Local Bounti Announces First Quarter 2026 Financial Results
Rhea-AI Summary
Local Bounti (NYSE: LOCL) reported first quarter 2026 sales of $13.3 million, up 15% year-over-year, with gross profit of $1.5 million and net loss reduced to $12.7 million. Adjusted EBITDA loss improved 35% to $5.7 million and adjusted G&A fell 30% to $4.1 million.
The company services about 13,000 retail doors, added two new retail accounts including a 250+ store rollout, and secured supply commitments with national retailers through Q1 2027. It ended the quarter with $18.8 million in cash and received a $15 million strategic investment.
Local Bounti reported tower upgrades delivering roughly 10% yield capacity gains, is targeting further yield improvements in California, and was granted a U.S. patent for AI-driven growing optimization that supports its Stack & Flow Technology® platform.
Positive
- Revenue increased 15% year-over-year to $13.3 million in Q1 2026
- Net loss decreased to $12.7 million from $37.7 million year-over-year
- Adjusted EBITDA loss improved 35% to $5.7 million
- Adjusted G&A expense declined 30% to $4.1 million
- Tower upgrades lifted run-rate yield capacity by approximately 10%
- Local Bounti received a new $15 million strategic investment in March 2026
- U.S. patent issued for AI-driven optimization of Stack & Flow Technology®
- Retail footprint around 13,000 doors plus two new accounts, including 250+ stores
- Supply commitments with multiple national retailers extended through Q1 2027
Negative
- Company remains unprofitable with Q1 2026 net loss of $12.7 million
- Adjusted EBITDA remains negative at -$5.7 million
- Interest expense of $4.0 million impacted Q1 2026 results
- Fully diluted share count about 41.6 million vs. 22.8 million basic shares, implying potential dilution
News Market Reaction – LOCL
In the May 13 session, LOCL gained 6.52%, reflecting a notable positive market reaction. Argus tracked a peak move of +36.7% during that session. Our momentum scanner triggered 17 alerts that day, indicating notable trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Mar 25 | Earnings release | Positive | +6.5% | Full-year 2025 growth, margin gains, new patent and added cash. |
| Nov 12 | Earnings release | Positive | +0.4% | Q3 2025 sales growth, expense cuts and improved adjusted EBITDA loss. |
| Aug 13 | Earnings release | Positive | +0.8% | Q2 2025 revenue growth, cost reductions and supportive financing moves. |
| May 14 | Earnings release | Neutral | -3.5% | Q1 2025 sales and margin gains but a wider net loss from interest. |
| Mar 31 | Earnings release | Positive | -6.3% | 2024 sales growth and major debt restructuring plus new funding. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings updates have generally been operationally positive with three instances of shares rising on the day after, but two cases where positive or mixed results coincided with noticeable declines.
Over the past year, Local Bounti’s earnings releases have emphasized revenue growth, margin improvement and cost controls. Events on May 14, 2025 and March 31, 2024 paired stronger sales and financing actions with negative next-day moves, while more recent results on August 13, 2025, November 12, 2025, and March 25, 2026 saw modest to solid positive reactions. Today’s Q1 2026 update continues the themes of efficiency gains, patent progress and distribution expansion.
Key Terms
adjusted EBITDA financial
adjusted gross margin financial
warrants financial
restricted stock units financial
convertible notes financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Delivered
Kathleen Valiasek, President and CEO of Local Bounti, stated, "Our first quarter results reflect the operating discipline this team has built over the past several quarters —
Craig Hurlbert, Executive Chairman of Local Bounti, stated, "Two developments this quarter reinforce the long-term thesis for Local Bounti. The
First Quarter 2026 Financial Summary
- Sales increased
15% to$13.3 million $11.6 million Georgia ,Texas , andWashington . - Gross profit was stable versus the prior year period at
$1.5 million 29% , relative to both the prior year period and the fourth quarter of 2025. - General and administrative expenses decreased by
$0.6 million $7.5 million $8.1 million 30% to$4.1 million $5.8 million - Net loss decreased to
$12.7 million $37.7 million $14.8 million - Adjusted EBITDA1 loss improved
35% to$5.7 million $8.8 million $1.0 million $4.0 million $5.6 million $5.2 million
1See the reconciliation of GAAP measures to non-GAAP measures at the end of this press release for more information.
