Loop Industries Reports Fourth Quarter and Full Year Fiscal 2026 Results and Provides Update on Business Developments

• The Company continues to build on strategic partnerships in India and Europe

  • Memorandum of Understanding with Gujarat government supports development of India project

  • Engineering services at India project progress and total cost is now estimated at $165-$170 million, representing a reduction from prior estimate of $190 million

  • Licensed European facility with Reed Societe Generale continues to progress following site selection and expected to generate engineering fees for Loop

• Expense reduction initiatives lower corporate overhead

LOOP MANAGEMENT TO HOLD UPDATE CALL AT 8:45 AM ET ON THURSDAY, MAY 28, 2026

MONTREAL, QC / ACCESS Newswire / May 27, 2026 / Loop Industries, Inc. (Nasdaq:LOOP) (the "Company," "Loop," "we," "us," or "our"), today reported its consolidated financial results for the fourth quarter and full year of fiscal year 2026. Key updates from the fourth quarter and full-year fiscal 2026 results highlight continued progress in global project deployment, enhanced cost-efficiency, and strategic regional partnerships.

Infinite Loop™ India

Government support facilitates commercial development: Loop's India JV has signed a memorandum of understanding with the government of Gujarat providing formal alignment to support the development of Loop's first large-scale commercial manufacturing platform. The agreement is expected to streamline permitting, infrastructure coordination, and administrative processes, reinforcing a clear path forward and enabling a phased expansion strategy at the site which is capable of supporting multiple facilities.

Lower estimated capital cost improves project economics: Due to favorable foreign exchange movements, ongoing procurement refinements, and land cost optimizations, the estimated capital cost for the initial India facility is expected to be approximately $165-170 million, compared to prior estimates of approximately $190 million. The Company expects the Infinite Loop™ India facility to be operational in calendar 2028.

Project debt financing for India JV: The debt syndication process for financing the construction of the India facility is progressing, with term sheets having been received from international banks who are moving into the technical due diligence stage of the process.

Infinite Loop Europe

As previously announced, Infinite Loop Europe, our European JV with Reed Societe Generale Group which purchased a license to build a European facility using Loop's technology, has selected BASF Industriepark Lausitz in Schwarzheide, Germany, as the site for its first facility. This location provides a number of benefits including world class industrial infrastructure and a supportive regulatory environment aimed at strengthening the EU plastics recycling sector. Following this site selection, the project is moving into the engineering and permitting phase which is expected to generate engineering services revenue for Loop.

Operational Efficiency Initiatives

To support its commercial-scale deployment, Loop has systematically evaluated its corporate overhead through targeted expense reduction initiatives:

Non-Dilutive Government Funding: Loop is receiving advisory services and up to C$2.92 million in non-repayable funding from the National Research Council of Canada Industrial Research Assistance Program (NRC IRAP) through its Clean Technology initiative. Extending through October 2027, this capital directly supports operational readiness and industrial innovation.

Organizational Realignment: The Company is continuing to shift resources away from early stage technology development to commercial execution, resulting in a streamlined headcount and reduced corporate overhead.

Cost controls: Loop has initiated an effort to review vendor contracts and conduct service audits across key fixed overhead expenses, yielding material savings in areas such as insurance.

CEO Comment

"We are making excellent progress on our global growth strategy by advancing our key partnerships in both India and Europe. Our Memorandum of Understanding with the Gujarat government provides a strong foundation for our Indian project. Through rigorous optimization and execution, we have successfully reduced the estimated total cost of this project to $165-$170 million, down from our prior $190 million estimate, representing a significant capital savings," said Daniel Solomita, Loop's Founder and Chief Executive Officer.

"Meanwhile, our European licensing agreement with Reed Société Générale Group continues to meet key milestones following the selection of the BASF Industriepark Lausitz in Schwarzheide, Germany. This project now moves into the execution phase beginning with Loop's engineering team providing the pre-feasibility study. This, combined with our ongoing corporate expense reduction initiatives to lower overhead, has Loop operating leaner and with a clear path toward commercializing our technology globally."

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, May 28, 2026
Time: 8:45 am Eastern Time

Participant joining details (by Telephone):

Joining by Telephone:

United States (Local): +1 646 307-1963
United States (Toll-Free): +1 800 932-3411
Access Code: 23860

OR

Registration Link: https://registrations.events/direct/Q4I23860681

- 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

Fourth Quarter Ended February 28, 2026

The following table summarizes our operating results for the three-month periods ended February 28, 2026 and February 28, 2025, in thousands of U.S. Dollars.

⁽¹⁾ Certain comparative figures have been reclassified to conform to the current year presentation, including the introduction of a cost of services line item causing reclassifications out of research and development employee compensation and external engineering expenses. These reclassifications had no impact on the previously reported net loss and comprehensive loss.

Revenues

Revenues for the three-month period ended February 28, 2026 decreased $10,633 to $176 as compared to $10,809 for the same period in 2025. The revenues for the three-month period ended February 28, 2026 resulted from $176 in engineering fees. The revenues of $10,809 for the three-month period ended February 28, 2025 resulted from royalty from Reed Societe Generale Group, engineering fees and sales of Loop™ PET resin.

Cost of Services

Cost of Services for the three-month period ended February 28, 2026 decreased $27 to $191 compared to $218 for the same period in 2025.

Research and Development

Research and development expenses for the three-month period ended February 28, 2026 decreased $608 to $480, as compared to $1,088 for the same period in 2025. The decrease was primarily attributable to a $365 decrease in employee compensation expenses, a $175 decrease in other, mainly legal fees, and an $89 decrease in external engineering.

General and administrative expenses

General and administrative expenses for the three-month period ended February 28, 2026 decreased $188 to $1,386, as compared to $1,574 for the same period in 2025. The decrease was primarily attributable to a decrease of $188 in professional fees, mainly legal fees, a decrease of $148 in insurance expenses, offset by an increase of $233 in stock-based compensation.

Loss on equity accounted investment

Loss on equity accounted investment decreased by $334 for the three-month period ended February 28, 2026. This loss relates to the Company's 50% portion of the loss incurred by the India JV for the three-month period ended February 28, 2026, during which the India JV incurred preliminary project costs for the planned Infinite Loop™ facility in India, which are mainly engineering fees.

Net Loss

The net income for the three-month period ended February 28, 2026 decreased $9,585 to a loss of $2,703 in the period, as compared to a net income of $6,882 for the same period in 2025. The decrease was primarily due to the decrease of $10,633 in revenues, which was partially offset by the decrease of $608 in research and development expenses, the decrease of $188 in general and administrative expenses and the decrease of $334 in loss on equity accounted investment.

Fiscal Year Ended February 28, 2026

The following table summarizes our operating results for the years ended February 28, 2026 and February 28, 2025, in thousands of U.S. Dollars.