Loop Industries, Inc. (LOOP): Business Model Canvas [Dec-2025 Updated]

You're analyzing a company that just made a major strategic shift, and honestly, understanding the mechanics is key to valuing it right now. Loop Industries, Inc. has firmly pivoted to a global licensing and Joint Venture (JV) strategy, using its patented chemical recycling to create virgin-quality polyester from waste. For context, in Fiscal Year 2025, this model brought in $10.889 million in revenue, mostly from that sweet up-front royalty of $10.395 million, but you also have to factor in the massive $176 million capital expenditure for their Infinite Loop™ India facility. So, how does this asset-light, tech-heavy approach actually stack up across all nine building blocks, from key partners like Nike to their cost structure? Dive below to see the full canvas breakdown.

Loop Industries, Inc. (LOOP) - Canvas Business Model: Key Partnerships

You're looking at the core relationships Loop Industries, Inc. (LOOP) has locked in to scale its technology, and these partnerships are where the real financial commitments are showing up.

The anchor customer for the flagship Infinite Loop™ India facility is Nike, Inc., secured via a multi-year offtake agreement announced on November 10, 2025. Loop Industries will supply Nike with Twist™, which is their branded, virgin-quality circular polyester resin derived entirely from textile waste. This deal establishes Nike as the primary off-taker for the Indian operation. The projected environmental impact for a 70,000 tonne Infinite Loop™ facility is significant, aiming for an 81% reduction in greenhouse gas emissions, equating to an annual savings of up to 418,600 tonnes of CO₂ emissions compared to fossil fuel-based polyester.

For the European deployment, the partnership with Reed Société Générale Group is key for both technology licensing and financing. Loop Industries generated $10.4 million in licensing revenue in the quarter ending February 28, 2025, representing the up-front payment for the first European technology license. Loop is also set to receive an additional €10 million in licensing fees upon milestone achievement. Furthermore, Loop secured €10 million in convertible preferred security financing from the group, which carries a 13% PIK dividend rate over a 5-year term, convertible at $4.75 per share. The European manufacturing partnership is structured with 90% ownership by Reed Société Générale Group and 10% by Loop Industries.

The Joint Venture partner for the Infinite Loop™ India facility is Ester Industries Ltd., forming Ester Loop Infinite Technologies (ELITe). This venture has secured a 37-hectare site near Surat, Gujarat. The initial facility capacity is planned at 70,000 metric tonnes per year, with provisions for a medium-term expansion of an additional 100,000 metric tonnes. The estimated total investment is around ₹1,600 crore, or USD $165 million. Both firms will contribute Rs 500 crore jointly initially. The facility is designed to cut carbon emissions by up to 80 per cent compared to petroleum-based PET and is scheduled for commercial operation in early 2027. Loop Industries also executed a $1.5 million engineering services agreement with ELITe on June 22, 2025.

Global distribution is being bolstered by strategic alliances. Loop Industries and Hyosung TNC launched an alliance on September 9, 2025. Hyosung TNC converts Loop's Twist™ into high-performance yarns under its Regen™ portfolio, with a customer base spanning Asian, Europe and North America. Separately, an alliance with Shinkong was launched on August 14, 2025.

Diversifying the product offtake, Loop Industries signed an agreement with Taro Plast S.p.A. on September 8, 2025 for its chemical building block, Loop™ DMT. This agreement is tied to the Infinite Loop™ India facility, which is scheduled to come online in early 2028. The India facility is designed to produce 70,000 tonnes of PET resin annually alongside the Loop™ DMT, which Taro Plast will use for automotive and specialty polymer applications.

Here's a quick look at the scale of these commitments:

The European technology license deal with Reed Société Générale Group included an initial payment of €10 million, and Loop will receive an additional €10 million based on milestones. The India JV land acquisition cost was $10.5M, which was a $5M reduction from the initial FEED estimate of $176M.

Loop Industries, Inc. (LOOP) - Canvas Business Model: Key Activities

You're looking at the core actions Loop Industries, Inc. is taking to drive its commercialization strategy right now, late in 2025. It's a mix of running the existing asset, building the next big one, and locking in future sales and supply.

