Loop Industries Inc (NASDAQ:LOOP) reported its financial results for the third quarter of fiscal 2026, delivering a mixed picture of progress on its path to commercialization. The company, which is developing technology to depolymerize waste PET plastic, continues to operate at a pre-revenue stage from its core manufacturing operations, with its financials reflecting the costs of advancing its first commercial projects.
Earnings and Revenue Versus Estimates
The company’s reported figures fell significantly short of analyst expectations for the quarter, though the context of its development stage is critical. Loop reported revenue of $86,000, a stark miss compared to the analyst estimate of $892,500. This revenue was derived entirely from engineering services provided to its joint venture in India, marking a shift from the nominal product sales of previous periods.
On the bottom line, the net loss narrowed considerably. Loop reported a net loss of $2.94 million, or a loss of $0.06 per share. This compared favorably to a net loss of $11.91 million, or $0.25 per share, in the prior-year quarter. The per-share loss of $0.06 was essentially in line with the analyst estimate for a loss of $0.0612 per share.
The significant year-over-year improvement in net loss was primarily due to the absence of an $8.46 million impairment charge taken in Q3 2024 and reduced operating expenses. Key financial metrics from the quarter include:
- Cash Operating Expenses: $2.2 million, a decrease of $1.1 million year-over-year.
- Total Available Liquidity: $7.7 million as of November 30, 2025.
- Net Loss (Nine Months): $9.60 million, improved from $21.94 million in the prior-year period.
Market Reaction and Strategic Progress
Following the earnings release, Loop’s stock was down approximately 1.7% in after-market trading. This muted negative reaction likely reflects the substantial revenue miss against estimates, overshadowing the in-line EPS performance and reduced cash burn. The market appears to be weighing the slower-than-hoped pace of revenue generation against tangible operational progress.
The earnings report was accompanied by several significant project updates that form the core of the investment thesis for Loop:
- Infinite Loop India JV: The company announced a multi-year offtake agreement with Nike for its recycled polyester, providing a foundational anchor customer for the planned facility. Detailed engineering has been awarded to Toyo Engineering, and term sheets for project debt financing have been received from international lenders.
- European Partnership: Loop and the Reed Societe Generale Group are in the final stage of selecting a site for the first European facility. Loop expects to begin generating engineering service revenue once the site is secured.
- Management: Spencer Hart, a board member with over 30 years of investment banking experience, was appointed Chief Financial Officer effective January 15, 2026, to lead financing efforts.
Financial Outlook and Runway
The press release did not provide specific quantitative financial guidance for the coming quarters or the full year. Management’s commentary focused on the operational milestones needed to reach commercialization. The company stated that capital for its equity contribution to the India JV, along with anticipated engineering revenues from the India and Europe projects, is expected to fund its operations until its first facility becomes operational. This remains a critical point for investors, as the current liquidity position of $7.7 million underscores the ongoing need for financing.
Analyst estimates for the full fiscal year 2026 project a loss of $0.275 per share on sales of $2.17 million. For the upcoming fourth quarter, the consensus estimate is for a loss of $0.0765 per share on revenue of $892,500.
Conclusion
Loop Industries’ third-quarter results highlight the classic profile of a pre-commercial technology company: operational milestones are being achieved, but financial metrics remain minimal and dependent on continued funding. The market’s slight negative reaction post-earnings seems to center on the significant revenue shortfall against lofty estimates, a reminder of the challenges in timing the transition from development to revenue generation. The company’s near-term story will be driven by its ability to secure the remaining financing for the India JV, advance the European site selection, and convert its engineering work into more substantial service revenue streams.
For a detailed look at historical earnings and future analyst estimates for LOOP, visit the earnings estimates page.
Disclaimer: This article is for informational purposes only and does not constitute investment advice, nor does it recommend buying or selling any securities. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
