Q2 FY2027
Filed Oct 15, 2026AlphAI · Earnings readLOOP · Second quarter fiscal 2027 · ended August 31, 2026
Loop Industries reports second quarter fiscal 2027 results and announces plan to expedite development of India facility.
→Mixed quarter
Second-quarter operating expenses and net loss declined year over year, and the Company began recording India JV engineering-services revenue. However, liquidity was $1.9 million, cash and cash equivalents were $836 thousand, the Company reported a stockholders' deficit, and it continues to seek capital for the India JV and ongoing pre-commercial expenses.
Revenue
$117K
increased $117 y/y
Q2 Services
$117
increased $117 y/y
EPS · GAAP
$(0.06)
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q2 total revenues (in thousands of U.S. dollars)GAAP | $117K | – | increased $117 |
| Q2 products revenue (in thousands of U.S. dollars)GAAP | $ - | – | – |
| Q2 services revenue (in thousands of U.S. dollars)GAAP | $117K | – | increased $117 |
| Q2 cost of services (in thousands of U.S. dollars)GAAP | $113K | – | increased $113 |
| Q2 research and development expense (in thousands of U.S. dollars)GAAP | $540K | – | decreased $303 |
| Q2 research and development employee compensation (in thousands of U.S. dollars)GAAP | $247K | – | decrease of $350 |
| Q2 research and development stock-based compensation (in thousands of U.S. dollars)GAAP | $98K | – | increase of $66 |
| Q2 research and development plant and laboratory operating expenses (in thousands of U.S. dollars)GAAP | $117K | – | decrease of $32 |
| Q2 research and development external engineering expense (in thousands of U.S. dollars)GAAP | $4K | – | decrease of $2 |
| Q2 research and development other expense (in thousands of U.S. dollars)GAAP | $74K | – | increase of $15 |
| Q2 general and administrative expense (in thousands of U.S. dollars)GAAP | $1.48M | – | decreased $393 |
| Q2 general and administrative employee compensation (in thousands of U.S. dollars)GAAP | $342K | – | decrease of $81 |
| Q2 general and administrative stock-based compensation (in thousands of U.S. dollars)GAAP | $331K | – | increase of $83 |
| Q2 general and administrative professional fees (in thousands of U.S. dollars)GAAP | $416K | – | decrease of $196 |
| Q2 general and administrative insurance expense (in thousands of U.S. dollars)GAAP | $111K | – | decrease of $312 |
| Q2 general and administrative other expense (in thousands of U.S. dollars)GAAP | $278K | – | increase of $113 |
| Q2 depreciation and amortization (in thousands of U.S. dollars)GAAP | $83K | – | – |
| Q2 total expenses (in thousands of U.S. dollars)GAAP | $2.10M | – | – |
| Q2 loss on equity accounted investments (in thousands of U.S. dollars)GAAP | $431K | – | – |
| Q2 interest and other financial expenses (in thousands of U.S. dollars)GAAP | $460K | – | increased by $41 |
| Q2 interest income (in thousands of U.S. dollars)GAAP | −$6K | – | decrease of $64 |
| Q2 foreign exchange loss (gain) (in thousands of U.S. dollars)GAAP | $6K | – | – |
| Q2 total other loss (in thousands of U.S. dollars)GAAP | $891K | – | – |
| Q2 net loss (in thousands of U.S. dollars)GAAP | −$2.99M | – | decreased $216 |
| Q2 comprehensive loss (in thousands of U.S. dollars)GAAP | −$3.04M | – | – |
| Q2 net loss per share, basic and dilutedGAAP | $(0.06) | – | – |
| Q2 weighted average common shares outstanding, basic and dilutedGAAP | 48,433,265 | – | – |
| Six-month total revenues (in thousands of U.S. dollars)GAAP | $296K | – | increased $44 |
| Six-month products revenue (in thousands of U.S. dollars)GAAP | $ - | – | – |
| Six-month services revenue (in thousands of U.S. dollars)GAAP | $296K | – | – |
| Six-month cost of services (in thousands of U.S. dollars)GAAP | $292K | – | increased $178 |
| Six-month research and development expense (in thousands of U.S. dollars)GAAP | $1.50M | – | decreased $601 |
| Six-month general and administrative expense (in thousands of U.S. dollars)GAAP | $3.05M | – | decreased $467 |
| Six-month depreciation and amortization (in thousands of U.S. dollars)GAAP | $167K | – | – |
| Six-month total expenses (in thousands of U.S. dollars)GAAP | $4.72M | – | – |
| Six-month loss on equity accounted investments (in thousands of U.S. dollars)GAAP | $750K | – | – |
| Six-month interest and other financial expenses (in thousands of U.S. dollars)GAAP | $897K | – | increased by $60 |
| Six-month interest income (in thousands of U.S. dollars)GAAP | −$12K | – | decrease of $158 |
| Six-month foreign exchange loss (gain) (in thousands of U.S. dollars)GAAP | $21K | – | – |
| Six-month total other loss (in thousands of U.S. dollars)GAAP | $1.66M | – | – |
| Six-month net loss (in thousands of U.S. dollars)GAAP | −$6.37M | – | decreased $279 |
| Six-month comprehensive loss (in thousands of U.S. dollars)GAAP | −$6.41M | – | – |
| Six-month net loss per share, basic and dilutedGAAP | $(0.13) | – | – |
| Six-month weighted average common shares outstanding, basic and dilutedGAAP | 48,398,363 | – | – |
| Q2 cash operating expensesnon-GAAP | $1.6M | – | a decrease of $0.8 million year-over-year |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Q2 ServicesEngineering services provided to the India JV. | $117 | – | increased $117 |
| Q2 ProductsNo products revenue was reported for the three-month period ended August 31, 2026. | $ - | – | – |
| Six-month ServicesEngineering services provided to the India JV. | $296 | – | – |
| Six-month ProductsThe prior-year six-month period included sales of Loop™ PET resin for $8. | $ - | – | – |
India facility development timeline outlook
- NoteThe planned first commercial facility in India has been rescaled to a capacity of 45 kilotonnes per annum (KTA).
