Loop Industries Reports Significant Revenue Increase to $252,000, Despite Net Loss of $3.4 Million

Loop Industries, Inc. reported its financial results for the three months ending May 31, 2025, revealing a significant increase in revenue compared to the same period in the previous year. The company generated total revenues of $252,000, a substantial rise from $6,000 in the prior year. This increase was primarily driven by $244,000 in engineering fees related to an agreement with its joint venture in India, along with $8,000 from sales of Loop™ PET resin. Despite the revenue growth, Loop Industries recorded a net loss of $3.4 million, an improvement from the $5.2 million loss reported in the same quarter of 2024.

The company's total expenses for the quarter decreased to $3.7 million from $5.2 million year-over-year, reflecting a reduction in both research and development and general administrative costs. Research and development expenses fell to $1.4 million from $2.2 million, largely due to decreased external engineering costs and employee compensation. General and administrative expenses also decreased to $1.6 million from $2.9 million, primarily due to lower professional fees associated with previous partnerships. The loss on equity accounted investment increased to $302,000, reflecting the company's share of losses from its joint venture in India.

In terms of operational developments, Loop Industries continues to advance its strategic initiatives, including the construction of an Infinite Loop™ manufacturing facility in India through a 50/50 joint venture with Ester Industries. As of May 31, 2025, both Loop and Ester had contributed $1.9 million each to the joint venture, which is expected to produce 70,000 tons of Loop branded PET resin and polyester fiber annually. The company is also pursuing a partnership with Reed Societe Generale Group to develop manufacturing facilities in Europe, having received an initial payment of €10 million for a technology license.

Loop Industries reported a decrease in cash and cash equivalents to $9.7 million from $12.9 million at the end of February 2025. The company continues to monitor its liquidity closely, ensuring it can meet its obligations for at least the next twelve months. Management has indicated that the ability to advance its commercialization strategy, including the construction of manufacturing facilities, is contingent on securing additional financing through various means, including technology licensing and government incentives.

Looking ahead, Loop Industries remains focused on its goal of commercializing its proprietary depolymerization technology, which aims to transform waste PET plastic into high-quality, virgin-quality resin. The company is optimistic about its growth prospects, particularly as global demand for sustainable materials increases. However, it acknowledges the challenges of securing necessary funding and the competitive landscape in the recycling industry.