| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 5 | — | 17.8x | Bottom tier | |
Growth | 92 | 326.1% | 7.1% | Top tier | |
Quality | 6 | -25.7% | 4.5% | Bottom tier | |
Safety | 26 | — | 2.6x | Bottom tier | |
Capital Return | 16 | — | 2.12% | Bottom tier | |
Momentum | 12 | -47.0% | 2.9% | Bottom tier | |
Sentiment | 90 | 5 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
PureCycle Technologies develops technology to recycle used polypropylene into PureFive recycled resin, which it then sells for use in packaging, caps, cups, films, household goods, and personal care products. The business model relies on operating the Ironton plant and selling resin or compounded products according to each customer’s specifications, including blending PureFive with virgin polypropylene and additives to provide the required percentage of recycled content. During Q2 fiscal 2026, commercial applications included Downy caps and Cleveland Kitchen containers, while the qualification pipeline extended to 42 brands, 15 converters, and 28 applications.
Revenue in Q2 fiscal 2026 reached approximately $4.5 million, marking the company’s sixth consecutive quarter of revenue growth, with seven new customer conversions and its first application in the building and construction sector. By contrast, net loss was $142.2 million versus $144.2 million in Q2 fiscal 2025, and operating loss improved to $41.3 million from $45.6 million, while adjusted EBITDA declined to negative $31.7 million from negative $27.8 million because non-cash add-backs decreased by $7.8 million. The company remains at an early stage of commercial and operational expansion; fiscal 2025 revenue was approximately $8.4 million, compared with a net loss of $182.6 million.
The Ironton plant produced approximately 4.5 million pounds of PureFive from processing about 5 million pounds of feedstock during Q2 fiscal 2026, following a planned outage that included more than 170 projects to improve reliability, capacity, and quality. Although production volume declined from the previous quarter because of this outage, output grew by approximately 32% year over year, and the plant set a daily record in June 2026 and demonstrated its ability to reach a rate of 12 thousand pounds per hour during testing, without implying that it operates at this rate every day. Commercially, the mix spans household goods with Procter & Gamble, cold beverage cups for quick-service restaurants, flexible films, food packaging, cosmetics, and personal care.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $13.67, within a range of $12 to $16, with a consensus rating of “Buy”; the average is approximately 11.7% below the 52-week range high of $15.49, while the highest target slightly exceeds that high. No usable earnings multiple exists because of the twelve-month net loss of $224.8 million, so justification for the $1.3 billion market capitalization is tied to achieving Ironton breakeven and converting regulatory and commercial growth into revenue, while the wide 52-week range of $4.93 to $15.49 remains evidence of the valuation’s sensitivity to execution risks.
Figures in the text are as of 2026-09-02; the live price is shown at the top of the page.
Growth is centered on increasing Ironton’s production and converting PureFive qualifications into commercial applications with major brands and converters. Revenue in Q2 fiscal 2026 reached approximately $4.5 million, and the company achieved revenue growth for the sixth consecutive quarter, with seven new customer conversions. In addition, 37 programs advanced by at least one stage, within a pipeline comprising 42 brands, 15 converters, and 28 applications as of the August 6, 2026 call.
Downy caps entered commercial production in Q2 fiscal 2026, while the company identified Q3 fiscal 2026 for the production of retail Tide caps and Q4 fiscal 2026 for Vicks ZzzQuil PURE Zzzs caps. Procter & Gamble has an arrangement to purchase up to 15% of Ironton’s capacity, giving PureCycle a clear path to expand utilization across multiple applications. Management believes that passing Procter & Gamble’s stringent qualification standards helps subsequent applications advance more quickly, but each application remains subject to independent qualification.
Ironton produced approximately 4.5 million pounds of PureFive from processing about 5 million pounds of feedstock during Q2 fiscal 2026, despite a lengthy planned outage. After completing more than 170 projects, the plant set a daily record and demonstrated a production rate of 12 thousand pounds per hour in June 2026. Management explained that this rate represents tested capability rather than a sustainable daily operating level, and that production will increase as commercial demand ramps up.
New Jersey approved PureFive as recycled content in May 2026, ahead of the expiration of the food-contact exemption in January 2027 and the increase in recycled-content requirements to 20% in 2027. Following the approval, the company entered two major cup-lid qualification programs and had 17 active trials related to compliance in the state. PureCycle estimates annual demand in quick-service restaurant applications within New Jersey alone at approximately 20 million pounds, but the current approval is conditional for one year and requires the completion of specific documentation and compliance data.
The company ended Q2 fiscal 2026 with total liquidity of $236.9 million, including $165.2 million in cash and cash equivalents, $59.6 million in marketable securities, and $12.1 million in restricted cash. The equity and convertible notes offerings in June 2026 generated net proceeds of $432 million, after which the company used a portion to repurchase $216 million of note principal for $241.1 million, plus $5.2 million in accrued interest. There is also an undrawn $200 million revolving credit facility, but the Thailand project requires expected investment of approximately $250 million, and its financing remained under negotiation as of August 6, 2026.
The primary financial risk is the scale of losses relative to revenue; the net loss in Q2 fiscal 2026 was approximately $142.2 million on revenue of $4.5 million. The operational risk is the need to convert Ironton’s test rate of 12 thousand pounds per hour into reliable and sustainable production while increasing utilization to the 40%–50% range required for the targeted breakeven. Additional risks include lengthy application qualification cycles, conditional regulatory approval in New Jersey, and the increase in the fiscal 2026 project spending forecast to between $45 million and $50 million.