Product Development
Local Bounti's launch of its family-sized 10-ounce Romano Caesar Salad Kit in the Pacific Northwest continues to build momentum with consumers at retail. After realizing a
The Company continues to pursue growth of its Arugula offering following its successful launch at both its
Distribution
The Company currently services approximately 13,000 retail doors and expanded its retail presence in select southern markets with a new national retailer in the fourth quarter of 2025. During the first quarter of 2026, the Company secured and launched programs with two additional accounts, including a large premier retail customer covering across more than 250 stores with a six SKU rollout, and a large regional retailer. The Company's quarterly sales to a major e-commerce and DTC customer continue to perform strongly following growth of more than
The Company continues to benefit from strong demand and ongoing support from its long-standing customer base. In the first and early second quarter of 2026, the Company was awarded bids that extend supply programs with multiple national retail accounts through the first quarter of 2027. These commitments span several of the Company's key product lines, including baby leaf lettuce and organic butter lettuce. The awards underscore the strength of the Company's relationships with blue-chip retail partners and reflect those customers' continued confidence in Local Bounti's ability to deliver consistent, high-quality products over the long term.
Commercial Facilities Update
Yield Enhancement
The Company continues to advance its yield improvement and cost reduction initiatives across its facility network. Tower upgrades were completed at its
The Company is also making select investments in its
Capacity Expansion Project
Plans remain in place to build additional capacity across the Company's network of facilities enabled with its patented Stack & Flow Technology®. The expansions are designed to provide additional capacity and allow for the Company's growing product assortment to meet existing demand from Local Bounti's direct relationships with blue-chip retailers and distributors. The timing and scope of these projects, including plans to expand into the Midwest, remain under review pending ongoing discussions with retailers to optimize those facilities for specific products in support of retail commitments and strategies to expand distribution.
Intellectual Property
In February 2026, Local Bounti was issued
Capital Structure
The Company ended the quarter with cash and cash equivalents and restricted cash of
As previously disclosed, in March 2026, the Company received a
As of March 31, 2026, Local Bounti had approximately 22.8 million shares outstanding, 6.8 million common shares under warrants outstanding, and approximately 2.4 million restricted stock units outstanding. The Company also has out-of-the-money convertible notes that, if converted, would result in the issuance of approximately 9.7 million common shares. Including the shares issuable in the event of conversion of the convertible note, as well as the warrants and restricted stock units, the Company had a fully diluted share count of approximately 41.6 million shares outstanding as of March 31, 2026.
Financial Outlook
The Company expects continued sequential improvements in revenue and adjusted EBITDA loss rate in 2026, driven by ongoing sales growth, cost reduction initiatives, and the ramp of its facilities network. Achieving positive adjusted EBITDA remains a key priority, and management believes the trajectory of financial performance demonstrated over the past several quarters position the Company to reach this objective.
Conference Call
The Company will host a conference call with members of the Local Bounti executive management team. The conference call is scheduled to begin at 8:00 a.m. ET on Wednesday, May 13, 2026. To participate on the live call, listeners in
In addition, the call will be broadcast live via webcast, hosted at the "Investors" section of the Company's website at localbounti.com and will be archived online.
About Local Bounti
Local Bounti is redefining indoor farming with an innovative method – its patented Stack & Flow Technology® – that significantly improves crop turns, increases output and improves unit economics. Local Bounti operates advanced indoor growing facilities across
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. In some cases, you can identify these forward-looking statements by the use of terms such as "expect," "will," "continue," "believe," "anticipate," "estimate," "project," "intend," "should," "is to be," or similar expressions, and variations or negatives of these words, but the absence of these words does not mean that a statement is not forward-looking. