Loop Industries reported a net loss of $3.4 million for the first quarter ended May 31, 2026, missing the analyst consensus estimate of $(0.05) per share with a loss of $(0.07) per share. Quarterly sales of $179,000 missed the analyst consensus estimate of $540,000 by 66.85 percent, representing a 28.97 percent decrease from $252,000 in the same period the prior year. Despite the financial shortfall, the company executed a Letter of Intent (LOI) in June 2026 with a major global apparel company for an initial multi-year offtake agreement targeting up to 15,000 metric tons annually of its proprietary PET fiber-grade resin.

The decline in revenue was attributed to lower engineering services provided to the India joint venture, while the company continues to focus on securing capital for its equity contribution to the ELITe India facility and ongoing pre-operational expenses. Cash operating expenses for the quarter were $1.6 million, reflecting a year-over-year decrease of $1.0 million. At the end of the quarter, total available liquidity stood at $3.6 million.

Operational Updates

Infinite Loop India, the company's strategic joint venture, continues to advance detailed engineering work led by Toyo Engineering India Private Limited. Loop's internal engineering team is meeting project milestones, which generated engineering services revenues during the quarter. The debt syndication process for the India JV facility has progressed to the technology due diligence phase, a critical step toward securing project capital.

In Europe, Infinite Loop Europe, a joint venture with Reed Societe Generale Group, has selected BASF Industriepark Lausitz in Schwarzheide, Germany, as the site for its first facility. The project is moving into the engineering and permitting phase, which is expected to generate engineering services revenue for Loop in the current fiscal year.

Financial Performance

Research and development expenses decreased to $962,000 from $1.3 million, primarily due to lower employee compensation and reduced plant and laboratory operating expenses. General and administrative expenses fell to $1.6 million from $1.6 million, driven by decreases in insurance and professional fees, partially offset by higher stock-based compensation. The company is pursuing various funding options, including non-dilutive and strategic alternatives, to support operations through commercial start-up.

Condensed Consolidated Statements of Operations

Condensed Consolidated Balance Sheets

Loop Industries, Inc. has appointed Jeffrey Geygan, Chairman of Global Value Investment Corporation (GVIC), to its Board of Directors effective immediately, signaling a deepening of institutional support as the company transitions to commercial production. GVIC, a long-term institutional shareholder, has simultaneously formalized its intent to increase its total ownership position to at least 10% of the company's outstanding common shares, subject to market conditions and compliance with applicable securities laws. This strategic endorsement arrives as Loop advances its global commercialization pipeline, including facilities in India and Europe.

Daniel Solomita, Founder and CEO of Loop Industries, stated that the appointment and GVIC's increased equity stake come at a pivotal operational inflection point. He emphasized that GVIC's intent to expand its position serves as a powerful endorsement of the company's commercial readiness and the robust demand for its circular PET and polyester solutions. Solomita highlighted that Geygan's deep capital markets expertise and value-creation track record will be invaluable as the company begins global commercial execution.

Global Commercialization Strategy

The increased institutional backing supports Loop's aggressive advancement of its global commercialization pipeline. The company is currently accelerating plans for a commercial-scale manufacturing facility in India through a joint venture with Ester Industries. Additionally, Loop is expanding its licensing operations in Europe by partnering with Reed Societe Generale Group, following site selection in Germany.

Strategic Partnerships and Projects

Jeffrey Geygan remarked that Loop's transition from technology development to commercial execution represents an opportunity to drive long-term value creation. He noted that the company has spent years developing and validating a differentiated technology platform that addresses a significant global challenge. Geygan expressed his intention to work with management and the board as the company advances its commercialization strategy.

Loop Industries focuses on accelerating the shift toward sustainable PET plastic and polyester fiber using its patented depolymerization technology. The company transforms waste PET plastic and polyester fiber into base building block monomers, which are then purified to create virgin-quality Loop™ & Twist™ branded PET resin suitable for food-grade packaging.