Loop Industries Reports Second Quarter Fiscal 2026 Results and Provides Update on Positive Progress Towards Commercialization

• OFFTAKE AGREEMENT FOR INFINITE LOOP INDIA WITH LEADING SPORTS APPAREL BRAND
• OFFTAKE AGREEMENT TO SUPPLY DMT TO TARO PLAST FROM INFINITE LOOP INDIA
• STRATEGIC ALLIANCES WITH SHINKONG AND HYOSUNG TNC TO SUPPORT SHIFT BY GLOBAL APPAREL BRANDS TO TEXTILE-TO-TEXTILE CIRCULAR POLYESTER
• ACQUISITION AGREEMENT FOR 93 ACRE SITE FOR INDIA INFINITE LOOP FACILITY
• POSITIVE PROGRESS ON PROJECT DEBT FINANCING FOR INFINITE LOOP INDIA
• CONTINUED ADVANCEMENT ON COMMERCIALIZATION TIMELINE FOR INFINITE LOOP EUROPE

LOOP MANAGEMENT TO HOLD UPDATE CALL AT 8:45 AM ET ON THURSDAY, OCTOBER 16, 2025

MONTRÉAL, QUEBEC / ACCESS Newswire / October 15, 2025 / Loop Industries, Inc. (Nasdaq:LOOP) (the "Company," "Loop," "we," "us," or "our"), a clean technology company whose mission is to accelerate a circular economy for polyester by manufacturing 100% recycled polyethylene terephthalate ("PET") plastic and textile-to-textile (T2T) polyester, today reported its consolidated financial results for the second quarter of fiscal year 2026 and provided an update on key milestones.

Infinite Loop^™ India Update

• Offtake agreements secured for India: In September 2025, Loop executed a multi-year offtake agreement with a leading global branded sports apparel company for the sale of Twist^™ polyester from the Infinite Loop India facility. Loop also executed an offtake agreement with Taro Plast S.p.A., an Italy-based specialty polymer manufacturer, for the sale of Loop^™ DMT from the Infinite Loop India facility. We continue to advance negotiations with additional apparel and CPG brands to secure further offtake agreements.

• Strategic alliance with Shinkong: In August 2025, Loop announced a strategic alliance with Shinkong Synthetic Fibers Corporation ("Shinkong"), a leader in Taiwan's polyester industryand a global leader in sustainable and high-performance polyester yarn solutions for apparel brands, to support the shift by global brands to textile-to-textile circular polyester. This strategic partnership aims to combine Loop's branded textile-to-textile Twist^™ polyester and Shinkong's polyester fiber spinning capabilities and customer network.

• Strategic alliance with Hyosung TNC: In September 2025, Loop announced a strategic alliance with Hyosung TNC, a complete sustainable textile solutions provider and the world's largest manufacturer of spandex by market share. This alliance aims to combine Loop's branded textile-to-textile Twist^™ polyester and Hyosung TNC's industry-leading expertise in advanced textile materials.

• Site acquisition agreement executed: In August 2025, ELITe, our India JV with Ester Industries Ltd., executed an agreement for the acquisition of approximately 93 acres in Gujarat, India, for total consideration of $10.5M which represents a $5M reduction in the amount included in project cost estimate. The site has excellent strategic access to textile waste for feedstock, renewable clean energy, and industrial infrastructure. There is sufficient land on the site for both the planned initial 70,000 metric ton facility and an additional 100,000 metric ton capacity expansion.

• Engineering services agreement signed: In June 2025, Loop executed a $1.5 million engineering services agreement with ELITe, through which Loop will support the detailed engineering phase for the Infinite Loop^™ India facility. We anticipate entering into additional engineering services agreements for India throughout the construction phase.

• Project debt financing for India: ELITe has engaged KPMG to manage the debt syndication process for financing the construction of the Infinite Loop^™ India facility. Positive progress is being made in discussions with potential lenders.

European Partnership with Reed Societe Generale Group

• Site selection and development activities continuing to progress: Loop and Reed Societe Generale Group are in an advanced stage of selecting a final project location for the first Infinite Loop^™ facility in Europe and are engaging with government entities regarding available subsidies and incentives, as well as identifying strategic partners to support project execution.

