Loop Industries (LOOP) AI Stock Analysis

• Market Cap: $55.59M
• Dividend Yield: N/A
• Average Volume (3M): 133.63K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.16
• Revenue Growth: 11013.00%
• EPS Growth: 39.85%
• Country: US
• Employees: 50
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): -0.06
• Shares Outstanding: 48,337,555
• 10 Day Avg. Volume: 164,814
• 30 Day Avg. Volume: 133,635
• PEG Ratio: 0.15
• Price to Book (P/B): 172.45
• Price to Sales (P/S): 5.81
• P/FCF Ratio: -24.62
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 5.84
• Enterprise Value/Gross Profit: 6.06
• Enterprise Value/Ebitda: -93.77
• 1Y Price Target: $4.55
• Price Target Upside: 295.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: $1.00 ▼(-13.04% Downside)

The score is primarily weighed down by weak financial performance (ongoing losses, negative equity, and negative cash flow) despite improving revenue growth. Technicals provide some support through better short-term momentum, while valuation remains constrained by negative earnings and no dividend. The CFO appointment is mildly positive but secondary to the balance-sheet and profitability risks.

Positive Factors

Revenue Growth / Commercialization

Sustained ~31% TTM revenue growth indicates improving commercialization and customer adoption of Loop’s recycling tech. Over the next 2–6 months, continued revenue expansion supports scaling, partner validation, and a clearer path to operational breakeven if trends persist.

Very High Gross Margin

An exceptionally high gross margin (~96%) points to capital-light, IP-driven economics from licensing and material sales. This margin profile, if maintained, provides durable advantage for reinvestment into commercialization and R&D without requiring proportionate increases in production capex.

Licensing & Strategic Partnerships

A licensing-first model combined with major corporate partnerships supports scalable, low-capex growth. Partner-led adoption accelerates market penetration, transfers execution risk to licensees, and creates recurring revenue potential that is durable beyond short-term cycles.

Negative Factors

Negative Stockholders' Equity

Negative equity materially weakens financial flexibility and increases insolvency risk if losses continue. Over 2–6 months this constraint can limit investment, raise financing costs, and force dilutive capital raises or distressed financing that impair long-term strategic options.

Leverage Exceeding Assets

Debt levels exceeding reported assets create elevated solvency and covenant risk. This structural leverage pressure reduces runway, may restrict partnership negotiations, and can raise the cost of capital or require near-term refinancing—risks that persist beyond transitory market moves.

Negative Cash Flow and Deep Losses

Ongoing cash burn and a deeply negative net margin indicate the business is not yet self-funding. Even with reduced absolute burn, persistent negative FCF and large losses necessitate external capital or rapid margin improvement to sustain growth and execute commercialization over the medium term.

Loop Industries Business Overview & Revenue Model

Company Description

Loop Industries, Inc., a technology company, focuses on depolymerizing waste polyethylene terephthalate (PET) plastics and polyester fibers into base building blocks. It polymerized monomers into virgin-quality PET resins for use in food-grade plastic packaging, such as plastic bottles for water and carbonated soft drinks, and containers for food and other consumer products; and polyester fibers, including textiles, clothing, and apparel. The company was incorporated in 2010 and is based in Terrebonne, Canada.

How the Company Makes Money

Loop Industries generates revenue through the licensing of its proprietary technology to partners in the plastics and recycling industries, enabling them to produce sustainable PET products. The company also earns income from the sale of its depolymerized PET materials to manufacturers seeking sustainable raw materials for their products. Key revenue streams include licensing fees, sales of recycled PET, and potential joint ventures with strategic partners who are looking to integrate Loop's technology into their operations. Additionally, Loop has formed significant partnerships with major corporations in the consumer goods and packaging sectors, which enhances its market presence and drives revenue growth by facilitating the adoption of its sustainable materials.

Loop Industries Financial Statement Overview

Summary

Revenue is growing (~31% TTM) with exceptionally high gross margin (~96%), but profitability remains deeply negative (TTM net margin ~-105%). Balance-sheet risk is elevated with negative equity (about -$7.3M) and higher debt (~$14.7M) relative to assets (~$11.3M). Cash flow is still negative (TTM OCF ~-$0.9M; FCF ~-$0.4M), despite improved burn versus earlier years.

Income Statement

TTM (Trailing-Twelve-Months) revenue reached ~$11.1M with ~31% growth, showing improving commercialization momentum versus prior years. Gross profit is exceptionally high (TTM gross margin ~96%), but the company remains unprofitable: EBIT and EBITDA are still negative and net income is meaningfully negative (TTM net margin around -105%). Annual results show large losses historically (FY2024–FY2025), so while the loss profile is improving versus prior years, sustained profitability has not yet been demonstrated.

