LOCL

Download the Complete Report Here Key Takeaways: LOCL’s 2Q results reinforce the transition from facility build-out toward yield, customer mix, SKU expansion, and operating leverage. Revenue increased 14% y/y to $13.9 million from $12.1 million and rose ~4% sequentially from $13.3 million, driven by higher production and sales from Georgia, Texas, and Washington. 1H26 revenue reached $27.2 million, up ~15% from $23.7 million in 1H25, extending the growth trend as LOCL converts higher output from its installed asset base into retail sales. Adjusted EBITDA loss narrowed 17% y/y to $5.8 million from $7.1 million and was broadly stable versus $5.7 million in 1Q26. The y/y improvement indicates that higher revenue and tighter cost discipline are beginning to translate into operating leverage despite temporary gross-margin pressure during the quarter. With the three Stack & Flow-enabled facilities already at full harvestable capacity, incremental growth is increasingly coming from better asset productivity, although further gross-margin improvement is needed to accelerate progress toward positive adjusted EBITDA. Food safety and traceability emerged as an important strategic theme this quarter, increasing retailer focus on the attributes that differentiate LOCL’s controlled-environment model. Retail sourcing conversations that historically centered on cost and availability are increasingly incorporating water sourcing, environmental control, traceability, and food-safety monitoring. This shift is visible more broadly, with FMI’s 2026 research indicating that 31% of responding retailers plan to add food-traceability technology capabilities this year, while recent produce-safety events have highlighted the commercial impact of supply-chain exposure, with U.S. fresh-lettuce unit sales falling 9% w/w during July’s Cyclospora outbreak, per NielsenIQ data. Against this backdrop, LOCL’s seed-to-package controlled environment and closed-loop water management reduce exposure to several variables associated with open-field agriculture, including runoff, wildlife, and changing outdoor conditions. With approximately 13,000 retail doors already serviced, this strengthens LOCL’s positioning with retailers seeking more traceable, controlled, and resilient fresh-produce supply and could support deeper commercial relationships over time. Commercial momentum continued to build as previously announced wins converted into active placements and new accounts broadened distribution entering 2H26. The six-SKU Harris Teeter rollout across more than 250 stores and a separate large regional retailer covering approximately 160 stores are now fully launched and tracking in line with expectations. The account base expanded further after quarter-end, with a new Mid-South retailer launching five SKUs across approximately 66 stores in July and a Rocky Mountain partner beginning shipments of four SKUs across approximately 110 stores in early August. LOCL also received bid awards during 1H26 extending supply arrangements with multiple national retail accounts across baby leaf lettuce and organic butter lettuce through 1Q27. The progression from account wins to multi-SKU launches and longer supply commitments provides greater demand visibility and should support more efficient crop planning and facility utilization as retail programs scale. The single-serve salad-kit relaunch adds a potentially meaningful value-added growth vector, while Romano Caesar and arugula continue to broaden LOCL’s opportunity within existing retail relationships. Following discussions with a major retailer, LOCL agreed to relaunch its single-serve salad-kit line through a Mid-Atlantic pilot covering approximately 400 stores this fall. The initiative builds on encouraging performance from the family-sized Romano Caesar Salad Kit, which recorded a 75% increase in baseline velocity in 4Q25; an additional distribution center launched in May 2026 and has since reached velocities comparable with the existing network. Arugula also remains an active growth opportunity following successful 2025 launches from Washington and Texas, particularly where conventional supply has struggled to consistently meet retailer demand. Together with baby leaf and organic butter lettuce program extensions through 1Q27, these initiatives give LOCL additional ways to deepen shelf presence and expand revenue per retail relationship without requiring a proportionate increase in physical capacity. Yield remains the primary operating growth lever, with Georgia, Texas, and Washington sustaining the approximately 10% higher run-rate capacity benefit from tower upgrades completed in 4Q25. The three Stack & Flow-enabled facilities continue to operate at the highest yield levels in company history, with tower upgrades completed in 4Q25 supporting approximately 10% higher run-rate yield capacity. Revenue increased 14% y/y in 2Q26, driven by increased production and sales from Georgia, Texas, and Washington, providing evidence that higher facility productivity is translating into incremental volume. These gains allow LOCL to increase production from the existing facility base and support continued revenue growth without adding comparable new capacity. California is beginning to provide a second proof point for the yield-led strategy, while network-wide cost initiatives broaden the path to improved unit economics. Selective investments at the California facilities remain targeted to generate as much as a 20% improvement in yields, with initial work at one location already driving an approximately 10% increase in total production versus the prior-year period. At the same time, more efficient seeding practices reduced seed costs