10-Q · July 14, 2026
Loop Industries reported a disappointing Q4 2026, with revenues of $176,000, down 74% compared to the estimated $680,000, marking a stark 87% decrease from the prior year's revenue of $11 million. The earnings per share…
Earnings analysis · 10-Q
LOOP earnings analysis
Filed October 16, 2026 · Our reading of the company's report
The latest report
Loop's Q2 revenue was only $117,000, down 35% sequentially and versus $0 in the prior-year quarter, while diluted EPS was $(0.06) and operating margin was negative 1,792.3%. Expense reductions improved the quarterly net…
Read full summary
Loop's Q2 revenue was only $117,000, down 35% sequentially and versus $0 in the prior-year quarter, while diluted EPS was $(0.06) and operating margin was negative 1,792.3%. Expense reductions improved the quarterly net loss by $216,000 year over year and operating cash burn improved to $2.394 million for the first six months, but cash of $836,000 at quarter-end and $1.113 million of available credit were insufficient for the next twelve months. The rescaled 45,000-metric-ton India project and strategic alternatives review offer potential financing and execution paths, but substantial funding, going-concern, and Nasdaq listing risks remain.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.06
- Segment
- Services: $117,000 in Q2 2027, versus $0 in Q2 2026; six-month services revenue was $296,000 versus $244,000.
- Segment
- Products: $0 in the six months ended August 31, 2026, versus $8,000 in the prior-year period.
What stood out
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Revenue remained minimal and missed estimates
Q2 revenue was $117,000, all from engineering services to the India JV, compared with $0 in the prior-year quarter. Revenue declined 35% from $179,000 in Q1 2027 and missed the $330,000 consensus estimate.
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Gross margin improved but remained negligible
Gross margin was 3.4% in Q2, versus 0.0% in Q1 2027; cost of services was $113,000 against $117,000 of revenue. The company recognized engineering revenue only to the extent of costs incurred, producing no meaningful gross profit.
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Operating cost reductions narrowed the loss
Net loss improved to $2.988 million from $3.204 million in the prior-year quarter, a $216,000 improvement. Research and development expense fell $303,000 to $540,000 and general and administrative expense fell $393,000 to $1.478 million.
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Cash burn improved year over year
Operating cash flow used was $2.394 million in the six months ended August 31, 2026, versus $5.604 million in the prior-year period. The improvement was $3.210 million, although investing cash use increased to $819,000, including $737,000 invested in the India JV.
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India project scope was streamlined
The India facility design was rescaled to 45,000 metric tons per year, which management expects to reduce total investment cost and projected debt and equity financing requirements. The project remains targeted for completion by the end of 2028, and debt lenders had received term sheets and entered technical due diligence.
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Funding and commercial commitments advanced
The company generated $452,000 of net proceeds from its ATM offering during the quarter by selling 428,203 shares at an average price of $1.09. As of August 31, 2026, more than 50% of the India facility's capacity was reported as committed through customer arrangements, including Nike and Taro Plast.
What to watch
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Material going-concern and liquidity risk
Management stated that cash and cash equivalents of $836,000 plus $1.113 million available under the credit facility were insufficient to fund the next twelve months. As of October 13, 2026, cash had declined to $757,000 and credit availability to $629,000, creating substantial doubt about going-concern status.
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Additional financing remains necessary
The company needs additional debt and/or equity financing to fund ongoing operations and its India JV equity contributions, but disclosed no assurance of obtaining financing on acceptable terms. It borrowed $1.411 million under its credit facility and repaid $132,000 of long-term debt during the six months.
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Nasdaq listing compliance is at risk
Nasdaq issued a July 24, 2026 notice for failure to meet the $50 million minimum market value of listed securities requirement, with a January 20, 2027 compliance deadline. A separate July 27 notice cited a bid price below $1.00 for 30 consecutive business days, with a January 25, 2027 deadline; delisting could impair liquidity and capital access.
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Strategic alternatives review is uncertain
The Strategic Alternatives Committee formed on September 17, 2026 is evaluating strategic investments, licensing, joint ventures, business combinations, a potential sale, merger or going-private transaction, and other alternatives. The company has made no decision and provided no timetable, so the review may not produce financing or a transaction.
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India JV requires continued capital
The six-month loss on the equity-accounted investment increased to $750,000 from $345,000 in the prior-year period, while investing cash use included $737,000 of India JV contributions. Further funding demands could increase cash pressure before commercial operations begin.
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Commercialization timeline remains extended
The company remains pre-commercialization with no recurring revenue; Q2 revenue was only $117,000 and operating margin was negative 1,792.3%. Commercial-scale revenue depends on completing the India facility targeted for 2028 and the European facility expected in 2030.
Management's outlook
No quantitative revenue or EPS guidance was provided. Management expects the first India facility, designed for 45,000 metric tons per year, to be completed by the end of calendar 2028; the European facility is expected to be operational by 2030.
Earlier filings 4
10-K · May 27, 2026
Loop Industries reported a challenging fiscal year ending February 28, 2026, characterized by a drastic reduction in revenue to $514K from $10.9M in 2025, primarily due to a decline in technology licensing revenue. The…
10-Q · January 16, 2024
Loop reported Q3 revenue of $26,000 (three months ended Nov 30, 2023) versus $25,000 a year ago and GAAP EPS of $(0.09) versus $(0.02) a year ago; net loss widened to $4,244,000 from $1,013,000. Cash declined materially…
10-Q · January 12, 2023
Loop reported $24,924 of revenue for the three months ended November 30, 2022 (first recorded revenue) and narrowed its quarterly net loss to $1,013,073 (loss per share $(0.02)) versus a loss of $10,098,243 (EPS…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.