Loop Industries (LOOP) Q2 2026 earnings summary

Executive summary

• Progressed commercialization of proprietary PET depolymerization technology through joint ventures, licensing, and construction of Infinite Loop facilities in India and Europe, securing key supply contracts and partnerships with global brands.

• Signed multi-year offtake agreements with a leading global sports apparel brand and Taro Plast for Infinite Loop India, featuring take-or-pay structures.

• Formed strategic alliances with Shinkong and Hyosung TNC to integrate branded resin into global textile supply chains and support textile-to-textile circular polyester initiatives.

• Acquired 93 acres of land in Gujarat, India, for $10.5 million, $5 million below initial estimates, reducing project costs.

• Advanced site selection and development for Infinite Loop Europe in partnership with Reed Circular Economy, establishing a 90/10 JV structure and project pipeline.

Financial highlights

• Cash operating expenses for Q2 were $2.43 million, a year-over-year decrease of $1.74 million.

• Total available liquidity at quarter-end was $9.86 million, with cash and cash equivalents of $7.3 million.

• Revenue for the six months ended August 31, 2025, was $252,000, up from $29,000 year-over-year, mainly from engineering services.

• Net loss for the six months was $6.7 million, improved from $10.0 million in the prior year; net loss for the quarter was $3.2 million, improved from $4.8 million.

• Project cost estimate for Infinite Loop India is $176 million, currently $6 million under budget.

Outlook and guidance

• Infinite Loop India facility targeted for completion and commissioning by end of 2027, with groundbreaking expected by end of fiscal 2026.

• Expectation to finalize additional CPG and apparel offtake agreements by year-end.

• Commercialization timeline for Infinite Loop Europe advancing, with new revenue streams expected from engineering and licensing.

• Management believes current liquidity is sufficient for at least twelve months, but additional funding will be required for project equity contributions and ongoing operations.

• Expansion plans in India include a second facility with 100,000 tons capacity on the same site.