PureCycle Technologies (PCT) AI Stock Analysis

• Market Cap: $2.05B
• Dividend Yield: N/A
• Average Volume (3M): 3.87M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.45
• Revenue Growth: N/A
• EPS Growth: 12.57%
• Country: US
• Employees: 157
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): -0.31
• Shares Outstanding: 180,198,330
• 10 Day Avg. Volume: 3,625,818
• 30 Day Avg. Volume: 3,870,540
• PEG Ratio: -0.03
• Price to Book (P/B): 9.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.14
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 412.57
• Enterprise Value/Gross Profit: -30.42
• Enterprise Value/Ebitda: -17.73
• 1Y Price Target: $14.60
• Price Target Upside: 28.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): -0.72
• Revenue Forecast (FY): $99.10M

• Rating: 55 Neutral
• Price Target: $11.50 ▲(1.32% Upside)

The score is held back primarily by weak financial performance—large losses, significant cash burn, and high leverage—despite improving revenue. Technicals are constructive with strong momentum, but indicators look stretched. Earnings-call commentary supports a positive operational ramp narrative, while valuation is constrained by ongoing losses and corporate events are mixed.

Positive Factors

Proprietary purification technology

PureCycle's proprietary purification process creates ultra-pure recycled polypropylene intended to match virgin PP. That technological moat supports long-term product parity, enabling entry into packaging and consumer markets where performance and regulatory compliance are enduring requirements.

Operational scale-up and production ramp

Sustained production ramp and record months across facilities show the company can scale throughput. Consistent increases in processed pounds and planned shift additions indicate improving manufacturing utilization, which underpins recurring revenue potential as commercialization advances.

Commercial wins and regulatory approvals

Initial sales to a global paint customer, upcoming P&G shipments and certifications (e.g., REACH) demonstrate customer acceptance and regulatory clearance. These durable commercial relationships and approvals reduce go-to-market friction and support predictable long-term demand.

Negative Factors

Persistent negative cash flow

Large and ongoing operating and free cash flow deficits indicate the business cannot self-fund near-term growth. Continued cash burn forces reliance on external financing, increasing dilution or refinancing risk and constraining the company's ability to execute capital-intensive expansion plans.

Elevated leverage and capital structure risk

Very high debt relative to thin equity magnifies refinancing and interest-rate sensitivity. Despite sizable assets, contracted equity and sustained losses reduce financial flexibility, increasing the chance that future growth investments or delays could strain covenant capacity or require expensive recapitalization.

Project execution and timeline risk

Revised Augusta milestones, penalties and later start dates, plus extended bond project deadlines, tighten execution obligations. These structural timeline extensions heighten the risk that capacity additions and related revenue ramps will be delayed, pressuring long-term growth and capital planning.

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 is ramping (TTM $5.7M, +75%), but the business remains financially strained with deeply negative gross profit, very large net losses (TTM net income -$228.5M), heavy cash burn (TTM operating cash flow -$145.9M; free cash flow -$195.0M), and elevated leverage (TTM debt $731.4M vs equity $68.2M).

Income Statement

TTM (Trailing-Twelve-Months) revenue reached $5.7M and shows strong growth (+75%), but profitability remains severely pressured: gross profit is deeply negative and losses are very large (net income of -$228.5M), resulting in highly negative margins. Relative to prior annual periods that showed essentially no revenue, commercialization is improving, but the business is still far from covering its cost structure.

Balance Sheet

The balance sheet is asset-heavy ($989.1M assets TTM) but capital structure risk is elevated. Total debt is high at $731.4M against only $68.2M of equity TTM, and returns on equity are sharply negative due to sustained losses. Leverage has also moved unfavorably versus 2022–2023 as equity has contracted meaningfully while debt has risen, increasing financial risk despite the sizeable asset base.

