Loop Industries Q2 net loss narrows on lower R&D expenses

By Reuters News


Overview

  • US clean technology recycler's fiscal Q2 revenue rose yr/yr, driven by India JV engineering services

  • Net loss for fiscal Q2 narrowed yr/yr due to lower R&D and administrative expenses

  • Company rescaled India facility to reduce capital needs and accelerate construction timeline


Outlook

  • Company targets completion of India facility construction by end of 2028, startup in 2029

  • Loop is seeking capital to fund its equity contribution to the India JV and ongoing expenses

  • Company says timing and amount of future financing and revenue remain uncertain


Result Drivers

  • ENGINEERING SERVICES - Q2 revenue was generated from engineering services provided to the India JV

  • LOWER OPERATING EXPENSES - Q2 cash operating expenses fell yr/yr, mainly due to reduced employee compensation and insurance costs

  • RESCALED INDIA FACILITY - Co rescaled planned India facility to reduce capital requirement and support faster execution, per CEO Daniel Solomita


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Revenue

Miss

$117,000

$312,500 (2 Analysts)

Q2 Net Loss

$2.99 mln


Analyst Coverage

  • The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the environmental services & equipment peer group is "buy."

  • Wall Street's median 12-month price target for Loop Industries Inc is $4.55, about 1,230.4% above its October 14 closing price of $0.34


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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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