Loop Industries Reports Q1 Loss, Beats Revenue Estimates

Loop Industries reported Q1 loss of $0.07 per share, in line with the Zacks Consensus Estimate. Revenues of $0.25 million surpassed the Zacks Consensus Estimate by 26%. The company has topped consensus revenue estimates just once over the last four quarters. Loop Industries shares have added about 6.7% since the beginning of the year.

Loop Industries (NASDAQ:LOOP) has released its Q1 FY2026 financial results, showcasing significant improvements in its financial performance and providing updates on its expansion plans. The company reported a net loss of $3.45 million, a 33.6% decrease from the same period last year, with revenues of $252,000, up from $6,000 in the prior year. These results are in line with the Zacks Consensus Estimate of a $0.07 per share loss and surpass the revenue estimate by 26% [1].

The company's operational efficiency has improved, with cash operating expenses reduced by $2.2 million year-over-year to $2.6 million. This reduction, along with a 38.6% decrease in R&D expenses and a 43.4% decrease in G&A expenses, contributed to the overall financial improvement. Additionally, Loop Industries has narrowed down potential sites for its first full-scale India facility to two locations in Gujarat province, with final selection expected this quarter [1].

Loop Industries is making progress in its India and European expansion plans. In India, the company has signed a $1.5 million engineering services agreement with ELITe, its joint venture with Ester Industries, to support detailed engineering for the India facility. The total investment for the Indian facility is estimated at $176 million, which will include a continuous polymerization line. The company is also progressing with site selection for its first European facility in partnership with Reed Societe Generale Group, implementing a modular construction strategy to reduce costs and accelerate project timelines [1].

The company's balance sheet raises concerns, with negative stockholders' equity of $2.72 million, down from positive $367,000 just one quarter earlier. This negative equity position could complicate future financing efforts. The company will require substantial additional capital to fund its portion of the $176 million India project. Despite these challenges, Loop Industries has shown progress in commercializing its innovative PET recycling technology, with a low-cost structure that should enable competitive pricing while maintaining profitability targets [1].

Loop Industries' CEO, Daniel Solomita, expressed optimism about the company's progress and future prospects. "We are encouraged by the progress of our off-take discussions with apparel and CPG brands for the Infinite Loop™ India facility. The low-cost structure of this facility positions us to offer our customers a superior product at highly competitive prices. We are confident that securing these agreements will not only enable us to meet our profitability and ROI targets, but also to generate the cash flow needed to drive our future capacity expansion," said Solomita [1].

Loop Industries will hold a corporate update call on July 16, 2025, at 8:45 am Eastern Time, to discuss its Q1 results and provide further updates on its expansion plans [1].

References:
[1] https://www.stocktitan.net/news/LOOP/loop-industries-reports-first-quarter-fiscal-2026-results-and-7qp0wko4daz2.html