Liquidity is under pressure due to persistent free cash flow deficits, highlighted by a $46.1 million cash burn in 2026Q1 and a high CapEx/Rev ratio of 83.2%.
| Cash from Operations | -146.53M | -142.74M | -144.83M | -94.91M | -65.48M | -54.51M | -17.95M | -6.31M | -5.43M |
| Operating CF Margin % | - | -1708.44% | - | - | - | - | - | - | - |
| Operating CF Growth % | -5.9% | 1.44% | -52.6% | -44.94% | -20.13% | -203.61% | -184.31% | -16.36% | - |
| Net Income | -224.84M | -182.56M | -289.14M | -101.72M | -84.75M | -77.5M | -52.99M | -19.31M | -4.11M |
| Depreciation & Amortization | 33.74M | 33.67M | 34.71M | 18.86M | 5.21M | 2.28M | 1.9M | 900.44K | 0 |
| Stock-Based Compensation | 11.58M | 0 | 11.65M | 11.83M | 10.84M | 22.64M | 5.63M | 4.05M | 24.49K |
| Deferred Taxes | 0 | 970K | -79K | 650K | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 27.51M | -2.3M | 107.97M | -29.74M | 6.41M | 4.8M | 12.97M | 6.74M | 32.88K |
| Working Capital Changes | 5.48M | 7.49M | -9.95M | 5.21M | -3.19M | -6.72M | 14.55M | 1.31M | -1.38M |
| Change in Receivables | -2.33M | -2.01M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 802K | -1.28M | -3.29M | -4.48M | -265K | 0 | 0 | 0 | 0 |
| Change in Payables | 7.1M | 2.54M | 4.78M | 418K | 85K | -293K | 234K | 1.03M | -1.35M |
| Cash from Investing | -60.11M | -54.47M | -7.01M | -102.1M | -218.39M | -305.57M | -29.81M | -5.88M | -11.12M |
| Capital Expenditures | -29.27M | -40.85M | -55.58M | -153.9M | -287.19M | -137.39M | -29.81M | -5.99M | -11.12M |
| CapEx % of Revenue | 268.53% | 488.89% | - | - | - | - | - | - | - |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 110K | 0 |
| Cash from Financing | 269.29M | 323.73M | -109.17M | 272M | 247.53M | 293.37M | 378.19M | 12.25M | 16.65M |
| Debt Issued (Net) | -27.62M | 289.11M | -193.59M | 284.51M | 0 | -13K | 285.33M | 1.6M | 3.2M |
| Equity Issued (Net) | -3.7M | 35.15M | 58.42M | -1.37M | 204.43M | 297.77M | 107.17M | 10.9M | 12.26M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -5.45M | -4.93M | -1.62M | -1.37M | -1.64M | -1.7M | 0 | 0 | 0 |
| Other Financing | 300.61M | -525K | 26M | -11.14M | 43.1M | -4.39M | -14.31M | -249.44K | 1.19M |
| Net Change in Cash | 62.57M | 126.34M | -261M | 74.99M | -36.34M | -66.72M | 330.42M | 49.24K | 100.81K |
| Free Cash Flow | -175.8M | -183.59M | -200.41M | -248.81M | -352.67M | -191.9M | -47.77M | -12.31M | -16.55M |
| FCF Margin % | -1612.56% | -2197.33% | - | - | - | - | - | - | - |
| FCF Growth % | 12.43% | 8.39% | 19.45% | 29.45% | -83.78% | -301.75% | -288.12% | 25.63% | - |
| FCF per Share | -0.97 | -1.02 | -1.22 | -1.52 | -2.26 | -1.86 | -1.66 | -0.10 | -0.14 |
| FCF Conversion (FCF/Net Income) | 0.78x | 0.78x | 0.50x | 0.93x | 0.77x | 0.70x | 0.34x | 0.32x | 1.32x |
| Interest Paid | -10.84M | 0 | 0 | 0 | 0 | 0 | 2.14M | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Operational scaling and liquidity
As reported in financial statements, the company's operating cash flow consistently trails net income, with a 2025Q1 OCF/NI ratio of -4.40, highlighting a fundamental inability to convert accounting results into tangible liquidity during the current, highly volatile commissioning phase of the Ironton facility.
The persistent divergence between net income and operating cash flow suggests that the company's reported earnings are heavily influenced by non-cash items and accounting adjustments rather than operational performance. Investors should monitor this gap closely, as it indicates that the business model is currently consuming, rather than generating, cash to support its core activities.
Based on the provided cash flow data, PureCycle Technologies has maintained a negative free cash flow trajectory, with quarterly outflows frequently exceeding $40 million, as evidenced by the $46.1 million burn recorded in 2026Q1, reflecting the heavy capital requirements of its nascent industrial operations.
The consistent negative free cash flow margin, which reached -11.2% in the most recent quarter, underscores the company's reliance on external financing to sustain its operations. This trajectory suggests that until the Ironton facility reaches consistent nameplate capacity, the company will likely remain in a cash-burning state that necessitates ongoing capital infusions.
According to recent SEC filings, the company's capital expenditure remains elevated relative to revenue, with a 2026Q1 CapEx/Rev ratio of 83.2%, illustrating the significant ongoing investment required to maintain and optimize the specialized chemical processing equipment at the heart of its purification technology.
The high level of capital intensity suggests that the company is still in a heavy investment phase, where maintenance and growth capex are indistinguishable due to the ongoing commissioning hurdles. This level of spending warrants further investigation into whether these outlays are successfully driving the intended improvements in solvent recovery efficiency and feedstock yield.
As indicated by the quarterly cash flow statements, working capital changes have been erratic, swinging from a $16.2 million inflow in 2025Q4 to a $5.4 million outflow in 2026Q1, which may indicate significant instability in inventory management and the timing of supplier payments.
These fluctuations in working capital appear to reflect the challenges of scaling production and managing feedstock procurement in an environment where supply chain reliability is not yet established. Investors should monitor whether these swings stabilize as the company moves toward a more predictable operational cadence.
Based on the provided financial data, the cash flow statement obscures the true cost of operations by potentially capitalizing expenses that would otherwise depress margins, as evidenced by the recurring $8.5 million in quarterly depreciation and amortization charges despite minimal revenue generation.
The reliance on non-cash adjustments to reconcile net income with operating cash flow may mask the true extent of the company's operational friction. It appears that the current cash flow profile is heavily reliant on the capitalization of costs, which may lead to future margin pressure once these assets are fully depreciated and operational.
Quick answers to the most common questions about buying PCT stock.
PureCycle Technologies, Inc. (PCT) generated $-142.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
PureCycle Technologies, Inc. (PCT) reported negative free cash flow of $183.6M in 2025, indicating capital requirements exceeded cash from operations.
PureCycle Technologies, Inc. (PCT) spent $40.8M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, PureCycle Technologies, Inc. (PCT) spent $4.9M on share repurchases. This shows the company's commitment to returning capital to its equity investors.