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including, but not limited to statements regarding improving revenue, sales, costs, margins, and financial metrics; product and customer expansions and related timing; facility operations and adjustments; deployment of new technologies; strategic partnership discussions; commercial opportunities; financial guidance; timing for reaching positive adjusted EBITDA; lowering cost of capital; and sufficiency of capital. These statements are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from results expressed or implied in this press release. The following factors, among others, could cause actual results to differ materially from those described in these forward-looking statements: Local Bounti's ability to continue as a going concern and the risk that Local Bounti will fail to obtain additional necessary capital when needed on acceptable terms or at all; Local Bounti's ability to generate significant revenue; restrictions and covenants contained in Local Bounti's debt facility agreements with Cargill Financial Services International, Inc. and Local Bounti's ability to comply therewith; the risk that the concentrated ownership of our common stock will prevent other stockholders from influencing significant decisions; the risk that Local Bounti may never achieve or sustain profitability; the risk that Local Bounti could fail to effectively manage its future growth; Local Bounti's ability to complete the build out of its current or additional facilities in the future; Local Bounti's reliance on third parties for construction, the risk of delays relating to material delivery and supply chains, and fluctuating material prices; Local Bounti's ability to scale its operations and decrease its cost of goods sold over time; the potential for damage to or problems with Local Bounti's facilities; the impact that current or future acquisitions, investments or expansions of scope of existing relationships have on Local Bounti's business, financial condition, and results of operations; unknown liabilities that may be assumed in acquisitions; Local Bounti's ability to attract and retain qualified employees; Local Bounti's ability to develop and maintain its brand or brands; Local Bounti's ability to achieve its sustainability goals; Local Bounti's ability to maintain its company culture or focus on its vision as it grows; Local Bounti's ability to execute on its growth strategy; the risk of diseases and pests destroying crops; Local Bounti's ability to compete successfully in the highly competitive markets in which it operates; Local Bounti's ability to defend itself against intellectual property infringement claims or other litigation; Local Bounti's ability to effectively integrate the acquired operations of any CEA or similar operations which it acquires into its existing operations; changes in consumer preferences, perception, and spending habits in the food industry; the risk that seasonality may adversely impact Local Bounti's results of operations; Local Bounti's ability to repay, refinance, restructure, or extend its indebtedness as it comes due; Local Bounti's ability to comply with the continued listing requirements of the New York Stock Exchange ("NYSE") or timely cure any noncompliance thereof; and other risks and uncertainties indicated from time to time, including those under "Risk Factors" and "Forward-Looking Statements" in Local Bounti's Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on March 27, 2026, as supplemented by other reports and documents Local Bounti files from time to time with the SEC. Local Bounti cautions that the foregoing list of factors is not exclusive and cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date hereof. Local Bounti does not undertake or accept any obligation or undertaking to update or revise any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based. We have not filed our Quarterly Report on Form 10-Q ("Form 10-Q") for the quarter ended March 31, 2026. As a result, all financial results described in this release should be considered preliminary, and are subject to change to reflect any necessary adjustments or changes in accounting estimates, that are identified prior to the time we file our Form 10-Q.
Non-GAAP Financial Information
This press release contains references to adjusted EBITDA, adjusted gross profit, adjusted gross margin percentage and adjusted general and administrative expense, which are adjusted from results based on generally accepted accounting principles in
These non-GAAP financial measures are provided to enhance the user's understanding of the Company's prospects for the future and the historical performance for the context of the investor. The Company's management team uses these non-GAAP financial measures to assess performance and planning and forecasting future periods. These non-GAAP financial measures are not computed according to GAAP, and the methods the Company uses to compute them may differ from those used by other companies. Non-GAAP financial measures are supplemental; they should not be considered a substitute for, or superior to, financial information presented in accordance with GAAP and should be read only in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP.
Refer to the attached financial supplement for a reconciliation of these non-GAAP financial measures to their most directly comparable GAAP measures for the quarter ended March 31, 2026.
LOCAL BOUNTI CORPORATION | |||
March 31, | December 31, | ||
2026 | 2025 | ||
Assets | |||
Current assets | |||
