Key Highlights

  • Revenue was USD 2.35 million against a USD 8.28 million estimate, with EPS of USD 0.00 against USD -0.26.
  • Net income was USD 6.87 million with a USD 58.55 million Warrant value decrease, against a USD 28.37 million loss.
  • Operating loss was USD 37.46 million, and PureFive output was 5.2 million pounds against 7.3 million.
  • Cash, restricted cash and marketable securities were USD 193.0 million, with a USD 200.0 million revolving Credit Facility undrawn.

The main event in PureCycle Technologies (NASDAQ:PCT) third quarter was a USD 58.55 million decrease in the Fair Value of its liability-classified warrants, recorded within other income. That item sits beside Revenue of USD 2.35 million and an operating loss of USD 37.46 million, and it produced Net Income of USD 6.87 million and EPS of USD 0.00 against a net loss of USD 28.37 million a year earlier.

How the Warrant Change Fits the Quarter

The company attributed the warrant decrease primarily to lower common stock and public warrant values and a shorter remaining term to expiration. A year earlier, the same line showed a USD 23.75 million decrease. The warrants were extended in 2026 and now expire on the earlier of March 17, 2027 or a Redemption date, with the redemption trigger price reduced from USD 18.00 to USD 14.38.

Interest expense was USD 14.76 million against USD 16.24 million, which management linked to the June 2026 repurchase of USD 216.0 million of Green Convertible Notes, partly offset by the new Convertible Senior Notes issued that month.

Results Around the Event

Revenue was USD 2.35 million against USD 2.43 million a year earlier, and the company called it relatively consistent with the prior year period. For nine months, revenue was USD 10.99 million against USD 5.66 million. Management described itself as an early commercial-stage company without long-term sales contracts, with revenue that may vary as customer application trials progress.

Cost of operations was USD 30.76 million against USD 27.22 million. PureFive production fell to 5.2 million pounds from 7.3 million pounds, which the company tied to operational issues during the quarter that it said were resolved; it also cited USD 3.1 million of higher production and labor costs from onsite compounding. Selling, general and administrative expenses were USD 7.78 million against USD 12.67 million, with lower legal costs and higher capitalized labor for the Thailand and Belgium projects named as drivers.

Financing, Cash and Projects

Cash and cash equivalents were USD 109.04 million and available-for-sale investments were USD 71.37 million, within approximately USD 193.0 million of cash and cash equivalents, restricted cash and marketable securities. Net cash used in Operating Activities for nine months was USD 124.96 million against USD 114.05 million. The company paid about USD 42.0 million of project spend in that period, including USD 15.0 million to settle the DB arbitration.

In June 2026 it issued USD 287.5 million of Convertible Senior Notes and 19.9 million common shares at USD 8.21, for gross proceeds of USD 163.0 million. On August 28 it extended the Maturity of its USD 200.0 million Sylebra revolving credit facility to September 30, 2028.

Planned facilities include a 130 million pound plant in Rayong, Thailand, with the construction permit issued, a 130 million pound plant in Antwerp, Belgium, supported by a EUR 40 million grant agreement, and an Augusta, Georgia facility designed for about 300 million pounds per year.

Reference Points for Investors

Revenue of USD 2.35 million sits alongside net income of USD 6.87 million, an operating loss of USD 37.46 million and USD 193.0 million of liquidity.

Management named dated items: a Belgian permit application planned for the latter part of 2026, the March 17, 2027 warrant expiration, the August 15, 2027 date when holders may require repurchase of the USD 34.0 million of remaining Green Convertible Notes, and the September 13, 2027 mandatory redemption of the Series A Preferred Stock at about USD 61.2 million. Management stated a plan to fund both from cash on hand and other available sources of liquidity.