Local Bounti Announces Fourth Quarter and Full Year 2025 Financial Results
Rhea-AI Summary
Local Bounti (NYSE: LOCL) reported fourth-quarter and full-year 2025 results, with full-year sales up 27% to $48.4M and fourth-quarter sales up 24% to $12.5M. Gross profit rose to $5.9M for 2025 and adjusted gross margin improved to 29%. Net loss narrowed to $94.4M for 2025; adjusted EBITDA loss improved to $28.3M. The company ended 2025 with $10.7M cash and announced a subsequent $15M strategic investment in March 2026. Local Bounti received a U.S. patent for its AI-driven growing optimization technology and expanded retail distribution to ~13,000 doors.
Positive
- Full-year sales +27% to $48.4M
- Q4 sales +24% to $12.5M
- Gross profit +43% to $5.9M
- Adjusted gross margin at 29%
- Adjusted EBITDA loss improved 12% to $28.3M
- Received $15M strategic investment in March 2026
Negative
- Net loss of $94.4M for 2025
- Adjusted EBITDA remains a $28.3M loss
- Cash and restricted cash of $10.7M at year-end
- Fully diluted share count approximately 36.0M
News Market Reaction – LOCL
In the Mar 25 session, LOCL gained 6.48%, reflecting a notable positive market reaction. Argus tracked a trough of -18.8% from its starting point during tracking. Our momentum scanner triggered 4 alerts that day, indicating moderate 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 |
|---|---|---|---|---|
| Nov 12 | Q3 2025 earnings | Positive | +0.4% | Reported Q3 sales growth, ~29% adjusted gross margin, and lower adjusted G&A. |
| Aug 13 | Q2 2025 earnings | Positive | +0.8% | Q2 revenue up 28% with cost cuts and improved net loss versus prior year. |
| May 14 | Q1 2025 earnings | Neutral | -3.5% | Strong sales growth and margin gains but a wider net loss driven by interest. |
| Mar 31 | FY 2024 results | Positive | -6.3% | 38% sales growth, new funding, and major debt reduction plus leadership change. |
| Nov 14 | Q3 2024 earnings | Positive | -0.3% | 50% sales increase and 32% adjusted gross margin with narrower operating loss. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Past earnings reactions have been muted-to-negative, with an average move of -1.79% and several instances where positive operational updates coincided with slight price declines.
Across the last five earnings-tagged updates since Nov 2024, LOCL repeatedly reported double‑digit revenue growth, improving adjusted gross margins around the high‑20s to low‑30s, and aggressive cost reductions plus debt restructuring. Despite these improvements and expanding distribution relationships (including Walmart), the stock’s 24‑hour reactions clustered around small gains or modest losses, yielding an average move of -1.79%. Today’s full year 2025 report extends that same narrative of growth and balance-sheet repair.
Key Terms
adjusted ebitda financial
adjusted gross margin financial
basis points financial
convertible note financial
warrant liability financial
restricted stock units financial
computer vision technical
artificial intelligence technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
Delivered
During the First Quarter 2026, Secured New Retail Accounts to Expand Distribution and Improve Channel Mix
Existing Strategic Investor Closed on Additional
Issued
Kathleen Valiasek, President and CEO of Local Bounti, stated, "Our fourth quarter and full year results reflect a confluence of positive variables — each of our three state-of-the-art facilities are operating at full capacity, our top line grew meaningfully, and the work we've done to optimize our network and tighten our cost structure is showing up in our financial performance. The efforts to drive stability and efficiency across our operations have been relentless, and I want to commend the Local Bounti team for their continued focus."
Ms. Valiasek continued, "We are carrying significant momentum into 2026 and what makes this moment especially exciting is that our improving execution is converging with a positive shift in the market. The same retailers and strategic partners who were cautious about controlled environment agriculture (CEA) a few years ago are now in active discussions about long-term supply partnerships. The velocity of that engagement has picked up meaningfully. Achieving positive adjusted EBITDA remains our highest priority, and as we have shown in the cadence of our financial improvement over this past year, we have been charging ahead on all fronts to demonstrate our commitment toward achieving a sustainable model. As we think about 2026, we're balancing that priority alongside maintaining the flexibility to execute on the commercial opportunities we are pursuing."