approximately 20% y/y, while additional savings are being pursued across procurement, maintenance, labor efficiency, and freight management. These initiatives complement the ~10% yield-capacity improvement across Georgia, Texas, and Washington and reinforce the broader strategy of extracting more output at lower unit costs from the existing network. The benefits were partly obscured in 2Q26 by temporary Georgia packing inefficiencies, making gross-margin recovery an important 2H26 indicator of whether these operating gains are translating into reported profitability. Strategic partnership discussions are gaining relevance as retailer interest in controlled supply increases, while LOCL continues to keep future capacity tied to committed demand. Food-safety concerns are increasing the urgency of strategic retailer discussions, while LOCL reaffirmed its existing demand-backed approach to future capacity. Additional Stack & Flow-enabled capacity, including potential Midwest expansion, remains under review, with timing and configuration being evaluated alongside retailer discussions and product-specific requirements. This approach allows LOCL to prioritize growth from higher yields and deeper retail penetration before committing capital to additional capacity. A demand-backed expansion model could help LOCL scale distribution while limiting the capital intensity associated with its earlier build-out phase. This becomes increasingly relevant as retailers place greater emphasis on traceability, food safety, and regional supply reliability. Adjusted gross margin temporarily moderated to 27% as Georgia’s channel diversification introduced packing inefficiencies, while underlying yield and cost trends remained constructive. Adjusted gross profit was $3.7 million, essentially unchanged from 2Q25, while adjusted gross margin declined approximately 300 bps y/y from 30% and approximately 200 bps sequentially from 29%. The moderation reflected packing inefficiencies created as LOCL diversified Georgia’s channel mix; those processes have since been refined and implemented. In our view, the decline did not reflect deterioration in facility yields, which remained at record levels, but it highlights the near-term complexity that can accompany broader retail mix and package formats. A return toward the 29%-30% adjusted gross-margin range alongside continued revenue growth would provide a stronger indication that LOCL’s retail mix and cost initiatives are converting into better unit economics. Operating leverage continued to improve as LOCL shifted spending toward commercial expansion while reducing development and corporate overhead. Sales and marketing expense increased approximately 20% y/y to $2.9 million in 2Q26 and 14% to $5.1 million in 1H26, broadly in line with revenue growth of approximately 15%, suggesting the recent rollout cadence has not required disproportionate commercial spending. Retailer wins, SKU breadth, program duration, and product velocity remain the more relevant commercial indicators, with recent launches across 250+ Harris Teeter stores, a 160-store regional account, new Mid-South and Rocky Mountain programs across 66 and 110 stores, respectively, and the planned 400-store salad-kit pilot indicating that higher selling investment is translating into distribution growth. At the same time, operating expenses declined approximately 11% y/y to $15.0 million, with R&D down 29% to $4.6 million and adjusted G&A down 17% to $4.1 million. The shift is consistent with LOCL moving from heavier technology and facility-ramp spending toward scaled commercial execution, while keeping overhead growth below revenue growth. Adjusted EBITDA loss improved 17% y/y, advancing LOCL toward management’s goal of positive adjusted EBITDA. Net loss narrowed to $19.8 million from $21.6 million in 2Q25, supported by lower operating expenses and a modest reduction in net interest expense. Sequentially, the increase in GAAP net loss from 1Q26 was largely attributable to a roughly $6.6 million swing in warrant fair value accounting. More importantly, adjusted EBITDA loss improved to $5.8 million from $7.1 million y/y, while the 1H26 loss narrowed approximately 24% to $11.5 million from $15.3 million. The continued improvement, alongside higher revenue and tighter cost discipline, supports management’s view that the business is steadily narrowing the gap to positive adjusted EBITDA. Cash consumption improved as the business moved beyond the heavier facility build-out phase, although liquidity remained modest at quarter-end ahead of the subsequent financing. Net cash used in operating activities improved approximately 26% to $13.4 million in 1H26 from $18.3 million in 1H25, while investing cash use declined approximately 80% to $2.2 million from $10.9 million as construction spending normalized. Cash, cash equivalents, and restricted cash declined to $10.1 million at June 30 from $18.8 million at the end of 1Q26, with working capital narrowing to approximately $1.5 million. Inventory remained relatively stable at $7.6 million versus $7.4 million at year-end despite new retail programs ramping, indicating that the liquidity draw was driven primarily by continued operating cash consumption rather than inventory build. The lower capital-spending burden is constructive, but further revenue growth, margin recovery, and EBITDA improvement remain necessary to support stronger internal cash generation and reduce reliance on external capital. Leverage remains elevated, keeping balance-sheet discipline central to the broader profitability and cash-generation story. LOCL had approximately $302.8 million of principal outstanding under the Cargill Senior Facility and $328.3 