PureCycle Technologies (Nasdaq: PCT) posts Q2 2026 $4.5M revenue, $142.2M loss and $236.9M liquidity
Rhea-AI Filing Summary
PureCycle Technologies reported second-quarter 2026 results, with revenue of $4.5 million, up approximately 173% year-over-year, while remaining loss-making. Net loss was $142.2 million and operating loss improved to $41.3 million; Adjusted EBITDA was $(31.7) million.
PureFive® production was 4.5 million pounds, lower due to a planned Ironton turnaround completed ahead of schedule and below budget, which addressed major reliability constraints and supported record post-turnaround throughput. The company began first commercial resin deliveries to P&G, secured New Jersey approval for PureFive as post-consumer recycled content, and shipped compounded product for quick-service-restaurant cold cup trials.
Total liquidity rose to $236.9 million at quarter-end, including $165.2 million of cash and cash equivalents, supported by June offerings of $287.5 million of 4.75% convertible senior notes due 2032 and 19,854,000 common shares, part of which funded the repurchase of $216.0 million principal of 7.25% green convertible notes. The Thailand facility is expected to be operational in 2028, with total project cost estimated in the $250 million range and project financing terms under negotiation.
Positive
- None.
Negative
- None.
Filing Explained
The June raise is closed, but part of its financing is convertible or capacity-based, while Thailand’s debt financing remains unfinished.
The June capital raise is closed:
The notes have an initial conversion price of approximately
The filing lists approximately
Thailand financing remains incomplete: binding terms are being negotiated, with financial close targeted by year-end and anticipated project debt intended to fund remaining construction.
8-K Event Classification
Key Figures
Key Terms
Adjusted EBITDA financial
convertible senior notes financial
warrant liability financial
APR certification regulatory
Packaging and Packaging Waste Regulation regulatory
Series B Convertible Perpetual Preferred Stock financial
Earnings Snapshot
Ironton breakeven remains a second-half goal and Thailand project financing is targeted to close by year-end.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What were PureCycle Technologies (PCT) Q2 2026 revenues and growth?
How strong was PureCycle Technologies (PCT) liquidity at June 30, 2026?
What major financing transactions did PureCycle (PCT) complete in June 2026?
What were PureCycle’s (PCT) key operating metrics and spending in Q2 2026?
What is the status of PureCycle (PCT) Thailand and Belgium facilities?
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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
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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 August 6, 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 second quarter ended June 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 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 August 6, 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 August 6, 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: |
August 6, 2026 |
By: |
/s/ Donald Carpenter |
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Donald Carpenter, Chief Financial Officer (Principal Financial Officer) |
Exhibit 99.1
PureCycle Technologies Reports Second Quarter 2026 Results
ORLANDO, FLA., August 6, 2026, — 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
Operations
Growth
Finance
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 $142.2 million compared to a net loss of $144.2 million in Q2 2025. Operating loss in Q2 2026 improved to $41.3 million from $45.6 million in the same quarter a year ago. Adjusted EBITDA for Q2 2026 was $(31.7) million compared to $(27.8) million in Q2 2025; the year-over-year comparison reflects $7.8 million of lower non-cash add-backs, principally equity-based compensation and prior-year equipment write-downs, rather than a deterioration in operating performance; operating loss improved by $4.3 million year over year. Adjusted EBITDA is EBITDA adjusted for items affecting comparability. See the reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA provided at the end of this press release.
Operating performance continued to build during the period: PureFive® production grew approximately 32% year over year despite the planned turnaround, while core monthly operations spending declined approximately 8%, from $9.0 million to $8.3 million per month. Core operations spending has remained within a consistent band as production capacity has grown.
Cash and Liquidity
PureCycle ended Q2 2026 with total liquidity of $236.9 million, which includes $165.2 million in cash and cash equivalents, $59.6 million invested in marketable/debt securities, and $12.1 million in restricted cash, compared to total liquidity of $131 million at the end of Q1 2026. The increase was driven primarily by the June concurrent offerings of convertible senior notes and common stock.
