Loop Industries 2026 Q1 Earnings Narrowed Losses as Net Income Improves 33.6%

Loop Industries (LOOP) reported its fiscal 2026 Q1 earnings on July 15th, 2025. The company saw a remarkable revenue increase of 4100% compared to the same quarter last year. Despite this growth, Loop Industries continues to face financial challenges, with a net loss of $3.45 million. The company's guidance for the upcoming quarters remains cautiously optimistic, focusing on strategic partnerships and technology investments.

Loop Industries reported a significant revenue increase for 2026 Q1, reaching $252,000 from $6,000 in the prior year. Engineering services generated $244,000, while PET sales contributed $8,000.

Loop Industries narrowed its losses in fiscal 2026 Q1, reporting an EPS of $-0.07, an improvement from the previous year's $-0.11 per share. The company reduced its net loss by 33.6%, from $5.19 million to $3.45 million. This performance indicates a positive trend in financial management, though challenges remain.

The strategy of buying LOOP when revenues miss and holding for 30 days has proven ineffective, resulting in a loss of 93.39%, underperforming the benchmark by 6.61%. With no maximum drawdown and a Sharpe ratio of -0.55, the strategy exhibited high risk and volatility. The challenging performance during the backtest period underscores the need for reassessment of investment strategies involving Loop Industries. The significant loss reflects the strategy's inadequacy, suggesting that it might not be well-suited for Loop's current market conditions. Investors may need to consider alternative approaches to capitalize on the company's potential.

CEO Commentary
Daniel Solomita, Founder and CEO of Loop Industries, expressed confidence in the company's strategic direction, highlighting the successful completion of the front-end engineering design study by TATA Consulting Engineers for the Infinite Loop™ India project. He noted that this achievement, along with the integration of a continuous polymerization line, positions Loop to offer competitive pricing while ensuring profitability for the India joint venture. Solomita emphasized the significance of generating over $10 million in the last quarter from the licensing agreement with Reed Societe Generale Group, marking a pivotal financial milestone. He acknowledged the support of a strong leadership team in advancing the commercialization of Loop's unique technology.

Guidance
Loop Industries anticipates continued progress in its projects, with the India facility expected to have an annual production capacity of 70,000 metric tons of polyester fiber and PET resin. The company is focused on securing additional off-take supply agreements and achieving project milestones. For Q1 2026, Loop reported an EPS of -$0.07 and revenue of $252,000, reflecting ongoing challenges while maintaining a commitment to long-term growth and profitability through strategic partnerships and investments in technology.

Additional News
Loop Industries announced a significant collaboration with Hyosung TNC and Pleatsmama to pioneer circular fashion utilizing the Infinite Loop™ Textile-to-Textile Recycling Technology. This strategic partnership aims to enhance Loop's presence in the sustainable fashion industry. Additionally, Loop has sold its first technology license to Reed Societe Generale Group, marking a crucial step in its European expansion strategy. This collaboration is part of Loop's broader initiative to roll out its Infinite Loop™ technology globally. Furthermore, Loop Industries has entered into a joint venture agreement with Ester Industries Ltd. to construct an Infinite Loop™ manufacturing facility in India, expected to enhance production capabilities and expand market reach in the region.