PureCycle Technologies, Inc. (PCT) SEC Filings & Earnings Calls

Extension fee and reliance on related-party lenders (Sylebra Capital) may indicate limited access to alternative financing.

“The Lenders and their affiliates are greater than 5% beneficial owners of the Company.” · word for word

Operational risk: Ironton plant still ramping; turnaround completed but reliability improvements need to sustain.

“Turnaround completed ahead of schedule and below budget... the two largest reliability constraints of the past year, the CP2 system and mechanical seals, were both substantially improved” · word for word

Thailand project execution risk: $250M cost estimate, groundbreaking in 2H 2026, financial close targeted by year-end.

“Thailand Facility expected to be operational in 2028; groundbreaking expected in 2H 2026; total project cost estimate remains in the $250 million range” · word for word

Cash burn: $8.3M per month operations spending; liquidity runway depends on revenue growth and project financing.

“Operations spending of $8.3 million per month, excluding feed and compounding material purchases” · word for word

Technology scalability risk

“Operational challenges at the Ironton Facility have included, but are not limited to: (i) filter fouling... (ii) co-product handling... (iii) odor and color specification compliance... (iv) maintenance downtime... Any one or more of these operational challenges or failures... could prevent PCT from achieving or sustaining the production volumes, yields, upti” · word for word

License termination risk

“The License Agreement sets forth certain construction and sales deadlines for future facilities outside North America, which, if missed, could result in (i) a termination of the license granted under the License Agreement... or (ii) conversion of the license to a non-exclusive license... If the License Agreement is terminated, PCT would not have the right to” · word for word

High debt and liquidity risk

“As of June 30, 2026, PCT had total consolidated indebtedness of $470.2 million... and does not yet have any sources of material recurring revenue... A significant portion of cash flow from operating activities, if and when generated, will be required to service debt, which will reduce funds available for operations, capital expenditures, strategic initiative” · word for word

Feedstock supply and pricing risk

“PCT’s ability to procure a sufficient quantity and quality of post-industrial and post-consumer waste that contains high levels of polypropylene as feedstock is dependent upon certain factors outside of PCT’s control, including... changes to pricing levels... shortages in supply... competition from other buyers... regional availability and collection infrast” · word for word

Single facility dependency

“PCT currently relies solely on the operations at the Ironton Facility, and there is no guarantee that the Planned Facilities will be constructed on the expected timeline, or at all.” · word for word

Dilution risk from convertible notes and common stock offering; lock-up period may limit near-term selling pressure.

“directors, executive officers and specified affiliates... entered into lock-up agreements providing for a 60-day lock-up period”

Dilution from equity offering

“$145.0 million of shares of Common Stock” · word for word

Increased leverage from convertible notes

“$250.0 million aggregate principal amount of convertible senior notes due 2032” · word for word

Dilution from equity offering

“$145.0 million of shares of Common Stock” · word for word

Increased leverage from convertible notes

“$250.0 million aggregate principal amount of convertible senior notes due 2032” · word for word

Dilution risk from equity offering and potential conversion of notes.

“Concurrent offerings of $250M convertible notes and $145M common stock.”

Net loss of $33.4M; negative adjusted EBITDA; cash burn continues with liquidity declining from $182M to $131M.

“Net loss for Q1 2026 was $(33.4) million; total liquidity decreased from $182M to $131M” · word for word

Dependence on warrant proceeds and undrawn revolver for future funding; project spend timing risk.

“Potential warrant proceeds totaling approximately $273 million; $200 million revolving credit facility remains undrawn” · word for word

Liquidity risk - high cash burn rate

“Net cash used in operating activities (42,654) (38,868)” · word for word

Legal liability - arbitration award paid

“the AAA arbitration panel issued its Final Order requiring the Company to pay DB a total of $20.3 million” · word for word

Customer concentration risk

“Two customers generated 76% of the Company's revenues during the three months ended March 31, 2026”

Negative gross margin - early stage

“Cost of operations 31,394 24,002” · word for word

Related-Party Financing Dependency

“Borrowings during the year ended December 31, 2025, were at an interest rate of 21.8%.” · word for word

Production Scale-Up Execution Risk

“Production volume of 22.4 million pounds was significantly below the 40 million pound target, and revenue of $8.2 million was far below the $50 million target.”

High Leverage and Debt Service Burden

“$250 million convertible notes at 7.25% interest; $200 million revolver at 21.8% interest; $300 million Series B Preferred Stock at 7% dividend.”

Concentrated Ownership and Control

“Sylebra Capital affiliates beneficially own 17.4% of common stock and have the right to designate two board members.”

Warrant expiration risk

“If we do not obtain the required consents for the Warrant Amendment, the Board may choose not to effectuate the Extension and the PCT Warrants will expire at 5:00 p.m., New York City time, on the earlier of (a) June 17, 2026 or (b) the date fixed for the redemption of the PCT Warrants, after which the holders of PCT Warrants will no longer be able to exercis” · word for word

Dilution risk from warrant exercise

“if a substantial number of the holders of PCT Warrants elect to exercise their PCT Warrants following the receipt of a redemption notice, we will be required to issue a number of shares of our Common Stock upon such exercise. The issuance of such shares will dilute the ownership interests of our existing shareholders, and could adversely affect the market pr” · word for word

Going concern risk and funding dependency highlighted in forward-looking statements.

“PCTs’ ability to obtain funding for our operations, future capital requirements and future growth, and to continue as a going concern” · word for word

Operational and construction risks for multiple facilities (Ironton, Thailand, Belgium, Augusta).

“PCT’s ability to complete the necessary funding with respect to, and complete the construction of, the new polypropylene recycling facility in Thailand, Belgium, and Augusta” · word for word

Going concern risk due to low revenue and high debt

“PCT is a low-revenue early commercial-stage company, and may never achieve or sustain profitability” · word for word

Operational risk at Ironton facility

“we have experienced intermittent mechanical challenges since mechanical completion” · word for word

Warrant dilution risk if redemption trigger is met; no immediate financial impact.

“Redemption trigger price reduced to $14.38; warrants extended.”

Construction delay penalties and termination rights if milestones missed.

“CPA provides for certain penalties and termination rights in favor of the AEDA should the Company fail to meet certain pre-construction and construction milestones.” · word for word

Project timeline extension may indicate delays or cost overruns.

“Outside Completion Date extended to December 31, 2029”

Board composition change; potential influence from Sylebra Capital.

“Ms. Mars designated by Sylebra Capital pursuant to Board Representation Agreement.”

Operational losses and negative cash flow

“Net loss $163,778 for the nine months ended September 30, 2025; Net cash used in operating activities $114,052 for the nine months ended September 30, 2025.”

Dependence on successful commercialization

“The Company’s ability to continue as a going concern longer term is dependent on continued improvement in operations at the Company's first commercial-scale recycling facility in Lawrence County, Ohio (the "Ironton Facility"), the commercialization of its PureFive TM resin product, and the successful construction and sale of product from its future Thailand ” · word for word

High leverage and debt service costs

“Interest expense $48,939 for the nine months ended September 30, 2025.”

Dependence on successful ramp of Ironton and Thailand projects; execution risk remains.

“PureCycle plans to ramp feedstock processing and Ironton production through the end of the year.” · word for word

Related-party transactions with lenders who are >5% beneficial owners may pose governance risk.

“The Lenders and their affiliates are greater than 5% beneficial owners of the Company.” · word for word

Board resignation could indicate governance issues, but no disagreement stated.

“Mr. Fieler’s decision to resign was not a result of any disagreement with the Company.” · word for word