PureCycle Q3 net income of $6.9M includes warrant gain
The Executive Chairman's annual base salary is $500,000, with a discretionary cash bonus opportunity of up to $250,000.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Filing Summary
PureCycle Technologies, Inc. reported Q3 2026 revenue of $2.3 million and net income of $6.9 million, including a $58.6 million non-cash warrant fair-value gain. Operating loss was $37.5 million and Adjusted EBITDA was $(28.0) million, versus $38.9 million and $(28.6) million, respectively, in Q3 2025; Q3 2025 net loss was $28.4 million.
Ironton produced 5.2 million pounds of PureFive® resin, up 14% from Q2; Q3 operational issues were resolved and production is now in line with current commercial demand. New Jersey's food-contact exemption extension shifted about 15 programs—approximately 50 million pounds per year of expected volume at full ramp—into 2027 and, in many cases, beyond. Quarter-end liquidity was $193 million plus the undrawn $200 million revolver, or $393 million total available liquidity; monthly operations spending was $7.8 million, excluding materials purchases.
PureCycle appointed Fernando Musa Executive Chairman effective November 3, 2026, for an initial term through December 31, 2027. The Thailand construction permit was issued in September 2026, while project-financing terms are under negotiation; the project cost estimate remains in the $250 million range.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- None.
Negative
- Moderate point. Forward-looking: it has not happened yet and may not happen.Expected full-ramp food-contact volume: about 50 million pounds per year shifted to 2027 and, in many cases, beyond.
- Moderate point2026 nine-month operating cash use: $125.0 million, versus $114.1 million in 2025.
Filing Explained
For Fernando Musa’s Executive Chairman term through
8-K Event Classification
Key Figures
Key Terms
Adjusted EBITDA financial
non-cash gain financial
food-contact exemption regulatory
revolving credit facility financial
on-site compounding technical
Earnings Snapshot
Branded programs shipping, under purchase order, in contract negotiation or final qualification are expected to reach approximately 45–55 million pounds per year at full ramp, approaching the 40–50% utilization range.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were PCT's Q3 2026 revenue and net income?
How much liquidity did PCT have at September 30, 2026?
What compensation will Fernando Musa receive as PCT's Executive Chairman?
What branded volume does PCT expect at full ramp?
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): |
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On November 4, 2026, the Company issued a press release, attached hereto as Exhibit 99.1 and incorporated herein by reference, announcing the Company’s financial results for the third quarter ended September 30, 2026, and certain other information.
The information contained in Item 7.01 concerning the presentation to Company’s investors is hereby incorporated into this Item 2.02 by reference.
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On November 2, 2026, the Board of Directors (“Board”) of PureCycle Technologies, Inc. (the “Company’) appointed Fernando Musa, currently an independent member of the Board, as Executive Chairman, for a term through December 31, 2027 ("Initial Term”) beginning on November 3, 2026 (“Effective Date”).
Mr. Musa, 61, joined the Board in 2021 as an independent director, a member of the Audit and Finance Committee, the Nominating and Corporate Governance (“N&G”) Committee, and the Operational Excellence Committee. Mr. Musa also previously served as PureCycle’s Lead Independent Director from March 2021 until May 2022 and a member of the Compensation Committee. Most recently, Mr. Musa has served as an Operating Partner of Advent International, a global private equity firm since March 2020. Mr. Musa has also served as a Senior Advisor of Bain & Company, a global management consultancy firm from March 2020 to July 2025. Previously, Mr. Musa served as the Global Chief Executive Officer of Braskem S.A., a petrochemical company, from May 2016 to December 2019, as Chief Executive Officer of Braskem America from May 2012 to April 2016, and as Braskem’s Vice President of Planning and Business Development in 2011. In 2010, Mr. Musa was responsible for Braskem’s Quattor Planning and Integration process. Mr. Musa received a degree in Mechanical Engineering from the Instituto Tecnológico da Aeronáutica in 1988 and also received a Master of Business Administration from Insead in 1992.
Mr. Musa will serve as the Executive Chairman of the Board, and will support Chief Executive Officer Dustin Olson, principally with commercial activities associated with the Company’s products manufactured at its purification facility in Ironton, Ohio and support management’s strategic and operational goals. During the Initial Term, Mr. Musa will receive a base salary at an annual rate of $500,000 and an opportunity to earn a discretionary cash bonus of up to $250,000 following the Initial Term based on the Board’s subjective evaluation of the success of Mr. Musa’s contributions to the Company. In addition, Mr. Musa will receive a one-time cash payment of $41,667.00 payable on the Effective Date, reimbursement of travel between Brazil and the United States, and will be granted an award of restricted stock units (“RSUs”) with a target grant date value of $500,000 on the Effective Date under the Company’s 2021 Equity and Incentive Compensation Plan, which RSUs will vest on November 3, 2027, subject to Mr. Musa’s continued employment with the Company through the vesting date.