Operations spending was $8.3 million per month in Q2 2026, reflecting core operations and corporate cash spend, with all periods presented on a consistent basis. This measure excludes materials purchases, consisting of feedstock, virgin polypropylene and compounding additives, which totaled $2.1 million per month, up from $0.7 million per month in Q1 2026 as production restarted and the new compounding operation came online. On the same basis, monthly operations spending was $8.5 million in Q1 2026 and $9.0 million in Q2 2025. The Ironton Facility turnaround, completed below budget, was tracked separately from the operations spending rate.
Second quarter cash outflows included a previously disclosed non-recurring legal settlement of $20.4 million.
Project Spend
Project spend in Q2 2026 totaled $20.9 million, bringing first-half 2026 project spend to approximately $35 million. Fiscal year 2026 project spend expectations are $45 to $50 million, up from the prior range of $39 to $45 million. Second-half 2026 spend of $10 to $12 million remains contingent on project gating decisions and the timing of project financing.
Capital Structure
In June 2026, the Company closed concurrent public offerings of $287.5 million aggregate principal amount of 4.75% convertible senior notes due 2032 (which have an initial conversion price of approximately $11.08 per share of common stock) and 19,854,000 shares of its common stock. The underwriters' over-allotment options were exercised in full, resulting in net proceeds of approximately $432.0 million after deducting underwriting discounts, commissions, and estimated offering expenses. The Company used a portion of the net proceeds from the offerings to repurchase $216.0 million in aggregate principal amount at maturity of its 7.25% green convertible notes due 2030 for $241.1 million plus $5.2 million of accrued interest, with the remainder available for working capital and other general corporate purposes.
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 $2.4 million, primarily the August coupon on the $34.0 million of remaining 7.25% notes and final equipment financing payments.
The Company’s available capital resources include cash on hand following the June concurrent public offerings, approximately $273 million in potential warrant proceeds through March 2027, approximately $76 million in available revenue bonds and the undrawn $200 million revolving credit facility.
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)
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Three Months Ended June 30, |
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Six Months Ended June 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 |
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$ |
4,512 |
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$ |
1,650 |
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$ |
8,639 |
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$ |
3,230 |
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Operating expenses |
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Cost of operations |
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34,820 |
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30,020 |
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66,214 |
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54,022 |
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Research and development |
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1,414 |
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1,409 |
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2,969 |
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2,961 |
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Selling, general and administrative |
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9,612 |
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15,819 |
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22,585 |
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29,566 |
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Total operating costs and expenses |
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45,846 |
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47,248 |
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91,768 |
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86,549 |
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Operating loss |
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(41,334 |
) |
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(45,598 |
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(83,129 |
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(83,319 |
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Other expense/(income) |
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Interest expense |
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15,393 |
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17,640 |
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30,775 |
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32,704 |
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Interest income |
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(992 |
) |
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(621 |
) |
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(2,374 |
) |
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(1,000 |
) |
Change in fair value of warrants |
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52,492 |
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82,295 |
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29,495 |
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25,626 |
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Loss on extinguishment of debt |
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34,541 |
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— |
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34,541 |
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— |
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Other (income)/expense, net |
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(549 |
) |
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(672 |
) |
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94 |
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(5,241 |
) |
Total other expense |
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100,885 |
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98,642 |
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92,531 |
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52,089 |
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Net loss |
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$ |
(142,219 |
) |
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$ |
(144,240 |
) |
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$ |
(175,660 |
) |
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$ |
(135,408 |
) |
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Loss per share |
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Basic |
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$ |
(0.80 |
) |
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$ |
(0.81 |
) |
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$ |
(1.02 |
) |
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$ |
(0.76 |
) |
Diluted |
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$ |
(0.80 |
) |
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$ |
(0.81 |
) |
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$ |
(1.02 |
) |
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$ |
(0.76 |
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Weighted average common shares |
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Basic |
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184,240 |
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179,666 |
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182,369 |
