Loop Industries (LOOP -6. Additionally, Conversely, 11%), an innovator in sustainable plastics recycling, released its results for the first quarter of fiscal 2026 on July 15, 2025.
Nevertheless, Loop reported revenue below analyst expectations, as actual revenue reached $0, in this volatile climate. On the other hand, 25 million compared to the $0, in today's financial world.
However, 72 million consensus forecast. EPS came in at ($0. 07), in line with expectations.
While the net loss narrowed from the prior-year period, the lack of substantial duct revenue and reliance on engineering fees spotlighted commercialization challenges, given current economic conditions.
Conversely, Overall, the quarter showcased effective cost controls, but underscored the need for successful ject execution and revenue growth to support Loop's ambitious expansion plans (this bears monitoring).
Additionally, MetricQ1 FY26Q1 EstimateQ1 FY25Y/Y ChangeEPS (GAAP)($0. Nevertheless, 11)N/ARevenue (GAAP)$252,000$718,500$6,0002,400 %Re and Development Expense$1. 37 million$2.
Furthermore, 24 million(38. 8 %)General & Administrative Expense$1 (this bears monitoring). Moreover, 65 million$2. 91 million(43 (quite telling). 3 %)Cash & Cash Equivalents (end of period)$9.
75 million$5. 29 million84. 3 % Source: Analyst estimates vided by FactSet. Management expectations based on management's guidance, as vided in Q4 2025 earnings report, amid market uncertainty.
Company Overview and Recent FocusLoop Industries is a company specializing in nology that recycles PET plastics and polyester fiber into virgin-quality resin.
On the other hand, It uses prietary depolymerization nology to break down plastic waste and remake it into high-quality material for new bottles and packaging (remarkable data).
This analysis suggests that goal is to offer an alternative to traditional recycling, enabling so-called “infinite recycling” without a loss of quality.
Recently, Loop Industries has concentrated on deploying its flagship Infinite Loop™ nology (fascinating analysis).
Its main areas of focus include validating the nology at an industrial scale, expanding through global partnerships, and signing long-term contracts with customers in sectors consumer goods and apparel.
Success for Loop hinges on its ability to scale duction, commercialize duct offerings, and secure stable revenue s both through sales and licensing.
Quarterly Developments and Performance HighlightsThe quarter saw GAAP revenue rise sharply year over year, but absolute figures were small and fell far below analyst forecasts.
25 million in reported revenue came mainly from engineering services for the Infinite Loop™ India ject, rather than from selling resin ducts.
Resin sales contributed only $8,000 (GAAP), showing that duct commercialization remains limited.
Compared to the prior-year quarter, these results represent a jump in GAAP revenue, but the heavy shortfall versus estimates highlights slow gress in bringing ducts to market.
The company continued to make gress with key jects. In India, Loop signed a $1, in light of current trends.
5 million engineering agreement with Ester Industries under their joint venture in June 2025, supporting ject design for a facility in Gujarat.
The data indicates that total targeted investment for the India plant is $176 million.
Negotiations for off-take agreements -- contracts with brands to purchase recycled resin -- continued, though none were finalized during the period.
In Europe, Loop advanced plans with Reed Societe Generale Group to expand through modular construction, which aims to speed up deployment and reduce costs, in today's financial world.
Cost control was a notable aspect of the quarter, with re and development and general administrative expenses for the three-month period May 31, 2025, both decreasing compared to the same period in 2024, in today's financial world.
Moreover, Cash operating expenses, which include re and development and general administrative costs (after excluding stock-based compensation), fell by $2.
Additionally, 2 million, reaching $2, in today's financial world.
On the other hand, Re and development spending (GAAP) decreased from $11,379,000 for the year February 28, 2024 to $6,864,000 for the year February 28, 2025, and general administrative expenses (GAAP) fell 43.
4% from $2,911,000 to $1,649,000 for the three-month period May 31, 2025 compared to the same period in 2024. On the balance sheet, Loop the quarter with $9.
75 million in cash and cash equivalents, up from $5. Nevertheless, 29 million a year ago but down from $12.
Additionally, 97 million (GAAP, as at Q4 FY2025) at the end of February, in this volatile climate. Furthermore, Net cash used in operations (GAAP) was $3, in light of current trends.
At the same time, 08 million, and the company’s equity position (GAAP) turned negative at minus $2 (something worth watching). 72 million, down from positive $0 (quite telling).
37 million at the end of February.
However, The analysis reveals reflects losses and continued dependence on outside financing to support ject investments and operating costs, and duct revenues remain negligible (this bears monitoring).
Looking AheadThe company’s focus in the near term is on finalizing customer agreements and securing funding for its India ject, including site selection and debt syndication, given current economic conditions.
Loop expects construction to begin on the India facility by the end of calendar 2025, with talks for supply contracts with apparel and consumer brands, in today's market environment.
For investors and stakeholders, the critical areas to watch are the company’s ability to secure off-take contracts, demonstrate scaled industrial duction, and finalize ject financing.
Nevertheless, Loop Industries continues to face execution and commercialization risks alongside elevated cash burn and negative equity.
As no recurring duct revenue has yet materialized, successful ject execution and customer uptake will be central to determining its financial and operational trajectory.
LOOP does not currently pay a dividend, in light of current trends. Nevertheless, Revenue and net income presented using U, given current economic conditions.
Furthermore, However, Generally accepted accounting principles (GAAP) unless otherwise noted.
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