With Mr. Musa’s appointment as Executive Chairman as of the Effective Date, Dan Coombs, currently serving as the Chairman of the Board of Directors, will step down as Chairman and will continue serving as a member of the Board. Tanya Burnell, an independent member of the Board will continue serving as the Lead Independent Director. Additionally, Mr. Musa will step down from his position as a member of the N&G and Audit and Finance Committees. The Board has appointed Valerie Mars, also an independent member of the Board, as a member of the N&G Committee.
Following these leadership changes, the Board will continue to be comprised of a majority of independent directors.
Item 7.01 Regulation FD Disclosure.
The slide presentation attached hereto as Exhibit 99.2, and incorporated herein by reference, will be presented to certain investors of the Company on November 4, 2026 and may be used by the Company in various other presentations to investors.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Set forth below is a list of Exhibits included as part of this Current Report.
Exhibit Number |
Description of Exhibit |
99.1 |
Press Release by PureCycle Technologies, Inc., dated November 4, 2026 |
99.2 |
PureCycle Technologies, Inc. Presentation to Investors |
104 |
The cover page from this Current Report on Form 8-K, formatted as Inline XBRL |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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PureCycle Technologies, Inc. |
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Date: |
November 4, 2026 |
By: |
/s/ Donald Carpenter |
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Donald Carpenter, Chief Financial Officer (Principal Financial Officer) |
Exhibit 99.1
PureCycle Technologies Reports Third Quarter 2026 Results
ORLANDO, FLA., November 4, 2026 — PureCycle Technologies, Inc. (Nasdaq: PCT) (“PureCycle” or the “Company”), a U.S.-based company revolutionizing plastic recycling, today announced results for the third quarter ended September 30, 2026.
Third Quarter 2026 Highlights
Commercial
Operations
Growth
Finance
Management Commentary
“The third quarter fell short of our plan. Operational issues in Q3 limited production, but we resolved them. New Jersey's extension of the food-contact exemption was a significant challenge, moving about 15 food-contact programs, roughly 50 million pounds of expected annual volume once fully ramped, out of the fourth quarter. Some of those brands are continuing on their own timetable and others have deferred. Two quick-service restaurant cup programs are progressing toward a 2027 ramp, and we have moved our primary sales and
marketing effort to non-food applications already in the pipeline, with initial positive results in October,” said Dustin Olson, Chief Executive Officer of PureCycle Technologies.
Olson continued, “Despite the NJ delay, the branded sales ramp is underway. This is a credit to our diverse pipeline and the flexibility of our product. P&G products are on shelves, railcars are moving to a large customer, a large global cosmetics company is expected to begin shipping this quarter, and a large global personal care company has approved our white grade. Including programs in contract negotiation or final qualification, we expect to approach the 40 to 50% utilization range once these programs fully ramp. On site compounding allows us to deliver the grade each customer specifies, which shortens the sales process. More of what decides our success is now within our control, and we are confident in the path ahead.”
“We ended the quarter with $193 million of liquidity and an undrawn $200 million revolver that matures in September 2028, and we are implementing cost efficiencies across the organization,” said Donald Carpenter, Chief Financial Officer of PureCycle Technologies. “Monthly operations spending was $7.8 million, below our guided range, and we will continue reducing costs into 2027. For several years our spending was sized to the challenges of learning to run a first-of-its-kind commercial plant, and the results of our cost reduction efforts should show in monthly operations spending. The Thailand incentives are in place, the construction permit was issued in September, significant capital has been invested, and we are negotiating the final terms of the project financing. We’ve reached internal milestones on growth projects, and discretionary spending is on hold while Ironton ramps.”
Board Update
Separately today, the Company announced the appointment of Fernando Musa as Executive Chairman of the Board of Directors, effective November 3, 2026. Mr. Musa has served on PureCycle’s Board since 2021 and was its Lead Independent Director from 2021 to 2022. He served as Global Chief Executive Officer of Braskem S.A. from 2016 to 2019 and as Chief Executive Officer of Braskem America from 2012 to 2016, and he has advised private equity firms since 2020. His experience scaling polypropylene production and selling it to brands is directly relevant to the Ironton ramp. As Executive Chairman he will provide insight to the Company’s commercial and finance teams and assist management in executing its strategic objectives. Dan Coombs has stepped down as Chairman and will continue as a member of the Board. Dustin Olson continues as Chief Executive Officer.
Financial Update
Financial Results
Net income for Q3 2026 was $6.9 million, which included a $58.6 million non-cash gain on the change in fair value of warrants, compared to a net loss of $28.4 million in Q3 2025. Operating loss in Q3 2026 was $37.5 million compared to $38.9 million in Q3 2025. Adjusted EBITDA was $(28.0) million compared to $(28.6) million in Q3 2025, an improvement of $0.6 million.
Revenue was $2.3 million in Q3 2026, compared to $4.5 million in Q2 2026 and $2.4 million in Q3 2025, primarily reflecting operational issues in the quarter and the New Jersey delays. PureFive® production was 5.2 million pounds in Q3 2026 compared to 4.5 million pounds in Q2 2026 and 7.3 million pounds in Q3 2025.