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178,493 |
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Diluted |
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184,240 |
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179,666 |
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182,369 |
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178,493 |
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Other comprehensive loss |
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Cumulative translation adjustment |
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$ |
(54 |
) |
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$ |
(215 |
) |
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$ |
(308 |
) |
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$ |
(309 |
) |
Unrealized loss on available-for-sale |
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(3 |
) |
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— |
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(19 |
) |
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— |
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Total comprehensive loss |
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$ |
(142,276 |
) |
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$ |
(144,455 |
) |
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$ |
(175,987 |
) |
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$ |
(135,717 |
) |
PureCycle Technologies, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands) |
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June 30, 2026 |
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December 31, 2025 |
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ASSETS |
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CURRENT ASSETS |
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Cash and cash equivalents |
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$ |
165,223 |
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$ |
156,694 |
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Available-for-sale investments |
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59,593 |
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13,631 |
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Restricted cash – current |
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2,636 |
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1,984 |
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Accounts receivable, net |
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5,810 |
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2,007 |
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Inventory |
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18,277 |
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13,824 |
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Prepaid expenses and other current assets |
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9,220 |
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9,877 |
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Total current assets |
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260,759 |
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198,017 |
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NONCURRENT ASSETS |
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Restricted cash – noncurrent |
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9,435 |
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9,356 |
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Operating lease right-of-use assets |
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65,843 |
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54,226 |
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Property, plant and equipment, net |
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663,593 |
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657,752 |
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Prepaid expenses and other noncurrent assets |
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2,992 |
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|
3,315 |
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TOTAL ASSETS |
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$ |
1,002,622 |
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$ |
922,666 |
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LIABILITIES, MEZZANINE EQUITY, AND STOCKHOLDERS’ EQUITY |
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CURRENT LIABILITIES |
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Accounts payable |
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$ |
13,056 |
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$ |
9,247 |
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Accrued expenses and other current liabilities |
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24,008 |
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|
42,815 |
|
Accrued interest |
|
|
2,461 |
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|
|
7,805 |
|
Current portion of warrant liability |
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|
50,828 |
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|
13,682 |
|
Current portion of long-term debt |
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2,026 |
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|
6,446 |
|
Current portion of related party bonds payable |
|
|
7,830 |
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|
7,570 |
|
Total current liabilities |
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100,209 |
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|
87,565 |
|
NONCURRENT LIABILITIES |
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Deferred revenue |
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5,000 |
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5,000 |
|
Long-term debt, less current portion |
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|
342,762 |
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|
|
263,355 |
|
Related party bonds payable, less current portion |
|
|
81,524 |
|
|
|
86,343 |
|
Warrant liability, less current portion |
|
|
37,498 |
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|
45,149 |
|
Operating lease right-of-use liabilities |
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|
63,530 |
|
|
|
52,350 |
|
Series A Preferred Stock liability |
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37,443 |
|
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|
29,606 |
|
Other noncurrent liabilities |
|
|
3,624 |
|
|
|
2,710 |
|
TOTAL LIABILITIES |
|
|
671,590 |
|
|
|
572,078 |
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MEZZANINE EQUITY |
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Series B Convertible Perpetual Preferred Stock |
|
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315,530 |
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|
304,701 |
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STOCKHOLDERS' EQUITY |
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|
|
|
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|
||
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 |
($142,219) |
$(144,240) |
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 |
($31,676) |
($27,784) |
Key Performance Indicators
|
Q2 2026 |
Q1 2026 |
Q2 2025 |
Consolidated |
|
|
|
Revenue ($MM) |
$4.5 |
$4.1 |
$1.7 |
Monthly Ops. Spending ($MM) |
$8.3 |
$8.5 |
$9.0 |
|
|
|
|
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 $2.1 million per month in Q2 2026, $0.7 million per month in Q1 2026 and $1.2 million per month in Q2 2025; Ironton turnaround costs are tracked in project spend. Q1 2026 includes $0.4 million per month of annual bonus payout and was previously reported as $8.8 million per month on a basis that included materials purchases and excluded the bonus.
