Loop Industries Reports Revenue Growth but Faces Net Loss and Liquidity Challenges

Loop Industries, Inc. reported its financial results for the three and nine months ended November 30, 2025, revealing a total revenue of $86,000 for the third quarter, a significant increase from $52,000 in the same period last year. For the nine-month period, revenues reached $338,000, compared to $81,000 in the prior year. Despite this growth in revenue, the company continues to face challenges, posting a net loss of $2.9 million for the third quarter and $9.6 million for the nine months, although these figures represent a reduction from losses of $11.9 million and $21.9 million, respectively, in the previous fiscal year.

The company’s total assets decreased to $11.3 million as of November 30, 2025, down from $18.6 million at the end of February 2025. This decline was primarily driven by a reduction in cash and cash equivalents, which fell to $5.2 million from $13 million. Loop Industries also reported a decrease in total stockholders' equity, which shifted to a deficit of $7.3 million from a positive equity of $367,000 earlier in the year. The company’s liabilities increased slightly to $18.6 million, reflecting ongoing financial pressures.

In terms of strategic developments, Loop Industries has made progress in its joint ventures, particularly with Ester Industries Ltd. in India, where they are working to establish a manufacturing facility for lower carbon footprint products. The company contributed $960,000 to this joint venture during the nine-month period. Additionally, Loop has entered into a partnership with Reed Circular Economy to pursue opportunities in Europe, further expanding its geographic footprint and potential market share.

Operationally, Loop Industries has seen a slight increase in its employee headcount, with 48.3 million shares outstanding as of November 30, 2025, up from 47.6 million shares earlier in the year. The company continues to focus on research and development, although expenses in this area have decreased to $967,000 for the third quarter, down from $1.4 million in the prior year. This reduction reflects a strategic decision to manage costs while still advancing its technology aimed at recycling PET plastics.

Looking ahead, Loop Industries faces significant challenges regarding its liquidity and ability to fund ongoing operations. The company has acknowledged that its current cash reserves, combined with an undrawn credit facility of $2.5 million, may not be sufficient to meet its obligations over the next twelve months. Management is actively seeking additional financing through equity and debt issuance, as well as potential government incentives, to support its commercialization plans and ensure its continued operation.