per share	—	—		—	—		—		(2,188)		(2,188)


Share-based compensation	46,258	—		(14,540)	—		51		—		51
Net Income	—	—		—	—		—		2,747		2,747
Balance as of June 30, 2026