million of total long-term debt principal at June 30. Reported long-term debt was approximately $489.3 million, primarily reflecting the debt premium recorded in connection with the 2025 restructuring. While the restructuring reduced prior obligations and the business is now operating with a lower capital-spending burden, the absolute debt load remains significant relative to LOCL’s current revenue base and cash generation, making sustained EBITDA improvement and lower cash consumption critical to improving financial flexibility. The subsequent $12.5 million strategic investment and related Cargill amendments materially improve near-term liquidity and financial flexibility. U.S. Bounti’s additional investment brings total strategic capital committed in 2026 to $27.5 million and was structured through a 7.0% convertible note maturing in August 2031, initially convertible at $1.37 per share, together with a 1.0 million-share warrant at $0.125. PIK interest reduces near-term cash requirements, while conversion of the initial principal alone could add approximately 9.1 million shares. In connection with the financing, Cargill waived a minimum-liquidity covenant default, reset required liquidity to $3.5 million through March 2027 and $2.0 million thereafter, and permitted certain 2027 interest to be paid in kind, subject to conditions. These measures extend LOCL’s liquidity runway, but continued improvement in adjusted EBITDA and operating cash flow remains necessary to address the company’s leverage and reduce reliance on external capital. 2H26 setup remains constructive, with new retail programs, sustained yield gains, and continued cost actions providing multiple levers for sequential improvement. Management expects revenue and the adjusted EBITDA loss rate to continue improving through 2026, with revenue growth and cost discipline remaining the primary drivers toward breakeven. Entering 3Q, LOCL is carrying forward $13.9 million of quarterly revenue, new launches across approximately 66 Mid-South and 110 Rocky Mountain stores, sustained ~10% higher run-rate yield capacity across Georgia, Texas, and Washington, and early production benefits from the California optimization program. The ~400-store single-serve salad-kit pilot expected this fall adds another potential growth driver. The key 2H26 proof points are continued sequential revenue growth, recovery in adjusted gross margin from 27%, and further narrowing of the $5.8 million adjusted EBITDA loss as LOCL progresses toward positive adjusted EBITDA. Disclaimer: Exec Edge does not publish proprietary estimates, ratings, price targets, or investment recommendations. The valuation discussion below is illustrative only and is based on company filings, management commentary, and third-party data and estimates. It does not constitute a recommendation, price target, rating, or prediction of future pricing. LOCL trades near the lower end of its historical valuation range despite recent operating improvement. LOCL currently trades at 0.51x LTM sales versus a three-year high multiple of 1.92x and a three-year mean of 0.83x. Applying the historical high multiple to LTM sales of $51.8 million implies an illustrative market capitalization of $99.5 million, or $4.25 per share. Importantly, this framework does not require aggressive forward revenue assumptions; rather, it reflects potential multiple recovery if investors gain confidence that LOCL’s recent execution improvements, including higher revenue, record facility yields, lower adjusted G&A, normalization of temporary gross-margin pressure, and narrowing adjusted EBITDA losses, are sustainable. Relative valuation remains nuanced across the CEA-linked peer set, while traditional fresh-produce peers provide a useful valuation anchor. LOCL trades at 0.51x LTM sales, below Village Farms at 1.22x and GrowGeneration at 0.66x, while remaining above Hydrofarm at 0.07x and below the headline CEA-linked peer average of 1.21x, which is elevated by CEA Industries at 3.57x. Against traditional fresh-produce companies, which average 0.53x LTM sales, LOCL now trades at a modest discount despite its patented Stack & Flow platform, approximately 13,000-door retail footprint, recent double-digit revenue growth, and improving adjusted EBITDA trajectory. In our view, sustained execution could support a valuation premium to conventional produce peers if investors increasingly recognize LOCL as a technology-enabled CEA platform rather than a traditional produce supplier. The key re-rating triggers remain execution-led rather than purely multiple-led. Continued sequential revenue growth, recovery in adjusted gross margin toward prior levels, further narrowing of the adjusted EBITDA loss, and conversion of recent retail wins into repeatable volume would provide the clearest support for valuation recovery. Strategic investor backing also strengthens the setup, with U.S. Bounti committing an additional $12.5 million following its $15.0 million March investment, bringing total strategic capital committed in 2026 to $27.5 million and strengthening near-term financial flexibility. At the same time, leverage and prospective dilution remain important constraints, meaning a sustained re-rating will ultimately depend on LOCL converting higher facility productivity and broader distribution into stronger margins, lower cash consumption, and improved per-share economics. Read Exec Edge’s Initiation on Local Bounti Corporation Here Subscribe to our Weekly Newsletter to Receive All Research Contact: Executives-Edge.com [email protected] The post Local Bounti’s Network Yields at Record Levels, Retail Momentum Broadened – Quarterly Update Report appeared first on ExecEdge.