Cash and Liquidity
PureCycle ended Q3 2026 with total liquidity of $193 million, which includes $109 million in cash and cash equivalents, $71.4 million invested in marketable securities and $12.6 million in restricted cash, compared to $236.9 million at the end of Q2 2026. Including the undrawn $200 million revolving credit facility, total available liquidity was $393 million at the end of Q3.
The Company identified cost reductions, with new measures in effect in Q4 2026 and Q1 2027, and expects to continue reducing costs into 2027. The equipment financing payments concluded in September 2026.
Project Spend
Project spend in Q3 2026 totaled $13.0 million, bringing project spend for the first nine months of 2026 to $47.6 million. The Company expects fourth-quarter project spend of approximately $4 million, mainly committed costs of its other projects, and full-year project spend of approximately $51 million, compared with the full-year range of $45 to $50 million provided in August. Project and growth spending is expected to be directionally lower in 2027 than in 2026. Expected project spend in Q4 2026 and 2027 depends on the timing of the Thailand financing, and the Company will provide a 2027 range with its fourth-quarter results.
Capital Structure
The Company's capital structure is unchanged from the June 2026 refinancing other than the August 2026 extension of the maturity of its $200 million revolving credit facility to September 30, 2028. That facility remains undrawn.
Fourth-quarter 2026 debt service is expected to be approximately $9.4 million, mainly the December 1, 2026 revenue bond payment. The first coupon on the 4.75% senior convertible notes is payable in January 2027. Equipment financing payments concluded in September 2026.
The Company's available capital resources are cash, marketable securities and the undrawn $200 million revolving credit facility. Potential future sources of capital, which the Company does not assume in its liquidity planning, are approximately $76 million of revenue bonds held by the Company, equipment financing on owned PreP equipment ($67.3 million original cost) and approximately $272 million of proceeds if the warrants expiring in March 2027 are exercised at $11.50.
Third Quarter 2026 Conference Call Details
Date: November 4, 2026
Time: 5:00 p.m. ET
Participant Link: PureCycle Technologies Third 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. ET until February 4, 2027.
The date of the Company's fourth-quarter 2026 results call will be announced separately.
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 in the future, 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, regulatory developments, 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 conflicts in the Middle East and between Russia and Ukraine; 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 INCOME/(LOSS)
(Unaudited)
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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(in thousands, except per share data) |
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2026 |
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2025 |
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2026 |
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2025 |
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Revenues |
|
$ |
2,349 |
|
|
$ |
2,430 |
|
|
$ |
10,988 |
|
|
$ |
5,660 |
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Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
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||||
Cost of operations |
|
|
30,762 |
|
|
|
27,224 |
|
|
|
96,976 |
|
|
|
81,246 |
|
Research and development |
|
|
1,265 |
|
|
|
1,471 |
|
|
|
4,234 |
|
|
|
4,432 |
|
Selling, general and administrative |
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7,781 |
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|
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12,668 |
|
|
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30,366 |
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|
|
42,234 |
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Total operating costs and expenses |
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39,808 |
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41,363 |
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|
|
131,576 |
|
|
|
127,912 |
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Operating loss |
|
|
(37,459 |
) |
|
|
(38,933 |
) |
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(120,588 |
) |
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(122,252 |
) |
Other expense/(income) |
