PureCycle Technologies Reports Second Quarter 2026 Results
Rhea-AI Summary
PureCycle Technologies (Nasdaq: PCT) reported second quarter 2026 revenue of $4.5 million, up about 173% year-over-year and marking a sixth consecutive quarter of sequential growth. Net loss was $142.2 million versus $144.2 million a year earlier, with operating loss improving to $41.3 million from $45.6 million.
PCT produced 4.5 million pounds of PureFive® resin despite a planned Ironton turnaround, and commissioned on-site compounding that ran about 2.0 million pounds in Q2. Total liquidity rose to $236.9 million, driven by June offerings of $287.5 million of 4.75% convertible notes due 2032 and 19.9 million new shares, which funded repurchase of $216 million principal of 7.25% notes due 2030.
Commercial progress included first Procter & Gamble resin deliveries for select Downy detergent caps, seven new customer conversions, six new partnerships, and New Jersey DEP approval of PureFive® as post-consumer recycled content. Thailand and Belgium projects advanced, with Thailand total cost still estimated around $250 million and project financing targeted to close by year-end.
Positive
- Revenue $4.5 million, up ~173% year-over-year with six quarters of sequential growth
- Operating loss improved to $41.3 million from $45.6 million year-over-year
- PureFive® production +32% YoY despite planned Ironton turnaround
- Total liquidity $236.9 million, up from $131 million at Q1 2026 end
- $287.5 million 4.75% notes and 19.9 million shares issued, used in part to retire $216 million of 7.25% notes
- New Jersey DEP approval for PureFive® as post-consumer recycled content and initial P&G commercial deliveries
Negative
- Net loss $142.2 million in Q2 2026, similar to prior-year $144.2 million
- Adjusted EBITDA -$31.7 million, more negative than -$27.8 million in Q2 2025
- Stockholders’ equity fell to $15.5 million from $45.9 million at December 31, 2025
- Large non-recurring legal settlement of $20.4 million in Q2 cash outflows
- Project spend guidance raised to $45–$50 million for 2026 from $39–$45 million
- Share dilution from issuance of 19,854,000 common shares alongside new convertible notes
News Explained
The closed raise expands the common-share base, while Thailand’s remaining project financing is still negotiated and targeted for year-end close.
The closed PureCycle June offering issued 19.854 million common shares and
The company reported approximately
At
Thailand financing is not yet closed: binding terms are being negotiated, financial close is targeted for year-end, and anticipated project debt is intended to fund remaining construction.
Market reaction after 2Q26 earnings report: PCT +3.65%
Following this news, PCT has gained 3.65%, reflecting a moderate positive market reaction. Argus tracked a trough of -8.3% from its starting point during tracking. Our momentum scanner has triggered 20 alerts so far, indicating elevated trading interest and price volatility. The stock is currently trading at $7.12. Trading volume is above average at 1.7x the average, suggesting increased trading activity.
Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 06 | Q1 earnings report | Positive | +17.3% | Record production, sequential revenue growth, and $131 million liquidity |
| Feb 26 | Q4 earnings report | Positive | -22.3% | Operational ramp and $181.6 million cash and marketable securities |
| Jul 25 | Q2 update scheduling | Neutral | -1.2% | Scheduled Q2 2025 corporate update and conference call |
| May 07 | Q1 earnings update | Positive | +15.1% | First revenue, operating progress, and multiple financing sources |
| Apr 23 | Q1 update scheduling | Neutral | +8.7% | Scheduled Q1 2025 corporate update and investor Q&A |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-specific earnings history was mixed: two substantive positive reports aligned with gains, while Q4 2025 diverged sharply; scheduling items also showed opposite-direction moves.
Key Terms
post-consumer recycled content technical
iso 9001:2015 certification technical
convertible senior notes financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
- First P&G commercial resin deliveries began, with select Downy detergent caps now in commercial production
- Revenue of
$4.5 million , up approximately173% year-over-year and a sixth consecutive quarter of sequential growth - New Jersey Department of Environmental Protection approved PureFive® resin as post-consumer recycled content
- On-site compounding now operating, giving PureCycle the ability to deliver product meeting customers' unique specifications
- Initial Shipments of PureFive® resin made in third quarter to all three major converters for QSR cold cup trials
ORLANDO, Fla., Aug. 06, 2026 (GLOBE NEWSWIRE) -- PureCycle Technologies, Inc. (Nasdaq: PCT) (“PureCycle” or the “Company”), a U.S.-based company revolutionizing plastic recycling, today announced results for the second quarter ending June 30, 2026.