Delivered 14% Revenue Growth, Improved Net Loss, and 17% Improvement in Adjusted EBITDA Loss Announces Additional $12.5 Million Investment from Existing Strategic Investor HAMILTON, Mont., Aug. 12, 2026 /PRNewswire/ -- Local Bounti Corporation (NYSE: LOCL) ("Local Bounti" or the "Company"), a breakthrough U.S. indoor agriculture company currently servicing approximately 13,000 retail doors, today announced its financial results for the quarter ended June 30, 2026. Kathleen Valiasek, President and CEO of Local Bounti, stated, "Revenue grew 14% and adjusted EBITDA1 loss narrowed 17% year-over-year, demonstrating progression toward positive adjusted EBITDA. This has been the product of our team's focused efforts to enhance our operations, including those designed to further enhance our yields, which are up approximately 10% at our state-of-the-art facilities, while we also drive improvements at our California facilities following investments that are designed to strengthen our position in living butterhead lettuce. We are also very pleased with the commercial momentum we are delivering, and to that end, we continued to build on our base of blue-chip retail relationships, adding five new or expanded retail partnerships over the past two quarters and extending supply agreements with multiple national accounts through first quarter of 2027. Furthermore, in August, our existing strategic investor added to their position with an additional $12.5 million commitment, another vote of confidence in the platform we have built and the progress we are demonstrating." Ms. Valiasek continued, "Over the last several weeks, the advantages of locally grown controlled environment agriculture (CEA) have been the focus of new and existing customer conversations. Growing indoors gives us greater control over growing inputs, including water, the environment, and food safety monitoring in a way open fields can't, and we are seeing more retailers treat consistent food safety, quality, and traceability as core to how they source. These themes have sharpened our retail conversations for long-term supply partnerships, and our strategic financial partners are backing that shift with capital. Those signals point the same direction, and I like where that puts us as we keep working toward achieving profitability." Second Quarter 2026 Financial Summary Sales increased 14% to $13.9 million in the second quarter of 2026, as compared to $12.1 million in the prior year period, and grew 4% sequentially from $13.3 million in the first quarter of 2026. The increase was due to increased production and growth in sales from the facilities in Georgia, Texas, and Washington. Gross profit was $1.0 million in the second quarter of 2026 as compared to $1.5 million in the prior year period. Adjusted gross margin percentage1, which excludes depreciation and stock-based compensation, and other non-core items, was 27% as compared to 30% in the prior year period, reflecting temporary packing inefficiencies at the Company's Georgia facility, that have since been resolved, associated with the Company's channel diversification strategy. General and administrative expenses decreased by $0.5 million to $7.5 million in the second quarter of 2026, as compared to $8.0 million in the prior year period. The decrease was primarily driven by general cost savings measures. Adjusted general and administrative expense1, which excludes stock-based compensation, depreciation and amortization, and other non-core items decreased 17% to $4.1 million, as compared to $5.0 million in the prior year period. Net loss decreased to $19.8 million in the second quarter of 2026 as compared to net loss of $21.6 million for the prior year period, primarily due to a $1.5 million improvement in loss from operations driven by lower operating expenses and a $0.1 million reduction in net interest expense. Adjusted EBITDA loss improved 17% to $5.8 million, as compared to a loss of $7.1 million in the prior year period and a loss of $5.7 million in the first quarter of 2026. Adjusted EBITDA loss for the second quarter of 2026 excludes $1.0 million in stock-based compensation, $4.5 million in interest expense, $5.6 million of depreciation and amortization, $1.4 million loss on change in fair value of warrant liability, and other non-core items. 1See the reconciliation of GAAP measures to non-GAAP measures at the end of this press release for more information. Product Development Following discussions with a major retailer in the second quarter of 2026, Local Bounti is relaunching its Single Serve Salad Kit line and agreed with the retailer to a pilot launch throughout the Mid-Atlantic region in approximately 400 stores in the fall of 2026. The Company expects that a successful launch will be a driver for continued growth of this product line in the future. The Company's other core lines continued to build on recent momentum: the family-sized Romano Caesar Salad Kit, following a 75% increase in baseline velocity in the fourth quarter of 2025, launched in an additional distribution center in May 2026, which quickly reached similar velocities achieved by the rest of its distribution network. In addition, the Company continues to pursue growth in its Arugula offering, an area where it sees a notable supply gap versus conventional Arugula, following successful 2025 launches at its Washington and Texas facilities. Distribution Retailers, customers, and consumers are paying closer attention than ever to the safety and traceability of fresh product – and to where and how it is grown. Conversations that used to center on cost and availability now also focus on traceability, water sourcing, and environmental control – all questions Local Bounti's controlled-environment model was built to solve for. This shift does not create demand overnight, but Local Bounti expects the shift to drive long-term growth as retailers, and ultimately consumers, increasingly choose product based on where and how it is grown and the brand behind it. Local Bounti currently services approximately 13,000 retail doors and continues to build on its base of blue-chip retail relationships. The Company has seen successful distribution growth over the past two quarters, including: In the first quarter of 2026, a six-SKU rollout covering more than 250 Harris Teeter stores. In the first quarter of 2026, a new large regional retailer operating approximately 160 retail stores. In the first and second quarter of 2026, the Company was awarded bids extending supply arrangements with multiple national retail accounts, spanning key product lines including baby leaf lettuce and organic butter lettuce. In July 2026, the Company launched a new retail partner in the Mid-South region featuring five SKUs across approximately 66 retail stores. In August 2026, the Company launched a new retail partner in the Rocky Mountain region featuring four SKUs across approximately 110 stores, with