Cash and cash equivalents | $ 12,254 | $ 4,233 | |
Restricted cash | 6,517 | 6,486 | |
Accounts receivable, net | 2,865 | 2,203 | |
Inventory, net | 7,193 | 7,419 | |
Prepaid expenses and other current assets | 1,363 | 1,686 | |
Total current assets | 30,192 | 22,027 | |
Property and equipment, net | 353,436 | 357,427 | |
Finance lease right-of-use assets, net | 351 | 214 | |
Operating lease right-of-use assets, net | 39 | 47 | |
Intangible assets, net | 30,150 | 30,778 | |
Total assets | $ 414,168 | $ 410,493 | |
Liabilities and stockholders' deficit | |||
Current liabilities | |||
Accounts payable | $ 14,378 | $ 11,782 | |
Accrued liabilities | 3,596 | 3,653 | |
Short-term debt | — | — | |
Financing obligation | 556 | 762 | |
Operating lease liabilities | 32 | 32 | |
Finance lease liabilities | 103 | 81 | |
Total current liabilities | 18,665 | 16,310 | |
Long-term debt | |||
Principal amount | 328,000 | 312,250 | |
Plus: Debt premium, net of amortization | 170,309 | 172,368 | |
Less: Debt discount, net of amortization | (7,501) | (1,498) | |
Long-term debt, net | 490,808 | 483,120 | |
Accrued interest, noncurrent | 19,010 | 14,515 | |
Financing obligation, noncurrent | 51,381 | 51,342 | |
Operating lease liabilities, noncurrent | 17 | 25 | |
Finance lease liabilities, noncurrent | 271 | 155 | |
Warrant liabilities | 12,037 | 11,262 | |
Total liabilities | 592,189 | 576,729 | |
Commitments and contingencies | |||
Stockholders' deficit | |||
Common stock, | 2 | 2 | |
Additional paid-in capital | 352,304 | 351,371 | |
Accumulated deficit | (530,327) | (517,609) | |
Total stockholders' deficit | (178,021) | (166,236) | |
Total liabilities and stockholders' deficit | $ 414,168 | $ 410,493 | |
LOCAL BOUNTI CORPORATION | |||
Three Months Ended March 31, | |||
2026 | 2025 | ||
Sales | $ 13,337 | $ 11,605 | |
Cost of goods sold(1)(2) | 11,803 | 10,144 | |
Gross profit | 1,534 | 1,461 | |
Operating expenses: | |||
Research and development(1)(2) | 5,715 | 6,977 | |
Sales and marketing(1) | 2,244 | 2,114 | |
General and administrative(1)(2) | 7,509 | 8,104 | |
Total operating expenses | 15,468 | 17,195 | |
Loss from operations | (13,934) | (15,734) | |
Other income (expense): | |||
Change in fair value of warrant liabilities | 5,243 | (3,510) | |
Interest expense, net | (4,034) | (18,838) | |
Other income, net | 7 | 407 | |
Net loss | (12,718) | (37,675) | |
Less: Deemed dividend to preferred stockholders | — | 403 | |
Net loss attributable to common stockholders | $ (12,718) | $ (38,078) | |
Net loss applicable to common stockholders per common share: | |||
Basic and diluted | $ (0.53) | $ (4.32) | |
Weighted average common shares outstanding: | |||
Basic and diluted | 24,125,745 | 8,808,574 | |
(1) Amounts include stock-based compensation as follows: |
Three Months Ended March 31, | |||
2026 | 2025 | ||
Cost of goods sold | $ 21 | $ 11 | |
Research and development | 28 | 16 | |
Sales and marketing | 43 | 37 | |
General and administrative | 901 | 526 | |
Total stock-based compensation expense, net of amounts capitalized | $ 993 | $ 590 | |
(2) Amounts include depreciation and amortization as follows: |
Three Months Ended March 31, | |||
2026 | 2025 | ||
Cost of goods sold | $ 2,266 | $ 1,913 | |
Research and development | 2,358 | 2,686 | |
General and administrative | 1,005 | 1,281 | |
Total depreciation and amortization | $ 5,629 | $ 5,880 | |
LOCAL BOUNTI CORPORATION | |||
RECONCILIATION OF GROSS PROFIT TO ADJUSTED GROSS PROFIT AND ADJUSTED GROSS MARGIN PERCENTAGE | |||
Three Months Ended March 31, | |||
2026 | 2025 | ||
Sales | $ 13,337 | $ 11,605 | |
Cost of goods sold | 11,803 | 10,144 | |
Gross profit | 1,534 | 1,461 | |
Depreciation | 2,266 | 1,913 | |
Stock-based compensation | 21 | 11 | |
Adjusted gross profit | $ 3,821 | $ 3,385 | |
Adjusted gross margin % | 29 % | 29 % | |
RECONCILIATION OF GENERAL AND ADMINISTRATIVE EXPENSE TO ADJUSTED GENERAL AND ADMINISTRATIVE EXPENSE | |||
Three Months Ended March 31, | |||
2026 | 2025 | ||
General and administrative | $ 7,509 | $ 8,104 | |
Stock-based compensation | (901) | (526) | |
Depreciation and amortization | (1,005) | (1,281) | |
Business acquisition and strategic transaction due diligence and integration | (629) | (96) | |
Litigation | (836) | (311) | |
Restructuring and business realignment costs | (72) | (75) | |
Adjusted general and administrative | $ 4,066 | $ 5,815 | |
LOCAL BOUNTI CORPORATION | |||
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA | |||
Three Months Ended March 31, | |||
2026 | 2025 | ||
Net loss | $ (12,718) | $ (37,675) | |
Stock-based compensation expense | 993 | 590 | |
Interest expense, net | 4,034 | 18,838 | |
Depreciation and amortization | 5,629 | 5,880 | |
Business acquisition and strategic transaction due diligence and integration | 629 | 96 | |
Debt restructuring and transaction cost | — | 649 | |
Intellectual property and other litigation | 836 | 311 | |
Restructuring and business realignment costs | 72 | 75 | |
Change in fair value of warrant liability | (5,243) | 3,510 | |
Other income (expense), net | (7) | (1,056) | |
Adjusted EBITDA | $ (5,699) | $ (8,782) | |
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SOURCE Local Bounti