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Purecycle Technologies Inc (PCT)
NASDAQ:PCT
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PureCycle Technologies (PCT) AI Stock Analysis

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PCT

PureCycle Technologies

(NASDAQ:PCT)

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Neutral 48 (OpenAI - 5.2)
Rating:48Neutral
Price Target:
$7.00
▲(19.66% Upside)
Action:Reiterated
Date:08/09/26
The score is held down primarily by weak financial performance—large ongoing losses, negative gross profit, and significant cash burn with a fragile equity base. Earnings-call updates provide a meaningful offset via improved operational execution, commercial progress, and stronger liquidity, but technical signals remain mixed and valuation support is limited due to negative earnings.
Positive Factors
Operational execution
A demonstrated operational turnaround with fixed reliability constraints and a tested peak rate of 12,000 lb/hr materially improves durable factory throughput and reliability. Higher, stable output and in-house compounding lower unit costs, enable fuller utilization, and reduce execution risk as the business scales.
Negative Factors
Large cash burn & negative margins
Persistent, deep cash burn and negative gross profit reflect that production economics and scale benefits have not yet offset costs. Even with operational gains, current margins require substantial volume growth and yield improvements to produce durable cash generation; otherwise dependence on external funding remains structural.
Read all positive and negative factors
Positive Factors
Negative Factors
Operational execution
A demonstrated operational turnaround with fixed reliability constraints and a tested peak rate of 12,000 lb/hr materially improves durable factory throughput and reliability. Higher, stable output and in-house compounding lower unit costs, enable fuller utilization, and reduce execution risk as the business scales.
Read all positive factors

PureCycle Technologies (PCT) vs. SPDR S&P 500 ETF (SPY)

PureCycle Technologies Business Overview & Revenue Model

Company Description
PureCycle Technologies, Inc. focuses on manufacturing high-quality, recycled polypropylene (PP). The company employs a proprietary and licensed technology that converts discarded PP materials into an exceptionally pure, regenerated resin. Through ...
How the Company Makes Money
PureCycle’s revenue model centers on manufacturing and selling recycled polypropylene resin. The primary revenue stream is expected to be (and to the extent production and commercial sales are operating, is) sales of UPR PP resin produced at its p...

PureCycle Technologies Earnings Call Summary

Earnings Call Date:Aug 06, 2026
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and commercial momentum: the company completed a successful turnaround, brought compounding in-house, achieved regulatory approvals (notably New Jersey), broadened commercial wins (including Procter & Gamble and a retail conversion), set production capability records, and materially strengthened liquidity via July financings. Offsetting these positives are continued large GAAP losses, negative adjusted EBITDA, higher near-term project spend, conditional regulatory approvals, and some dependence on meeting project financing and customer qualification timelines. Overall, the company appears to be transitioning from development to commercial scaling with reduced operational risk and growing demand, but it still faces meaningful financial and execution risks in the near term.
Positive Updates
Operational Turnaround Completed Ahead of Schedule and Below Budget
Completed a planned turnaround early and under budget, executed >170 site projects, fixed persistent CP2 and mechanical reliability issues, expanded bottleneck capacity, and set a new daily throughput record in June (demonstrated 12,000 lbs/hour).
Negative Updates
Large Net Loss and Negative Adjusted EBITDA
Net loss for Q2 was $142.2 million (vs. $144.2M prior year, a modest ~1.4% improvement). Adjusted EBITDA was negative $31.7 million compared to negative $27.8 million a year ago (worse by ~$3.9M), reflecting lower noncash add-backs but still a sizable cash-negative operating profile.
Read all updates
Q2-2026 Updates
Negative
Operational Turnaround Completed Ahead of Schedule and Below Budget
Completed a planned turnaround early and under budget, executed >170 site projects, fixed persistent CP2 and mechanical reliability issues, expanded bottleneck capacity, and set a new daily throughput record in June (demonstrated 12,000 lbs/hour).
Read all positive updates
Company Guidance
The company reiterated second-half–weighted commercial ramping and maintained an Ironton breakeven target in the second half (site-level breakeven at roughly 40%–50% utilization). Key operational and commercial metrics: Q2 production of ~4.5 million pounds of PureFive from ~5 million pounds of feedstock, a tested peak rate of 12,000 lb/hr and a new daily throughput record in June, compounding running 24 hrs/day 5 days/wk with a plan to move to 24/7 in Q4, revenue of ~ $4.5 million, 7 new customer conversions, and a pipeline spanning 42 brands/15 converters/28 applications/37 advancing programs. Financial and project guidance: ended Q2 with $236.9 million total liquidity ( $165.2M cash, $59.6M marketable securities, $12.1M restricted), net proceeds from June offerings of $432M (gross $450.5M), repurchased $216M principal of 7.25% notes for $241.1M plus $5.2M interest (leaving ~ $186M net cash on the balance sheet), Q2 adjusted EBITDA of -$31.7M and net loss of $142.2M, full‑year project spend now expected $45M–$50M (2H contingent $10M–$12M), and Thailand capex ~ $250M (BOI approval received, expected groundbreaking H2 and operation in 2028). Regulatory and market context driving guidance: New Jersey 1‑year conditional approval (food-contact exemption expires Jan 2027, NJ recycled-content rising to 20% in 2027) plus estimated NJ QSR demand ~20M lb/year and company ramp buckets of ~$40M–$50M non‑NJ and $25M–$50M NJ.