shipments beginning early in the month. Together, these wins reflect the strength of the Company's relationships with blue-chip retail partners and their 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 Georgia, Texas and Washington facilities during the fourth quarter of 2025, which resulted in enhanced production efficiency and an approximate 10% increase in run-rate yield capacity to reach the Company's highest yields in the Company's history and its yields remain at this improved run-rate capacity today. As mentioned last quarter, the Company is also making investments in its California facilities to improve operational efficiency. These selective investments are on track and are still expected to deliver as much as a 20% improvement to yields, while simultaneously improving facility operational efficiency and strengthening our position in the living butterhead lettuce market. In fact, the Company's initial investments at one of its California facilities is already driving an approximate 10% increase in total production versus the prior year period. Across all facilities, the Company continues to make tangible progress on the cost side of the business, for example, more efficient seeding practices have lowered seed costs by approximately 20% year-over-year, and it expects to continue garnering cost savings across procurement, maintenance, labor efficiency, and freight management across the network. 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. Capital Structure The Company ended the quarter with cash and cash equivalents and restricted cash of $10.1 million as of June 30, 2026. Subsequent to quarter end, the Company received an additional $12.5 million investment, in the form of a convertible note and common stock purchase warrant, from an existing strategic investor, further demonstrating continued confidence in Local Bounti's business and long-term growth trajectory. This amount is not reflected in the Company's June 30, 2026 cash balance. Combined with the $15 million investment received from the existing strategic investor in March 2026 and the transactions the Company executed in 2025, Local Bounti has the financial flexibility to be strategic with partnerships and growth investments as it advances toward profitability. As of June 30, 2026, Local Bounti had approximately 23.2 million shares outstanding, 6.8 million common shares under warrants outstanding, and approximately 2.8 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 9.8 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 42.5 million shares outstanding as of June 30, 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, August 12, 2026. To participate on the live call, listeners in North America may dial (877) 514-3624 and international listeners may dial +1 (201) 689-8883. The Conference ID is 13761383. 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 the United States, servicing approximately 13,000 retail doors. Local Bounti grows healthy food utilizing a hybrid approach that integrates the best attributes of controlled environment agriculture with natural elements. Local Bounti's sustainable growing methods are better for the planet, using 90% less land and 90% less water than conventional farming methods. With a mission to 'revolutionize agriculture, ensuring accessibility to fresh, sustainable, locally grown produce and nourishing communities everywhere for generations to come,' Local Bounti's food is fresher, more nutritious, and lasts longer than traditional agriculture. To find out more, visit localbounti.com or follow Local Bounti on LinkedIn for the latest news and developments. 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 June 30, 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 the United States ("GAAP") and exclude certain expenses, gains, and losses. The Company defines and calculates adjusted EBITDA as net loss attributable to Local Bounti before the impact of interest expense, depreciation, and amortization, and adjusted to exclude stock-based compensation expense, change in fair value of warrant liability, and certain other non-core items. The Company defines and calculates adjusted gross profit as gross profit excluding depreciation and stock-based compensation, and certain other non-core items. The Company defines and calculates adjusted gross margin percentage as adjusted gross profit as a percent of sales. The Company defines and calculates adjusted general and administrative expense as general and administrative expense excluding stock-based compensation, depreciation, amortization, and certain other non-core items. 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 June 30, 2026. View original content to download multimedia:https://www.prnewswire.com/news-releases/local-bounti-announces-second-quarter-2026-financial-results-302849170.html

This article first appeared on GuruFocus. Release Date: August 12, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Revenue grew 14% year-over-year to $13.9 million, with sequential growth from the first quarter. Adjusted EBITDA loss improved 17% year-over-year to $5.8 million, and adjusted G&A expenses decreased 17%. Secured a pilot launch for single-serve salad kits in approximately 400 Mid-Atlantic stores this fall. Completed six SKU rollouts with Harris Teeter and a large regional retailer, plus new launches in the Mid-South and Rocky Mountain regions. Received an additional $12.5 million investment from an existing strategic investor post-quarter-end, boosting financial flexibility. Tower upgrades in Georgia, Texas, and Washington are delivering roughly 10% higher yield capacity, with California investments already showing a 10% production increase. Seed costs lowered by approximately 20% year-over-year through more efficient seeding practices. Adjusted gross margin declined to 27% from 30% year-over-year and 29% sequentially due to temporary packing inefficiencies from channel mix diversification. GAAP net loss increased sequentially to $19.8 million from $12.7 million in the first quarter, driven by non-cash warrant liability changes. Cash and equivalents dropped to $10.1 million at quarter-end from $18.8 million in the first quarter, reflecting cash used in operations. The company still reports an adjusted EBITDA loss of $5.8 million, indicating ongoing unprofitability. The path to positive adjusted EBITDA remains uncertain, with management noting 'more work ahead' and relying on continued improvement in the second half. Warning! GuruFocus has detected 6 Warning Signs with LOCL. Is LOCL fairly valued? Test your thesis with our free DCF calculator. Q: What is the company's strategy to achieve positive adjusted EBITDA, and what are the key levers?A: Tony Hughes (Interim CFO and Chief Accounting Officer) stated that revenue growth and continued cost discipline are the two biggest levers toward achieving positive adjusted EBITDA. The company expects