CARE Offers Q1 2026 Performance Update

Dalton, GA, June 23, 2026–CARE CEO and executive director Bob Peoples made the following report about CARE’s performance in Q1 2026.

“After a tough Q3 and Q4 to end 2025, the new year brought continuing challenges, with a slow start in January and February. Overall, Q1 resulted in a drop in both gross collections as well as recycled output vs. the average quarterly result in 2025, due to lack of demand for post-consumer (PC) carpet materials and the decline in new carpet sales.

“Turbulence in the global economy and supply chains continue to weigh on markets. Inflation and the price of oil are driving price increases of virgin materials. Normally that is good for PC polymer, however, demand remains weak and no price increase has yet been possible for PC carpet materials.

“Sales in Q4 were 10.8 million square yards, the lowest quarter since the California Carpet Stewardship Program began. Overall sales are now 51% below their peak of 2013.

“The Q1 Recycling Rate was 37.8%, which is up slightly from Q4 but is below our new 2026 target of 41%.

“CARE is working with recyclers to provide support wherever possible. As AB 863 requires PC carpet content starting in 2028, CARE is supporting efforts to enable work on chemical recycling as the only long-term viable option to meet these targets. CARE is also close to finalizing a set of guidelines for backstamping, as required in AB 863 by January 2027.

“Overall, 66% of total expenses were paid out in the form of subsidies and 87% of all subsidies were paid to California-based recyclers. Revenue exceeded expenses, resulting in a fund balance of $25.6 million, up $2.7 million vs. Q4, which exceeds the six-month reserve requirement.”