PureCycle Q3 Revenue Falls to $2.3 Million Amid New Jersey Program Delays

The Tip Desk · November 11, 2026 · 4 min read

Third-quarter revenue was $2.3 million as operational issues and the state's food-contact exemption extension delayed expected branded volume, while Ironton produced 5.2 million pounds of PureFive resin.

PureCycle Technologies (PCT), a U.S.-based plastic-recycling company, reported third-quarter revenue of $2.3 million, reversing a sixth consecutive quarter of sequential growth after operational issues and New Jersey’s extension of its food-contact exemption shifted branded volume.

The company said the quarter fell short of plan. Chief Executive Officer Dustin Olson said New Jersey’s extension moved about 15 food-contact programs, roughly 50 million pounds of expected annual volume once fully ramped, into 2027 and in many cases beyond, with some brands continuing on their own timetable and others deferring. Two major quick-service restaurant cold-cup programs, already qualified, now have launches planned for 2027; term-sheet conditions are agreed and the supply agreement is under negotiation.

PureCycle moved its primary sales and marketing effort to non-food applications, where the January 2027 compliance date still applies, and said it saw initial positive results in October. Branded programs that are shipping, under purchase order, in contract negotiation, or in final qualification are expected to reach approximately 45–55 million pounds per year at full ramp, which the company said would approach the 40 to 50% utilization range.

Commercial work continued around that shift. Railcar shipments began in October to a large customer for hot lids, a program of about 7–8 million pounds of expected annual volume once fully ramped. Procter & Gamble products are on shelves, including Downy and Tide caps, with first Tide deliveries in October; Vicks ZzzQuil lids are in commercial production. Resin shipments to a large global cosmetics company for shampoo closures with 100% recycled content are expected to begin in the fourth quarter, and a large global personal care company has approved a white grade for deodorant sticks, with a final trial this month.

Ironton produced 5.2 million pounds of PureFive resin in the third quarter, up 14% from 4.5 million pounds in the second quarter after a planned-turnaround dip, but still below the 7.3 million pounds recorded in the year-ago quarter. The company said operational issues in the third quarter limited production and were resolved, and that production is now in line with current commercial demand. On-site compounding transitioned to 24/7 availability, with more than 20 grades formulated in-house.

Net income was $6.9 million, including a $58.6 million non-cash gain on the change in fair value of warrants, compared with a net loss of $28.4 million in the third quarter of 2025. Operating loss was $37.5 million. Adjusted EBITDA was $(28.0) million, an improvement of $0.6 million from $(28.6) million a year earlier.

Average monthly operations spending was $7.8 million, excluding materials purchases of about $2.7 million per month, below the previously guided $8.0 to $9.0 million range. New cost-reduction measures take effect in the fourth quarter of 2026 and the first quarter of 2027, including more in-house maintenance, consolidated roles, less temporary labor, logistics sized to actual volumes, and on-site nitrogen supply in 2027. Project and growth spending is expected to be directionally lower in 2027 than in 2026.

Total liquidity was $193 million at quarter-end, down from $236.9 million at the end of the second quarter, including $109 million in cash and cash equivalents, $71.4 million in marketable securities and $12.6 million in restricted cash. With the undrawn $200 million revolving credit facility, now extended to September 30, 2028, available liquidity was $393 million. Fourth-quarter debt service is expected to be approximately $9.4 million, mainly the December 1, 2026 revenue-bond payment.

Project spend in the third quarter totaled $13.0 million, bringing first-nine-months project spend to $47.6 million. The company now expects full-year project spend of approximately $51 million, versus the $45 to $50 million range provided in August. The construction permit for the Rayong, Thailand site was issued in September; final terms of project financing remain under negotiation, with total project cost still in the $250 million range and more than $85 million already invested in equipment and engineering. Discretionary spending on growth projects is on hold until commercial progress at Ironton supports further investment.

Fernando Musa was appointed Executive Chairman of the board effective November 3, 2026. Dan Coombs stepped down as chairman and remains on the board. Olson continues as chief executive officer.