Loop (LOOP) Q3 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Fri, January 16, 2026 astatine 8:17 AM CST 24 min read

Image source: The Motley Fool.

Jan. 15, 2026 astatine 8:45 a.m. ET

• Chief Executive Officer — Daniel Solomita

• Chief Financial Officer — Fady Mansour

• Vice President, Communications and Investor Relations — Kevin O'Dowd

Need a punctuation from a Motley Fool analyst? Email [email protected]

Daniel Solomita: Thanks, Kevin. Good morning, everyone. Thank you for attending our call. We had a important evident milestone that was accomplished successful precocious December conscionable earlier the 4th end, wherever we finalized the Reed transaction with Societe Generale. So that was a large milestone that we had been moving connected for galore months to beryllium capable to implicit it. The transaction is €20 cardinal financing to Loop, €10 cardinal successful convertible preferred security, which converts into Loop shares astatine $4.75 a stock 5 years from now, tin beryllium repaid successful currency oregon successful stock.

The different portion of the transaction, which is precise significant, is we've sold the archetypal licence to our exertion to Societe Generale, wherever Societe Generale volition beryllium capable to present make a task successful Europe with Loop to beryllium capable to physique an Infinite Loop manufacturing installation successful the Continent of Europe. That's a precise important milestone. Our -- we -- our absorption and our strategy has been to beryllium capable to licence our exertion into higher-cost manufacturing countries specified arsenic Europe, immoderate parts of Asia. And we privation to truly deploy our superior into low-cost manufacturing countries specified arsenic our concern with Ester successful India.

So that's a truly cardinal milestone that truly accomplishes wherever we spot the aboriginal of the company. Being capable to licence the exertion to Societe Generale is simply a large milestone, €10 cardinal upfront payment. There's 2 different milestone payments arsenic the task advances. And different large portion of the gross watercourse from this for Loop volition beryllium selling engineering packages and engineering services. So with each licence that we sell, Loop's engineering services teams are evidently progressive successful doing each of the process engineering enactment that's needed to beryllium capable to physique these facilities. That enactment starts close upfront earlier the existent operation adjacent starts, each of the engineering packages that volition beryllium provided by Loop.

So that's a precise important milestone. We've besides entered a work statement with our partners successful India for the India JV. So our engineering teams are present going to commencement generating gross backmost to Loop, providing each of the engineering services that are needed to beryllium capable to get these facilities built each the mode done to operation and adjacent done start-up and commissioning. So we'll -- that's going to beryllium an absorbing gross watercourse for america going forward. So each task we physique oregon each task we licence volition ever beryllium generating gross from the engineering services department.