Purecycle Technologies Inc (PCT)
NASDAQ:PCT
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PureCycle Technologies
(NASDAQ:PCT)
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Rating:48Neutral
Price Target:
$10.00
▲(47.71% Upside)
Action:Reiterated
Date:06/12/26
The score is held down primarily by weak financial performance: deeply negative margins, significant cash burn, and very high leverage with minimal equity cushion. Offsetting this, the earnings call showed improving operational execution and commercial validation, while technical signals are mixed and valuation is difficult to justify on earnings due to continuing losses; recent financing actions may improve liquidity but add dilution/structure risk.
Positive Factors
Production scaling & throughput
Sustained production growth (Q1 +12% vs Q4; YoY ~95%) signals the technology is scaling and beginning to deliver operating leverage. Higher throughput spreads fixed costs, supports future unit-cost declines, and underpins ability to meet multi‑year offtake pledges as plants reach steady state.
Negative Factors
Very high leverage
An outsized debt load versus eroded equity materially heightens refinancing and solvency risk. Large fixed obligations limit flexibility to fund expansions, increase sensitivity to interest or covenant pressure, and could force dilutive financing if operating losses persist over quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Production scaling & throughput
Sustained production growth (Q1 +12% vs Q4; YoY ~95%) signals the technology is scaling and beginning to deliver operating leverage. Higher throughput spreads fixed costs, supports future unit-cost declines, and underpins ability to meet multi‑year offtake pledges as plants reach steady state.
Read all positive factors
PureCycle Technologies (PCT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.63B
Dividend YieldN/A
Average Volume (3M)4.99M
Price to Earnings (P/E)―
Beta (1Y)2.55
Revenue Growth590.00%
EPS Growth-15.72%
CountryUS
Employees157
SectorIndustrials
Sector Strength72
IndustryIndustrial - Pollution & Treatment Controls
Share Statistics
EPS (TTM)-1.34
Shares Outstanding180,863,560
10 Day Avg. Volume4,399,484
30 Day Avg. Volume4,985,534
Financial Highlights & Ratios
PEG Ratio0.21
Price to Book (P/B)33.57
Price to Sales (P/S)184.37
P/FCF Ratio-8.39
Enterprise Value/Market Cap1.77
Enterprise Value/Revenue265.01
Enterprise Value/Gross Profit-20.49
Enterprise Value/Ebitda-19.23
Forecast
1Y Price Target
$13.00Price Target Upside92.02% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)-0.95
Revenue Forecast (FY)$38.75M
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
PCT’s core revenue model is selling recycled polypropylene resin produced at its facilities. The primary revenue stream is expected to come from customer contracts for offtake/purchases of its UPR resin (i.e., revenue per pound/ton of resin sold) ...
PureCycle Technologies Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and commercial momentum: significant production scaling (Q1 production +12% vs. Q4; YoY production +95%), important customer qualifications with Procter & Gamble, the first CosPaTox highest‑purity milestone, an expanding pipeline (~180 opportunities) and completed capital/operational milestones (Ironton turnaround ahead of schedule and ~15% below budget). These positive developments are tempered by continued GAAP losses (Q1 net loss $33.4M), negative adjusted EBITDA (-$30.9M), a quarter‑over‑quarter liquidity decline (~28%), project development costs impacting near‑term profitability, and timing/regulatory dependencies (notably New Jersey) that could delay volume realization. On balance, operational improvements, commercial validations and available financing optionality outweigh the near‑term financial and timing headwinds, supporting a constructive outlook for the remainder of 2026.Positive Updates
Sequential Production and Throughput Growth
Ironton produced 8.4 million pounds of PureFive in Q1, up 12% vs. Q4, with ~10 million pounds of feedstock processed. Year-over-year production grew approximately 95%, demonstrating meaningful scaling of the technology and emerging operating leverage (monthly operations spending grew only ~6% YoY).
Negative Updates
Continued Losses and Negative Adjusted EBITDA
Net loss for Q1 was $33.4 million compared to net income of $8.8 million in Q1 2025 (prior period benefited from a $56.7M fair‑value warrant gain). Adjusted EBITDA was negative $30.9 million vs. negative $25.5 million in Q1 2025, driven in part by ~$3M higher project development costs and ~$7M of project development costs expensed in the quarter.
Read all updates
Q1-2026 Updates
Positive
Negative
Sequential Production and Throughput Growth
Ironton produced 8.4 million pounds of PureFive in Q1, up 12% vs. Q4, with ~10 million pounds of feedstock processed. Year-over-year production grew approximately 95%, demonstrating meaningful scaling of the technology and emerging operating leverage (monthly operations spending grew only ~6% YoY).
