0001830033-26-000014
SEC filingRevenue doubled YoY to $4.1M driven by production ramp-up, but net loss widened to $33.4M due to lower warrant revaluation gains.
The three months ended March 31, 2026, saw revenue increase 161% year-over-year to $4.1 million, driven by growing market acceptance as customer application trials advanced. PureFive production doubled to 8.4 million pounds, up from 4.3 million pounds in the prior-year quarter. Cost of operations increased $7.4 million to $31.4 million due to higher production-related costs ($3.2 million), facility costs ($2.4 million), labor and professional services ($1.1 million), and supplies ($0.8 million) from the continued ramp-up. Selling, general and administrative expenses decreased $0.8 million to $13.0 million, primarily from $3.6 million lower legal costs related to the DB arbitration, partially offset by $3.7 million higher professional services for preliminary planning of Thailand, Belgium, and Augusta facilities. Research and development expenses were flat at $1.6 million.
The operating loss widened to $41.8 million from $37.7 million. Net loss was $33.4 million compared to net income of $8.8 million in the prior year, primarily due to a $23.0 million decrease in warrant fair value (versus a $56.7 million decrease in Q1 2025) and a swing in other expense/income from $4.6 million income to $0.6 million expense. Interest expense increased slightly to $15.4 million, and interest income rose to $1.4 million on higher cash balances from Series B preferred stock issuance.
The company operates as a single reporting segment, with all revenue generated from sales of recycled polypropylene resin. Operational momentum is concentrated at the Ironton Facility, which continues to ramp production. No segment-level financials are disclosed, but management highlights increased PureFive output as the primary revenue driver. Expansion plans encompass three new facilities: Thailand (target late 2027), Belgium (mid-to-late 2028), and Augusta, Georgia (2030), with preliminary design and permitting underway. The Belgium Facility secured a €40 million grant from the EU Innovation Fund.
Management expects revenue growth to continue as customer trials progress and the Ironton Facility achieves full commercial-scale operations. However, the company remains dependent on external financing for construction of planned facilities and ongoing operations. Key liquidity sources include $131.0 million in cash and marketable securities (down from $181.7 million at year-end 2025) and an undrawn $200 million revolving credit facility maturing September 2027. Net cash used in operations was $42.7 million, reflecting the early commercial-stage nature of the business. Management emphasizes that long-term performance hinges on Ironton optimization, commercialization of PureFive, and successful construction of planned facilities. No specific revenue or margin guidance was provided, but the company aims to bring one billion pounds of installed capacity online by 2030.
As of March 31, 2026, PureCycle held $90.2M in cash and equivalents, plus $30.9M in available-for-sale debt securities, and $9.9M in restricted cash. Total liquidity (cash + marketable securities) stood at $121.1M. The company's total debt net of discounts and issuance costs was $364.3M, consisting of $250M Green Convertible Notes (net $237.3M), $31.9M Revenue Bonds (third-party), $3.6M other debt, and $118.3M related party bonds (net $87.9M). Stockholders' equity was only $7.4M, reflecting accumulated deficit of $849.4M. The company also has $200M undrawn Sylebra credit facility.
PureCycle entered into a 30-year land lease for its Thailand Facility, recording a $14.5M right-of-use asset. The company holds an $8.0M surety bond for a vendor contract. In April 2026, the company paid $20.3M to settle the Denham-Blythe arbitration, which was recognized as a liability as of March 31. The Winter Garden lease dispute with Crown Industrial Partners remains unresolved.
During Q1 2026, PureCycle repurchased $2.2M of common stock (0.3M shares). No common dividends were paid; however, $5.3M of paid-in-kind dividends accrued on Series B Preferred Stock. Debt repayments included $1.1M on equipment financing; no new debt was issued. Capital expenditures totaled $3.4M in cash, with an additional $30.8M in non-cash additions to PP&E (accrued purchases).
The company operates as a single reporting segment focused on polypropylene recycling. Revenue of $4.1M in Q1 2026 was generated primarily from two customers, which accounted for 76% of total revenue. The CODM evaluates performance on a consolidated basis; no discrete segment information is disclosed.