Loop Industries, Inc.
Loop Industries, Inc. is a U.S.-listed technology company commercializing patented depolymerization technology that converts waste PET plastic and polyester fiber into purified monomers and then virgin-quality PET resin and polyester fiber. Its business model combines direct ownership in manufacturing projects, joint ventures, technology licensing, and engineering services to scale circular PET production globally.
Fiscal year 2026 · change from previous year
Development 2021–2026
Business
Share of revenueLicenses of Loop's patented depolymerization process to third-party project developers.
Engineering, design, and startup support provided to joint ventures and licensees.
Economic participation in commercial plants that produce PET resin and polyester fiber.
Virgin-quality PET resin made from waste feedstock for packaging customers.
Recycled polyester fiber used in apparel, home furnishings, and industrial textiles.
Products
Reported · share of revenue- Engineering Services98.4 %
- Products1.6 %
Source: 10-K FY2026, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.
Customers
Loop sells to packaging and textile customers that want recycled-content inputs without sacrificing virgin-quality performance. It also monetizes its technology through strategic partners, such as joint-venture sponsors and licensees, who need process know-how, engineering support, and commercialization rights. In the near term, customer demand is tied to product activations from the Terrebonne facility and to project-development counterparties in India and Europe.
Buy virgin-quality PET resin for bottles and food packaging to meet recycled-content goals.
Buy polyester fiber made from waste feedstock for apparel, home furnishings, and industrial uses.
Partner with Loop to develop and operate Infinite Loop™ plants while sharing capital and execution risk.
Pay upfront and milestone-based fees for rights to build and operate Loop-based facilities.
Use Loop for project engineering and startup support before commercial operations begin.
Strategy
Loop's strategy is to commercialize its PET depolymerization platform through a mix of owned projects, joint ventures, and licensing rather than building every plant on its balance sheet. The company is prioritizing low-cost manufacturing regions, partner-funded development, and modular plant design to scale faster while limiting capital needs.
It is the main near-term path to commercial scale and recurring operating economics.
Licensing can scale the technology with limited capital deployment by Loop.
Standardized modules could lower capex, shorten timelines, and improve execution.
Commercial plants need reliable waste PET supply and customer demand to operate efficiently.
Geography
Loop is headquartered in Terrebonne, Québec, and its current operating base includes the Terrebonne facility in Canada. Commercial expansion is being pursued through an India joint venture with Ester Industries and a European licensing partnership with Reed Societe Generale Group, making future growth highly dependent on project execution in those regions. The company also plans modular construction in low-cost manufacturing countries to reduce capital intensity and improve scalability.
Risks
Loop remains a development-stage company with limited revenue, ongoing losses, and substantial funding needs, so execution and financing risk are central to the story. Its growth depends on successful plant construction, partner alignment, regulatory approvals, and the ability to prove the economics of a new recycling process at commercial scale.
- Going-concern and liquidity riskImpact: CriticalLikelihood: High
The company has limited revenue, ongoing losses, and insufficient cash for the next 12 months.
Exposure: Corporate liquidity and project funding
- India JV construction and financing riskImpact: HighLikelihood: High
The planned facility requires substantial capital and depends on permits, debt/equity funding, and execution.
Exposure - Technology and scale-up riskImpact: HighLikelihood: High
Commercial success depends on proving the depolymerization process at larger scale with stable economics.
Exposure - Partner and governance riskImpact: HighLikelihood: Medium
Loop relies on Ester and Reed-related entities for project development and commercialization.
Exposure: JV decision-making and milestone delivery
- Equity dilution riskImpact: MediumLikelihood: High
ATM and other capital raises can dilute existing shareholders and pressure the stock price.
Exposure: Common stock issuance
Accounting
Judgemental itemsThe Reed Europe license includes an upfront payment and future milestone receipts, so timing of recognition matters.
Impact: Can shift revenue between periods and affect comparability
Revenue from the India JV is tied to services delivered during project development and startup.
Impact: Quarterly revenue can be lumpy and project-dependent
Management evaluates convertibles for derivative bifurcation and fair value changes through earnings.
Impact: Can create non-cash volatility in reported results
Early-stage facilities and capitalized project assets may not recover carrying value if projects slip or economics weaken.
Impact: Potential write-downs of plant and equipment
Cash resources are insufficient for the next 12 months, so assumptions about financing are critical.
Impact: Affects disclosure, valuation, and investor perception
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Last updated: 24/09/2026