Second Quarter 2026 Highlights
Commercial
- Seven new customer conversions during the quarter
- First P&G commercial resin deliveries began in the second quarter, with select Downy detergent caps added as a new approval; select Tide detergent caps scheduled for retail production in Q3 and Vicks ZzzQuil PURE Zzzs child-resistant lids targeted for Q4 2026
- Six new commercial partnerships were announced during the quarter: Reliable Caps, Motherson, Innovia Films, RM Tochello, IPL Schoeller / Cleveland Kitchen, and Amcor, spanning closures, caps, automotive, film and food packaging
- State regulation is a powerful demand tailwind: the New Jersey approval is secured and the State’s food-contact exemption expires in January 2027, with the recycled-content requirement rising to
20% ; California SB54 is now in effect; PureFive® qualifies as recycled content via APR certification. Demand is broader than any single regulation - Q3 to date: shipped compounded product to major converters for quick-service restaurant (QSR) cold cups; the New Jersey approval accelerated qualification at two major QSRs
- Forward demand: the Company expects branded sales volumes to build through the second half as compounding scales and regulation-driven demand converts to customer adoption
Operations
- Q2 PureFive® production of 4.5 million pounds, down as previously communicated for the planned turnaround
- Turnaround completed ahead of schedule and below budget, with more than 170 reliability and rate projects executed; the two largest reliability constraints of the past year, the CP2 system and mechanical seals, were both substantially improved during the outage
- Turnaround inspections were favorable; large equipment observed to be clean with no evidence of corrosion, a good indicator of future reliability
- Successfully commissioned on-site compounding in April with Ironton compounded volume of approximately 2.0 million pounds and approximately 28 sample lots produced; current operation is running 24/5 shifts, with plans to expand to 24/7 in Q4
- PureCycle achieved ISO 9001:2015 certification in May, an independent validation of the quality management systems underpinning consistent product delivery
- Feedstock supply secured, with Denver running at levels needed for Ironton production
Growth
- Thailand Facility expected to be operational in 2028; groundbreaking expected in 2H 2026; total project cost estimate remains in the
$250 million range - Thailand Board of Investment approval was received in the second quarter, including selection for the “Fast Pass” program
- Thailand project financing progressing, with binding terms currently being negotiated and financial close targeted by year-end. Anticipated project debt is sized to fund remaining construction
- Thailand feedstock and offtake: seven signed LOIs with Thai suppliers covering more than the plant's annual feedstock requirement (1.5-2.4x’s coverage), and 14 signed sales offtake LOIs (0.8-1.4x’s coverage)
- Belgium Facility permits expected by 1H 2027; Gen2 design work continues to progress
Finance
- Total liquidity of
$236.9 million at quarter-end, strengthened by the June concurrent offering of convertible senior notes and common stock - Operations spending of
$8.3 million per month, excluding feed and compounding material purchases; Ironton turnaround costs tracked separately from ongoing operations spending
Management Commentary
“Our customers are moving faster now, because compliance with new regulations is imminent,” said Dustin Olson, Chief Executive Officer of PureCycle Technologies. “Our solution has been recognized by New Jersey, Ironton is more reliable coming out of the turnaround, and in-house compounding lets us deliver the unique grades that US and global markets require.”
Olson continued, “These improvements provide fundamental solutions that our customers are demanding and supports a growing and converting pipeline. Today’s demand is a validation of the technical achievements we demonstrated over the last two years. As customers continue to adopt, our branded sales should improve revenue per pound.”
"The June capital raise positioned the balance sheet to fund our planned commercial ramp and near-term growth spending," said Donald Carpenter, Chief Financial Officer of PureCycle Technologies. "Ironton breakeven remains our second-half goal and Thailand project financing is targeted to close by year-end.”