the trajectory of improvement demonstrated over the past several quarters to continue in the second half of the year as the network matures and scales alongside retail customers. Q: How is the recent industry focus on food safety impacting Local Bounti's business and retail conversations?A: Kathleen Balasek (President and CEO) noted that food safety has become a mainstream consumer conversation, directly influencing how retailers source produce. Conversations now focus on traceability, water sourcing, and environmental controlareas where the company's controlled environment agriculture (CEA) model excels. This shift is creating more urgency in strategic partnership discussions, as retailers recognize the structural safety advantages of indoor growing over open-field agriculture. Q: What is the status of the single-serve salad kit line relaunch?A: Kathleen Balasek (President and CEO) announced that following discussions with a major retailer, the company is relaunching its single-serve salad kit line with a pilot launch in approximately 400 stores across the Mid-Atlantic region this fall. This is seen as an encouraging step that could drive continued growth for the product line. Q: Can you provide details on the recent retail expansions and new partnerships?A: Kathleen Balasek (President and CEO) reported that two previously discussed accountsa six-SKU rollout at over 250 Harris Teeter stores and a large regional retailer with 160 storesare fully launched and tracking in line with expectations. Additionally, the company launched a new retail partner in the Mid-South region (five SKUs, ~66 stores) in July and another in the Rocky Mountain region (four SKUs, ~110 stores) in early August. Q: What is driving the improvement in adjusted EBITDA loss, and what were the specific financial results?A: Tony Hughes (Interim CFO and Chief Accounting Officer) reported that second-quarter adjusted EBITDA loss improved 17% year-over-year to $5.8 million, while revenue grew 14% to $13.9 million. Adjusted G&A expense decreased 17% year-over-year to $4.1 million. For the first half, revenue is up 15% to $27.2 million, and adjusted EBITDA loss improved approximately 24% to $11.5 million. Q: How are the tower upgrades and California facility investments performing?A: Kathleen Balasek (President and CEO) stated that tower upgrades in Georgia, Texas, and Washington are delivering roughly 10% higher yield capacity. In California, selective investments are on track to improve yield by as much as 20%, with initial investments at one facility already driving an approximate 10% increase in total production versus prior levels. Q: What caused the decline in adjusted gross margin, and what is the outlook?A: Tony Hughes (Interim CFO and Chief Accounting Officer) explained that adjusted gross margin declined to 27% from 30% year-over-year due to a strategy to diversify channel mix at the Georgia facility, which caused temporary packing inefficiencies that have since been refined. The company expects increased retail channel penetration and lower input costs to support enhanced margins over the long term. Q: What is the company's cash position and recent financing activity?A: Tony Hughes (Interim CFO and Chief Accounting Officer) reported ending the quarter with $10.1 million in cash equivalents and restricted cash. Subsequent to quarter end, the company received an additional $12.5 million investment from an existing strategic investor, which is not reflected in the quarter-end balance. Combined with the $15 million received in March, these commitments provide financial flexibility to advance toward profitability. Q: How is the company addressing cost savings across operations?A: Kathleen Balasek (President and CEO) highlighted tangible progress on the cost side, including more efficient seeding practices that lowered seed costs by approximately 20% year-over-year. The company expects to continue garnering cost savings across procurement, maintenance, labor efficiency, and freight management across the network. Q: What is the outlook for the Caesar Romano salad kit and arugula product lines?A: Kathleen Balasek (President and CEO) noted that the Caesar Romano salad kit continues to perform well, with an additional distribution center launched in May tracking in line with strong velocity. The company sees real opportunity in arugula, where the conventional supply chain has struggled to keep up with demand, and is actively continuing conversations with retail partners about the greenhouse-grown approach. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Local Bounti Corporation (NYSE:LOCL) shares fell 4.76% in premarket trading after the indoor agriculture company reported second-quarter revenue and adjusted earnings below Wall Street expectations, despite delivering year-on-year sales growth and reducing its losses. Revenue reached $13.9 million, well below the analyst consensus estimate of $22 million. The company reported an adjusted loss of $0.68 per share, compared with expectations for a loss of $0.50 per share. Despite the miss, quarterly revenue increased 14% from $12.1 million in the corresponding period last year, supported by higher production and stronger sales from Local Bounti’s facilities in Georgia, Texas and Washington. The company’s second-quarter net loss improved to $19.8 million from $21.6 million in the same period of 2025. Adjusted EBITDA loss narrowed by 17% year on year to $5.8 million, compared with a loss of $7.1 million previously, indicating progress towards the company’s objective of reaching positive adjusted EBITDA. “Revenue grew 14% and adjusted EBITDA loss narrowed 17% year-over-year, demonstrating progression toward positive adjusted EBITDA,” said Kathleen Valiasek, President and CEO of Local Bounti. “This has been the product of our team’s focused efforts to enhance our operations, including those designed to further enhance our yields, which are up approximately 10% at our state-of-the-art facilities.” Gross profit declined to $1.0 million during the second quarter from $1.5 million in the prior-year period. Adjusted gross margin fell to 27% from 30% a year earlier. Local Bounti attributed the decline to temporary packing inefficiencies at its Georgia facility as the company implements its channel diversification strategy. The pressure on margins came despite improvements in crop yields, which management said have increased by approximately 10% at the company’s advanced production facilities. Following the end of the quarter, Local Bounti received an additional $12.5 million investment from an existing strategic investor. The new funding follows a $15 million investment completed in March 2026. The company said the combined capital provides greater financial flexibility as it works towards profitability and continues improving its operations. Local Bounti currently supplies products to approximately 13,000 retail doors and has secured five new or expanded retail partnerships over the past two quarters. Management expects revenue to continue improving sequentially during 2026, alongside further progress in reducing the adjusted EBITDA loss rate. While the substantial revenue miss weighed on the shares, Local Bounti’s year-on-year sales growth, narrower losses, improving yields and additional financing highlighted progress in its broader operational strategy. Local Bounti Corporation stock price

