Loop Industries (Nasdaq: LOOP) posts Q1 loss of $3,385 thousand as cash falls
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Loop Industries, Inc. reported first quarter fiscal 2027 results for the three months ended May 31, 2026. All monetary amounts are in thousands of U.S. dollars. Revenue was $179 thousand, down from $252 thousand a year earlier, driven entirely by engineering services to its India joint venture, with no product sales in the period. Cost of services matched revenue at $179 thousand, yielding no gross profit.
Research and development expense declined to $962 thousand from $1,259 thousand, and general and administrative expense decreased to $1,574 thousand from $1,649 thousand. Net loss decreased by $61 thousand to $3,385 thousand, or $(0.07) per basic and diluted share in both periods. Net cash used in operating activities was $1,229 thousand, and cash and cash equivalents fell to $1,063 thousand as of May 31, 2026, while total stockholders’ deficit widened to $12,018 thousand.
Management stated it is actively pursuing capital to fund its equity contribution for the ELITe India facility and ongoing pre-operational expenses, including non-dilutive and strategic alternatives. The company indicated that these funding initiatives, together with anticipated engineering revenues from India and Europe projects, are expected to support operations through commercial start-up, and highlighted a recent letter of intent with a major global apparel brand for access to Loop’s virgin-quality recycled polyester.
Positive
- None.
Negative
- Cash and liquidity strain: Cash and cash equivalents declined to $1,063 thousand at May 31, 2026, while the company reported a $3,385 thousand quarterly net loss and a $12,018 thousand stockholders’ deficit, underscoring reliance on securing additional external financing to support operations.
Insights
Analyzing...
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Total revenues: $179 thousand
Net loss: $3,385 thousand
Cash and cash equivalents: $1,063 thousand
+5 more
8 metrics
Total revenues
$179 thousand
Three months ended May 31, 2026
Net loss
$3,385 thousand
Three months ended May 31, 2026
Cash and cash equivalents
$1,063 thousand
As of May 31, 2026
Net cash used in operating activities
$1,229 thousand
Three months ended May 31, 2026
Total stockholders’ deficit
$12,018 thousand
As of May 31, 2026
Research and development expense
$962 thousand
Three months ended May 31, 2026
General and administrative expense
$1,574 thousand
Three months ended May 31, 2026
Weighted average common shares outstanding
48,363,463
Basic and diluted, three months ended May 31, 2026
Key Terms
equity method investments, Series B Convertible Preferred stock, stock-based compensation, unearned revenue, +1 more
5 terms
equity method investments financial
"Equity method investments | | | 1,159 | | | | 1,478"
An equity method investment is an accounting approach used when a company owns a significant share of another company and can influence its decisions but does not fully control it; instead of listing the investment at cost, the investor records its share of the other company's profits or losses on its own income statement and adjusts the investment value on the balance sheet. For investors, this matters because it links the investor’s reported earnings and asset values directly to the financial performance of that partly-owned business, similar to how a partner’s gains affect a small business owner’s books.
Series B Convertible Preferred stock financial
"Series B Convertible Preferred stock | | | 12,429 | | | | 12,054"
Series B convertible preferred stock is a class of shares sold during a later-stage private financing that combines features of a loan and common stock: it usually pays priority dividends or has a priority claim if the company is sold, and it can be converted into common shares under predefined rules. Investors care because these shares affect ownership stakes and payout order—like having a reserved place in line and a ticket that can turn into regular ownership—so they influence potential returns and dilution for other shareholders.
stock-based compensation financial
"Stock-based compensation expense | | | 979 | | | | 375"
Stock-based compensation is when a company pays employees, directors or consultants with shares or the right to buy shares instead of or in addition to cash. It matters to investors because issuing stock or options spreads ownership thinner (like cutting a pie into more slices), which can reduce each existing share’s claim on profits and can also change reported earnings; investors watch it to assess true cost of running the business and how management is incentivized.
unearned revenue financial
"Unearned revenue | | | 323 | | | | 234"
Unearned revenue is money a company has received in advance for goods or services it has not yet delivered, recorded as an obligation on the balance sheet rather than as current income. It matters to investors because it represents future work the company must complete and can affect when revenue and profit are reported; like a prepaid ticket or deposit, it gives the company cash now but ties it to future performance and customer commitments.
forward-looking statements regulatory
"This news release contains “forward-looking statements” within the meaning of"
Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.
Earnings Snapshot
Total revenues: $179 thousand · Guidance included
Three months ended May 31, 2026 (first quarter fiscal 2027)
Total revenues
$179 thousand
Decreased $73 thousand from $252 thousand in the prior-year period.
Net loss
$3,385 thousand
Decreased $61 thousand from $3,446 thousand in the prior-year period.
Net loss per share (basic and diluted)
$(0.07)
Unchanged from $(0.07) in the prior-year period.
Net cash used in operating activities
$1,229 thousand
Lower than $3,082 thousand of net cash used in the prior-year period.
Guidance
Management stated that planned capital-raising initiatives and anticipated engineering revenues from projects in India and Europe are expected to fund ongoing operations through commercial start-up.
FAQ
What were Loop Industries (LOOP) revenue and net loss for Q1 fiscal 2027?
Loop Industries reported $179 thousand in revenue and a net loss of $3,385 thousand for the three months ended May 31, 2026. Revenue came entirely from engineering services to its India joint venture, and the loss was $61 thousand lower than the prior-year period.
How did Loop Industries (LOOP) operating expenses change in the latest quarter?
For the quarter ended May 31, 2026, research and development expense fell to $962 thousand from $1,259 thousand, and general and administrative expense decreased to $1,574 thousand from $1,649 thousand. These lower operating costs contributed to the modest reduction in net loss year over year.
What is Loop Industries (LOOP) cash position and stockholders’ deficit as of May 31, 2026?
As of May 31, 2026, Loop Industries held $1,063 thousand in cash and cash equivalents and reported a total stockholders’ deficit of $12,018 thousand. Total assets were $6,703 thousand against total liabilities of $18,721 thousand, reflecting a highly leveraged capital structure.
How much cash did Loop Industries (LOOP) use in operations in Q1 fiscal 2027?
Net cash used in operating activities was $1,229 thousand for the three months ended May 31, 2026. This compares with $3,082 thousand of net cash used in the same period of 2025, reflecting lower operating cash outflows alongside reduced research and development and general and administrative expenses.
What strategic or commercial developments did Loop Industries (LOOP) highlight?
Loop Industries referenced a recent letter of intent with a major global apparel brand seeking Loop’s virgin-quality polyester. Management also emphasized engineering progress on its India project and preparations for European development, alongside ongoing efforts to secure capital for the ELITe India facility and pre-operational costs.
How does Loop Industries (LOOP) plan to fund operations going forward?
Management stated it is pursuing non-dilutive and strategic funding options to finance its equity contribution for the ELITe India facility and pre-operational expenses. It indicated that these capital-raising initiatives, together with anticipated engineering revenues from India and Europe projects, are expected to fund operations through commercial start-up.