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Interest expense |
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14,763 |
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|
|
16,235 |
|
|
|
45,538 |
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|
|
48,939 |
|
Interest income |
|
|
(1,969 |
) |
|
|
(2,850 |
) |
|
|
(4,343 |
) |
|
|
(3,850 |
) |
Change in fair value of warrants |
|
|
(58,553 |
) |
|
|
(23,745 |
) |
|
|
(29,058 |
) |
|
|
1,881 |
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
34,541 |
|
|
|
— |
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Other expense/(income), net |
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|
1,432 |
|
|
|
(203 |
) |
|
|
1,526 |
|
|
|
(5,444 |
) |
Total other (income)/expense |
|
|
(44,327 |
) |
|
|
(10,563 |
) |
|
|
48,204 |
|
|
|
41,526 |
|
Net income/(loss) |
|
$ |
6,868 |
|
|
$ |
(28,370 |
) |
|
$ |
(168,792 |
) |
|
$ |
(163,778 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income/(loss) per share |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
0.00 |
|
|
$ |
(0.19 |
) |
|
$ |
(0.98 |
) |
|
$ |
(0.95 |
) |
Diluted |
|
$ |
0.00 |
|
|
$ |
(0.31 |
) |
|
$ |
(0.98 |
) |
|
$ |
(1.07 |
) |
Weighted average common shares |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
200,924 |
|
|
|
180,069 |
|
|
|
188,622 |
|
|
|
179,024 |
|
Diluted |
|
|
201,244 |
|
|
|
184,551 |
|
|
|
188,622 |
|
|
|
180,518 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other comprehensive loss |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cumulative translation adjustment |
|
$ |
(6 |
) |
|
$ |
(20 |
) |
|
$ |
(314 |
) |
|
$ |
(329 |
) |
Unrealized loss on available-for-sale |
|
|
(16 |
) |
|
|
— |
|
|
|
(35 |
) |
|
|
— |
|
Total comprehensive income/(loss) |
|
$ |
6,846 |
|
|
$ |
(28,390 |
) |
|
$ |
(169,141 |
) |
|
$ |
(164,107 |
) |
PureCycle Technologies, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands) |
|
September 30, 2026 |
|
|
December 31, 2025 |
|
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ASSETS |
|
|
|
|
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CURRENT ASSETS |
|
|
|
|
|
|
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Cash and cash equivalents |
|
$ |
109,041 |
|
|
$ |
156,694 |
|
Available-for-sale investments |
|
|
71,369 |
|
|
|
13,631 |
|
Restricted cash, current |
|
|
3,147 |
|
|
|
1,984 |
|
Accounts receivable, net |
|
|
4,140 |
|
|
|
2,007 |
|
Inventory |
|
|
20,212 |
|
|
|
13,824 |
|
Prepaid expenses and other current assets |
|
|
9,657 |
|
|
|
9,877 |
|
Total current assets |
|
|
217,566 |
|
|
|
198,017 |
|
NONCURRENT ASSETS |
|
|
|
|
|
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Restricted cash, noncurrent |
|
|
9,481 |
|
|
|
9,356 |
|
Operating lease right-of-use assets |
|
|
64,415 |
|
|
|
54,226 |
|
Property, plant and equipment, net |
|
|
662,032 |
|
|
|
657,752 |
|
Prepaid expenses and other noncurrent assets |
|
|
2,965 |
|
|
|
3,315 |
|
TOTAL ASSETS |
|
$ |
956,459 |
|
|
$ |
922,666 |
|
|
|
|
|
|
|
|
||
LIABILITIES, MEZZANINE EQUITY, AND STOCKHOLDERS’ EQUITY |
|
|||||||
CURRENT LIABILITIES |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
9,956 |
|
|
$ |
9,247 |
|
Accrued expenses and other current liabilities |
|
|
21,415 |
|
|
|
42,815 |
|
Accrued interest |
|
|
7,947 |
|
|
|
7,805 |
|
Current portion of warrant liability |
|
|
13,327 |
|
|
|
13,682 |
|
Current portion of long-term debt |
|
|
33,723 |
|
|
|
6,446 |
|
Current portion of related party bonds payable |
|
|
7,830 |
|
|
|
7,570 |
|
Series A Preferred Stock liability, current |
|
|
42,159 |
|
|
|
— |
|
Total current liabilities |
|
|
136,357 |
|
|
|
87,565 |
|
NONCURRENT LIABILITIES |
|
|
|
|
|
|
||
Deferred revenue |
|
|
5,000 |
|
|
|
5,000 |
|
Long-term debt, less current portion |
|
|
310,133 |
|
|
|
263,355 |
|
Related party bonds payable, less current portion |
|
|
83,701 |
|
|
|
86,343 |
|
Warrant liability, less current portion |
|
|
16,446 |
|
|
|
45,149 |
|
Operating lease right-of-use liabilities |
|
|
62,418 |
|
|
|
52,350 |
|
Series A Preferred Stock liability |
|
|
— |
|
|
|
29,606 |
|
Other noncurrent liabilities |
|
|
2,697 |
|
|
|
2,710 |
|
TOTAL LIABILITIES |
|
|
616,752 |
|
|
|
572,078 |
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
MEZZANINE EQUITY |
|
|
|
|
|
|
||
Series B Convertible Perpetual Preferred Stock |
|
|
321,213 |
|
|
|
304,701 |
|
|
|
|
|
|
|
|
||
STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
||
Common Stock |
|
|
201 |
|
|
|
180 |
|
Additional paid-in capital |
|
|
1,003,680 |
|
|
|
861,953 |
|
Accumulated other comprehensive loss |
|
|
(654 |
) |
|
|
(305 |
) |
Accumulated deficit |
|
|
(984,733 |
) |
|
|
(815,941 |
) |
