Loop Industries, Inc.

What they do

Loop Industries owns patented technology that depolymerizes waste PET plastic and polyester fiber into base monomers (DMT and MEG), which are then purified and polymerized into virgin-quality Loop branded PET resin and polyester fiber. The company operates a demonstration facility in Terrebonne, Québec, and is seeking to commercialize its technology through direct investments with strategic partners and technology licensing.

Revenue drivers

• Technology licensing — Sold its first license to Reed Management SAS for one European facility for an initial payment of $10.4 million, with additional milestone payments as the project advances.
• Engineering services — The company's internal engineering team generates engineering services revenues while advancing the India JV facility and expects additional engineering revenue from the European project moving into engineering and permitting phases.
• PET resin and polyester fiber sales — Product sales from the Terrebonne facility have been minimal, with quarterly revenue of $179,000 as of May 31, 2026; this is currently a small portion of total activity.

Recent performance

For the fiscal year ended February 28, 2026, Loop reported revenue of $514,000 and a net loss of $12.3 million. In the first quarter of fiscal 2027 (ended May 31, 2026), the company generated $179,000 in revenue. Cash operating expenses for the quarter were $1.6 million, down $1.0 million year-over-year. Total available liquidity was $3.6 million at quarter end. As of May 31, 2026, the company had $1.1 million in cash, total assets of $6.7 million, and stockholder equity of negative $12.0 million.

Strategy

Loop's strategy is to commercialize its Infinite Loop technology globally through a combination of direct investments with strategic partners and licensing. The company is advancing a 50/50 India joint venture with Ester Industries Ltd. for a 70,000 tons-per-year facility and has licensed technology to Reed Management for a European facility. Management is pursuing non-dilutive and strategic funding options to cover its equity contribution to the India facility and ongoing pre-operational expenses.

Risks

• Going concern uncertainty — Management has stated that existing cash resources are not sufficient to fund operations for at least twelve months, raising substantial doubt about the company's ability to continue as a going concern.
• Limited revenue history — The company has incurred net losses since inception in 2010 and earned only limited revenues to date, with no assurance it will achieve profitable operations.
• Commercialization dependence — Revenue at scale depends on successful scale-up of the technology, attracting partners and customers, obtaining regulatory approvals, and securing financing to build commercial facilities.
• Nasdaq delisting risk — An 8-K filed on July 29, 2026 indicates the company received a delisting notice or failed a listing rule, which could threaten its public listing.

Outlook

Management expects engineering revenues from the India and Europe projects to help fund operations through commercial start-up. The company is advancing project debt financing for the India facility, which has reached the technology due diligence phase. Loop also signed a Letter of Intent in June 2026 with a major global apparel company for a multi-year offtake agreement targeting up to 15,000 metric tons annually of PET fiber-grade resin.