- NoteThe project target timeline is for construction completion by the end of 2028, with startup and commissioning scheduled for 2029.
- NoteThe second facility is expected to be larger than the first and is planned to be developed following the successful start-up of the initial facility.
What drove it
- Second-quarter revenue of $117 thousand resulted from engineering services provided to the India JV.
- Research and development expense declined primarily due to lower employee compensation and plant and laboratory expenses, partly offset by higher stock compensation.
- General and administrative expense declined primarily due to lower insurance expenses and professional fees, partly offset by higher other miscellaneous expenses and stock compensation.
- The India facility was rescaled to 45 KTA following an engineering review intended to reduce the project’s estimated capital requirement and support a more focused development plan.
- The Special Committee, formed in September 2026, is evaluating equity, debt, and non-dilutive financing alternatives for Loop's portion of the equity needed to finance the India JV.
Concerns
- Loop continues to seek capital to fund its expected equity contribution to the India JV and its ongoing pre-commercial operating expenses.
- The Company stated that the timing and amount of financing, engineering-services revenue, or licensing revenue remain subject to execution, financing availability, and project progress.
- The Company stated that there can be no assurance that these sources will be sufficient to fund operations through commercial start-up.
- Loss on equity accounted investment was $431 thousand in the second quarter, compared with $43 thousand in the prior-year period.
- Interest and other financial expenses were $460 thousand in the second quarter, compared with $419 thousand in the prior-year period.
What to watch
- Toyo Engineering India Private Limited's comprehensive analysis to finalize the updated India facility cost estimate.
- The Special Committee's financing process for Loop's equity contribution to the India JV.
- Construction completion targeted by the end of 2028 and startup and commissioning scheduled for 2029.
- Engineering-services and licensing revenue, which the Company stated remain subject to execution, financing availability, and project progress.
- Liquidity and operating cash use as Loop funds pre-commercial operations and the India joint venture.
Balance sheet and cash flow
- Total available liquidity was $1.9 million at August 31, 2026.
- Cash and cash equivalents were $836 thousand at August 31, 2026, compared with $2,356 thousand at February 28, 2026.
- Total current assets were $1,571 thousand at August 31, 2026, compared with $3,606 thousand at February 28, 2026.
- Total assets were $6,373 thousand at August 31, 2026, compared with $8,559 thousand at February 28, 2026.
- Current portion of long-term debt was $890 thousand at August 31, 2026, compared with $605 thousand at February 28, 2026.
- Long-term debt was $1,986 thousand at August 31, 2026, compared with $2,430 thousand at February 28, 2026.
- Total liabilities were $20,507 thousand at August 31, 2026, compared with $18,139 thousand at February 28, 2026.
- Total stockholders’ deficit was $(14,134) thousand at August 31, 2026, compared with $(9,580) thousand at February 28, 2026.
- Net cash used in operating activities was $(2,394) thousand for the six months ended August 31, 2026, compared with $(5,604) thousand for the six months ended August 31, 2025.
- Net cash used in investing activities was $(819) thousand for the six months ended August 31, 2026, compared with $(133) thousand for the six months ended August 31, 2025.
- Investment in joint venture was $(737) thousand for the six months ended August 31, 2026.
- Net cash provided by financing activities was $1,731 thousand for the six months ended August 31, 2026, compared with $51 thousand for the six months ended August 31, 2025.
- Proceeds from ATM equity offering, net of issuance costs, were $452 thousand for the six months ended August 31, 2026.
- Borrowings under credit facility were $1,411 thousand for the six months ended August 31, 2026.
- Repayment of long-term debt was $(132) thousand for the six months ended August 31, 2026.
- Net decrease in cash and cash equivalents was $(1,520) thousand for the six months ended August 31, 2026, compared with $(5,663) thousand for the six months ended August 31, 2025.
Analysis
Loop recorded $117 thousand of second-quarter revenue, entirely from engineering services provided to the India JV, compared with $0 in the prior-year period. Cost of services was $113 thousand. For the six-month period, revenue was $296 thousand, comprising $296 thousand of services revenue and no products revenue, versus $252 thousand in the prior-year period, which included $244 thousand of India JV engineering services and $8 thousand of Loop™ PET resin sales.
Management, verbatim
We continue to refine our commercial roadmap with a focus on disciplined capital allocation and project execution.
Daniel Solomita, Founder and CEO of Loop Industries
Rescaling the planned India facility to 45 KTA is intended to lower the project’s capital requirement while retaining the benefits of regional feedstock availability and a lower-cost operating environment.
Daniel Solomita, Founder and CEO of Loop Industries
Alongside our advancing partnership in Europe, Loop is building a highly scalable, economically attractive foundation for global growth.
Daniel Solomita, Founder and CEO of Loop Industries
Not in the filing
stated, not guessed- Gross margin
- Gross profit
- Operating income or loss
- Non-GAAP earnings or loss per share
- Free cash flow
- Capital expenditures
- Dividend information
- Share repurchase information
- Revenue, gross-margin, operating-expense, or tax-rate financial guidance
- Prior-quarter comparisons for reported operating metrics
- Prior outlook section for comparison with actual results
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.