TOTAL STOCKHOLDERS' EQUITY |
|
|
18,494 |
|
|
|
45,887 |
|
TOTAL LIABILITIES, MEZZANINE EQUITY, AND STOCKHOLDERS’ EQUITY |
|
$ |
956,459 |
|
|
$ |
922,666 |
|
PureCycle Technologies, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
Nine Months Ended September 30, |
|
|||||
(in thousands) |
|
2026 |
|
|
2025 |
|
||
Cash flows from operating activities |
|
|
|
|
|
|
||
Net loss |
|
$ |
(168,792 |
) |
|
$ |
(163,778 |
) |
Adjustments to reconcile net loss to net cash used in operating activities |
|
|
|
|
|
|
||
Equity-based compensation |
|
|
6,609 |
|
|
|
12,668 |
|
Change in fair value of warrants |
|
|
(29,058 |
) |
|
|
1,881 |
|
Change in fair value of put option |
|
|
2,256 |
|
|
|
(3,443 |
) |
Depreciation expense |
|
|
22,200 |
|
|
|
21,875 |
|
Loss on disposal of equipment |
|
|
426 |
|
|
|
3,765 |
|
Amortization of debt issuance costs and debt discounts |
|
|
19,804 |
|
|
|
17,335 |
|
Loss on extinguishment of debt |
|
|
34,541 |
|
|
|
— |
|
Operating lease amortization expense |
|
|
3,639 |
|
|
|
3,398 |
|
Other |
|
|
(439 |
) |
|
|
938 |
|
Changes in operating assets and liabilities |
|
|
|
|
|
|
||
Accounts receivable, net |
|
|
(2,133 |
) |
|
|
(1,595 |
) |
Inventory |
|
|
(6,388 |
) |
|
|
(3,539 |
) |
Prepaid expenses and other current assets |
|
|
30 |
|
|
|
(878 |
) |
Prepaid expenses and other noncurrent assets |
|
|
350 |
|
|
|
968 |
|
Accounts payable |
|
|
634 |
|
|
|
(2,062 |
) |
Accrued expenses and other current liabilities |
|
|
(8,783 |
) |
|
|
(578 |
) |
Accrued interest |
|
|
3,387 |
|
|
|
1,820 |
|
Operating lease right-of-use liabilities |
|
|
(3,247 |
) |
|
|
(2,827 |
) |
Net cash used in operating activities |
|
|
(124,964 |
) |
|
|
(114,052 |
) |
Cash flows from investing activities |
|
|
|
|
|
|
||
Purchase of property, plant and equipment |
|
|
(42,039 |
) |
|
|
(27,504 |
) |
Purchase of debt securities, available for sale |
|
|
(125,705 |
) |
|
|
— |
|
Sale and maturity of available-for-sale investments |
|
|
68,134 |
|
|
|
— |
|
Net cash used in investing activities |
|
|
(99,610 |
) |
|
|
(27,504 |
) |
Cash flows from financing activities |
|
|
|
|
|
|
||
Proceeds from issuance of Series B Convertible Perpetual Preferred Stock |
|
|
— |
|
|
|
300,000 |
|
Proceeds from issuance of Common Stock |
|
|
163,006 |
|
|
|
33,462 |
|
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 |
|
|
|
6,616 |
|
Payments on equipment financing |
|
|
(4,027 |
) |
|
|
(7,663 |
) |
Stock and debt issuance costs |
|
|
(19,577 |
) |
|
|
(7,624 |
) |
Payments to repurchase shares |
|
|
(2,797 |
) |
|
|
(4,527 |
) |
Other financing activities |
|
|
(1,340 |
) |
|
|
698 |
|
Net cash provided by financing activities |
|
|
178,209 |
|
|
|
347,298 |
|
Net (decrease)/increase in cash and restricted cash |
|
|
(46,365 |
) |
|
|
205,742 |
|
Cash and cash equivalents and restricted cash, beginning of period |
|
|
168,034 |
|
|
|
41,511 |
|
Cash and cash equivalents and restricted cash, end of period |
|
$ |
121,669 |
|
|
$ |
247,253 |
|
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 income (loss) to Adjusted EBITDA (in thousands):
|
|
|
|
|
|
Q3 2026 |
|
|
Q3 2025 |
|
||
Net income/(loss) |
|
|
|
|
|
$ |
6,868 |
|
|
$ |
(28,370 |
) |
Plus: Interest expense |
|
|
|
|
|
|
14,763 |
|
|
|
16,235 |
|
Less: Interest income |
|
|
|
|
|
|
(1,969 |
) |
|
|
(2,850 |
) |
Plus: Income taxes |
|
|
|
|
|
|
— |
|
|
|
— |
|
Plus: Depreciation and amortization |
|
|
|
|
|
|
7,454 |
|
|
|
7,262 |
|
EBITDA |
|
|
|
|
|
|
27,116 |
|
|
|
(7,723 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
||
Plus: Equity-based compensation |
|
|
2,103 |
|
|
|
2,903 |
|
||||
Plus/(Less): Change in fair value of warrants |
|
|
(58,553 |
) |
|
|
(23,745 |
) |
||||
Plus/(Less): Change in fair value of put option |
|
|
1,339 |
|
|
|
— |
|
||||
Adjusted EBITDA |
|
|
|
|
|
$ |
(27,995 |
) |
|
$ |
(28,565 |
) |
Key Performance Indicators
|
Q3 2026 |
Q2 2026 |
Q3 2025 |
Consolidated |
|
|
|
Revenue ($MM) |
$2.3 |
$4.5 |
$2.4 |
Monthly Ops. Spending ($MM)* |
$7.8 |
$8.4 |
$8.3 |
|
|
|
|
Ironton Purification |
|
|
|
PureFive® Production (MM lbs) |
5.2 |
4.5 |
7.3 |
Other Production (MM lbs) |
0.9 |
0.1 |
0.6 |
Feedstock Processed (MM lbs) |
5.8 |
5.0 |
8.1 |
Other Production includes co-products and other saleable volumes, net of reprocessed material. *Monthly operations spending is the average monthly cash spend on operations and corporate costs, excluding materials purchases, turnaround costs (in project spend), and severance and other costs to implement the savings measures. All periods are on the same basis, with Q2 2026 restated to include equipment lease payments ($8.3 million per month as previously reported).
