PureCycle Technologies (PCT) AI Stock Analysis

• Market Cap: $1.14B
• Dividend Yield: N/A
• Average Volume (3M): 3.25M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.54
• Revenue Growth: N/A
• EPS Growth: 12.57%
• Country: US
• Employees: 157
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): -0.14
• Shares Outstanding: 180,198,330
• 10 Day Avg. Volume: 2,818,556
• 30 Day Avg. Volume: 3,246,531
• PEG Ratio: 0.21
• Price to Book (P/B): 33.57
• Price to Sales (P/S): 184.37
• P/FCF Ratio: -8.39
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 124.38
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: -12.28
• 1Y Price Target: $11.50
• Price Target Upside: 82.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): -0.72
• Revenue Forecast (FY): $99.10M

• Rating: 46 Neutral
• Price Target: $6.00 ▼(-4.91% Downside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is held down primarily by weak financial performance (large losses and persistent cash burn) and bearish technicals (price below all major moving averages with negative MACD). Offsetting factors include constructive earnings-call updates on operational ramp and commercial pipeline growth, plus some balance-sheet de-risking from reduced debt and multiple stated financing pathways, though near-term funding and execution risks remain significant.

Positive Factors

Proprietary purification & certifications

PureCycle’s proprietary purification process has secured APR certification and regulatory acceptance across multiple U.S. states and Europe. Those approvals enable durable access to food‑grade and regulated packaging markets and position the company to capture long‑term mandated recycled‑content demand under EPR/PCR trends.

Operational ramp and feed flexibility

Quarterly throughput gains at Denver and record production at Ironton demonstrate repeatable operational scaling, including three‑shift running and successful high‑rate tests. Broader feedstock sourcing (15+ suppliers) and lower feed costs improve margin resilience and reduce single‑supplier risk as capacity ramps.

Gen‑2 scale economics and low‑cost path

Early Gen‑2 engineering shows no technological scaling constraints and projected sub‑virgin PP cash costs at scale. Lower per‑pound capex and operating costs create a structural pathway to durable margin expansion and improved project economics across greenfield and brownfield builds as the company scales.

Negative Factors

Heavy cash burn

The company remains a significant cash consumer with large negative operating and free cash flow. Persistent burn requires near‑term external financing to sustain project spend and ramp plans, imposing execution risk and limiting the firm’s ability to self‑fund expansions over the next several quarters.

Early revenue base and persistent losses

Revenue is emerging from a very low base while losses remain large and volatile. Modest sales versus installed and planned capacity mean profitability hinges on converting trial/qualification pipeline into stable contracted demand, a multi‑quarter structural challenge for margin sustainability.

Financing reliance and timing risk

Management relies on extensions, monetizable revenue bonds, grants and potential warrant proceeds to fund ramp and service debt. This dependence on external capital and milestone‑driven project financings creates durable timing and execution risk if markets, approvals, or counterparties shift during the multi‑year scale‑up.

PureCycle Technologies Business Overview & Revenue Model

Company Description

PureCycle Technologies, Inc. produces recycled polypropylene (PP). The company holds a license for restoring waste PP into ultra-pure recycled resin. Its recycling process separates color, odor, and other contaminants from plastic waste feedstock to transform it into virgin-like resin. The company was founded in 2015 and is headquartered in Orlando, Florida.

How the Company Makes Money

PureCycle Technologies generates revenue by selling ultra-pure recycled polypropylene resin to manufacturers and companies seeking sustainable materials for their products. Key revenue streams include long-term contracts with major corporations and partnerships with companies looking to incorporate recycled materials into their supply chains. Additionally, PureCycle benefits from licensing its proprietary recycling technology to other facilities, expanding its market reach and potential income sources. The company's earnings are bolstered by the growing demand for environmentally friendly materials, as businesses and consumers increasingly prioritize sustainability.

PureCycle Technologies Financial Statement Overview

Summary

Revenue traction is emerging ($8.4M in 2025), but results are dominated by very large losses (2025 net loss $182.6M) and heavy cash burn (2025 operating cash flow -$142.7M; free cash flow -$183.6M). The sharp reduction in debt in 2025 is a meaningful positive, but profitability and self-funding remain key weaknesses.

