Investors see big dividends from TerraCycle, a US recycling firm that turns trash into shareholder treasure

Investors see big dividends from TerraCycle, a US recycling firm that turns trash into shareholder treasure

Laura Boast

Thu, August 6, 2026 at 12:30 PM GMT+3 5 min read

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It can be hard to resist things on the stock market that are shiny and new, like SpaceX shares. But one U.S. company is betting that retail investors could be equally interested in garbage.

TerraCycle specializes in recycling things that other waste companies consider unprofitable — like coffee pods, cosmetics, cigarette butts and batteries. Now, as Plastic News reports, TerraCycle is offering Class B preferred shares to the public in order to raise $75 million.

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This follows another offering in 2018 when the New Jersey-based company raised more than $19 million in 12 months, and another round last year when it made $5 million in under 60 days.

TerraCycle is not a startup. It may have begun that way when CEO Tom Szaky founded it 20 years ago, but today it's a multinational company operating in more than 20 countries, with regional offices and hubs across North America, the U.K. and Australia.

Here's a look at why TerraCycle has chosen this moment to raise $75 million, how it can legally do so as a private company, and other ways retail investors can buy into waste management.

How a private company can sell shares to the public

Normally startups and private companies like TerraCycle raise money by partnering with wealthy investors, but there's an exception called Regulation A.

Created by the Security and Exchange Commission (SEC) in the 1930s and expanded in , Reg A allows private companies to crowdfund up to $75 million in the course of a year. It's essentially a way to reach the public without actually going public.

In return, the SEC demands that a company taking advantage of Reg A must file its financials like a publicly traded company. However, such a company would only have to do so twice a year instead of every quarter.

As Szaky told Moneywise, this Reg A public offering achieves several things at once. Not only is it a way to test the waters for a future Initial Public Offering (IPO), revealing the public's interest, it's also a way to build the compliance infrastructure needed for an IPO, like disclosing its finances and other details in its offering circular.

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Of course, the biggest immediate benefit is a cash infusion to expand operations.

"The reason to raise money this way is to accelerate growth," Szaky told Moneywise.

He said the company aims to use the funds to acquire more high-quality specialty recyclers — profitable businesses that have been around at least 10 years and which specialize in things like mercury-bearing lightbulbs, batteries and electronic waste.

As Recycling Today reports, TerraCycle has bought four such companies in the past eight years: New Jersey-based Air Cycle Corp. in 2018, followed by Massachusetts-based Complete Recycling Solutions in 2023 and Northcoast Services in 2024. Its most recent acquisition was Connecticut-based NLR (Northwest Lamp Recycling).

TerraCycle's return on investment

These acquisitions have fueled plenty of growth for TerraCycle. Between 2020 and 2025, the company's net revenue grew nearly 93% from $24.7 million to $47.6 million. In 2025, TerraCycle made $22.1 million in gross profit.

Ramy Elsisi, the company's CFO, reports that the 6,300 people who invested in TerraCycle's first Reg-A offering in 2018 have received up to 24% of their investment back in the form of $4.6 million in dividends to date.

If you're interested in investing in the growing waste management sector, there are also plenty of publicly traded companies to consider. Here are five of the biggest:

• Veiola: Headquartered in France, Veiola is the world's largest waste management and recycling company. It is a partner and investor in TerraCycle that made more than €44 billion ($50.8 billion USD) in revenue last year.

• Waste Management: This U.S.-based multinational made over $25.2 billion in revenue last year.

• Republic Services: Based in Phoenix, Arizona, this U.S. company earned $16.59 billion in revenue in 2025.

• Waste Connections: This Toronto-based company earned revenue of $9.46 billion in 2025. It is also a partner and investor in TerraCycle.

• GFL Environmental: A Canadian company now headquartered in Miami, Florida, GFL earned $6.6 billion in revenue in 2025.

Before investing in any of these companies, it's a good idea to talk to a financial advisor about how such investments may fit with your larger financial goals.

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This article originally appeared on Moneywise.com under the title: Investors see big dividends from TerraCycle, a US recycling firm that turns trash into shareholder treasure

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.