Loop Industries (LOOP) Q3 2026 earnings summary

Executive summary

• Progressed construction of the Infinite Loop India facility, remaining on budget and schedule, with Toyo Engineering hired for detailed engineering and the team fully deployed.

• Secured Nike as anchor customer for the India JV through a multi-year, fixed-price supply contract with take-or-pay terms, and advanced commercial negotiations with other brands.

• Advanced partnership with Reed Management/Société Générale for a European plant, with site selection narrowed to Germany and anticipated engineering revenues upon project commencement.

• Strategic alliances and offtake agreements with Nike, Taro Plast, Shinkong, and Hyosung TNC expand market reach and product offerings.

• Appointed Spencer Hart as CFO to support financing and global expansion.

Financial highlights

• Quarterly revenue rose to $86,000 from $52,000 year-over-year, driven by engineering services to the India JV.

• Net loss for the quarter narrowed to $2.94 million from $11.91 million year-over-year, mainly due to lower R&D and G&A expenses and absence of prior-year impairment charges.

• Cash operating expenses for Q3 were $2.2 million, down $1.1 million year-over-year.

• Cash and cash equivalents at period end were $5.2 million, with $2.5 million available under an undrawn credit facility and total liquidity at $7.7 million.

• For the nine months ended November 30, 2025, revenue was $338,000 (vs. $81,000 prior year), net loss was $9.60 million (vs. $21.94 million prior year).

Outlook and guidance

• Construction of the India facility targeted for completion in Q4 2027, aligning with new European recycling regulations effective 2028.

• Management highlights material uncertainties regarding the ability to continue as a going concern, with current liquidity insufficient for the next twelve months.

• Ongoing efforts to secure additional financing through equity, debt, licensing, and government incentives, with debt syndication for India JV in progress.

• Anticipates engineering and milestone payments from Europe to cover back office expenses for several years.

• Plans to fund future expansion in India through facility cash flows, with payback period under three years.