Sign in

You're signed outSign in or to get full access.

LI

Loop Industries, Inc. (LOOP)·Q2 2026 Earnings Summary

Executive Summary

  • Q2 FY26 delivered zero revenue and a narrower net loss as cost controls took hold; cash operating expenses declined to $2.43M and available liquidity ended at $9.86M, which management believes is sufficient to fund operations while securing project financing for India and covering operating needs until start-up .
  • Commercial momentum improved: Loop signed a multi‑year anchor offtake with a leading global sports apparel brand for Twist polyester from Infinite Loop India and an offtake with Taro Plast for DMT; alliances with Shinkong and Hyosung TNC broaden textile reach .
  • Project execution advanced: ELITe (India JV) executed an agreement to acquire a 93‑acre site in Gujarat (reducing project cost estimate by $5M), KPMG is syndicating project debt with positive lender engagement, and Europe site selection neared final stage with engineering revenues expected to begin in 2026 .
  • Versus S&P Global consensus, Q2 revenue missed ($0.00M vs $0.78M est*) while EPS was in‑line (−$0.07 vs −$0.07 est*); prior two quarters showed a large revenue beat in Q4 FY25 on license income and a revenue miss in Q1 FY26 on timing of engineering revenue* .

Note: Estimates marked * are retrieved from S&P Global.

What Went Well and What Went Wrong

  • What Went Well

    • Anchor offtake secured with a world‑leading sports apparel brand for Infinite Loop India; take‑or‑pay construct supports bankability .
    • Additional commercial traction: DMT offtake with Taro Plast; strategic alliances with Shinkong (Taiwan) and Hyosung TNC (Korea) extend distribution into textile spinning networks .
    • India execution milestones: agreement to acquire 93 acres in Gujarat (−$5M vs plan), KPMG‑led debt syndication generating term sheets from multilateral and commercial lenders; management highlighted “landmark quarter” progress .

  • What Went Wrong

    • No revenue in Q2 (vs $0.023M YoY) as Loop remains pre‑commercial; net loss narrowed but persists (−$3.204M) .
    • Interest expense increased due to accrued 13% PIK dividend on Series B Convertible Preferred Stock ($0.341M in Q2), pressuring “other expense” line until commercial cash flows ramp .
    • Stockholders’ equity turned negative (−$5.468M) by end‑Q2; liquidity declined to $7.31M cash and total available liquidity $9.86M, elevating importance of timely project financing and engineering revenue start in 2026 .

Financial Results

Headline P&L and EPS vs Estimates (USD)

MetricQ4 2025 (oldest)Q1 2026Q2 2026 (newest)
Revenue ($ Millions)$10.81 $0.25 $0.00
Revenue Consensus ($ Millions)$0.03*$0.72*$0.78*
Primary EPS (Actual)$0.154*$(0.07) $(0.07)
Primary EPS Consensus$(0.10)*$(0.07)*$(0.07)*

Note: Estimates marked * are retrieved from S&P Global.

Operating Cost and Liquidity KPIs (USD)

KPIQ4 2025 (oldest)Q1 2026Q2 2026 (newest)
Cash Operating Expenses ($ Millions)$2.60 $2.60 $2.43
R&D Expense ($ Millions)—$1.37 $0.84
G&A Expense ($ Millions)—$1.65 $1.87
Net Loss ($ Millions)—$(3.45) $(3.20)
Cash & Equivalents (End of Period, $ Millions)$12.97 (FY24 YE proxy for Q4) $9.75 $7.31
Available Liquidity ($ Millions)—$12.3 $9.86

Context: Q4 2025 showed material license revenue; quarterly R&D and G&A stepped down YoY in Q1 and Q2; liquidity trended lower as the company funds pre‑commercial operations and JV prep .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Infinite Loop India start-upOperations (calendar)Maintain target of 2027 start-up; full ramp likely early 2028 Maintained 2027 target; reiterated on Q&A Maintained
India project financing2025–2026KPMG engaged; offtakes needed to complete debt syndication Positive progress; receiving term sheets from multilaterals, sovereign funds, and banks Improved visibility
India site2025Two Gujarat sites under final selection Agreement executed to acquire ~93 acres in Gujarat for $10.5M (−$5M vs estimate) Finalized site acquisition agreement
Europe (Reed SG) engineering revenue2026“Meaningful revenues and profits from engineering and milestone payments” post site selection Expects to generate engineering revenues from Europe project in 2026 Timed for 2026
Cash operating expenses2025–2026Q1: $2.6M; management targeting reductions Q2: $2.43M; “will bring…down further every quarter” Lower trajectory
Revenue/EPS guidance2026None providedNone providedUnchanged

