Loop Industries Reports $12.3 Million Net Loss, Revenue Declines to $514,000

Loop Industries, Inc. reported a net loss of $12.3 million for the fiscal year ending February 28, 2026, a decrease from a loss of $15.1 million in the previous year. The company's total revenues fell to $514,000, down from $10.9 million in 2025, primarily due to the absence of technology licensing revenue, which had contributed $10.4 million in the prior year. The current year's revenue was generated from engineering services and minimal sales of Loop™ PET resin. The decrease in revenue was partially offset by a reduction in total expenses, which dropped to $10.3 million from $24.9 million, largely due to decreased research and development costs and the absence of impairment charges related to equipment.

In terms of operational developments, Loop Industries is advancing its commercialization strategy through key partnerships, including a 50/50 joint venture with Ester Industries to construct an Infinite Loop™ manufacturing facility in India, with a planned capacity of 70,000 tons per year. The company also entered into a licensing agreement with Reed Societe Generale Group for a facility in Europe, which includes an initial payment of €10 million. As of February 28, 2026, Loop had 41 employees, with a focus on research and development, engineering, and administrative functions.

The company has faced challenges in securing sufficient financing to support its operations and growth plans. As of the end of February 2026, Loop had cash and cash equivalents of $2.4 million, which, along with an undrawn credit facility of $2.6 million, is deemed insufficient to fund ongoing operations for the next twelve months. Management is actively pursuing additional funding through equity, debt, and government incentives to support the construction of the India facility and other operational needs.

Looking ahead, Loop Industries aims to continue executing its strategic plan, focusing on the commercialization of its Infinite Loop™ technology, securing feedstock for its facilities, and establishing additional partnerships. The company recognizes the importance of addressing its liquidity challenges and is committed to optimizing its operational expenses while pursuing growth opportunities in the sustainable PET market. The outlook remains contingent on the successful execution of its financing strategy and the timely development of its joint ventures.