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PureCycle Technologies
(NASDAQ:PCT)
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Rating:44Neutral
Price Target:
$3.00
▼(-55.09% Downside)
Action:Reiterated
Date:10/17/26
PCT scores low overall primarily due to very weak financial performance (large losses, negative gross profit, and heavy cash burn) and bearish technicals (price far below key moving averages with negative MACD). The earnings call provides a meaningful offset via improved liquidity and signs of commercial scaling, but profitability and funding/execution risk remain the dominant constraints. Valuation is difficult to support because earnings are negative and there is no dividend yield support.
Positive Factors
Operational scaling
Reliability improvements, higher throughput, and in-house compounding indicate that PureCycle is moving beyond development toward repeatable commercial operations. These capabilities can improve product consistency, broaden applications, support customer qualification, and strengthen utilization economics as production expands.
Negative Factors
Persistent losses
The current revenue base remains far too small to cover operating and production costs, producing substantial accounting losses and cash burn. Unless utilization, yields, pricing, and cost absorption improve materially, PureCycle may continue relying on external capital to sustain operations.
Read all positive and negative factors
Positive Factors
Negative Factors
Operational scaling
Reliability improvements, higher throughput, and in-house compounding indicate that PureCycle is moving beyond development toward repeatable commercial operations. These capabilities can improve product consistency, broaden applications, support customer qualification, and strengthen utilization economics as production expands.
Read all positive factors
PureCycle Technologies (PCT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$588.65M
Dividend YieldN/A
Average Volume (3M)6.02M
Price to Earnings (P/E)―
Beta (1Y)2.13
Revenue Growth326.13%
EPS Growth20.03%
CountryUS
Employees174
SectorIndustrials
Sector Strength72
IndustryIndustrial - Pollution & Treatment Controls
Share Statistics
EPS (TTM)-1.31
Shares Outstanding200,904,820
10 Day Avg. Volume6,841,311
30 Day Avg. Volume6,017,717
Financial Highlights & Ratios
PEG Ratio0.20
Price to Book (P/B)33.57
Price to Sales (P/S)184.37
P/FCF Ratio-8.39
Enterprise Value/Market Cap3.53
Enterprise Value/Revenue151.11
Enterprise Value/Gross Profit-15.25
Enterprise Value/Ebitda-52.14
Forecast
1Y Price Target
$10.40Price Target Upside55.69% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)-1.41
Revenue Forecast (FY)$30.87M
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 04, 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
Positive
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
Income Statement
12
Very Negative
Balance Sheet
18
Very Negative
Cash Flow
10
Very Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 13.76M | 8.36M | 0.00 | 0.00 | 0.00 | 0.00 |
| Gross Profit | -136.40M | -134.62M | -34.71M | -18.86M | -26.56M | -10.55M |
| EBITDA | -39.90M | -83.48M | -197.66M | -50.84M | -79.54M | -68.57M |
| Net Income | -222.82M | -182.56M | -289.14M | -101.72M | -84.75M | -77.50M |
Balance Sheet | ||||||
| Total Assets | 1.00B | 922.67M | 798.38M | 1.04B | 861.34M | 664.68M |
| Cash, Cash Equivalents and Short-Term Investments | 224.82M | 170.32M | 15.68M | 121.64M | 162.48M | 200.78M |
| Total Debt | 502.08M | 776.18M | 404.42M | 543.80M | 250.13M | 232.51M |
| Total Liabilities | 671.59M | 876.78M | 617.94M | 619.14M | 350.45M | 283.15M |
| Stockholders Equity | 331.03M | 45.89M | 180.45M | 420.24M | 510.88M | 381.54M |
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 Flow | 151.08M | 323.73M | -109.17M | 272.00M | 247.53M | 293.37M |
PureCycle Technologies Technical Analysis
Negative
6.68
Price Trends
5.35
Negative
6.70
Negative
7.55
Negative
Market Momentum
-0.72
Positive
14.98
Positive
4.97
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 6.68 is above the 20-day moving average (MA) of 3.85, above the 50-day MA of 5.35, and below the 200-day MA of 7.55, indicating a bearish trend. The MACD of -0.72 indicates Positive momentum. The RSI at 14.98 is Positive, neither overbought nor oversold. The STOCH value of 4.97 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 28 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $24.71B | 25.39 | 32.79% | 0.51% | 6.23% | 10.77% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
56 Neutral | $3.44B | -98.81 | -3.60% | 2.96% | 37.64% | -145.85% | |
53 Neutral | $81.22M | -1.47 | -28.98% | 8.33% | 4.93% | -3567.25% | |
49 Neutral | $42.30M | -1.90 | -401.94% | ― | ― | ― | |
44 Neutral | $588.65M | -2.21 | -196.94% | ― | 326.13% | 20.03% | |
43 Neutral | $11.64M | -0.43 | -68.70% | ― | -0.17% | 37.55% |
* Industrials Sector Average
PCT
PureCycle Technologies
2.77
-10.37
-78.92%
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2.40
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101.31
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-2.85%
PureCycle Technologies Corporate Events
Business Operations and StrategyPrivate Placements and Financing
PureCycle Extends $200M Revolving Credit Facility Maturity
Positive
Aug 31, 2026
On August 28, 2026, PureCycle Technologies, Inc. and its guarantor subsidiaries executed a twelfth amendment to their revolving credit agreement with Sylebra-affiliated lenders and Kroll Trustee Services as agent. The amendment extends the maturit...
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...
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.