Cash Flow

Cash generation remains weak with TTM operating cash flow of -$145.9M and free cash flow of -$195.0M, indicating ongoing cash burn and continued funding needs. Free cash flow has not inflected to positive and declined versus the prior period (TTM growth -14.9%). While cash losses broadly track accounting losses, the company still has no self-funding profile and remains dependent on external capital.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.66M	0.00	0.00	0.00	0.00	0.00
Gross Profit	-76.77M	-34.71M	-18.86M	-26.56M	-10.55M	-8.60M
EBITDA	-131.72M	-197.66M	-97.97M	-79.54M	-67.30M	-46.99M
Net Income	-228.46M	-289.14M	-101.72M	-84.75M	-77.50M	-52.99M
Balance Sheet
Total Assets	989.12M	798.38M	1.04B	861.34M	664.68M	407.98M
Cash, Cash Equivalents and Short-Term Investments	237.94M	15.68M	121.64M	162.48M	200.78M	64.49M
Total Debt	731.45M	401.31M	543.80M	250.13M	232.51M	262.27M
Total Liabilities	920.90M	617.94M	619.14M	350.45M	283.15M	296.23M
Stockholders Equity	68.22M	180.45M	420.24M	510.88M	381.54M	111.75M
Cash Flow
Free Cash Flow	-194.99M	-200.41M	-248.81M	-352.67M	-191.90M	-47.77M
Operating Cash Flow	-145.89M	-144.83M	-94.91M	-65.48M	-54.51M	-17.95M
Investing Cash Flow	-49.10M	-7.01M	-102.10M	-218.39M	-305.57M	-29.81M
Financing Cash Flow	348.59M	-109.17M	272.00M	247.53M	293.37M	378.19M

PureCycle Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.35
• 50DMA: Positive
• 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 11.35 is above the 20-day moving average (MA) of 10.56, above the 50-day MA of 9.46, and above the 200-day MA of 11.31, indicating a neutral trend. The MACD of 0.50 indicates Positive momentum. The RSI at 47.75 is Neutral, neither overbought nor oversold. The STOCH value of 32.54 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
CECO	75 Outperform	$2.48B	49.54	18.85%	―	29.86%	331.33%
ERII	68 Neutral	$776.04M	43.43	9.41%	―	0.10%	1.50%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
PCT	55 Neutral	$2.05B	-7.09	-147.56%	―	―	12.57%
FTEK	54 Neutral	$41.95M	-14.18	-7.10%	―	-5.66%	-397.46%
ARQ	45 Neutral	$159.68M	-38.50	-1.80%	―	7.20%	-2951.61%
LIQT	45 Neutral	$18.58M	-1.77	-73.79%	―	10.97%	44.99%

PureCycle Technologies Corporate Events

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.

PureCycle Technologies Extends Credit Facility Maturity Date

PureCycle Technologies announced a significant amendment to its Revolving Credit Agreement, extending the maturity date of its $200 million credit facility by one year to September 30, 2027. This move is expected to enhance the company’s financial flexibility as it continues to expand its operations. In the third quarter of 2025, PureCycle reported record production levels at its Ironton Facility, with plans to further increase production by year-end. The company is also advancing its commercial and expansion projects, including a new facility in Thailand and a European project supported by a €40 million grant. These developments are poised to strengthen PureCycle’s market position and operational capabilities, potentially benefiting stakeholders and increasing interest from major global brands.

The most recent analyst rating on (PCT) stock is a Hold with a $14.00 price target. To see the full list of analyst forecasts on PureCycle Technologies stock, see the PCT Stock Forecast page.

PureCycle Appoints Dr. Siri Jirapongphan to Board

On October 28, 2025, PureCycle Technologies appointed Dr. Siri Jirapongphan to its board of directors, leveraging his extensive experience in the financial and energy sectors in Thailand to aid its global expansion efforts. Concurrently, Jeffrey R. Fieler resigned from the board after four years of service, during which he also served as interim CFO, contributing significantly to the company’s growth.

The most recent analyst rating on (PCT) stock is a Buy with a $23.00 price target. To see the full list of analyst forecasts on PureCycle Technologies stock, see the PCT Stock Forecast page.