Financial Update
Financial Results
Net loss for Q2 2026 was
Operating performance continued to build during the period: PureFive® production grew approximately
Cash and Liquidity
PureCycle ended Q2 2026 with total liquidity of
Operations spending was
Second quarter cash outflows included a previously disclosed non-recurring legal settlement of
Project Spend
Project spend in Q2 2026 totaled
Capital Structure
In June 2026, the Company closed concurrent public offerings of
Equipment financing payments will step down during the second half of 2026 as existing lease agreements reach their scheduled maturities; Q3 2026 debt service is expected to be approximately
The Company’s available capital resources include cash on hand following the June concurrent public offerings, approximately
Second Quarter 2026 Conference Call Details
Date: August 6, 2026
Time: 5:00 p.m. ET
Participant Link: PureCycle Technologies Second Quarter 2026 Corporate Update
For participants interested in a listen-only webcast, please access the conference call using the above link. For a calendar reminder, please click HERE.
The conference call will have a live Q&A session. For analyst participants who would like to ask management a question after prepared remarks, please click HERE. You will receive a number and a unique access pin.
Following prepared remarks, management will try to answer investor questions submitted in advance. To submit a question, please send an e-mail to investorquestion@purecycle.com.
The corporate update will be available for replay by clicking HERE or through the Company’s website at www.purecycle.com. A replay of the conference call will be available after 8:00 p.m. Eastern Time until October 6, 2026.
PureCycle Contact
Christian Bruey
cbruey@purecycle.com
Investor Relations Contact
Eric DeNatale
edenatale@purecycle.com
About PureCycle Technologies
PureCycle Technologies LLC., a subsidiary of PureCycle Technologies, Inc., holds a global license for the only patented dissolution recycling technology, developed by The Procter & Gamble Company (P&G), that is designed to transform polypropylene plastic waste (designated as #5 plastic) into a continuously renewable resource. The unique purification process removes color, odor, and other impurities from #5 plastic waste resulting in our PureFive® resin that can be recycled and reused multiple times, changing our relationship with plastic. www.purecycle.com
Forward Looking Statements
This press release contains forward-looking statements, including statements about the continued execution of PureCycle’s business plan, PureCycle expected financial expenditures, future cash needs and availability of liquidity and the expected timing of significant construction milestones for PureCycle’s planned future facilities. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. Forward-looking statements generally relate to future events or PureCycle’s future financial or operating performance and may refer to projections and forecasts. Forward-looking statements are often identified by future or conditional words such as “plan,” “believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project,” “continue,” “could,” “may,” “might,” “possible,” “potential,” “predict,” “should,” “would” and other similar words and expressions (or the negative versions of such words or expressions), but the absence of these words does not mean that a statement is not forward-looking.
The forward-looking statements are based on the current expectations of PureCycle’s management and are inherently subject to uncertainties and changes in circumstances and their potential effects and speak only as of the date of this press release. There can be no assurance that future developments will be those that have been anticipated. These forward-looking statements involve a number of risks, uncertainties or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those factors described in the section entitled “Risk Factors” in each of PureCycle’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and PureCycle’s Quarterly Reports on Form 10-Q for various quarterly periods, those discussed and identified in other public filings made with the Securities and Exchange Commission by PureCycle and the following: PCT’s ability to obtain funding for its operations, future capital requirements and future