Craig Hurlbert, Executive Chairman of Local Bounti, stated, "What makes this moment particularly noteworthy for Local Bounti isn't just the financial progress—it's the industry's positive reception to CEA. Retailers are increasingly designing supply chains that assume CEA is permanent infrastructure, and they're looking for the right partners to deliver product at scale. That's the market validation we've been charging towards—and the additional
Fourth Quarter 2025 Financial Summary
- Sales increased
24% to$12.5 million $10.1 million Georgia ,Texas , andWashington . - Gross profit increased
182% to$1.5 million $0.5 million 29% , as compared to25% in 2024. - General and administrative expenses decreased by
$1.0 million $7.1 million $8.1 million 18% to$4.3 million $5.3 million $1.5 million - Net loss decreased to
$8.7 million $36.3 million $14.3 million - Adjusted EBITDA1 loss improved
38% to$5.8 million $9.3 million $1.1 million $4.2 million $5.6 million $5.0 million
Full Year 2025 Financial Summary
- Sales increased
27% to$48.4 million $38.1 million Georgia ,Texas , andWashington . - Gross profit increased
43% to$5.9 million $4.1 million 29% , as compared to27% in 2024. - General and administrative expenses increased by
$0.9 million $33.8 million $32.9 million $3.7 million 9% to$18.5 million $20.3 million $10 million - Net loss decreased
21% to$94.4 million $119.9 million $26.8 million - Adjusted EBITDA1 loss improved
12% to$28.3 million $32.1 million $5.2 million $32.2 million $23.2 million $3.4 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 — the kit realized 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. During the first quarter of 2026, the Company secured two additional accounts that are expected to launch in the coming months – a large premier retail customer covering more than 250 stores with a six SKU placement rollout and a large regional retailer. The Company's quarterly sales to a major e-commerce and DTC customer accelerated by more than
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 each of its facilities during the fourth quarter, which resulted in enhanced production efficiency and an approximate
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
Subsequent to year end, in March 2026, the Company received a
Over the course of 2025, Local Bounti transformed its capital structure through a series of transactions that significantly improved its balance sheet and financial flexibility. In the first quarter, the Company closed a
As of December 31, 2025, Local Bounti had approximately 22.2 million shares outstanding, 6.8 million common shares under warrants outstanding, and approximately 2.9 million restricted stock units outstanding. The Company also has an out-of-the-money convertible note that, if converted, would result in the issuance of approximately 4.1 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 36.0 million shares outstanding as of December 31, 2025.
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 throughout 2025 positions 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, March 25, 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 discussions with customers and others; 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, 2024, filed with the SEC on March 31, 2025, 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 Annual Report on Form 10-K ("Form 10-K") for the year ended December 31, 2025. 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-K.
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 and year ended December 31, 2025.
