Loop Industries (LOOP) Q2 2026 earnings summary

Executive summary

• Progressed commercialization of proprietary PET depolymerization technology through joint ventures, licensing, and construction of Infinite Loop facilities in India and Europe, supported by key supply contracts and partnerships with global brands.

• Secured multi-year offtake agreements with a leading sports apparel brand and Taro Plast, and formed strategic alliances with Shinkong and Hyosung to expand textile-to-textile polyester initiatives.

• Acquired 93 acres in Gujarat, India, for $10.5 million, $5 million below initial estimates, supporting rapid expansion plans.

• Advanced Infinite Loop Europe project with Reed Circular Economy, establishing a 90/10 JV and progressing site selection and engineering revenue opportunities.

• Launched Twist™, a branded circular polyester resin made entirely from textile waste, targeting the textile-to-textile recycling market.

Financial highlights

• Cash operating expenses for Q2 were $2.43 million, down $1.74 million year-over-year; six-month operating cash outflow was $5.6 million, down from $6.8 million.

• Total available liquidity at quarter-end was $9.86 million, with cash and cash equivalents of $7.3 million.

• Revenue for the six months ended August 31, 2025, was $252,000, up from $29,000 year-over-year, mainly from engineering services.

• Net loss for the six months was $6.7 million, improved from $10.0 million in the prior year; net loss for the quarter was $3.2 million, improved from $4.8 million.

Outlook and guidance

• Infinite Loop India facility projected for completion by end of 2027, with groundbreaking expected by end of fiscal 2026.

• Additional supply agreements and new revenue streams from engineering and licensing expected by year-end.

• Management believes current liquidity is sufficient for at least twelve months, but further funding is required for project equity and operations.

• Plans for rapid expansion in India with a second facility of 100,000 tons capacity.