0001193125-25-269651
SEC filingPureCycle generated $2.4M revenue in Q3 2025, first year of meaningful operations, with operating loss of $38.9M and net loss of $28.4M.
For the three months ended September 30, 2025, PureCycle reported revenues of $2.4 million, compared to $0 in the prior year period, marking its first quarter of meaningful sales. Cost of operations rose to $29.6 million from $17.0 million, driven by $4.9 million in professional services for Thailand and Augusta facility planning, $3.2 million in production ramp-up costs, $2.6 million in facilities costs for the new Denver PreP facility, and $1.0 million in higher supplies. Research and development decreased slightly to $1.4 million. Selling, general and administrative expenses fell to $10.4 million from $12.8 million due to lower legal costs. Total operating expenses were $41.4 million, leading to an operating loss of $38.9 million, compared to a $31.3 million loss last year. Net loss improved to $28.4 million from $90.6 million, primarily due to a $23.7 million decrease in the fair value of liability-classified warrants (gain) versus a $44.9 million increase (loss) in the prior year. Interest expense increased to $16.2 million from $14.6 million, while interest income rose to $2.9 million.
For the nine months ended September 30, 2025, revenues totaled $5.7 million (versus $0). Cost of operations increased $22.5 million to $82.8 million, with key drivers including $7.5 million higher production costs, $5.0 million professional services, $3.7 million loss on disposal of fixed assets, $3.4 million employee-related expenses, $2.3 million supplies, and $1.3 million facilities costs, partially offset by $1.7 million lower depreciation. Operating loss was $122.3 million versus $110.2 million. Net loss narrowed to $163.8 million from $224.5 million, aided by a $1.9 million increase in warrant fair value (compared to a $54.5 million increase in 2024) and a $5.4 million other income including gains on put option and insurance proceeds.
PureCycle operates as a single segment focused on polypropylene recycling via its proprietary dissolution technology. Revenue is generated from sales of PureFive™ resin and byproducts. The company has not yet achieved full-scale commercial operations; the Ironton Facility is undergoing commissioning. As such, no segment-level revenue or margin breakdown is provided.
Management outlined growth plans funded by the $300 million Series B Preferred Stock raise. Key milestones include: Thailand facility (130M lbs) operational in 2027, Antwerp facility (130M lbs) in 2028, and Augusta multi-line facility (300M lbs) first line in 2029. The company expects to continue scaling operations and headcount, with cost of operations and SG&A expected to increase. The Ironton Facility is targeting full capacity of 107 million pounds per year. FDA food contact clearances have been expanded, supporting future resin sales. The $200 million undrawn Revolving Credit Facility (expiring 2027) provides additional liquidity. Management believes current liquidity is sufficient for at least twelve months, but longer-term depends on Ironton ramp-up and successful construction of new facilities.
As of September 30, 2025, PureCycle Technologies held $234.4M in cash and cash equivalents, a dramatic increase from $15.7M at year-end 2024, primarily due to the $300M Series B Convertible Perpetual Preferred Stock issuance in June 2025. This infusion alleviated the substantial doubt about going concern previously noted. Total assets stood at $989.1M, driven by property, plant & equipment of $656.0M. Total liabilities were $621.6M, including $379.1M in total debt (long-term debt and related party bonds payable). Shareholders' equity was $68.2M, with an accumulated deficit of $797.2M. The company also had $5.0M in deferred revenue (noncurrent).
The Notes disclose no material purchase commitments or contractual obligations beyond a surety bond of $8.1M related to a vendor contract. There is an ongoing arbitration with Denham-Blythe (potential exposure ~$17M) but the outcome is uncertain. No operating lease commitments beyond those recorded on the balance sheet.
During the nine months ended Sep 30, 2025, the company repurchased $4.5M of common stock (0.4M shares). No dividends were paid; Series B Preferred dividends of $5.9M were accrued in kind. Net debt increased by $32.4M, primarily from issuance of $26.9M in revenue bonds (including $10.1M to related parties). Capital expenditures totaled $27.5M, mainly for the Ironton facility and other projects. The company used proceeds from the Series B offering to repay a $10M draw on its revolving credit facility.
The company operates as a single reporting segment focused on polypropylene recycling. The CODM reviews consolidated net loss as the primary performance measure. No geographic or segment-level revenue or profitability breakdowns are provided. Revenue for the nine months was $5.7M, all from product sales. The company remains in the early commercialization stage.