LOCAL BOUNTI CORPORATION | |||
CONSOLIDATED BALANCE SHEETS | |||
(in thousands, except share and per share data) | |||
December 31, | |||
2025 | 2024 | ||
Assets | |||
Current assets | |||
Cash and cash equivalents | $ 4,233 | $ 937 | |
Restricted cash | 6,486 | 6,529 | |
Accounts receivable, net | 2,203 | 2,282 | |
Inventory, net | 7,419 | 6,814 | |
Prepaid expenses and other current assets | 1,686 | 2,261 | |
Total current assets | 22,027 | 18,823 | |
Property and equipment, net | 357,427 | 370,978 | |
Finance lease right-of-use assets, net | 214 | 277 | |
Operating lease right-of-use assets, net | 47 | 73 | |
Intangible assets, net | 30,778 | 37,783 | |
Other assets | — | 101 | |
Total assets | $ 410,493 | $ 428,035 | |
Liabilities and stockholders' deficit | |||
Current liabilities | |||
Accounts payable | $ 11,782 | $ 16,987 | |
Accrued liabilities | 3,653 | 18,082 | |
Short-term debt | — | 20,205 | |
Financing obligation | 89 | 51 | |
Operating lease liabilities | 32 | 30 | |
Finance lease liabilities | 81 | 81 | |
Total current liabilities | 15,637 | 55,436 | |
Long-term debt | |||
Principal amount | 312,250 | 447,718 | |
Plus: Debt premium, net of amortization | 172,368 | — | |
Less: Debt discount, net of amortization | (1,498) | — | |
Less: Unamortized deferred financing costs | — | (31,141) | |
Long-term debt, net | 483,120 | 416,577 | |
Accrued interest, noncurrent | 14,515 | — | |
Financing obligation, noncurrent | 52,015 | 49,856 | |
Operating lease liabilities, noncurrent | 25 | 57 | |
Finance lease liabilities, noncurrent | 155 | 206 | |
Warrant liabilities | 11,262 | 6,403 | |
Total liabilities | 576,729 | 528,535 | |
Commitments and contingencies | |||
Stockholders' deficit | |||
Common stock, | 2 | 1 | |
Additional paid-in capital | 351,371 | 322,729 | |
Accumulated deficit | (517,609) | (423,230) | |
Total stockholders' deficit | (166,236) | (100,500) | |
Total liabilities and stockholders' deficit | $ 410,493 | $ 428,035 | |
LOCAL BOUNTI CORPORATION | |||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
(in thousands, except per share data) | |||||||
Three Months Ended, December 31, | Twelve Months Ended | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Sales | $ 12,457 | $ 10,070 | $ 48,365 | $ 38,138 | |||
Cost of goods sold(1)(2) | 10,936 | 9,530 | 42,505 | 34,048 | |||
Gross profit | 1,521 | 540 | 5,860 | 4,090 | |||
Operating expenses: | |||||||
Research and development(1)(2) | 5,436 | 7,185 | 25,575 | 22,287 | |||
Sales and marketing(1)(2) | 2,196 | 2,021 | 9,143 | 7,893 | |||
General and administrative(1)(2) | 7,111 | 8,108 | 33,769 | 32,878 | |||
Total operating expenses | 14,743 | 17,314 | 68,487 | 63,058 | |||
Loss from operations | (13,222) | (16,774) | (62,627) | (58,968) | |||
Other income (expense): | |||||||
Change in fair value of warrant | 5,009 | 1,974 | (3,358) | 811 | |||
Interest expense, net | (4,167) | (18,503) | (32,167) | (58,923) | |||
Other income (expense), net | 3,683 | (2,955) | 3,773 | (2,822) | |||
Net loss | (8,697) | (36,258) | (94,379) | (119,902) | |||
Less: Deemed dividend to preferred | — | — | 403 | — | |||
Net loss attributable to common | $ (8,697) | $ (36,258) | $ (94,782) | $ (119,902) | |||
Net loss applicable to common | |||||||
Basic and diluted | $ (0.38) | $ (4.21) | $ (5.61) | $ (14.14) | |||
Weighted average common shares | |||||||
Basic and diluted | 22,808,125 | 8,609,861 | 16,895,925 | 8,480,247 | |||
(1) Amounts include stock-based compensation as follows: |
Three Months Ended December 31, | Twelve Months Ended | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Cost of goods sold | $ 22 | $ (2) | $ 124 | $ 73 | |||