Operating and optimizing the Terrebonne pilot manufacturing facility.

The Terrebonne Facility is still producing material, though its revenue contribution is small compared to the new licensing deals. For the year ended February 28, 2025, revenue from sales of Loop™ PET resin produced there was $126 thousand. For the three-month period ending February 28, 2025, that revenue was $46 thousand. This facility validates the process that is now being licensed globally. The company's cash operating expenses, excluding project costs, were projected to be about $1.0 million per month for the balance of fiscal 2025.

Executing the global commercialization strategy via licensing and JVs.

The strategy is clearly leaning heavily into licensing and engineering services, which generated significant upfront cash. Loop Industries reported total revenue of $10.8 million in the quarter ending February 28, 2025. Of that, $10.4 million came from the up-front payment for the first technology license sold to Reed Societe Generale Group for a European Infinite Loop™ facility. This European partnership is structured as a joint venture where Loop holds an initial 10% equity stake. The company also secured a $1.5 million engineering services agreement with its India JV, ELITe, in June 2025, building on an initial agreement completed in Q4 fiscal 2025. Furthermore, Loop expects to receive an additional €10 million in licensing fees from the European deal based on project milestones.

The commercialization push also involves strategic alliances to move product downstream:

• Strategic alliance with Hyosung TNC announced in September 2025.
• Strategic alliance with Shinkong Synthetic Fibers Corporation announced in August 2025.
• Loop's branded resin, Twist™, is being combined with partners' spinning capabilities to reach global brands.

Securing long-term, low-value waste PET and textile feedstock supply.

Securing feedstock is foundational, especially for the large-scale India project, which is positioned to use waste polyester feedstocks from the Indian textile industry. The company has been active in locking in demand, which indirectly secures the need for feedstock:

The site acquisition in India was chosen specifically for its strategic access to textile waste.

Project management for the $176 million Infinite Loop™ India facility construction.

This is a major capital deployment activity. The total estimated investment for the Infinite Loop™ India facility is $176 million. The joint venture, ELITe, executed an agreement in August 2025 to acquire approximately 93 acres in Gujarat, India, for a total consideration of $10.5M. This land cost represented a $5M reduction from the initial capital expenditure estimate included in the Front-End Engineering Design (FEED) study. Groundbreaking is targeted for the second half of calendar 2025, with commercial operations projected to start in calendar 2027. The initial facility is designed for an annual production capacity of 70,000 metric tons.

Ongoing R&D to improve proprietary depolymerization technology yields.

Loop Industries continues to focus on its patented low heat, no added pressure depolymerization technology. While specific yield improvement percentages for late 2025 aren't quantified here, the technology is noted for having 'higher production yields compared to other chemical recycling technologies'. Research and development expenses for the three-month period ended February 28, 2025, were $1,306 thousand, a decrease from $3,018 thousand for the same period in 2024.

The key focus of this R&D activity is to ensure the output is virgin-quality material, which is certified by regulatory bodies, including having No objection letters from the FDA and Health Canada, and being REACH certified for Europe.

Finance: review the Q1 2026 cash flow forecast incorporating the $1.5 million engineering services revenue by next Tuesday.

Loop Industries, Inc. (LOOP) - Canvas Business Model: Key Resources

The Key Resources for Loop Industries, Inc. (LOOP) center on its intellectual property, branded materials, and critical physical/financial assets supporting its global expansion, particularly in India.

• - Patented depolymerization technology (Infinite Loop™), developed and perfected over the past 10 years, utilizing a low heat, no added pressure process,.
• - Branded products: Loop™ PET resin, which has No objection letters from FDA and Health Canada and is REACH certified for Europe. The textile-to-textile offering is branded as Twist™ polyester fiber,.
• - Proprietary chemical tracer technology embedded in Twist™, allowing customers to track finished products directly back to their original waste textile inputs for verification,.
• - Cash and liquidity, supported by proceeds from the Reed Société Générale Group transactions.
• - Strategic land acquisition for the India facility in Gujarat province, securing a site for manufacturing,.

