Nasdaq:LOOP
Loop Industries, Inc.
Loop Industries builds sustainable chemical recycling plants to turn plastic waste into virgin-quality feedstock for major manufacturers.
Key Metrics
Investment Thesis
Bull Case
Investors may view Loop as a high-risk, high-reward opportunity given the massive global plastic waste crisis and their established partnerships with Fortune 500 companies. The company's proprietary technology offers a scalable solution that commands premium pricing potential once operational scale is achieved. Early revenue growth signals successful market entry into a critical sustainability niche.
Bear Case
The stock carries extreme downside risk due to the massive $192M retained earnings deficit and consistent multi-year losses totaling over $60M since 2023. Negative operating cash flow indicates the business model has not yet achieved commercial viability or positive unit economics. Without a clear path to profitability or significant capital injection, the company risks dilution or insolvency before reaching full scale.
About Loop Industries, Inc.
Loop Industries specializes in sustainable chemical recycling technologies that convert waste plastics into high-quality feedstock for new materials. The company primarily serves the manufacturing and consumer goods sectors with a focus on circular economy solutions. Recent financials highlight a significant jump in revenue to $10.9M in 2025, though the company continues to report net losses.
Analysis
Management Discussion
Management successfully navigated a transition period where revenue scaled dramatically from negligible levels to $10.9M in 2025, indicating early commercialization traction. However, the cash flow from operations remains negative at $2.1M, forcing reliance on financing activities which injected $10.3M to support growth. The company is burning through its cash reserves while investing heavily in R&D ($6.9M) and general administration ($9.2M) to establish its market position.
Industry Overview
The chemical recycling industry is rapidly evolving as governments and corporations seek to meet stringent plastic waste reduction targets. Companies in this space compete on technology efficiency, feedstock sourcing capabilities, and integration with existing polymer supply chains. Regulatory frameworks are shifting globally to support advanced recycling methods while defining waste classification standards.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $172.8K | $153.0K | $10.9M |
| Cost of Revenue | $0 | $0 | $0 |
| Gross Profit | $172.8K | $153.0K | $10.9M |
| Operating Expenses | $8.6M | $6.2M | $16.9M |
| Operating Income | $-8.4M | $-6.0M | $-6.0M |
| R&D | $17.3M | $11.4M | $6.9M |
| G&A | $20.4M | $10.0M | $9.2M |
| Stock-Based Comp | $10.1M | $1.4M | $1.4M |
| D&A | $550.1K | $535.0K | $524.0K |
| Amortization | $-91.2K | $148.0K | — |
| Other OpEx | $-29.2M | $-15.2M | $846.0K |
| Non-Operating Income | $0 | $0 | $0 |
| Pre-Tax Income | $-8.4M | $-6.0M | $-6.0M |
| Income Tax | $0 | $0 | $0 |
| Continuing Ops | $-8.4M | $-6.0M | $-6.0M |
| Discontinued Ops | $-12.9M | $-15.1M | $-9.0M |
| Net Income | $-21.3M | $-21.1M | $-15.1M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $-21.3M | $-21.1M | $-15.1M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $36.4M | $8.0M | $13.9M |
| Cash & Equivalents | $29.6M | $7.0M | $13.0M |
| Accounts Receivable | — | — | $639.0K |
| Inventory | $726.9K | $102.0K | $82.0K |
| Other Current Assets | $6.1M | $928.0K | $158.0K |
| Long-Term Assets | $4.1M | $12.6M | $4.7M |
| PP&E (Net) | $2.5M | $10.6M | $1.7M |
| Other LT Assets | $1.6M | $1.9M | $3.0M |
| Total Assets | $40.6M | $20.6M | $18.6M |
| Current Liabilities | $3.6M | $2.4M | $4.0M |
| Current Debt | $62.1K | $100.0K | $312.0K |
| Other Current Liab | $3.5M | $2.3M | $3.6M |
| Long-Term Liabilities | $3.2M | $4.0M | $14.3M |
| Long-Term Debt | $3.2M | $3.2M | $2.8M |
| Other LT Liab | $0 | $770.0K | $11.5M |
| Total Liabilities | $6.8M | $6.4M | $18.2M |
| Shareholders' Equity | $33.7M | $14.1M | $367.0K |
| Paid-In Capital | $170.4M | $171.8M | $193.5M |
| Retained Earnings | $-155.9M | $-177.0M | $-192.0M |
| AOCI | $-1.1M | $-1.1M | $-1.1M |
| Total L&E | $40.6M | $20.6M | $18.6M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $-21.3M | $-21.1M | $-15.1M |
| Non-Cash Adjustments | $-8.3M | $2.3M | $11.9M |
| Working Capital Changes | $-5.3M | $717.0K | $1.0M |
| Cash from Operations | $-34.9M | $-18.0M | $-2.1M |
| Capital Expenditures | $80.9K | $5.2M | $0 |
| Cash from Investing | $21.3M | $-5.6M | $-2.0M |
| Debt Issuances | $0 | — | — |
| Debt Repayments | $0 | $63.0K | $77.0K |
| Cash from Financing | $1.0M | $-75.0K | $10.3M |
| FX Effect | $-869.5K | $120.0K | $-146.0K |
| Net Change in Cash | $-13.5M | $-23.6M | $6.0M |
| Beginning Cash | $44.1M | $30.6M | $7.0M |
| Ending Cash | $30.6M | $7.0M | $13.0M |
Frequently Asked Questions
How does Loop Industries, Inc. make money?
The company's revenue is driven by its core chemical recycling technology which processes mixed plastic waste into polymer-grade materials. A significant portion of recent activity involves strategic partnerships and facility construction costs rather than traditional product sales, evidenced by high non-cash adjustments and capital expenditures relative to operating income.
What are the main risks for LOOP?
The company faces substantial financial risk due to a significant retained earnings deficit of $192M and consistent net losses over the last three years. High operating expenses relative to revenue suggest challenges in achieving profitability without significant scale or additional funding. Dependence on off-take partners creates concentration risk if key contracts are terminated or not renewed. Regulatory uncertainty surrounding waste classification and carbon credits could impact long-term project economics.
What is LOOP's competitive advantage?
Loop Industries possesses proprietary chemical recycling technology that upcycles complex plastic waste streams unmanageable by mechanical recycling. The company has secured major off-take agreements with global consumer goods giants to process their post-consumer waste. Its modular plant design allows for faster deployment compared to traditional polymer production facilities.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.