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2025 and Q1 2026)Current Period (Q2 2026)Trend
Offtake/customer contractsAdvanced discussions; contracts are gating item for debt Anchor offtake with leading sports brand; DMT offtake with Taro Plast; more expected by year‑end Accelerating/signings underway
Debt syndication (India)KPMG engaged to manage syndication Receiving term sheets from multilaterals, SWFs, international/local banks Improving confidence
Site selectionIndia narrowed to Gujarat; Europe scanning 5 countries India site acquisition agreement executed; Europe in advanced final selection India finalized; Europe near-term
Pricing modelExploring fixed vs cost‑plus; bankable take‑or‑pay sought Fixed‑price, multi‑year with take‑or‑pay preferred for India More customer‑friendly predictability, bankable
ModularizationPlan to cut capex and timeline materially Modular construction central to EU build; aims to enhance returns and start‑up timing Execution approaching
Cost discipline/liquidityCash opex $2.6M; available liquidity $12.3M Cash opex $2.43M; available liquidity $9.86M Continued opex reduction; liquidity draw
Sustainability vs profitabilityLow‑cost India enables competitive pricing without “green premium” Reiterated balance; strong project returns at competitive prices Consistent narrative

Management Commentary

  • “This was a landmark quarter for the Infinite Loop India project…we secured our foundational anchor customer…[and] are making significant headway in securing project debt financing” — Daniel Solomita, CEO .
  • “There is a guaranteed take‑or‑pay element…very strong, very bankable contract” .
  • “Once the site is acquired, we anticipate to begin generating meaningful revenues and profits from engineering and milestone payments, which will cover all of Loop’s back office expenses for the next several years” .
  • “In India…we’re actually offering customers fixed‑price contracts…for three years or five years” .
  • “Cash operating expenses for the quarter were $2,430,000…We will bring that…down further every quarter for the foreseeable future” .
  • “We are planning an expansion…Second facility…100,000 tons…on the same existing site” .

Q&A Highlights

  • Commercial coverage: Management declined to disclose capacity covered but called the anchor contract “significant” and expects additional CPG/apparel offtakes by year‑end .
  • Timeline: India remains on track for 2027 start‑up with commissioning to full ramp in early 2028; detailed engineering to kick off with an external firm .
  • Product/pricing: DMT presents a differentiated r‑DMT supply opportunity; India contracts favor fixed‑price, multi‑year take‑or‑pay to support bankability .
  • Capacity growth: Land supports a second facility (+~50% capacity to 100k tons) after first plant is operational, leveraging shared utilities and lowering CapEx per ton .
  • Financing/liquidity: Positive lender interest via KPMG; management cited options to fund $25M equity commitment, including prior government funding and equipment-in‑kind; Q1 discussed an estimated ~$15M funding gap to close .

Estimates Context

  • Q2 FY26 vs S&P Global consensus: Revenue $0.00M vs $0.78M est* (miss); EPS $(0.07) vs $(0.07) est* (in‑line) .
  • Q1 FY26: Revenue $0.25M vs $0.72M est* (miss); EPS $(0.07) vs $(0.07) est* (in‑line) .
  • Q4 FY25: Revenue $10.81M (license and engineering) vs $0.03M est* (beat); EPS $0.154 vs $(0.10) est* (beat) .
  • FY26 high-level: Target price consensus $4.55 on 2 estimates; text recommendation not available*.

Note: Estimates marked * are retrieved from S&P Global.

Financial Details and Trend Tables

Detailed Expenses and Loss (USD Thousands)

MetricQ2 FY26Q2 FY25
Revenues$0 $23
R&D$843 $1,945
G&A$1,871 $2,595
Depreciation & Amortization$96 $129
Interest & Other Financial Exp.$419 $119
Net Loss$(3,204) $(4,839)
EPS (Basic & Diluted)$(0.07) $(0.10)

Cash Flow and Balance Highlights (USD Thousands)

Metric6M FY266M FY25
Net Cash Used in Operating Activities$(5,604) $(6,775)
Cash & Cash Equivalents (End of Period)$7,310 $1,395
Series B Convertible Preferred (Carrying)$11,328 $—
Stockholders’ Equity (Deficit)$(5,468) $—

Additional Press Releases (Q2 FY26 window)

  • Beyond the 8‑K press release (Ex. 99.1), no other Loop‑specific earnings press releases were identified for Q2 FY26 in the document set; strategic alliances and offtake updates are embedded in the 8‑K press release .

Key Takeaways for Investors

  • Commercial de‑risking underway via anchor apparel offtake, DMT offtake, and textile alliances; further offtakes are a near‑term catalyst that improves debt bankability .
  • Execution advancing: India site agreement reduces cost estimate and locks footprint for future capacity expansion; lender term sheets indicate financing momentum .
  • Earnings powered by project services in 2026: Europe engineering revenues expected to begin in 2026 and could help offset opex as plant construction proceeds .
  • Cost discipline visible: cash opex falling sequentially with stated goal to reduce further; however, cash and liquidity declined QoQ, reinforcing the importance of timely financing and services revenue .
  • Contract model is bankable and customer‑friendly: fixed‑price, multi‑year, take‑or‑pay structures enhance lender confidence and demand predictability for customers .
  • Watch list of catalysts: additional offtakes, definitive debt package for India, Europe site selection and engineering start, and any updates on modularization execution and milestone payments .
  • Risk balance: pre‑revenue status and negative equity increase sensitivity to financing timelines; Series B PIK accrual inflates interest expense until commercial cash flows ramp .