###
Third Quarter 2026 Corporate Update November 4, 2026 EXHIBIT 99.2
Forward-Looking Statements This presentation contains forward-looking statements, including statements about the continued execution of PureCycle’s business plan, the expected results of tests and trials, the expected timing of commercial sales, and planned future updates. 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 presentation. 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 our 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 our PureFive® resin both generally and in food-grade applications and, more broadly, the operations of our 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 our 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 our 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 our manufacturing facilities that can result in potential injury to individuals, disrupt our business, including interruptions or disruptions in operations at our facilities, and subject us 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"), our 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 in the future, and our 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, regulatory developments 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 conflicts in the Middle East and between Russia and Ukraine; 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 conflict between Russia and Ukraine and instability 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 presentation to reflect events or circumstances after the date of this presentation 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.
Non-GAAP Financial Measures PCT 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. 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. This supplemental information should not be considered in isolation or as a substitute for the GAAP measures presented herein. The table on slide 12 provides a reconciliation from Net Income (Loss) to EBITDA and Adjusted EBITDA for the specified periods.
PCT Highlights Operations Ironton produced 5.2MM lbs in Q3; operational issues that limited production were resolved Production is now in line with current branded commercial demand On-site compounding transitioned to 24/7 availability and is accelerating many customer programs Feedstock agreement with WM, the largest recycler in North America, for up to 25MM lbs/yr; three-year term beginning November 2026; also working with WM on circularity programs with brands Commercial Railcar shipments started in Q4 to a large customer for hot lids, expected to represent a 7–8MM lbs/yr program once fully ramped Branded programs shipping, under purchase order, in contract negotiation, or final qualification are expected to reach approximately 45-55 million pounds per year at full ramp, which would approach the 40 to 50% utilization range P&G products on shelves (Tide, Downy, Gain); shipments to a large global cosmetics company are expected to begin in Q4 Two large quick-service restaurant (QSR) cold-cup programs are qualified with a major converter; launches were initially expected in 2026 but were delayed to 2027 following the New Jersey extension; term sheet conditions are agreed upon Q3 revenue of $2.3MM primarily reflects operational issues in the quarter and the NJ delays Growth Thailand project financing: negotiating final terms and conditions for financial close Thailand groundbreaking tentatively set to follow financial close; expected to be operational 18-20 months following close Growth projects have reached internal milestones; discretionary spending is on hold until commercial progress at Ironton supports further investment Finance $193MM of liquidity at quarter-end, plus the undrawn $200MM revolver, now extended to September 2028 Monthly operations spending $7.8MM, below the $8–9MM range Cost measures in Q4 2026 and Q1 2027 lower breakeven; project and growth spend directionally lower Overview Operations Commercial Growth Finance
Reliability Improved, Production in Line with Demand Quarterly rPP Production (MM lbs) Production Commentary Operational issues in Q3 limited production and were resolved Production follows customer orders: as programs convert, the priority is supplying each customer consistently to specification, so production rises with shipments Q3 production of 5.2MM lbs On-site compounding moved to 24/7 availability; more than 20 grades formulated in-house Compounding on site is accelerating many customer programs; grades are developed and adjusted to customers’ specifications at Ironton, shortening the time from trial to shipment Continue to make incremental improvements at Ironton to reduce operating costs WM feedstock agreement signed: up to 25MM lbs/yr for three years from November 2026; relationship extends to circularity programs with brands Overview Operations Commercial Growth Finance
Overview Operations Commercial Growth Finance Pipeline Converting Into Branded Orders and Shipments Some programs that were in trials in July have railcar orders today. 1 · PIPELINE Progressing faster On-site compounding and stronger supply chain processes drive conversions and faster trial progress. HIGHLIGHTS 67 programs advanced a stage since July 1 24 compounding grades in-house 19 new Asia-Pacific programs since July 20 qualified applications, up from 10 at end of Q2 2 · ORDERS AND CONTRACTING Branded orders are converting Programs through trials are converting to orders, with more negotiating to close. HIGHLIGHTS First branded railcar PO in October QSR cups: supply agreement under negotiation Personal care white grade approved, final trial set ~39MM lbs/yr contracting or final qualification 3 · SHIPMENTS Shipments broadening to include large, branded customers Railcar deliveries across multiple customers. HIGHLIGHTS Railcars of resin for hot lids are moving P&G caps on shelves: Tide, Downy, Gain Shampoo closures expected to begin in Q4 ~12MM lbs/yr shipping or ordered ANNOUNCED TODAY Commercial activities with a large global cosmetics company were announced in a LinkedIn post. Together, 45-55MM lbs/yr expected once fully ramped, approaching the 40–50% utilization range.