Income Statement

The business is still in an early revenue stage: annual revenue was $8.4M in 2025 versus essentially no revenue in prior years, showing traction but from a very low base. Profitability remains weak, with 2025 posting a net loss of $182.6M and a deeply negative net margin, and there is no evidence yet of sustainable gross profit or operating profitability. Losses also appear volatile (net loss widened versus 2023), highlighting execution risk as the company scales.

Balance Sheet

Leverage appears to have improved meaningfully in 2025, with total debt dropping to $58.8M from $401.3M in 2024 and debt relative to equity improving to ~1.28x (from ~2.22x). However, equity is modest versus a very large asset base ($45.9M equity vs. $922.7M assets), and returns remain sharply negative, reflecting ongoing value erosion from losses. Overall, the balance sheet shows some de-risking on debt, but profitability and equity strength are still key concerns.

Cash Flow

Cash generation remains a major weakness: 2025 operating cash flow was -$142.7M and free cash flow was -$183.6M, indicating the business is consuming significant cash to operate and invest. Free cash flow did improve versus 2024 (less negative), but it remains deeply negative and the trajectory is inconsistent across years. While free cash flow is less negative than net income in some periods (suggesting non-cash charges help accounting losses), the company still lacks self-funding operations.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.36M	0.00	0.00	0.00	0.00
Gross Profit	0.00	-34.71M	-18.86M	-26.56M	-10.55M
EBITDA	-83.48M	-197.66M	-97.97M	-79.54M	-67.30M
Net Income	-182.56M	-289.14M	-101.72M	-84.75M	-77.50M
Balance Sheet
Total Assets	922.67M	798.38M	1.04B	861.34M	664.68M
Cash, Cash Equivalents and Short-Term Investments	170.32M	15.68M	121.64M	162.48M	200.78M
Total Debt	58.80M	401.31M	543.80M	250.13M	232.51M
Total Liabilities	572.08M	617.94M	619.14M	350.45M	283.15M
Stockholders Equity	45.89M	180.45M	420.24M	510.88M	381.54M
Cash Flow
Free Cash Flow	-183.59M	-200.41M	-248.81M	-352.67M	-191.90M
Operating Cash Flow	-142.74M	-144.83M	-94.91M	-65.48M	-54.51M
Investing Cash Flow	-54.47M	-7.01M	-102.10M	-218.39M	-305.57M
Financing Cash Flow	323.73M	-109.17M	272.00M	247.53M	293.37M

PureCycle Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.31
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PCT, the sentiment is Negative. The current price of 6.31 is below the 20-day moving average (MA) of 9.16, below the 50-day MA of 9.59, and below the 200-day MA of 11.55, indicating a bearish trend. The MACD of -0.42 indicates Positive momentum. The RSI at 36.75 is Neutral, neither overbought nor oversold. The STOCH value of 32.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PCT.

PureCycle Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ERII	71 Outperform	$551.00M	24.00	9.41%	―	0.10%	1.50%
CECO	67 Neutral	$2.14B	47.58	17.71%	―	29.86%	331.33%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
LIQT	56 Neutral	$19.16M	-1.98	-73.79%	―	10.97%	44.99%
FTEK	54 Neutral	$44.13M	-14.49	-7.10%	―	-5.66%	-397.46%
PCT	46 Neutral	$1.14B	-4.38	-147.56%	―	―	12.57%
ARQ	45 Neutral	$149.86M	-37.03	-1.80%	―	7.20%	-2951.61%

PureCycle Technologies Corporate Events

PureCycle Extends Warrants and Appoints New Chief Financial Officer

On February 25, 2026, PureCycle amended its warrant agreements to extend the expiry of its public and private PCT warrants to June 17, 2026, and, with holder consent received on February 20, 2026, extended its Series A warrants by one year while lowering the stock-price threshold for redeeming those instruments. These changes, effective March 17, 2026, give the company added flexibility in managing its capital structure and may accelerate dilution if shares trade above the reduced trigger.

The company also plans a consent solicitation to further cut the redemption trigger on PCT warrants and extend their ultimate expiration to March 17, 2027, while retaining a nominal redemption price per warrant, underscoring its intent to rationalize legacy securities as its equity story develops. Effective March 1, 2026, PureCycle will appoint Donald Carpenter as chief financial officer, succeeding retiring CFO Jaime Vasquez, a leadership change that follows a year of operational ramp-up and is set against record fourth-quarter 2025 production and revenue growth.