The financial and capacity metrics tied to these resources are detailed below:

The patented technology itself is the core asset, enabling the conversion of low-value waste PET plastic and polyester fiber into base chemical building blocks: DMT (dimethyl terephthalate) and MEG (monoethylene glycol),.

The financing from Reed Société Générale Group is explicitly earmarked to fund the India joint venture equity contribution and cover operational needs,.

The land acquisition in Gujarat is a foundational step, with the site being large enough for the initial 70,000mt facility plus the planned expansion,. Groundbreaking for the Infinite Loop™ India facility is anticipated in the second half of calendar 2025, with commercial operations projected to start in 2027,.

Loop Industries, Inc. (LOOP) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose Loop Industries, Inc. (LOOP) technology, which is all about delivering premium material quality from waste. The value proposition centers on closing the loop on polyester without sacrificing performance or purity. This is a critical differentiator as major brands push for verifiable circularity in their supply chains.

The company's technology transforms low-value, waste polyethylene terephthalate (PET) plastic and polyester fiber-which would otherwise go to landfill or incineration-into its base chemical building blocks, or monomers. These monomers are then repolymerized into virgin-quality materials.

• - Virgin-quality PET and polyester from 100% recycled content. The output is Loop™ branded PET resin and polyester fiber that is chemically identical to virgin material, allowing for infinite recycling without quality degradation.
• - Textile-to-Textile (T2T) solution for complex polyester waste streams. The Infinite Loop™ India facility, expected to break ground in the second half of calendar 2025, is planned for an annual production capacity of 70,000 metric tons of both T2T polyester fiber and bottle-grade PET resin.
• - Significant environmental savings, like 81% GHG reduction at the India facility. The low heat, no added pressure depolymerization process is designed to reduce greenhouse gas (GHG) emissions by up to 81% compared to virgin PET production. Furthermore, one executive noted that Loop PET resin can save up to 360,000 tonnes of CO2 per year compared to virgin PET made from fossil fuels.
• - Food-grade and pharma-grade qualified recycled PET resin. Loop™ branded PET resin is suitable for food-grade packaging and has successfully met the stringent requirements for pharmaceutical packaging applications, including testing compliance with the United States Pharmacopeia (USP <661.1>) and the European Pharmacopeia (Ph.Eur. 3.1.15).
• - Fully traceable supply chain from waste to finished product. The presence of the Loop logo on a package serves as a consumer confirmation that the plastic is sustainable and traceable through the company's process.

To put this in context with the company's commercial progress as of late 2025, Loop Industries, Inc. generated $10.8 million in total revenue for the quarter ending February 28, 2025, driven by its first technology license sale to Reed Societe Generale Group, which included an up-front payment of $10.4 million in licensing revenue. This financial validation underpins the technology's commercial value proposition.

Here's a quick look at the key performance and quality metrics supporting these value propositions:

The ability to offer 100% recycled content that meets the highest purity standards-like those for pharmaceutical packaging-is the core offering. Also, securing an anchor customer like Nike for the India facility's output of Twist™ polyester resin demonstrates the commercial acceptance of this high-quality, circular material in the textile sector.

Loop Industries, Inc. (LOOP) - Canvas Business Model: Customer Relationships

You're looking at how Loop Industries, Inc. (LOOP) locks in demand for its revolutionary circular polyester-it's all about securing commitments before the big plants come online. The relationship strategy is built on multi-layered agreements that de-risk the massive capital expenditure required for their Infinite Loop™ facilities.

Long-term, high-volume offtake contracts with anchor customers.

This is where the rubber meets the road for commercial viability. You've seen the movement from early-stage interest to firm commitments, especially for the Infinite Loop™ India facility. As of late 2025, the company has moved beyond just negotiating to signing key deals.

Here's a snapshot of the anchor customer commitments that validate the demand for Twist™ polyester resin:

For instance, the India facility, a 50/50 joint venture with Ester Industries Ltd, is designed to process waste polyester feedstocks. A projected 70,000 tonne Infinite Loop™ facility in India could save up to 418,600 tonnes / year of CO₂ compared to virgin PET production. That's the environmental value proposition these contracts are built upon.

Collaborative technical support for integrating Twist™ into supply chains.

