Loop Industries (LOOP) Q3 2025 earnings summary

Executive summary

• Closed €20 million ($20.8M) financing and first technology license deal with Société Générale/Reed Societe Generale Group in December 2024, supporting European expansion and India JV funding.

• Mutually terminated SKGC South Korea JV to focus on low-cost regions and licensing model, resulting in an $8.5M impairment charge on related equipment.

• Progressing on Infinite Loop India facility with land selection in Gujarat, engineering contracts, and groundbreaking expected in Q2 2025.

• Engineering services division began generating revenue, expanding offerings to partners and licensees.

• Strategic focus on licensing technology in high-cost regions and deploying capital in low-cost countries, notably through the India JV.

Financial highlights

• Q3 FY2025 revenue rose to $52K from $26K year-over-year; nine-month revenue was $81K, down from $108K.

• Q3 net loss widened to $11.9M from $4.2M year-over-year, mainly due to an $8.5M impairment charge; nine-month net loss increased to $21.9M from $16.0M.

• R&D expenses decreased to $1.38M in Q3, down 25% year-over-year, reflecting lower compensation and equipment spend.

• General and administrative expenses fell to $2.1M in Q3, down 13% year-over-year, mainly due to reduced insurance costs.

• Cash burn rate for Q3 was $2.8M; cash and cash equivalents at Nov 30, 2024, were $323K, down from $7.0M at Feb 29, 2024.

Outlook and guidance

• Infinite Loop India facility expected to break ground in Q2 2025, complete construction in late 2026, and begin commercial operations in 2027.

• Management expects current liquidity, including Reed proceeds, to fund operations for at least 12 months.

• Head office monthly run rate expected to be $800,000–$900,000 in fiscal 2025; full-year head office expense guidance reduced to $10M.

• Additional milestone payments from Société Générale license expected at end of 2025 and 2026, contingent on project progress.

• Next stage of growth depends on securing further licensing, government incentives, or capital markets financing.