###
Second Quarter 2026 Corporate Update August 6, 2026
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 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: PCTs’ 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 our ability to bring a total of one billion pounds of installed polypropylene recycling capability online by 2030, 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, 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 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 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.
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 at the end of this presentation provides a reconciliation from Net Income (Loss) to EBITDA and Adjusted EBITDA for the specified periods.
PCT Highlights Operations Ironton turnaround completed ahead of schedule and below budget; 170+ site projects executed, including the two largest constraints of the past year Achieved new daily throughput record post-turnaround and demonstrated production at 12,000 pounds per hour On-site compounding producing initial commercial volumes; running 24/5 operation today, 24/7 planned for Q4 Commercial First P&G commercial resin deliveries began in Q2 2026, with caps for select Downy bottles now in commercial production; shipments continuing in Q3 2026 New Jersey recycled-content approval secured; California SB54 in effect; PureFive® APR certified Shipped compounded product to all three major QSR converters in Q3 for cold cup trials; the New Jersey approval is accelerating the qualification process at major QSRs Sixth consecutive quarter of sequential revenue growth; revenue of $4.5MM, with increasing mix to branded customers with higher pricing Launched first external marketing campaign with the Cleveland Kitchen commercial launch, creating measurable engagement and new pipeline with major brands and retailers Growth Thailand BOI approval received (incl. fast-pass) Thailand groundbreaking on track for 2H 2026, operational in 2028; total investment ~$250MM Belgium permitting and Gen2 design work continue to progress Finance Total liquidity strengthened to $236.9MM following June concurrent convertible note and common stock offerings Monthly operations spending $8.3MM; Ironton turnaround costs tracked separately Negotiating binding terms for Thailand debt financing; financial close targeted for year-end Overview Operations Commercial Growth Finance
Q2 Execution Positions a Second-Half Ramp Delivered in Q2 Turnaround completed ahead of schedule and below budget; the two largest reliability constraints of the past year addressed On-site compounding commissioned: we can now produce exactly what a customer specifies, consistently Sixth consecutive quarter of sequential revenue growth Branded adoption to-date, and why it is accelerating Customer adoption is lengthy and fragmented: thousands of SKUs, each qualified separately, over multiple evaluation cycles Timing of NJ resolution paused numerous application trials in 1H26; this trend is now reversing as customers move to qualify for January 2027 Thermoformed packaging used predominately by QSRs, are directly impacted by the NJ regulatory mandate Second half focus Ironton breakeven remains our second-half target: site-level monthly cash breakeven at exit rate Realized branded pricing is strong and regulatory drivers are stimulating demand Thailand: groundbreaking in 2H 2026, operational in 2028, targeting close of project financing by year-end Overview Operations Commercial Growth Finance
Turnaround Complete; Reliability Improved Quarterly rPP Production (MM lbs) Q2 2026 Key Highlights Q2 production of 4.5MM lbs; turnaround completed ahead of schedule and below budget, with 170+ site projects executed Deliberately operated with low volume; new equipment commissioned and tested process conditions equivalent to Thailand and Antwerp designs Last year's two biggest reliability constraints, the CP2 and mechanical systems, both substantially improved during the outage Turnaround inspections favorable; large equipment observed to be clean with no evidence of corrosion, a good indicator for future reliability Continue to match Ironton production with commercial requirements Denver running at levels needed for Ironton production Overview Operations Commercial Growth Finance