Getting a new material into established textile supply chains isn't just about selling a product; it's about proving it works seamlessly. Loop Industries is actively embedding itself with downstream partners. They've expanded their offerings beyond just the resin.

• Loop has expanded product offerings to include spun polyester fiber.
• This positions them as a Tier 3 supplier in the fashion industry.
• They established a global network of spinning partners for collaboration.

The strategic alliance with Shinkong Synthetic Fibers Corporation, announced in August 2025, is a prime example. This partnership combines Loop's technology with Shinkong's spinning capabilities and distribution network, allowing Loop to offer high-quality circular polyester yarns made from Twist™ to Shinkong's network of over 100 customers worldwide. Honestly, this kind of deep integration is what makes the technology stick.

Strategic, equity-based partnerships for technology deployment.

Loop Industries uses strategic alliances and licensing to deploy capital efficiently, especially moving toward a licensing model in higher-cost manufacturing countries. You see this structure in their European and Asian plans.

The first technology license for a European Infinite Loop™ facility was sold to Reed Societe Generale Group for an up-front payment of $10.4 million as part of a total $20.8 million transaction closed in late 2024. The company continues to advance discussions with potential lenders for debt syndication on the India facility, following a $1.5 million engineering services agreement signed with the India JV, ELITe, in June 2025.

The earlier equity-based structure with SK Global Chemical involved a $56.5 M purchase of treasury common shares at $12 per share, intending to build a minimum of four facilities by 2030, collectively processing approximately 400,000 tons of waste annually.

Direct engagement with brands to meet recycled content mandates.

The customer engagement is heavily driven by regulatory pressure. Brands aren't just doing this for good PR; they have hard deadlines they need to meet, and Loop Industries provides the verifiable solution.

Here are some of the near-term recycled content targets that drive direct engagement:

Loop's ability to provide virgin-quality resin made from 100% textile waste directly addresses these escalating requirements, which is why securing those multi-year offtake agreements is so critical for their forward planning.

Loop Industries, Inc. (LOOP) - Canvas Business Model: Channels

You're looking at how Loop Industries, Inc. (LOOP) gets its value proposition-the recycled PET and polyester fiber-into the hands of customers. It's a multi-pronged approach focusing on direct sales, technology deployment, and strategic partnerships.

Direct multi-year offtake agreements with global brands (e.g., Nike)

Loop Industries, Inc. has secured a major customer channel through direct, long-term supply contracts for the output of its manufacturing facilities. Nike, Inc. has signed on as the anchor customer for the Infinite Loop™ India facility under a multi-year offtake agreement to source Twist™, the company's branded circular polyester resin. This agreement is pivotal for making the debt financing for the India project bankable. The Infinite Loop™ India facility, a joint venture with Ester Industries Ltd., is designed to produce an initial annual capacity of 70,000 metric tons of both textile-to-textile polyester fiber and bottle-grade PET resin. Another offtake agreement is in place to supply DMT (dimethyl terephthalate) to Taro Plast from the India facility.

The expected environmental impact from the India facility, based on using Twist™ from textile waste, is a projected cut in greenhouse gas emissions by 81 per cent, saving up to 418,600 tonnes of CO₂ annually.

Technology licensing agreements for regional facility deployment

A key channel involves licensing the patented depolymerization technology to partners for regional deployment. Loop Industries, Inc. closed its first technology license sale in December 2024 to Reed Societe Generale Group for the right to build one Infinite Loop™ manufacturing facility in Europe. This initial license generated an up-front payment of $10.4 million (or €10 million) in Q4 fiscal 2025 revenue. Loop Industries, Inc. is structured to receive an additional €10 million in licensing fees contingent upon the successful achievement of project milestones prior to construction. Furthermore, Loop Industries, Inc. retains the right to increase its equity stake in the European manufacturing facility, and in any potential future facilities under this partnership, up to a maximum of 50% for each.