Overview Operations Commercial Growth Finance Regulatory Changes in New Jersey and California New Jersey delayed the requirement for PCR in food-contact packaging and kept the 2027 non-food in place; California now pays for recycled polypropylene, fines for virgin DELAYED BY NEW JERSEY Food contact Food-contact exemption extended from 2027 to 2030 (NJDEP, Sept 2, 2026) PROGRAMS Approximately 15 food-contact programs delayed out of 2H 2026 Still targeting some conversions for 2027, including two large QSR cold-cup programs ~50MM lbs/yr expected once fully ramped ACCELERATED BY NEW JERSEY Non-food rigid containers Minimum recycled content for non-food rigid containers rises to 20% on January 1, 2027 PROGRAMS Shampoo closures, storage totes Laundry caps, cosmetics closures 35-40MM lbs/yr expected once fully ramped ACCELERATED BY CALIFORNIA Film and flexible packaging SB 54 plan pays $500/ton on APR-certified polypropylene PCR from 2027 PROGRAMS Successful branded snack film industrial trial in early November 30-35MM lbs/yr expected once fully ramped Sources: NJDEP, Sept 2, 2026; CAA SB 54 program plan, Oct 13, 2026, rates operative on CalRecycle approval.
Overview Operations Commercial Growth Finance New Jersey Delays Food Contact; California Adds a Bonus The New Jersey mandate stands with food contact deferred to 2030, and California's SB 54 plan pays a bonus for recycled polypropylene. New Jersey Minimum recycled content, by year it applies 2024 2027 2030 Non-food rigid containers ACCELERATED BY NJ 10% 20% 30% Beverage containers ACCELERATED BY NJ 15% 20% 25% Food-contact containers DELAYED BY NJ Exempt Exempt Applies Food-contact exemption extended from 2027 to 2030 (NJDEP, Sept 2, 2026). PureFive® approved as recycled content in May 2026. California SB 54 program plan, Circular Action Alliance, Oct 13, 2026 $0.25/lb Bonus on APR-certified polypropylene PCR content $0.05–0.10/lb Malus fee on all virgin plastic ($100–200/ton), rising from 2027 to 2029 Rates operative on CalRecycle approval. PureCycle holds a new three-year APR certificate (Q3 2026). Neither state currently recognizes chemical recycling output as recycled content.
Overview Operations Commercial Growth Finance Near-Term Branded Applications Are Moving to Contracts Programs contracted and shipping, or in final or initial contracting: 45-55MM lbs/yr expected once fully ramped CUSTOMER APPLICATION STATUS EXPECTED TIMING VOLUME (MM lbs/yr) (once fully ramped) CONTRACTED AND SHIPPING ~12 P&G (phase 1) NON-FOOD Tide, Downy, and Gain caps; ZzzQuil lids On shelves now; pipeline expanding Shipping Large customer FOOD CONTACT Three applications including white hot lids Trucks in Q3; first railcar PO October Shipping; fully ramped Q1 2027 Global cosmetics company NON-FOOD Shampoo closure, 100% recycled content End-use and shelf-life testing Shipping; fully ramped Q4 2026 Other Deli food containers, etc. On shelves Shipping FINAL CONTRACTING ~10 Major QSR FOOD CONTACT Clear cold cups Qualified August; end-use testing; supply agreement under negotiation Q1 to Q2 2027 INITIAL CONTRACTING ~29 Personal care company NON-FOOD Deodorant sticks White grade approved; final trial early November Q1 2027 Other FOOD CONTACT Dip cups, souvenir cups, etc. Various PCR grades in final qualification 2027 EXPECTED VOLUME: NEXT IN LINE, NOT IN THE TOTAL Cosmetics black closures Planning; sequenced after the Q4 start Mid-2027 | 3-5MM lbs/yr Food containers, major converter Industrial-scale trials Q2 2027 | 8-12MM lbs/yr Snack film: 12 new programs Industrial trial Nov; nine-month plan Mid-2027 | 10-15MM lbs/yr P&G phase 2 Target ramp Mid-2027 NEXT IN LINE, TOTAL 30-45MM lbs/yr expected once fully ramped P&G (other phase 1) NON-FOOD Caps and closures Final shelf-life testing Q1 to Q2 2027 Major QSR FOOD CONTACT Clear cold cups Final shelf-life testing Q1 to Q2 2027
Pipeline Continued to Build Through October Overview Operations Commercial Growth Finance Despite 15 programs delayed by New Jersey, qualified applications doubled from 10 to 20 since the end of Q2. 55 BRANDS 50 CONVERTERS 38 APPLICATIONS 24 COMPOUNDING GRADES Qualification stages, and how each moved in Q3 and October 61 Samples shipped +3 since Q2 72 Active customer trials +3 since Q2 20 Qualified applications +10 since Q2 17 Commercial production CONSISTENTLY PRODUCING SOME OF THE HARDEST APPLICATIONS IN THE MARKET Clear cold cups Clear film Injection-molded caps White hot lids
Thailand: Project Financing Terms Under Negotiation Project Financing Final terms and conditions for financial close under negotiation More than $85MM of the $250MM project invested to date in equipment and engineering Timeline & BOI Groundbreaking to be scheduled once the timing of financial close is clear Construction permit issued September 2026 BOI approval and Fast Pass in place Seven feedstock LOIs (1.4–2.4x plant need) and 16 offtake LOIs (up to ~1.5x nameplate) Capital Plan 2027 project spend depends on the timing of the Thailand financing Line 1 uses existing brownfield infrastructure, lowering capex Additional lines would build on Line 1 infrastructure for further capex savings Overview Operations Commercial Growth Finance