• Loop to provide engineering and modular construction for facility: Once the project site is identified, we expect to provide engineering services to support project execution, along with a modular construction solution for the Infinite Loop^™ Europe project to enhance project profitability and returns and accelerate the timing of project start-up. Loop expects to generate engineering revenues from this project in 2026.

Financial highlights

Cash operating expenses* for the quarter were $2.43 million, reflecting a year-over-year decrease of $1.74 million. At the end of the second quarter, we had total available liquidity of $9.86 million, which we believe to be sufficient to fund operations while we secure the balance of our financing requirements for our equity contribution to the India JV and for operating expenses until the start-up of the Indian facility.

*Cash operating expenses include research & development and general & administrative expenses, less stock-based compensation expenses.

CEO Comment

"This was a landmark quarter for the Infinite Loop India project. With the strategic site now secured in the Gujarat Province, we have achieved several milestones necessary to advance the facility to the construction phase. On the commercial front, we secured our foundational anchor customer through a major off-take agreement with a world-leading sports apparel company, complemented by an agreement with Taro Plast to supply sustainable DMT for the automotive industry. We are also making significant headway in securing project debt financing from a strong syndicate of international and local Indian banks," said Daniel Solomita, Founder and CEO of Loop. "The European project is also progressing well, and we are now in the final stages of site selection. Once the optimal site is secured, we anticipate this project will begin generating a meaningful new revenue stream for Loop. This revenue will be sourced from initial Engineering services and subsequent milestone licensing payments from the Reed Societe Generale Group."

Corporate Update Call

Senior Management of Loop will host a corporate update call, followed by a question-and-answer session, which can be accessed via the dial-in numbers below.

Date: Thursday, October 16, 2025
Time: 8:45 am Eastern Time

Participant joining details (by Telephone):

Joining by Telephone:

United States (Local): +1 646 844 6383
United States (Toll-Free): +1 833 470 1428
Access Code: 285041

OR

Registration Link: https://www.netroadshow.com/events/login/LE9zwo3j9vi4CEDzT2PfP0BtOMYEfNEIvZc

- Avoid wait time - Bypass speaking with an operator to join the call
- Receive a Calendar Invitation with call access details including your unique PIN

Results of Operations

All monetary amounts are in thousands of U.S. dollars unless otherwise specified.

The following table summarizes our operating results for the three-month periods ended August 31, 2025 and 2024, in thousands of U.S. Dollars.

Second Quarter Ended August 31, 2025

Revenues

Revenues for the three-month period ended August 31, 2025, decreased$23 to $0, as compared to $23 for the same period in 2024. The revenues of $23 for the three-month period ended August 31, 2024 resulted from sales of Loop^™ PET resin.

Research and Development

Research and development expense for the three-month period ended August 31, 2025, decreased $1,102 to $843, as compared to $1,945 for the same period in 2024. The decrease was primarily attributable to a $642 decrease in external engineering expenses for design work for our Infinite Loop^™ manufacturing process, and a $265 decrease in employee compensation expenses.

General and administrative expenses

General and administrative expenses for the three-month period ended August 31, 2025, decreased $724 to $1,871, as compared to $2,595 for the same period in 2024. The decrease was primarily attributable to a $395 decrease in professional fees, which was mainly attributable to legal costs related to our partnerships with Reed Societe Generale Group and Ester incurred in the three-month period ended August 31, 2024, and a $162 decrease in employee compensation.

Interest and other financial expenses

Interest and other financial expenses increased by $300 for the three-month period ended August 31, 2025. This increase is mainly attributable to the accrued PIK dividend on the Series B Convertible Preferred Stock issued to RCE recorded as an interest expense for $341 in the three-month period ended August 31, 2025 (2024 - nil).

Net Loss

The net loss for the three-month period ended August 31, 2025, decreased$1,635 to $3,204, as compared to $4,839 for the same period in 2024. This decrease was primarily due to the decrease of $1,102 in research and development expenses and the decrease of $724 in general and administrative expenses, which were partially offset by the $300 increase in interest and other financial expenses.

Six Months Ended August 31, 2025

The following table summarizes our operating results for the six-month periods ended August 31, 2025 and 2024, in thousands of U.S. Dollars.