Joint Venture (JV) manufacturing and sales (Infinite Loop™ India)

The primary manufacturing channel is through the India Joint Venture, Ester Loop Infinite Technologies Private Ltd. ('ELITe'), with Ester Industries Ltd.. The total confirmed capital expenditure (CapEx) for the India facility is estimated at $176 million. The JV acquired a strategic 93-acre site in Gujarat for $10.5 million, which resulted in a $5 million reduction from the initial project cost estimate. Groundbreaking for this facility is anticipated in the second half of calendar 2025, with commercial operations projected to start in calendar 2027. Engineering services revenue from ELITe is also a channel component; a new agreement signed in June 2025 was for $1.5 million, building on an initial agreement where Q4 fiscal 2025 saw revenue of $368,000.

The Infinite Loop™ India facility's projected economics include a 5% licensing fee on customer sales, in addition to the initial technology license fees.

Partner distribution networks (Shinkong, Hyosung TNC) for global reach

Loop Industries, Inc. utilizes strategic alliances to convert its Twist™ resin into finished yarns and expand market access beyond direct sales. These alliances act as critical distribution multipliers.

The key distribution partners include:

• - Shinkong Synthetic Fibers Corporation: A strategic alliance was launched in August 2025 to combine Loop Industries, Inc.'s technology with Shinkong's spinning capabilities and distribution network. Shinkong can now offer Twist™ textile-to-textile branded resin to its portfolio of over 100 customers worldwide.
• - Hyosung TNC: A strategic alliance was announced in September 2025 where Hyosung TNC will convert Loop Industries, Inc.'s high-purity Twist™ polyester into high-performance yarns under its Regen™ portfolio. This supports Loop Industries, Inc.'s Infinite Loop™ India project by expanding the customer base.

The company also reported an offtake agreement to supply DMT to Taro Plast from the Infinite Loop India facility.

Loop Industries, Inc. (LOOP) - Canvas Business Model: Customer Segments

You're looking at the key groups Loop Industries, Inc. (LOOP) targets for its circular polyester technology deployment as of late 2025. The focus has clearly shifted from small-scale resin sales to large-scale technology licensing and securing offtake commitments for its major joint venture projects.

The company's most significant revenue driver in the fiscal year ending February 28, 2025, was not product sales, but rather the initial monetization of its intellectual property. Total revenue for that year reached $10.889 million, with $10.395 million coming directly from the up-front royalty payment for the first technology license sold to Reed Societe Generale Group. This signals that the primary customer segment for immediate financial impact is the Strategic Financial and Industrial Partner providing the capital and deployment framework.

The near-term revenue picture, however, shows the transition phase. For the second quarter of fiscal 2026, Loop Industries reported $0 in revenue, though the six-month period showed $252,000, mostly from engineering fees. This is set against the massive capital expenditure required for the primary manufacturing hub, the Infinite Loop™ India facility, which has an estimated CapEx of $176 million. This facility's planned capacity of 70,000 metric tons annually is designed to service the high-volume apparel and beverage sectors.

The customer segments are being locked in via offtake agreements, which are crucial for de-risking the massive project financing. You can see the primary targets and their current commitments below.

The apparel segment is being served through strategic alliances that combine Loop Industries' technology with manufacturing and distribution expertise. These alliances are key to reaching the end-user brands at scale.

• - Strategic alliances were formed with Shinkong Synthetic Fibers Corporation and Hyosung TNC to integrate Twist™ recycled resin into existing global textile supply chains.
• - Shinkong and Hyosung collectively supply leading apparel and textile brands across Asia, Europe, and North America, extending Loop Industries' customer reach.
• - The technology is REACH certified for Europe, supporting the European deployment with Reed Societe Generale Group.

For the partners deploying the technology, like the India joint venture, Loop Industries provides engineering services, which generated $0.368 million in Q4 FY2025 revenue. Further engineering revenue of approximately $750,000 is anticipated from the India JV in the remainder of fiscal year 2026.

Loop Industries, Inc. (LOOP) - Canvas Business Model: Cost Structure

You're looking at the core expenses that keep Loop Industries, Inc. (LOOP) running while they scale up their technology deployment. The cost structure is heavily weighted toward massive capital outlays for new facilities and the ongoing, though managed, operational burn rate.