Q3 2026 Financial Metrics Overview Operations Commercial Growth Finance Adjusted EBITDA Reconciliation (in millions) Q3 2026 Q3 2025 Net income/(loss) $6.9 $(28.4) Plus: Interest expense 14.8 16.2 Less: Interest income (2.0) (2.9) Plus: Depreciation and amortization 7.5 7.3 EBITDA 27.2 (7.8) Adjustments: Plus: Equity-based compensation 2.1 2.9 Plus/(Less): Change in fair value of warrants (58.6) (23.7) Plus/(Less): Change in fair value of put option 1.3 — Adjusted EBITDA $(28.0) $(28.6) Key Performance Indicators Q3 2026 Q2 2026 Q3 2025 Consolidated Revenue ($MM) $2.3 $4.5 $2.4 Monthly Ops. Spending ($MM)* $7.8 $8.4 $8.3 Ironton Purification PureFive® Production (MM lbs) 5.2 4.5 7.3 Other Production (MM lbs) 0.9 0.1 0.6 Feedstock Processed (MM lbs) 5.8 5.0 8.1 Other Production includes co-products and other saleable volumes, net of reprocessed material. * Average monthly cash spend on operations and corporate costs, excluding materials purchases, turnaround costs (in project spend), and severance and other costs to implement the savings measures. All periods are on the same basis, with Q2 2026 restated to include equipment lease payments ($8.3MM/mo as reported). Other Production includes co-products and other saleable volumes, net of reprocessed material. Q3 2026 net income includes a $58.6MM non-cash gain on the change in fair value of warrants. Figures in millions, rounded to one decimal.
Q3 2026 Capital Usage Overview Operations Commercial Growth Finance Q3 Cash Walk Ongoing spend $31.4MM: $7.8MM average monthly operations spending plus $2.7MM a month materials Debt service $3.3MM, including the $1.0MM revolver extension fee Project spend $13.0MM: Ironton $5.7MM, Antwerp $2.6MM, Thailand $2.0MM, other $2.7MM Q4 2026 Outlook Expected project spend ~$4MM, mainly committed costs of other projects; full year approx. $51MM; excludes financing-dependent spend Debt service $9.4MM, mainly the December 1 revenue bond payment 2027 Outlook 2027 project spend depends on the timing of the Thailand financing; project and growth spend directionally lower; Continued cost reduction measures: maintenance and contractors, roles and temporary labor, outside services, logistics and storage, nitrogen supply Financing $200MM revolver undrawn, extended to September 30, 2028; capital structure otherwise unchanged since the June 2026 refinancing No proceeds assumed from $272MM of warrants, $76MM of revenue bonds or equipment financing Q2 Total Liquidity $236.9 Operations Cost (incl. Denver & Feedstock) (23.1) Corporate Expenses (8.3) Total Ongoing Spend (31.4) Cash from Customers 4.2 Project & Turnaround Spend (13.0) Debt Service (3.3) Working Capital & Other (0.4) Q3 Total Liquidity $193.0
Liquidity and Potential Capital Sources Available liquidity at 9/30/26 ($MM) Component 9/30/26 6/30/26 Cash and cash equivalents 109.0 165.2 Marketable securities (AFS) 71.4 59.6 Restricted cash 12.6 12.1 Total liquidity (as reported) $193.0 $236.9 Undrawn revolver Available through September 30, 2028 200.0 200.0 Total available liquidity $393.0 $436.9 Potential future sources (not included in liquidity) Source Amount ($MM) Trigger / condition Revenue bonds held by PCT (face value) 75.6 Monetize at PCT's election, subject to market conditions Owned PreP equipment (original cost) 67.3 Available for equipment financing at PCT's election Warrants (exercise proceeds) 272.0 $11.50 strike; expire March 17, 2027; redeemable at $14.38 Overview Operations Commercial Growth Finance
Overview Operations Commercial Growth Finance Priorities Into 2027 1 Deliver on customer orders Railcars to a large customer; shipments start in Q4 for a large global cosmetics company and, on approval, a large global personal care company. 2 Convert programs closest to contract Programs in contract negotiation and final qualification move to purchase orders, including large non-food and film programs. 3 Lower operations spending Cost measures take effect in the fourth quarter and the first quarter of 2027, and further growth spending depends on commercial progress at Ironton. 4 Close Thailand financing Construction permit and incentives in place; final terms of the project financing under negotiation. Fernando Musa, Executive Chairman Effective November 3, 2026; PureCycle director since 2021 Polyolefins at scale Global CEO of Braskem, 2016–2019; led Braskem America, the leading US polypropylene producer Bio-based plastics Supported Braskem’s I’m green scaling into Europe and North America, the first renewable polyethylene made at industrial scale Role Supports the commercial ramp and scaling alongside the management team
Third Quarter 2026 Corporate Update November 4, 2026