In the fourth quarter of 2025, PureCycle produced a record 7.5 million pounds of PureFive® recycled polypropylene, grew feedstock throughput at its Denver, Pennsylvania sorting facility by 44% to 14 million pounds, and achieved its fourth straight quarter of sequential revenue growth with $2.7 million in sales. Management highlighted improved feedstock pricing, ongoing ramp-up at the Ironton facility and a strengthening commercial pipeline, including technical wins in food-grade and flexible packaging applications.

The company ended 2025 with $181.6 million in cash and marketable securities, repaid higher-cost equipment debt and Ironton bonds, and kept core operating spend within prior guidance. Internationally, its Thailand project remained on track for 2027 mechanical completion with sufficient feedstock lined up and potential tax holidays, while permitting and construction timelines for the Antwerp, Belgium plant and early Gen-2 design work pointed to larger-scale, lower-cost future capacity aimed at capturing demand in a roughly 200-billion-pound polypropylene market.

The most recent analyst rating on (PCT) stock is a Hold with a $10.50 price target. To see the full list of analyst forecasts on PureCycle Technologies stock, see the PCT Stock Forecast page.

PureCycle Revises Augusta Recycling Facility Milestones and Obligations

On December 29, 2025, PureCycle Technologies entered into a Construction Progress Agreement with the Development Authority of Augusta, Georgia to revise and supplement construction milestones and obligations for its second-generation polypropylene recycling facility in Augusta. Under the new terms, PureCycle will pay a total of $500,000 to the authority in two $250,000 installments starting by January 9, 2026, and has waived its option to lease an additional 50 acres under a previously contemplated Phase II expansion, concluding that the existing Phase I site is sufficient for higher-capacity second-generation purification lines capable of producing 300 million pounds of recycled polypropylene pellets. The agreement also sets a revised construction timeline, including a requirement to start construction by March 2028, and introduces penalties and termination rights for the local development authority if PureCycle fails to meet specified pre-construction and construction milestones, tightening project execution obligations and potentially affecting the company’s development schedule and local economic commitments.

The most recent analyst rating on (PCT) stock is a Hold with a $9.00 price target. To see the full list of analyst forecasts on PureCycle Technologies stock, see the PCT Stock Forecast page.

PureCycle Extends Bond-Financed Project Timeline and Governance

On October 7, 2020, the Southern Ohio Port Authority issued revenue bonds and loaned the proceeds to PureCycle: Ohio LLC to help finance the acquisition, construction and equipping of PureCycle Technologies’ first commercial-scale recycling facility in Lawrence County, Ohio. On December 26, 2025, PureCycle and related affiliates entered into a Seventh Supplemental Indenture with the issuer and trustee, extending the project’s outside completion date to December 31, 2029 and revising the definition of majority bondholders, changes that reshape project timelines and governance for bondholder decision-making around the financing structure.

The most recent analyst rating on (PCT) stock is a Hold with a $9.00 price target. To see the full list of analyst forecasts on PureCycle Technologies stock, see the PCT Stock Forecast page.

PureCycle Technologies Adds Valerie Mars to Board

On December 18, 2025, PureCycle Technologies announced that its board of directors appointed veteran executive Valerie Mars as a director, effective January 1, 2026, and determined she qualifies as an independent director under Nasdaq rules. Mars, a former Senior Vice President and Head of Corporate Development at Mars, Incorporated and current board member at the Mars family office and Ermenegildo Zegna NV, will serve on PureCycle’s Audit and Finance Committee and was designated to the board by major shareholder Sylebra Capital under an existing board representation agreement. She will receive prorated restricted stock units under the company’s standard non-employee director compensation program and enter into a standard indemnification agreement, moves that integrate her into PureCycle’s governance framework. Management highlighted her long track record in global growth initiatives and corporate sustainability, including work on Mars’ ‘Sustainable in a Generation’ plan, underscoring that her appointment is intended to bolster PureCycle’s strategic execution and sustainability credentials as it scales its recycling operations, which stakeholders may view as strengthening oversight and industry positioning.

The most recent analyst rating on (PCT) stock is a Hold with a $9.00 price target. To see the full list of analyst forecasts on PureCycle Technologies stock, see the PCT Stock Forecast page.