On-Site Compounding: Meeting Customer Requirements Progress Since Mechanical Completion Why It Matters Running 24/5, with focus on sample development and customer qualification; planned shift to railcar deliveries in 2H and 24/7 in Q4 In-house formulation control lets us match a customer’s unique specification Multiple grades and applications; railcar, truck or boxed delivery format Ironton compounded volume ~2.0MM lbs YTD Quality consistency is the primary constraint on branded adoption Mandates require a recycled-content percentage; compounding delivers the unique blend each application requires Drop-in operability, quality consistency and supply reliability are top purchase criteria for branded customers Overview Operations Commercial Growth Finance
Opportunity Pipeline Continues to Strengthen Overview Operations Commercial Growth Finance 42 BRANDS 15 CONVERTERS 28 APPLICATIONS 20 COMPOUNDING GRADES 13 clear / 7 white Qualification stages, and how each moved in Q2 58 Samples shipped +21 in Q2 69 Active customer trials +15 in Q2 10 Qualified applications +3 in Q2 APPLICATIONS ALREADY PRODUCED, COMMERCIALLY OR IN CUSTOMER TRIALS Deodorant sticks Shampoo closures Butter tubs Coffee lids Take-out containers Cold cups Deli containers Laundry Caps
Branded Customer Adoptions Are Gaining Momentum Overview Operations Commercial Growth Finance 37 programs advanced at least one qualification stage in Q2 Customer Adoption • P&G: Downy caps on select bottles now in commercial production; Tide caps qualified with production scheduled for Q3, and Vicks ZzzQuil lids for Q4 • Cleveland Kitchen: 24 oz. deli containers with 25% PureFive® reached store shelves in June 2026 via converter IPL Schoeller. • QSR cold cups: compounded product shipped to all three major converters in Q3 TIMING For PCT, the New Jersey clock only started in mid-May • Recycled-content approval was granted in mid-May: a one-year conditional approval with a path to permanent • That leaves roughly three months of selling time, against qualification cycles that run multiple quarters • Mandate-driven conversions are only beginning, and 17 active trials are tied to New Jersey compliance • Demand will increase: food-contact exemption expires January 2027 and minimum content requirement increases in 2027 Q2 announcements are a preview of what’s to come Segment Application Trials Announcement (press release) Injection molding Food packaging 8 IPL Schoeller and Cleveland Kitchen; Reliable Caps certified-recycled closures Living hinge and closures 5 PureFive® passes the "living hinge" test Thermoforming Clear cups and hot lids 4 Plastic Ingenuity coffee lids; New Jersey food-contact PCR approval Flexible Packaging Food retail 4 Mitsui, PureCycle and RM TOHCELLO BOPP film from PCR Customer industrial 1 Innovia white cavitated BOPP film, over 40% PCR Regulation New Jersey 17 New Jersey qualifies PureFive® recycled content CosPaTox 1 PureFive® reaches the highest CosPaTox rating
A Diverse Product Range Underpins the 2H 2026 Ramp The ramp does not hinge on any single product qualifying. Overview Operations Commercial Growth Finance Recycled content mix, by volume 100% PCR 45% 50% PCR 29% 30% PCR 24% Color mix, by volume Clear 71% White 20% 7% Black Commercial Shipping to a converter in commercial production HPP 15-100 100% PCR Caps and closures In trials Customer trials or qualification underway HPP / CPP 04-50 50% PCR Microwavable containers, protein trays, BOPP CPP 80-30 30% PCR Yogurt cups, dairy containers In sales Sold into the current order book HPP 07-70 70% PCR Portion cups, straws, coffee lids HPP 35 / 45-100 100% PCR Souvenir cups HPP 15-100 100% PCR Deli containers HPP / CPP 20-50 50% PCR Shampoo closures, dosage caps HPP 02-30 30% PCR QSR cold cups, hot lids HPP / CPP 04-50 50% PCR QSR cold cups, hot lids