Balance Sheet

The balance sheet weakened materially in the most recent period, with stockholders’ equity turning negative in TTM (about -$7.3M), which increases financial risk and reduces flexibility. Total debt is ~$14.7M in TTM, notably higher than recent annual periods, while total assets are ~$11.3M—highlighting a more levered and strained capital structure. Earlier years showed a stronger equity base and modest leverage, but the latest trajectory points to rising balance-sheet pressure.

Cash Flow

Cash generation remains a key challenge: TTM operating cash flow is negative (~-$0.9M) and free cash flow is also negative (~-$0.4M). While the magnitude of cash burn is much lower than earlier years (which saw very large negative operating cash flow and free cash flow), the business is still not self-funding. Free cash flow has also declined versus the prior annual period (TTM free cash flow growth is negative), suggesting uneven progress despite lower absolute burn.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.15M	10.89M	153.00K	172.84K	0.00	0.00
Gross Profit	10.73M	10.37M	-382.00K	-377.28K	-548.23K	-775.67K
EBITDA	-694.00K	-13.91M	-20.36M	-20.56M	-44.22M	-35.49M
Net Income	-2.71M	-15.06M	-21.09M	-21.30M	-44.92M	-36.34M
Balance Sheet
Total Assets	11.29M	18.58M	20.55M	40.56M	59.22M	43.40M
Cash, Cash Equivalents and Short-Term Investments	5.20M	12.97M	6.96M	29.59M	44.06M	35.22M
Total Debt	14.69M	3.08M	3.32M	3.30M	3.38M	2.45M
Total Liabilities	18.61M	18.21M	6.41M	6.82M	13.23M	10.58M
Stockholders Equity	-7.32M	367.00K	14.14M	33.74M	45.99M	32.82M
Cash Flow
Free Cash Flow	-404.00K	-2.57M	-23.68M	-35.93M	-48.10M	-24.82M
Operating Cash Flow	-858.00K	-2.12M	-18.03M	-34.89M	-42.98M	-22.49M
Investing Cash Flow	-3.11M	-2.04M	-5.64M	21.28M	-5.11M	-2.98M
Financing Cash Flow	8.74M	10.32M	-75.00K	1.01M	56.99M	26.60M

Loop Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.15
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LOOP, the sentiment is Positive. The current price of 1.15 is above the 20-day moving average (MA) of 1.10, above the 50-day MA of 1.07, and below the 200-day MA of 1.35, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 55.11 is Neutral, neither overbought nor oversold. The STOCH value of 58.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LOOP.

Loop Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
FSI	61 Neutral	$76.79M	41.61	5.08%	―	0.18%	-54.25%
NTIC	57 Neutral	$87.33M	-273.00	0.02%	1.33%	-0.97%	-99.67%
GPRE	55 Neutral	$804.50M	-3.93	-22.21%	―	-12.07%	-821.68%
LOOP	48 Neutral	$55.59M	-20.50	―	―	11013.00%	39.85%
GEVO	48 Neutral	$487.04M	-10.45	-9.27%	―	675.75%	42.00%

Loop Industries Corporate Events

Loop Industries appoints Spencer Hart as new CFO

On January 4, 2026, Loop Industries’ board appointed veteran investment banker Spencer Hart as chief financial officer and principal financial and accounting officer, effective January 15, 2026, while he continues to serve as a director. Hart, who joined the board in February 2025 and previously held senior roles at Guggenheim Securities, will receive a $200,000 base salary, a performance-based annual cash bonus opportunity, and one million stock options vesting over four years or accelerating upon the Infinite Loop India plant achieving a key PET resin production milestone, aligning his incentives with the company’s operational objectives. His employment agreement provides for severance, including salary continuation, prorated bonus, and full option vesting if terminated without cause, and imposes confidentiality, non-compete, non-solicitation, and non-disparagement obligations during and after employment. The company, which qualifies as a “controlled company” under Nasdaq rules, acknowledged that Hart’s move into an executive role means he will no longer be an independent director and the board will no longer have a majority of independent directors, but emphasized the need for continuity and experienced financial leadership; in response, Hart resigned from all board committees, and independent directors Louise Sams, Laurence Sellyn, and Jay Stubina are slated to take over his audit, compensation, and nominating and governance committee roles, respectively.

The most recent analyst rating on (LOOP) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Loop Industries stock, see the LOOP Stock Forecast page.