Read all positive updates
Company Guidance
Management reiterated confidence in the 2026 outlook and provided concrete operational and financial guideposts: Ironton produced 8.4M lbs of PureFive in Q1 (up ~12% vs Q4) on ~10M lbs feedstock, executed >170 turnaround projects tracking ~15% below budget, and year‑over‑year production rose ~95% while monthly operations spending grew only ~6% (Q1 ops ≈$8.8M/month; quarterly ops $27.4M); third‑party compounding was ~1.7M lbs and Q1 revenue was $4.1M (fifth consecutive quarter of sequential growth) with a pipeline of ~180 active opportunities. Management said branded ramps representing 40–50M lbs of annual demand will begin in Q2–Q3 and a further 20–25M lbs will start ramping in Q3–Q4, with New Jersey contingent volume now 25–50M lbs. Q1 financials: net loss $33.4M, adjusted EBITDA negative $30.9M (including ≈$7M of expensed project development costs); liquidity ≈$131M (≈$90M cash, $31M marketable securities, $10M restricted) vs ~$182M at Q4; Q1 project spend ≈$14M (FY‑2026 project spend guidance unchanged at $39–45M) and a ~$9M SOPA bond payment due June 1. Financing optionality includes ≈$273M potential warrant proceeds (extended to Mar 17, 2027 at a $14.38 trigger), an undrawn $200M revolver and ~ $75M of revenue bonds; global projects remain on track (Thailand ≈$250M capex, mechanical completion end‑2027/commissioning Q1‑28/production mid‑late‑2028; Belgium ≈$350M capex, permits YE‑26/mechanical completion end‑2028 with a EUR40M grant).PureCycle Technologies Financial Statement Overview
Summary
Income Statement
6
Very Negative
Balance Sheet
14
Very Negative
Cash Flow
10
Very Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.90M | 8.36M | 0.00 | 0.00 | 0.00 | 0.00 |
| Gross Profit | -140.99M | -134.62M | -34.71M | -18.86M | -26.56M | -10.55M |
| EBITDA | -150.24M | -83.48M | -197.66M | -53.76M | -79.54M | -68.57M |
| Net Income | -224.84M | -182.56M | -289.14M | -101.72M | -84.75M | -77.50M |
Balance Sheet | ||||||
| Total Assets | 886.01M | 922.67M | 798.38M | 1.04B | 861.34M | 664.68M |
| Cash, Cash Equivalents and Short-Term Investments | 121.60M | 170.32M | 15.68M | 121.64M | 162.48M | 200.78M |
| Total Debt | 738.91M | 776.18M | 401.31M | 543.80M | 250.13M | 232.51M |
| Total Liabilities | 878.58M | 876.78M | 617.94M | 619.14M | 350.45M | 283.15M |
| Stockholders Equity | 7.42M | 45.89M | 180.45M | 420.24M | 510.88M | 381.54M |
Cash Flow | ||||||
| Free Cash Flow | -175.80M | -183.59M | -200.41M | -248.81M | -352.67M | -191.90M |
| Operating Cash Flow | -146.53M | -142.74M | -144.83M | -94.91M | -65.48M | -54.51M |
| Investing Cash Flow | -60.11M | -54.47M | -7.01M | -102.10M | -218.39M | -305.57M |
| Financing Cash Flow | 269.29M | 323.73M | -109.17M | 272.00M | 247.53M | 293.37M |
PureCycle Technologies Technical Analysis
Negative
6.77
Price Trends
9.13
Negative
8.53
Positive
9.92
Negative
Market Momentum
0.40
Positive
37.85
Neutral
8.27
Positive
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 6.77 is below the 20-day moving average (MA) of 12.08, below the 50-day MA of 9.13, and below the 200-day MA of 9.92, indicating a bearish trend. The MACD of 0.40 indicates Positive momentum. The RSI at 37.85 is Neutral, neither overbought nor oversold. The STOCH value of 8.27 is Positive, 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $5.63B | 200.69 | 5.54% | ― | 32.11% | -71.47% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $422.16M | 20.95 | 10.89% | ― | -3.05% | 4.46% | |
57 Neutral | $41.76M | -14.17 | -7.34% | ― | -0.69% | 1.97% | |
55 Neutral | $114.18M | -2.07 | -27.88% | ― | 6.71% | -3120.50% | |
48 Neutral | $1.63B | -7.24 | -408.05% | ― | 590.00% | -15.72% | |
43 Neutral | $27.25M | -1.01 | -73.79% | ― | 6.94% | 38.10% |
* Industrials Sector Average
PCT
PureCycle Technologies
9.02
-2.65
-22.71%
ARQ
Arq Inc
2.66
-2.57
-49.14%
CECO
Ceco Environmental
96.41
68.54
245.93%
ERII
Energy Recovery
8.19
-4.38
-34.84%
FTEK
Fuel Tech
1.34
-0.55
-29.10%
LIQT
LiqTech International
0.91
-0.58
-38.93%
PureCycle Technologies Corporate Events
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...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
PureCycle Reports Record Production and Extends Warrant Expiration
Positive
May 6, 2026
PureCycle Technologies reported first-quarter 2026 results on May 6, 2026, highlighting a record 8.4 million pounds of production and about 10 million pounds of feedstock throughput, as well as a completed turnaround at its Ironton facility ahead ...
Business Operations and StrategyRegulatory Filings and Compliance
PureCycle Extends and Modifies Warrant Terms After Vote
Neutral
Apr 17, 2026
PureCycle Technologies, Inc. has amended the terms of its public and private warrants governed by its existing warrant agreement structure, which originated in 2020 and was previously supplemented in February 2026. The move affects the redemption ...
Business Operations and Strategy
PureCycle Showcases Global Expansion Strategy at ROTH Conference
Positive
Mar 20, 2026
PureCycle Technologies, Inc., a U.S.-based recycler of polypropylene plastic using a patented dissolution process licensed from Procter Gamble, produces high-purity PureFive resin designed to be recycled and reused multiple times across consumer ...
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.