P&G: Continues to Add New Applications Downy detergent caps on select bottles PureFive® resin qualified First commercial resin deliveries began in Q2 2026 Commercial production underway Tide detergent caps on select bottles PureFive® resin qualified First commercial resin deliveries began in Q2 2026 Commercial production scheduled for Q3 2026 Vicks ZzzQuil PURE Zzzs child-resistant lids PureFive® resin qualified Commercial launch scheduled for Q4 2026 Overview Operations Commercial Growth Finance Additional applications advancing across multiple brands
IPL & Cleveland Kitchen: Branded Retail Conversion Cleveland Kitchen 24 oz. deli containers with 25% PureFive® recycled polypropylene hit store shelves in June 2026 Produced by converter IPL Schoeller; now on shelves at leading retail chain Demonstrates PureFive® performing in demanding food-contact retail packaging Additional brands have contacted IPL Schoeller with interest in using containers with PureFive® resin Ongoing work between PureCycle & IPL Schoeller to expand portfolio of sustainable containers IPL Schoeller are leaders in the use of PCR across our European business, and we have been wanting to incorporate recycled polypropylene into the right product in North America for several years with our eye on the PureCycle resin due to its high quality, clarity, and broad use cases. We were just waiting for the right partner to make this a reality. – Melissa Vettleson IPL Schoeller Sustainability & Materials Engineer Overview Operations Commercial Growth Finance
Regulation Is Accelerating Customer Focus and Adoption Mandates with dates create demand with dates, and the same shift converting demand in the US is now advancing across Europe and Asia. Overview Operations Commercial Growth Finance United States Expected demand for Ironton • New Jersey approval secured in May: one-year conditional, with a path to permanent • Requirement rises to 20% in 2027; food-contact exemption expires January 2027 • California SB54 in effect: 10% source reduction by 2027, 20% by 2030, 25% by 2032 • PureFive® qualifies as recycled content via APR certification Europe Expected demand for Antwerp • Packaging and Packaging Waste Regulation: recycled-content mandates for plastic packaging • End-of-Life Vehicles Regulation: recycled-content requirements for automotive plastics • PureFive® is REACH certified, with growing interest in serving European demand from Ironton Asia Expected demand for Thailand • Japan approved physically recycled polypropylene for food contact in September 2025, opening regional demand • Mitsui and RM TOHCELLO partnership announced July 2026, advancing PureFive® toward Japanese flexible packaging What the mandates drive right now • QSR cups are the single largest demand pull for recycled polypropylene, and the New Jersey approval accelerated qualification at major QSRs • Take-out containers: demand building from thousands of restaurant owner-operators who must comply in New Jersey, with converters launching compliance-specific lines • Food contact containers and packaging; e.g. New Jersey requires any container between 8oz and 5 gallons to have recycled content and California impacts all plastic packaging • 17 active trials are tied directly to New Jersey compliance • Clear thermoformed food packaging sits squarely in the mandate, and compounding lets us supply multiple grades to match customer requirements • Requirements step up over time, so qualification work done now supports multi-year volume opportunities
Recycled-Content Regulation Is Global and Accelerating Mandates in force or phasing in across the Americas, Europe and Asia Americas Europe East Asia South & SE Asia & Oceania Overview Operations Commercial Growth Finance
