PureCycle Technologies (NASDAQ:PCT) Releases Quarterly Earnings Results, Misses Expectations By $0.51 EPS

PureCycle Technologies (NASDAQ:PCT) announced its quarterly earnings results on Thursday. The company reported ($0.80) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.29) by ($0.51), FiscalAI reports. PureCycle Technologies had a negative net margin of 1,618.84% and a negative return on equity of 517.87%. The firm had revenue of $4.51 million during the quarter, compared to analysts’ expectations of $6.11 million.

Here are the key takeaways from PureCycle Technologies’ conference call:

• Operational improvements included completing the Ironton turnaround ahead of schedule and below budget, executing more than 170 projects, and achieving a new daily throughput record in June. The company also successfully tested process conditions intended for its planned Thailand and Antwerp plants.
• Commercial momentum accelerated, with revenue increasing for the sixth consecutive quarter, the first Procter & Gamble application entering commercial production, and PureFive shipments reaching major quick-service restaurant converters. Management said New Jersey’s recycled-content approval has fast-tracked qualification programs ahead of January 2027 mandates.
• Bringing compounding in-house is expected to improve supply-chain reliability, quality control, product customization, and economics, while enabling rail-car shipments and additional cup applications. Management maintained its target for Ironton to reach site-level cash breakeven in the second half of 2026 at approximately 40%–50% utilization.
• Liquidity rose to $236.9 million at quarter-end following a $450.5 million gross stock and convertible-notes offering. The refinancing reduced near-term debt pressure and interest costs, while the company said its capital is sufficient for the commercial ramp and near-term growth spending.
• PureCycle still reported a substantial second-quarter net loss of $142.2 million and negative adjusted EBITDA of $31.7 million. Full-year project spending guidance increased to $45 million–$50 million, and Thailand financing remains subject to negotiations targeted for financial close by year-end.

PureCycle Technologies Stock Up 4.9%

Shares of NASDAQ PCT traded up $0.34 during midday trading on Friday, reaching $7.21. 6,701,224 shares of the company’s stock traded hands, compared to its average volume of 4,191,698. The company has a market cap of $1.30 billion, a price-to-earnings ratio of -4.94 and a beta of 2.57. The stock’s 50 day simple moving average is $8.09 and its 200-day simple moving average is $8.20. The company has a quick ratio of 1.57, a current ratio of 1.71 and a debt-to-equity ratio of 47.59. PureCycle Technologies has a one year low of $4.93 and a one year high of $15.49.

Institutional Trading of PureCycle Technologies

A number of hedge funds have recently bought and sold shares of PCT. Larson Financial Group LLC increased its holdings in shares of PureCycle Technologies by 6,571.8% in the 3rd quarter. Larson Financial Group LLC now owns 2,602 shares of the company’s stock valued at $34,000 after acquiring an additional 2,563 shares during the period. Advisory Services Network LLC purchased a new stake in shares of PureCycle Technologies during the 3rd quarter worth $35,000. CIBC Asset Management Inc bought a new stake in PureCycle Technologies during the fourth quarter valued at about $90,000. SummitTX Capital L.P. bought a new stake in PureCycle Technologies during the fourth quarter valued at about $90,000. Finally, IQ EQ FUND MANAGEMENT IRELAND Ltd purchased a new position in PureCycle Technologies in the fourth quarter valued at about $91,000. Hedge funds and other institutional investors own 63.01% of the company’s stock.

Wall Street Analyst Weigh In

Several research analysts have commented on the company. Wall Street Zen downgraded PureCycle Technologies from a “sell” rating to a “strong sell” rating in a report on Sunday, May 10th. Northland Securities set a $13.00 target price on PureCycle Technologies in a report on Friday, June 12th. Cantor Fitzgerald dropped their price target on PureCycle Technologies from $14.00 to $12.00 and set an “overweight” rating on the stock in a research report on Friday. Alembic Global Advisors set a $16.00 price target on PureCycle Technologies in a research note on Tuesday, June 16th. Finally, TD Cowen decreased their price objective on PureCycle Technologies from $7.00 to $6.00 and set a “hold” rating for the company in a report on Friday, May 8th. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $11.75.

About PureCycle Technologies

PureCycle Technologies, Inc operates as a recycling technology company focused on restoring waste polypropylene to a “virgin-like” state through a proprietary purification process licensed from Procter & Gamble. The company develops, owns and operates recycling facilities that convert used polypropylene feedstock—such as packaging and industrial plastics—into ultra‐pure recycled resin. This resin, known as Qualified Recycled Polymer (QRP), is designed to meet stringent quality specifications for applications in packaging, consumer goods and industrial products.

Headquartered in Orlando, Florida, PureCycle was established with technology development efforts dating back to licensing agreements in the mid-2010s and later spun off as a publicly traded entity in 2021.