growth, and to continue as a going concern; PCT’s ability to meet, continue to meet, and comply on an ongoing basis with, the numerous regulatory requirements applicable to its PureFive® resin both generally and in food-grade applications and, more broadly, the operations and construction of PCT’s facilities (including in the United States, Europe, Asia and other future international locations); expectations and changes regarding PCT’s strategies and future financial performance, including future business plans, expansion plans or objectives, prospective performance and opportunities and competitors, revenues, products and services, pricing, operating expenses, market trends, liquidity, cash flows and uses of cash, capital expenditures, and PCT’s ability to invest in growth initiatives, which could be impacted by significant changes to tariffs on foreign imports; the ability of PCT’s first commercial-scale recycling facility in Lawrence County, Ohio (the “Ironton Facility”) to be appropriately certified by Leidos Engineering, LLC, following certain performance and other tests, and commence full-scale commercial operations in a timely and cost-effective manner, or at all; PCT’s ability to meet, and to continue to meet, the requirements imposed upon us and our subsidiaries by the funding for its operations, including the funding for the Ironton Facility and the Planned Facilities (as defined below); PCT’s ability to minimize or eliminate the many hazards and operational risks at its manufacturing facilities that can result in potential injury to individuals, disrupt PCT’s business, including interruptions or disruptions in operations at PCT’s facilities, and subject PCT to liability and increased costs; PCT’s ability to complete the necessary funding with respect to, and complete the construction of, the new polypropylene recycling facility in Thailand (the "Thailand Facility"), PCT’s first commercial-scale European plant located in Antwerp, Belgium (the "Belgium Facility"), and the purification facility to be built in Augusta, Georgia (the "Augusta Facility" and, together with the Thailand Facility and the Belgium Facility, the “Planned Facilities”) in a timely and cost-effective manner; PCT’s ability to procure, sort and process polypropylene plastic waste at our planned plastic waste prep facilities; PCT’s ability to maintain exclusivity under The Procter & Gamble Company license; the implementation, market acceptance and success of PCT’s business model and growth strategy, which includes PCT’s ability to bring a total of one billion pounds of installed polypropylene recycling capability online by 2030, and PCT’s ability to meet related construction, regulatory, and financing requirements; the ability to negotiate multi-year offtake agreements at appropriate margins to fund ongoing operations; the possibility that PCT may be adversely affected or potentially impacted by economic, business, and/or competitive factors, including interest rates, availability of capital, economic cycles, and other macro-economic impacts (such as tariffs); changes in the prices and availability of materials (such as steel and other materials needed for the construction of future Feed PreP and purification facilities), including those changes caused by inflation, tariffs and supply chain conditions, such as increased transportation costs and global conflicts, and our ability to obtain such materials in a timely and cost-effective manner; the ability to source feedstock with a high polypropylene content at a reasonable cost and the temporary spike in prices due to global conflicts such as the current conflict in the Middle East; the development of direct competitors in the recycled polypropylene segment that could impact the demand for PCT’s products; the outcome of any legal or regulatory proceedings to which PCT is, or may become, a party; geopolitical risk and changes in applicable laws or regulations; changes in the prices and availability of labor (including labor shortages), turnover in employees, and increases in employee-related costs; any business disruptions due to political or economic instability, pandemics, or armed hostilities (including the ongoing conflicts between Russia and Ukraine and active military conflicts in the Middle East); and operational risks associated with the ability to operate the Ironton Facility and the Planned Facilities, as and when operative, at nameplate capacity.