Thailand Project Update Project Financing Project financing progressing Currently negotiating binding terms Targeting financial close before year-end Anticipated project debt sized to fund remaining construction Previously acquired equipment and engineering spend will be contributed as equity in the project Timeline & BOI The facility is expected to become operational in 2028 Groundbreaking expected in 2H 2026 Total project cost estimate remains in the $250MM range BOI approval received, including selection for Thailand's "Fast Pass" program, reserved for priority strategic investments, which accelerates permitting, licensing, and utility access through centrally coordinated processing Feedstock & Offtake Feedstock: 7 signed LOIs with Thai suppliers, 96–156 kt/yr against a 65–70 kt/yr requirement, or 1.5x to 2.4x coverage Offtake: 14 signed sales LOIs, 47.7–83.5 kt/yr against 59 kt/yr of output, or 0.8x to 1.4x coverage Plant output of 59 kt/yr is roughly 130MM lbs Overview Operations Commercial Growth Finance
Q2 2026 Financial Results Overview Operations Commercial Growth Finance Adjusted EBITDA Reconciliation (in millions) Q2 2026 Q2 2025 Net Loss $(142.2) $(144.2) Plus: Interest expense 15.4 17.6 Less: Interest income (1.0) (0.6) Plus: Depreciation and amortization 7.4 7.3 EBITDA (120.5) (120.0) Adjustments: Plus: Equity-based compensation 2.0 6.4 Plus/(Less): Change in fair value of warrants 52.5 82.3 Plus/(Less): Change in fair value of put option (0.6) (0.3) Plus: Write-down/loss on sale of equipment 0.4 3.8 Plus: Loss on extinguishment of debt 34.5 — Adjusted EBITDA $(31.7) $(27.8) Key Performance Indicators Q2 2026 Q1 2026 Q2 2025 Consolidated Revenue ($MM) $4.5 $4.1 $1.7 Monthly Ops. Spending ($MM)* $8.3 $8.5 $9.0 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 Beginning with Q1 2026, PureCycle is presenting operational and financial Key Performance Indicators alongside the Adjusted EBITDA reconciliation to provide greater insight into operational and financial trends. These metrics may evolve as the business scales. Other Production includes Co-product 1, Co-product 2, and additional saleable volumes, net of material reprocessed back into the production stream, representing recovered material intended for sale as commercial markets develop. * Core operations and corporate cash spend, all periods on a consistent basis; excludes materials purchases (feedstock, virgin polypropylene and additives) of ~$2.1MM/mo (Q2’26), ~$0.7MM/mo (Q1’26) and ~$1.2MM/mo (Q2’25); turnaround costs tracked in project spend. Q1’26 includes ~$0.4MM/mo of bonus payout and was previously reported as $8.8MM/mo on a different basis. Note: figures are presented in millions, rounded to the nearest $0.1 million, and may not sum precisely.
Q2 2026 Capital Usage & Liquidity Overview Operations Commercial Growth Finance Notes Ongoing ops+corp spend of $31.0MM ($10.3MM/mo) = $8.3MM/mo core spend + $2.1MM/mo feedstock, virgin PP and additive purchases for the ramp and new compounding operation Debt Service of $11.9MM = $9.4MM net SOPA bond P&I + $2.4MM equipment finance Project spend of $20.9MM includes $6.4MM April outage-window turnaround and compounding/Cross Wrap tie-ins, $3.3MM Thailand (KMPS), and $4.2MM Belgium Non-recurring legal settlement of $20.4MM paid in April; expense accrued in prior periods Guidance 2H 2026 total project spend: $10 - 12MM (contingent on project gating decisions and the timing of project financing) 2026 total project spend: $45 - 50MM Q3 2026 debt service expected: $2.4MM, primarily the August coupon on the $34MM 7.25% stub plus final equipment finance payments (lease ends September 2026) Financing Closed June 15: $287.5MM 4.75% convertible senior notes due 2032 + $163.0MM common stock ($450.5MM gross proceeds) Net proceeds $432.0MM after $18.5MM fees ($16.9MM paid + $1.7MM accrued at 6/30/26); repurchased $216.0MM face of the 7.25% green senior notes for $241.1MM plus $5.2MM accrued interest; $186MM net cash to the balance sheet Investor put moved from 2027 to 2030, maturity 2032; $34.0MM stub on existing note remaining Q1 Total Liquidity $131.0 Operations Cost (incl. Denver & Feedstock) (20.9) Corporate Expenses (10.1) Total Ongoing Ops. Spend (31.0) Cash from Customers 2.6 Project & Turnaround Spend (20.9) Debt Service (11.9) Non-recurring Legal Settlement (20.4) Net financing (refi + equity) 187.7 Working Capital & Other (0.2) Q2 Total Liquidity $236.9
Second Quarter 2026 Corporate Update August 6, 2026