PureCycle Technologies Financial Statement Overview

Summary
Early revenue traction (TTM revenue ~$13.8M, +26.3%) is outweighed by very weak profitability and cash generation: deeply negative gross profit (TTM -$105.4M), large net loss (TTM -$222.8M), and heavy cash burn (TTM operating cash flow -$202.5M; free cash flow -$258.3M). Balance sheet remains fragile with very thin equity (~$15.5M) and historically elevated leverage, increasing financing risk if losses persist.
Income Statement
12
Very Negative
Balance Sheet
18
Very Negative
Cash Flow
10
Very Negative
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue13.76M8.36M0.000.000.000.00
Gross Profit-136.40M-134.62M-34.71M-18.86M-26.56M-10.55M
EBITDA-41.04M-83.48M-197.66M-53.76M-79.54M-68.57M
Net Income-222.82M-182.56M-289.14M-101.72M-84.75M-77.50M
Balance Sheet
Total Assets1.00B922.67M798.38M1.04B861.34M664.68M
Cash, Cash Equivalents and Short-Term Investments227.45M170.32M15.68M121.64M162.48M200.78M
Total Debt813.20M776.18M404.42M543.80M250.13M232.51M
Total Liabilities987.12M876.78M617.94M619.14M350.45M283.15M
Stockholders Equity15.50M45.89M180.45M420.24M510.88M381.54M
Cash Flow
Free Cash Flow-212.25M-183.59M-200.41M-248.81M-352.67M-191.90M
Operating Cash Flow-159.83M-142.74M-144.83M-94.91M-65.48M-54.51M
Investing Cash Flow-111.90M-54.47M-7.01M-102.10M-218.39M-305.57M
Financing Cash Flow151.08M323.73M-109.17M272.00M247.53M293.37M

PureCycle Technologies Technical Analysis

Technical Analysis Sentiment
Negative
Last Price5.85
Price Trends
50DMA
7.84
Negative
100DMA
8.05
Negative
200DMA
8.53
Negative
Market Momentum
MACD
-0.08
Negative
RSI
48.98
Neutral
STOCH
64.53
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 5.85 is below the 20-day moving average (MA) of 6.59, below the 50-day MA of 7.84, and below the 200-day MA of 8.53, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 48.98 is Neutral, neither overbought nor oversold. The STOCH value of 64.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PCT.

PureCycle Technologies Risk Analysis

PureCycle Technologies disclosed 29 risk factors in its most recent earnings report. PureCycle Technologies reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

PureCycle Technologies Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
$397.13M26.708.25%-14.95%-31.61%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
53
Neutral
$4.44B-132.045.54%37.64%-145.85%
53
Neutral
$45.89M-12.90-8.88%8.89%-6.47%
48
Neutral
$1.44B-5.59-650.41%326.13%20.03%
48
Neutral
$100.44M-1.82-28.98%4.93%-3567.25%
43
Neutral
$18.18M-0.70-79.34%-0.17%37.55%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PCT
PureCycle Technologies
7.00
-6.35
-47.57%
ARQ
Arq Inc
2.28
-5.08
-69.02%
CECO
Ceco Environmental
76.82
32.17
72.05%
ERII
Energy Recovery
7.82
-6.67
-46.03%
FTEK
Fuel Tech
1.45
-1.40
-49.12%
LIQT
LiqTech International
0.60
-1.39
-69.95%

PureCycle Technologies Corporate Events

Business Operations and StrategyFinancial DisclosuresPrivate Placements and FinancingRegulatory Filings and Compliance
PureCycle Reports First Commercial Deliveries and New Partnerships
Positive
Aug 6, 2026
PureCycle Technologies reported second-quarter 2026 results on August 6, 2026, highlighting its first commercial resin deliveries to Procter Gamble, with select Downy detergent caps now in production and Tide detergent caps scheduled for retail i...
Business Operations and StrategyPrivate Placements and Financing
PureCycle Technologies Closes Major Convertible Notes and Equity Offering
Positive
Jun 15, 2026
On June 15, 2026, PureCycle Technologies closed concurrent public offerings of $287.5 million of 4.75% convertible senior notes due 2032 and 19,854,000 shares of common stock, generating net proceeds of about $432.5 million. The securities, sold u...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
PureCycle Launches Major Convertible Notes and Equity Offerings
Positive
Jun 11, 2026
On June 10, 2026, PureCycle Technologies, Inc. amended its $200 million revolving credit agreement with lenders affiliated with Sylebra Capital to allow concurrent equity and debt offerings and to remove certain obligations tied to Sylebra-related...
Executive/Board ChangesShareholder Meetings
PureCycle Shareholders Back Board, Auditor and Executive Pay
Positive
May 11, 2026
At its annual meeting of shareholders held on May 7, 2026, PureCycle Technologies shareholders elected nine directors to serve until the next annual meeting, with all nominees receiving sufficient support to be seated on the board. The slate inclu...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 09, 2026