PCT undertakes no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.
Should one or more of these risks or uncertainties materialize or should any of the assumptions made prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. You should not rely upon forward-looking statements as predictions of future events.
| – financial tables attached – | ||||||||||||
| PureCycle Technologies, Inc. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) | ||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
| (in thousands, except per share data) | 2026 | 2025 | 2026 | 2025 | ||||||||
| Revenues | $ | 4,512 | $ | 1,650 | $ | 8,639 | $ | 3,230 | ||||
| Operating expenses | ||||||||||||
| Cost of operations | 34,820 | 30,020 | 66,214 | 54,022 | ||||||||
| Research and development | 1,414 | 1,409 | 2,969 | 2,961 | ||||||||
| Selling, general and administrative | 9,612 | 15,819 | 22,585 | 29,566 | ||||||||
| Total operating costs and expenses | 45,846 | 47,248 | 91,768 | 86,549 | ||||||||
| Operating loss | (41,334 | ) | (45,598 | ) | (83,129 | ) | (83,319 | ) | ||||
| Other expense/(income) | ||||||||||||
| Interest expense | 15,393 | 17,640 | 30,775 | 32,704 | ||||||||
| Interest income | (992 | ) | (621 | ) | (2,374 | ) | (1,000 | ) | ||||
| Change in fair value of warrants | 52,492 | 82,295 | 29,495 | 25,626 | ||||||||
| Loss on extinguishment of debt | 34,541 | — | 34,541 | — | ||||||||
| Other (income)/expense, net | (549 | ) | (672 | ) | 94 | (5,241 | ) | |||||
| Total other expense | 100,885 | 98,642 | 92,531 | 52,089 | ||||||||
| Net loss | $ | (142,219 | ) | $ | (144,240 | ) | $ | (175,660 | ) | $ | (135,408 | ) |
| Loss per share | ||||||||||||
| Basic | $ | (0.80 | ) | $ | (0.81 | ) | $ | (1.02 | ) | $ | (0.76 | ) |
| Diluted | $ | (0.80 | ) | $ | (0.81 | ) | $ | (1.02 | ) | $ | (0.76 | ) |
| Weighted average common shares | ||||||||||||
| Basic | 184,240 | 179,666 | 182,369 | 178,493 | ||||||||
| Diluted | 184,240 | 179,666 | 182,369 | 178,493 | ||||||||
| Other comprehensive loss | ||||||||||||
| Cumulative translation adjustment | $ | (54 | ) | $ | (215 | ) | $ | (308 | ) | $ | (309 | ) |
| Unrealized loss on available-for-sale investments | (3 | ) | — | (19 | ) | — | ||||||
| Total comprehensive loss | $ | (142,276 | ) | $ | (144,455 | ) | $ | (175,987 | ) | $ | (135,717 | ) |
| PureCycle Technologies, Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | ||||||
| (in thousands) | June 30, 2026 | December 31, 2025 | ||||
| ASSETS | ||||||
| CURRENT ASSETS | ||||||
| Cash and cash equivalents | $ | 165,223 | $ | 156,694 | ||
| Available-for-sale investments | 59,593 | 13,631 | ||||
| Restricted cash, current | 2,636 | 1,984 | ||||
| Accounts receivable, net | 5,810 | 2,007 | ||||
| Inventory | 18,277 | 13,824 | ||||
| Prepaid expenses and other current assets | 9,220 | 9,877 | ||||
| Total current assets | 260,759 | 198,017 | ||||
| NONCURRENT ASSETS | ||||||
| Restricted cash, noncurrent | 9,435 | 9,356 | ||||
| Operating lease right-of-use assets | 65,843 | 54,226 | ||||
| Property, plant and equipment, net | 663,593 | 657,752 | ||||
| Prepaid expenses and other noncurrent assets | 2,992 | 3,315 | ||||
| TOTAL ASSETS | $ | 1,002,622 | $ | 922,666 | ||
| LIABILITIES, MEZZANINE EQUITY, AND STOCKHOLDERS’ EQUITY | ||||||
| CURRENT LIABILITIES | ||||||
| Accounts payable | $ | 13,056 | $ | 9,247 | ||
| Accrued expenses and other current liabilities | 24,008 | 42,815 | ||||
| Accrued interest | 2,461 | 7,805 | ||||
| Current portion of warrant liability | 50,828 | 13,682 | ||||
| Current portion of long-term debt | 2,026 | 6,446 | ||||
| Current portion of related party bonds payable | 7,830 | 7,570 | ||||
| Total current liabilities | 100,209 | 87,565 | ||||
| NONCURRENT LIABILITIES | ||||||
| Deferred revenue | 5,000 | 5,000 | ||||
| Long-term debt, less current portion | 342,762 | 263,355 | ||||
| Related party bonds payable, less current portion | 81,524 | 86,343 | ||||
| Warrant liability, less current portion | 37,498 | 45,149 | ||||
| Operating lease right-of-use liabilities | 63,530 | 52,350 | ||||
| Series A Preferred Stock liability | 37,443 | 29,606 | ||||
| Other noncurrent liabilities | 3,624 | 2,710 | ||||
| TOTAL LIABILITIES | 671,590 | 572,078 | ||||
| MEZZANINE EQUITY | ||||||
