Loop Industries Gains Commercial Momentum with Strategic Nike Partnership
Terrebonne, Wednesday, 14 January 2026.
Anchored by a new agreement with Nike for its Indian facility, Loop Industries slashed its quarterly net loss to $2.9 million, signaling a pivotal shift toward commercialization.
Fiscal Discipline and Market Reaction
Loop Industries (NASDAQ: LOOP) reported its third-quarter fiscal 2026 results on January 14, 2026, revealing a dramatic contraction in net losses as the company pivots toward execution. The net loss for the quarter ended November 30, 2025, fell to $2.94 million, a -75.285 percent reduction compared to the $11.91 million loss reported in the same period the previous year [1][3]. This improvement was driven by substantial cuts in overhead; research and development expenses for the nine-month period dropped to $3.18 million from $5.56 million in 2024, while general and administrative expenses fell to $5.02 million from $7.65 million [1][3]. Despite the improved bottom line, the market reaction was volatile; shares closed up 3.54% at $1.17 on January 13, 2026, but retreated 6.75% in extended trading to $1.09 [2].
Commercialization Anchored by Nike
The company’s commercial narrative is now heavily tied to the Infinite Loop India project, a joint venture with Ester Industries Limited (ELITe). In November 2025, Loop secured a multi-year offtake agreement with Nike, which CEO Daniel Solomita describes as the “foundational anchor customer” for the facility [1][3]. This partnership involves the supply of “Twist™” polyester fiber, a recycled material aligning with Nike’s broader push for technical excellence and sustainability under its new turnaround strategy led by CEO Elliott Hill [4]. While Loop’s current revenue remains nascent—recording just $86,000 in the third quarter, largely from engineering fees—the Nike agreement provides the revenue visibility required to advance the project’s financing [1][3].
Operational Milestones in India and Europe
Progress on the ground in India has accelerated alongside commercial negotiations. On December 16, 2025, the joint venture awarded the detailed engineering contract for the Infinite Loop India facility to Toyo Engineering India Private Limited [3]. Concurrently, the company reported that the debt syndication process is moving forward, with term sheets received from international lenders to finance the facility’s construction [3]. Beyond India, Loop is expanding its footprint in Europe; as of January 14, 2026, the company is in the final stages of selecting a site for a manufacturing facility in partnership with the Reed Societe Generale Group [1][3].
Leadership and Liquidity Outlook
To steer this commercial phase, Loop has reshuffled its executive suite, appointing Spencer Hart as Chief Financial Officer effective January 15, 2026 [1][3]. Hart, who has served on the board since February 2025, takes over as the company manages a tighter liquidity position [1]. As of November 30, 2025, Loop reported cash and cash equivalents of $5.2 million, down from $12.97 million at the end of February 2025, with total available liquidity standing at $7.7 million [3]. Management is scheduled to provide further details on the commercialization timeline and financing strategies during a conference call at 8:45 AM ET on January 15, 2026 [1].