Capital Expenditure (CapEx) for Facility Construction

The biggest cost component involves the significant capital expenditure required to build out the Infinite Loop™ manufacturing facilities. The project in India, a joint venture with Ester Industries Ltd. (ELITe), is a prime example of this heavy upfront investment. The total estimated investment for the Infinite Loop™ India facility, which includes the continuous polymerization line, construction financing, land acquisition, engineering expenses, and initial working capital, is pegged at $176 million. This figure was confirmed by the front-end engineering design (FEED) study completed by TATA Consulting Engineers. To be fair, the land acquisition itself, valued at $10.5 million, actually represented a $5 million reduction from the original capital cost estimate included in the FEED package.

The costs associated with building out capacity are substantial, as seen in the breakdown of the India project:

Research and Development (R&D) and Administrative Expenses

For the full Fiscal Year 2025 (ending February 28, 2025), the GAAP Research and Development spending was $6.864 million. This shows a planned reduction from the prior year's $11.379 million. Still, R&D remains a material cost as the technology is commercialized.

Looking at the more recent quarterly data for Q2 FY2026 (three months ended August 31, 2025), the company has been actively managing its overhead:

• Research and development expense for the quarter was $843,000.
• General and administrative expenses for the three-month period ended August 31, 2025, were $1,871 thousand (or $1.871 million).

The G&A figure for that quarter represented a decrease of $724 thousand compared to the same period in 2024. Honestly, controlling these fixed costs is critical while waiting for large-scale project revenues to kick in.

Operating Cash Burn Rate

Loop Industries, Inc. has been focused on minimizing its regular, non-project related cash burn. For the balance of fiscal 2025, the company projected a prospective run rate for cash expenses, excluding project costs, to be approximately $1.0 million per month. This focus on efficiency is evident in the Q2 FY2026 results, where cash operating expenses (which include R&D and G&A, less stock-based compensation) for the quarter were reported at $2.43 million. That $2.43 million quarterly spend reflects a year-over-year decrease of $1.74 million.

Feedstock Procurement Costs

While specific procurement dollar amounts aren't in the latest filings you requested, the cost structure is intrinsically linked to feedstock availability and cost. The strategic site selection for the India facility near Surat, India's synthetic textile capital, is designed to provide direct access to abundant polyester textile waste feedstock. This proximity is a key factor in managing the variable costs associated with raw material sourcing for the depolymerization process.

• The India facility is planned to produce 70,000 metric tons per year initially.
• Feedstock supply chain secured includes waste polyester fiber from sewing factories.

Finance: draft 13-week cash view by Friday.

Loop Industries, Inc. (LOOP) - Canvas Business Model: Revenue Streams

You're looking at the initial revenue generation phase for Loop Industries, Inc. (LOOP), which is a critical pivot point from pure development to commercialization. As of the close of Fiscal Year 2025 (FY2025), the revenue streams are heavily weighted toward upfront payments associated with technology deployment, rather than large-scale resin sales, which is what you'd expect when scaling up complex chemical recycling facilities.

The total revenue for the year ended February 28, 2025, hit $10.889 million. This is a massive jump from the prior year's $153 thousand, showing the first real commercial traction from the licensing agreements signed.

Here's the quick math on how that $10.889 million in FY2025 revenue broke down:

The largest single component driving the FY2025 top line was the initial cash infusion from the European partnership. This is definitely the near-term financial anchor.

• - Technology Licensing Fees (FY2025 total revenue: $10.889 million).
• - Up-front royalty from first license sale (FY2025: $10.395 million) received from Reed Societe Generale Group for the first Infinite Loop™ facility license in Europe.
• - Engineering Services Fees (FY2025: $368,000) related to the agreement with the India joint venture, Ester Loop Infinite Technologies (ELITe).
• - Sales of Loop™ PET resin from the Terrebonne facility (FY2025: $126,000).
• - Future sales of Twist™ resin and Loop™ DMT from new Infinite Loop™ facilities, supported by recent announcements like the launch of the Twist™ brand and an offtake agreement with Taro Plast for sustainable DMT.

For the European project, Loop Industries, Inc. is also set to receive an additional €10 million in licensing fees based on the successful achievement of project milestones prior to construction, which represents a contingent future revenue stream tied to project execution.