| Series B Convertible Perpetual Preferred Stock | 315,530 | 304,701 | ||||
| STOCKHOLDERS’ EQUITY | ||||||
| Common Stock | 201 | 180 | ||||
| Additional paid-in capital | 1,007,534 | 861,953 | ||||
| Accumulated other comprehensive loss | (632 | ) | (305 | ) | ||
| Accumulated deficit | (991,601 | ) | (815,941 | ) | ||
| TOTAL STOCKHOLDERS’ EQUITY | 15,502 | 45,887 | ||||
| TOTAL LIABILITIES, MEZZANINE EQUITY, AND STOCKHOLDERS’ EQUITY | $ | 1,002,622 | $ | 922,666 | ||
| PureCycle Technologies, Inc. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | ||||||
| Six Months Ended June 30, | ||||||
| (in thousands) | 2026 | 2025 | ||||
| Cash flows from operating activities | ||||||
| Net loss | $ | (175,660 | ) | $ | (135,408 | ) |
| Adjustments to reconcile net loss to net cash used in operating activities | ||||||
| Equity-based compensation | 4,506 | 9,765 | ||||
| Change in fair value of warrants | 29,495 | 25,626 | ||||
| Change in fair value of put option | 917 | (3,443 | ) | |||
| Depreciation expense | 14,746 | 14,613 | ||||
| Loss on disposal of equipment | 426 | 3,765 | ||||
| Amortization of debt issuance costs and debt discounts | 13,493 | 11,147 | ||||
| Loss on extinguishment of debt | 34,541 | — | ||||
| Operating lease amortization expense | 2,395 | 2,251 | ||||
| Other | (350 | ) | — | |||
| Changes in operating assets and liabilities | ||||||
| Accounts receivable, net | (3,803 | ) | (2,126 | ) | ||
| Inventory | (4,453 | ) | (3,218 | ) | ||
| Prepaid expenses and other current assets | (273 | ) | 1,023 | |||
| Prepaid expenses and other noncurrent assets | 323 | 1,011 | ||||
| Accounts payable | 3,509 | (1,823 | ) | |||
| Accrued expenses and other current liabilities | (7,534 | ) | 618 | |||
| Accrued interest | (3,201 | ) | 2,436 | |||
| Operating lease right-of-use liabilities | (1,761 | ) | (1,827 | ) | ||
| Net cash used in operating activities | (92,684 | ) | (75,590 | ) | ||
| Cash flows from investing activities | ||||||
| Purchase of property, plant and equipment | (35,176 | ) | (23,609 | ) | ||
| Purchase of debt securities, available for sale | (88,046 | ) | — | |||
| Sale and maturity of available-for-sale investments | 42,181 | — | ||||
| Net cash used in investing activities | (81,041 | ) | (23,609 | ) | ||
| Cash flows from financing activities | ||||||
| Proceeds from issuance of Series B Convertible Perpetual Preferred Stock | — | 300,000 | ||||
| Proceeds from issuance of Common Stock | 163,001 | 33,307 | ||||
| Proceeds from issuance of Convertible Senior Notes | 287,500 | — | ||||
| Repurchase of Green Convertible Notes | (241,079 | ) | — | |||
| Proceeds from issuance of revenue bonds to third parties | — | 16,808 | ||||
| Proceeds from issuance of revenue bonds to related parties | — | 10,063 | ||||
| Payments on related party revenue bonds | (3,720 | ) | (535 | ) | ||
| Proceeds from revolving credit facility and related party note payable | — | 14,900 | ||||
| Payments on revolving credit facility and related party note payable | — | (14,900 | ) | |||
| Proceeds from exercise and issuance of warrants | 243 | 5,400 | ||||
| Payments on equipment financing | (2,938 | ) | (4,297 | ) | ||
| Stock and debt issuance costs | (16,884 | ) | (1,000 | ) | ||
| Payments to repurchase shares | (2,518 | ) | (2,800 | ) | ||
| Other financing activities | (620 | ) | (1,314 | ) | ||
| Net cash provided by financing activities | 182,985 | 355,632 | ||||
| Net increase in cash and restricted cash | 9,260 | 256,433 | ||||
| Cash and cash equivalents and restricted cash, beginning of period | 168,034 | 41,511 | ||||
| Cash and cash equivalents and restricted cash, end of period | $ | 177,294 | $ | 297,944 | ||
Information Regarding Non-GAAP Financial Measures
The Company uses certain financial measures that are not calculated in accordance with generally accepted accounting principles in the U.S. (“GAAP”) to supplement its financial statements. These non-GAAP financial measures provide additional information to investors to facilitate comparisons of past and present operating results, identify trends in our underlying operating performance, and offer greater transparency on how the Company evaluates its business activities. These measures are integral to the Company’s process for budgeting, managing operations, making strategic decisions and evaluating its performance.
