Loop Industries (LOOP) Financials

Loop Industries’ latest financial statements show modest improvement in operating cash burn and lower expenses, but the company remains in a financially fragile position. The quarter ended May 31, 2026, reported revenue of $179,000, up slightly from $176,000 in the prior quarter and well above the $6,000 reported in Q1 2025. However, revenue remains far below the $10.8 million reported in Q4 2025, which appears to have been an unusually large quarter.

• Revenue has recovered from the very low levels reported during much of 2025. Quarterly revenue increased from $6,000 in Q1 2025 to $179,000 in Q1 2027, although the trend remains volatile.
• Operating cash burn improved sequentially. Net cash used in operating activities declined to $1.23 million in Q1 2027 from $2.74 million in Q4 2026 and $3.08 million in Q1 2026.
• Operating expenses have generally declined from earlier periods. Selling, general and administrative expense fell to $1.57 million in Q1 2027 from $2.91 million in Q1 2025, while research and development expense declined to $962,000 from $2.24 million over the same comparison.
• Noncash adjustments helped narrow the difference between accounting losses and cash losses. Q1 2027 included $1.70 million of noncash adjustments and $84,000 of depreciation, partially offsetting the $3.39 million net loss when calculating operating cash flow.
• Accounts receivable totaled $699,000 at the latest quarter-end. This may provide some future cash collection, but the data does not indicate when these receivables will convert to cash or whether they are concentrated among a small number of customers.
• Investment and intangible assets remain significant. Loop reported $1.16 million of long-term investments and $1.73 million of intangible assets, but their future economic value depends on successful commercialization of the company’s technology and business plans.
• Loop remains deeply unprofitable. The company posted a $3.39 million net loss in Q1 2027, following losses of $2.70 million in Q4 2026, $2.94 million in Q3 2026 and $3.20 million in Q2 2026.
• Gross profitability remains weak. Revenue and cost of revenue were both reported at $179,000 in Q1 2027, producing zero gross profit. The company therefore has not yet demonstrated a sustainable gross margin on its recurring revenue base.
• Liquidity has deteriorated sharply. Cash and equivalents fell from $13.37 million in Q2 2024 to $1.06 million at the end of Q1 2027. Based on the latest $1.23 million quarterly operating cash outflow, the reported cash balance alone does not appear sufficient to support operations for a full quarter without additional funding or a major improvement in cash generation.
• Negative equity and substantial liabilities increase financial risk. Total liabilities were $18.72 million compared with total assets of $6.70 million, resulting in negative total equity of $12.02 million. The balance sheet also included $3.01 million of short- and long-term debt and $12.43 million of other noncurrent operating liabilities.

Overall, the statements point to a company still dependent on commercialization progress and external financing. Lower operating expenses and a reduced cash burn are encouraging, but they are outweighed by recurring losses, minimal cash, negative equity and limited evidence of consistent revenue generation. Investors should closely monitor future revenue growth, gross margins, financing activity and whether Loop can reduce its reliance on capital markets.