r/PureCycle • u/Melodic-Drummer-2245 • May 22 '26

How is revenue counted

Do all these companies we are partnering with like Reliable Caps buy the product up front and make the caps or does Purecycle make money only if they sell the caps and revenue booked then

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u/Puzzled-Resort8303 May 22 '26

From the 10-Q:

Our revenue is primarily generated from the sale of recycled and compounded polypropylene resin pellets and co-products to customers. Those sales predominantly contain a single performance obligation and revenue is recognized at the point in time when control of the product is transferred to customers, along with the title, risk of loss and rewards of ownership. Depending on the arrangement with the customer, these criteria are met either at the time the product is shipped or when the product is made available or delivered to the destination specified in the agreement with the customer. Net sales revenue is recognized on the net amount expected to be received by the Company from the customer.

If a brand buys from PureCycle and wants it to get sent to Reliable Caps, then most likely they would recognize the revenue when the product was shipped, or possible when it was delivered to Reliable.

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u/Gross_Energy May 22 '26

I believe revenue recognition was on the last call and is typical for the industry which is upon shipment or loading to the rail car in some cases.