The Company’s primary non-GAAP financial measures are EBITDA and Adjusted EBITDA. The Company defines EBITDA as net income before interest expense, interest income, taxes and depreciation and amortization. Adjusted EBITDA is defined as EBITDA further adjusted to exclude certain non-cash items and other items that are not indicative of the Company’s core operating activities. These may include equity-based compensation expense and changes in the fair value of warrants and put options, and other financial items. The Company believes Adjusted EBITDA is valuable for investors and analysts as it provides additional insight into the Company’s operational performance, excluding the impacts of certain financing, investing, and other non-operational activities. This measure helps in comparing the Company’s current operating results with prior periods and with those of other companies in the Company’s industry. It is also used internally for allocating resources efficiently, assessing strategic decisions, and evaluating the performance of the Company’s management team.
There are limitations to Adjusted EBITDA, including its exclusion of cash expenditures, future requirements for capital expenditures and contractual commitments, and changes in the Company’s cash requirements for working capital needs. Adjusted EBITDA also omits significant interest expense and related cash requirements for interest and payments. While depreciation and amortization are non-cash charges, the associated assets will often need to be replaced in the future, and Adjusted EBITDA does not reflect the cash required for such replacements. Additionally, Adjusted EBITDA does not account for income or other taxes or necessary cash tax payments.
Investors should use caution when comparing the Company’s non-GAAP measure to similar metrics used by other companies, as definitions can vary. Neither EBITDA nor Adjusted EBITDA should be considered in isolation or as a substitute for GAAP financial measures. In presenting EBITDA and Adjusted EBITDA, the Company aims to provide investors with an additional tool for assessing the operational performance of the Company’s business. It serves as a useful complement to the Company’s GAAP results, offering a more comprehensive understanding of the Company’s financial health and operational efficiencies. The table at the end of the press release provides a reconciliation from Net Income (Loss) to Adjusted EBITDA for the specified periods.
The following table reconciles GAAP net loss to Adjusted EBITDA (in thousands):
| Q2 2026 | Q2 2025 | |||||
| Net loss | ) | ) | ||||
| Plus: Interest expense | 15,393 | 17,640 | ||||
| Less: Interest income | (992 | ) | (621 | ) | ||
| Plus: Income taxes | — | — | ||||
| Plus: Depreciation and amortization | 7,367 | 7,263 | ||||
| EBITDA | (120,451 | ) | (119,958 | ) | ||
| Adjustments: | ||||||
| Plus: Equity-based compensation | 1,962 | 6,411 | ||||
| Plus/(Less): Change in fair value of warrants | 52,492 | 82,295 | ||||
| Plus/(Less): Change in fair value of put option | (646 | ) | (297 | ) | ||
| Plus: Write-down/loss on sale of equipment | 426 | 3,765 | ||||
| Plus: Loss on extinguishment of debt | 34,541 | — | ||||
| Adjusted EBITDA | ) | ) | ||||
Key Performance Indicators
| Q2 2026 | Q1 2026 | Q2 2025 | |||||||
| Consolidated | |||||||||
| Revenue ($MM) | |||||||||
| Monthly Ops. Spending ($MM)* | |||||||||
| Ironton Purification | |||||||||
| PureFive® Production (MM lbs) | 4.5 | 8.4 | 3.4 | ||||||
| Other Production (MM lbs) | 0.1 | 1.3 | 0.6 | ||||||
| Feedstock Processed (MM lbs) | 5.0 | 10.0 | 4.2 | ||||||
Other Production includes Co-product 1, Co-product 2, and additional saleable volumes, net of material reprocessed back into the production stream. Represents recovered material intended for sale as commercial markets develop. *Monthly operations spending reflects core operations and corporate cash spend, presented on a consistent basis for all periods; it excludes materials purchases (feedstock, virgin polypropylene and compounding additives) of
