Strategic Execution and Market Dynamics

• Performance in Q1 was driven by a 12% sequential increase in PureFive production and the first-ever ahead-of-schedule completion of the Ironton turnaround, which tracked 15% below budget.

• Management attributes accelerating branded customer conversions to the convergence of high-quality FDA-grade material, regulatory mandates, and localized supply chains insulated from global disruptions.

• The macro environment has shifted from a headwind to a tailwind as rising virgin polypropylene prices and global supply chain volatility increase the relative value of PureCycle's domestic, waste-based feedstock.

• Strategic investment in on-site compounding reached mechanical completion in April, allowing the company to deliver application-ready products for film and thermoform without third-party reliance.

• The partnership with Procter & Gamble reached a critical milestone with final commercial approval for Tide and Vicks ZzzQuil applications, validating the technology against the industry's highest quality standards.

• Operating leverage is beginning to emerge as production grew 95% year-over-year while monthly operations spending remained relatively flat, increasing only 6%.

Commercial Ramp and Global Expansion Outlook

• Management expects a significant commercial ramp in the second half of 2026, supported by 40 million to 50 million pounds of annual application demand starting to ramp in Q2 and Q3.

• The resolution of New Jersey regulatory reviews is viewed as a major catalyst, with 25 million to 50 million pounds of volume contingent on approval as food contact exemptions sunset in early 2027.

• Global growth projects remain on track, with the Thailand facility targeting mechanical completion by late 2027 and the Belgium facility expecting permits by year-end 2026.

• Future application approvals for Procter & Gamble are expected to move considerably faster now that core specifications have been validated across the brand portfolio.

• The company maintains significant financing optionality through a $200 million undrawn revolving credit facility and approximately $273 million in potential warrant proceeds.

Operational Milestones and Risk Factors

• Achieved the highest purity grade through CosPaTox testing, becoming the first recycler to produce resin pure enough for leave-on cosmetic packaging.

• The Ironton turnaround included over 170 projects targeting capacity and reliability, including a critical seal system replacement expected to materially improve long-term uptime.

• Project development costs of $7 million were expensed in Q1 but are expected to shift to the balance sheet as capitalization begins upon construction authorization.

• The company completed its first international sale in Q1, demonstrating an accelerated qualification timeline for PureChoice resin in global markets.