Research and development | 24 | 24 | 232 | 274 | |||
Sales and marketing | 100 | 51 | 441 | (13) | |||
General and administrative | 944 | 1,174 | 4,394 | 3,014 | |||
Total stock-based compensation expense, | $ 1,090 | $ 1,247 | $ 5,191 | $ 3,348 | |||
(2) Amounts include depreciation and amortization as follows: |
Three Months Ended December 31, | Twelve Months Ended | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Cost of goods sold | $ 2,085 | $ 1,940 | $ 8,142 | $ 6,137 | |||
Research and development | 2,376 | 2,600 | 9,933 | 7,631 | |||
General and administrative | 1,149 | 1,346 | 5,122 | 5,103 | |||
Total depreciation and amortization | $ 5,610 | $ 5,886 | $ 23,197 | $ 18,871 | |||
LOCAL BOUNTI CORPORATION | |||||||
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION | |||||||
(in thousands) | |||||||
RECONCILIATION OF GROSS PROFIT TO ADJUSTED GROSS PROFIT AND ADJUSTED GROSS MARGIN | |||||||
Three Months Ended December 31, | Twelve Months Ended | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Sales | $ 12,457 | $ 10,070 | $ 48,365 | $ 38,138 | |||
Cost of goods sold | 10,936 | 9,530 | 42,505 | 34,048 | |||
Gross profit | 1,521 | 540 | 5,860 | 4,090 | |||
Depreciation | 2,085 | 1,940 | 8,142 | 6,137 | |||
Stock-based compensation | 22 | (2) | 124 | 73 | |||
Storm damage lost product | 33 | — | 33 | — | |||
Restructuring and business realignment | — | — | 56 | — | |||
Acquisition related integration costs | — | — | — | 183 | |||
Adjusted gross profit | $ 3,661 | $ 2,478 | $ 14,215 | $ 10,483 | |||
Adjusted gross margin % | 29 % | 25 % | 29 % | 27 % | |||
RECONCILIATION OF GENERAL AND ADMINISTRATIVE EXPENSE TO ADJUSTED GENERAL AND | |||||||
Three Months Ended December 31, | Twelve Months Ended | ||||||
2025 | 2024 | 2025 | 2024 | ||||
General and administrative | 7,111 | 8,108 | 33,769 | 32,878 | |||
Stock-based compensation | (944) | (1,174) | (4,394) | (3,014) | |||
Depreciation and amortization | (1,149) | (1,346) | (5,122) | (5,103) | |||
Intangibles impairment | — | — | (3,700) | — | |||
Loss on disposal of fixed assets | (238) | (41) | (264) | (1,651) | |||
Business acquisition and strategic | (218) | (240) | (414) | (2,296) | |||
Litigation | (129) | (33) | (784) | (230) | |||
Restructuring and business realignment | (98) | (7) | (578) | (305) | |||
Adjusted general and administrative | $ 4,335 | $ 5,267 | $ 18,513 | $ 20,279 | |||
LOCAL BOUNTI CORPORATION | |||||||
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION | |||||||
(in thousands) | |||||||
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA | |||||||
Three Months Ended December 31, | Twelve Months Ended | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Net loss | $ (8,697) | $ (36,258) | $ (94,379) | $ (119,902) | |||
Stock-based compensation expense | 1,090 | 1,247 | 5,191 | 3,348 | |||
Interest expense, net | 4,167 | 18,503 | 32,167 | 58,923 | |||
Depreciation and amortization | 5,610 | 5,886 | 23,197 | 18,871 | |||
Intangibles impairment | — | — | 3,700 | — | |||
Loss on disposal of fixed assets | 238 | 41 | 264 | 1,651 | |||
Storm damage lost product | 33 | — | 33 | — | |||
Business acquisition and strategic | 218 | 240 | 414 | 2,479 | |||
Debt restructuring transaction cost | — | — | 1,041 | — | |||
Intellectual property and other litigation | 129 | 33 | 784 | 230 | |||
Restructuring and business realignment | 98 | 7 | 757 | 305 | |||
Change in fair value of warrant liability | (5,009) | (1,974) | 3,358 | (811) | |||
Other income (expense), net | (3,683) | 2,955 | (4,814) | 2,822 | |||
Adjusted EBITDA | $ (5,806) | $ (9,320) | $ (28,287) | $ (32,084) | |||
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SOURCE Local Bounti