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance improvement was driven by the convergence of revenue growth, stable adjusted gross margins, and a 30% year-over-year reduction in adjusted G&A. The company achieved a steady-state operational rhythm by running all three state-of-the-art facilities at full harvestable capacity with entire run rates committed to customers. Management attributed record-high yields to the successful integration of tower upgrades and proprietary computer vision and AI-driven growing optimization. Commercial strategy has shifted toward 'quality of volume' and channel mix diversification to enhance the overall margin profile rather than pursuing capacity for its own sake. A market shift is occurring where retailers are now designing supply chains that incorporate controlled-environment agriculture (CEA) as permanent infrastructure. The company is utilizing its Stack & Flow capabilities to address specific market supply gaps, particularly in the unreliable conventional arugula segment. Management expects the trajectory of revenue growth and G&A declines to continue as the company advances toward its goal of positive adjusted EBITDA. Selective investments in California legacy assets are projected to improve yields by as much as 20%, enhancing throughput and margins as projects progress through 2026. Strategic partnership discussions remain active and central to long-term growth, with management remaining deliberate to ensure durable value realization. New retail bids awarded in early 2026 provide visibility into supply arrangements extending through the first quarter of 2027. The company intends to maximize its market position in living butterhead lettuce and expand distribution of high-velocity products like the Caesar Romano Salad Kit. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Secured a U.S. patent for computer vision and AI-driven growing optimization, formally protecting the proprietary technology underpinning the Stack & Flow platform. Closed a $15 million investment from an existing strategic investor during Q1, providing additional financial flexibility for strategic growth. GAAP net loss improved significantly due to lower interest expense following a 2025 debt restructuring that canceled approximately $197 million of debt principal. Cash position increased to approximately $18.8 million, supported by the recent convertible note investment and disciplined capital management.

This article first appeared on GuruFocus. Release Date: May 13, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Revenue grew 15% year-over-year, indicating strong financial performance. Adjusted EBITDA loss improved by 35%, showing better financial management. The company secured a $15 million investment from an existing strategic investor, enhancing financial flexibility. Local Bounti Corp (NYSE:LOCL) was issued a U.S. patent for its AI-driven growing optimization, protecting its proprietary technology. Operational improvements led to a 10% increase in run rate yield capacity, demonstrating enhanced efficiency. Despite improvements, the company still reported an adjusted EBITDA loss of $5.7 million. The GAAP net loss for the quarter was $12.7 million, indicating ongoing financial challenges. The company is still working towards achieving positive adjusted EBITDA, highlighting that profitability has not yet been reached. There is a notable supply gap in the market for certain products, such as conventional arugula, which the company aims to address. The company relies on strategic partnerships and ongoing discussions, which may pose risks if these do not materialize as expected. Warning! GuruFocus has detected 6 Warning Signs with LOCL. Is LOCL fairly valued? Test your thesis with our free DCF calculator. Q: Can you elaborate on the strategic significance of the $15 million investment from an existing strategic investor? A: Craig Hurlburt, Executive Chairman: The $15 million investment from an existing strategic investor is a significant endorsement of our business and technology. This partner has been closely observing our progress and chose to increase their stake, which provides us with additional financial flexibility to advance our commercial and strategic priorities. Q: How is Local Bounti's commercial strategy evolving, particularly in terms of channel mix and partnerships? A: Kathleen Balasek, President and CEO: Our commercial strategy focuses on the quality of our volume rather than simply adding capacity. We aim to achieve targeted diversification of our channel mix to enhance our margin profile. We have launched two new retail accounts and are seeing extensions to supply agreements within our existing customer base, which underscores the strength of our relationships with blue-chip retail partners. Q: What operational improvements have been made to enhance yield and efficiency? A: Kathleen Balasek, President and CEO: We have completed tower upgrades across our facilities in Georgia, Texas, and Washington, paired with computer vision and AI-driven growing optimization. This has resulted in approximately a 10% increase in run rate yield capacity. Additionally, our Texas facility benefits from steady-state operational rhythm, leading to throughput and labor productivity gains. Q: Can you provide more details on the financial performance and outlook for Local Bounti? A: Tony Hughes, Interim CFO: First quarter revenue grew 15% to $13.3 million, with adjusted gross margin at approximately 29%. Adjusted G&A expense decreased by 30% year-over-year. Our adjusted EBITDA loss improved by 35% year-over-year. We expect continued revenue growth, gross margin stability, and declining G&A, which will contribute to achieving positive adjusted EBITDA. Q: What are the key factors contributing to the improvement in Local Bounti's financial trajectory? A: Tony Hughes, Interim CFO: The improvement in our financial trajectory is driven by consistent production improvement across our facilities, strong contribution from focus accounts, and cost optimization efforts. Our capital structure improvements, including debt restructuring and strategic investments, have also provided us with the financial flexibility to pursue growth and partnership opportunities. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Delivered 15% Revenue Growth, Improved Net Loss, and 35% Improvement in Adjusted EBITDA Loss While Advancing Strategic Retail Partnership Discussions HAMILTON, Mont., May 13, 2026 /PRNewswire/ -- Local Bounti Corporation (NYSE: LOCL) ("Local Bounti" or the "Company"), a breakthrough U.S. indoor agriculture company currently servicing approximately 13,000 retail doors, today announced its financial results for the three months ended March 31, 2026. 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 — 15% revenue growth, a 35% improvement in adjusted EBITDA loss, and a 30% reduction in adjusted G&A year-over-year. The improvement is grounded in tangible operating progress as our network is now running at full utilization, and the tower upgrades completed across our facilities last year are delivering an approximate 10% increase in run-rate yield capacity, with additional gains expected from the targeted investments we're making in California to support our leading market position in living butterhead lettuce. On the commercial side, the two new retail accounts we secured this quarter — including a national rollout across more than 250 stores — and expansion of an existing relationship, speak to a meaningful improvement in channel mix and to the caliber of partners now choosing to grow with us. Each quarter brings us closer to positive adjusted EBITDA, and I'm proud of the consistency our team continues to deliver." Craig Hurlbert, Executive Chairman of Local Bounti, stated, "Two developments this quarter reinforce the long-term thesis for Local Bounti. The U.S. patent issued in February for our AI-driven growing optimization supports the competitive advantages we have built around our Stack & Flow platform, and the additional $15 million committed by an existing strategic investor signals continued conviction in where we're headed. We continue to advance strategic partnership discussions and believe that we are in great position to capture demand for efficient capacity as the industry continues its migration to CEA products." First Quarter 2026 Financial Summary Sales increased 15% to $13.3 million in the first quarter of 2026, as compared to $11.6 million in the prior year period. The increase was due to increased production and growth in sales from the facilities in Georgia, Texas, and Washington. Gross profit was stable versus the prior year period at $1.5 million in the first quarter of 2026. Adjusted gross margin percentage1, which excludes depreciation and stock-based compensation, and other non-core items, was also stable at 29%, relative to both the prior year period and the fourth quarter of 2025. General and administrative expenses decreased by $0.6 million to $7.5 million in the first quarter of 2026, as compared to $8.1 million in the prior year period. The decrease was primarily driven by general cost savings measures. Adjusted general and administrative expense1, which excludes stock-based compensation, depreciation and amortization, and other non-core items decreased 30% to $4.1 million, as compared to $5.8 million in the prior year period. Net loss decreased to $12.7 million in the first quarter of 2026 as compared to net loss of $37.7 million for the prior year period, primarily due to a $14.8 million reduction in net interest expense resulting from the debt restructuring activities the Company completed in the first quarter of 2025. Adjusted EBITDA1 loss improved 35% to $5.7 million, as compared to a loss of $8.8 million in the prior year period. Adjusted EBITDA loss for the first quarter of 2026 excludes $1.0 million in stock-based compensation, $4.0 million in interest expense, $5.6 million of depreciation and amortization, $5.2 million gain on change in fair value of warrant liability, and other non-core items. 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 75% increase in its baseline velocity (units sold per store per week) during the fourth quarter of 2025, Local Bounti was awarded an additional distribution center with a national retailer in the first quarter of 2026 that is set to launch in May of 2026. The Company continues to pursue growth of its Arugula offering following its successful launch at both its Pasco, WA and Mount Pleasant, TX facilities in 2025. Conventional arugula is often unreliable and insufficient and is a category that the Company believes it can continue to address through leveraging its baby leaf capabilities. 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 600% during 2025. 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 Georgia, Texas and Washington facilities during the fourth quarter of 2025, which resulted in enhanced production efficiency and an approximate 10% increase in run-rate yield capacity to reach the Company's highest yields in the Company's history. The Company is also making select investments in its California facilities to improve operational efficiency, which it believes can improve yields by as much as 20%, resulting in increased throughput and enhanced margins. 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 U.S. Patent No. 12,557,741, titled "Optimizing Growing Process in a Hybrid Growing Environment Using Computer Vision and Artificial Intelligence." The patent covers the Company's proprietary methods for using computer vision, machine learning, and automated environmental controls to optimize plant growth across its hybrid vertical and greenhouse growing phases. This is a significant milestone that strengthens the competitive moat around Local Bounti's patented Stack & Flow Technology platform and underscores the Company's technology leadership in controlled environment agriculture. The Company has been deploying these capabilities across its Stack & Flow Technology–enabled facilities with tangible results, using AI-driven analysis of plant growth and environmental data to drive improved consistency and yield. Capital Structure The Company ended the quarter with cash and cash equivalents and restricted cash of $18.8 million as of March 31, 2026. As previously disclosed, in March 2026, the Company received a $15 million investment from an existing strategic investor, further demonstrating continued confidence in Local Bounti's business and long-term growth trajectory. Combined with the transactions the Company executed in 2025, Local Bounti has the financial flexibility to be strategic with partnerships and growth investments as it advances toward profitability. 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 North America may dial (877) 514-3623 and international listeners may dial +1 (201) 689-8768. The Conference ID is 13760159. 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 the United States, servicing approximately 13,000 retail doors. Local Bounti grows healthy food utilizing a hybrid approach that integrates the best attributes of controlled environment agriculture with natural elements. Local Bounti's sustainable growing methods are better for the planet, using 90% less land and 90% less water than conventional farming methods. With a mission to 'revolutionize agriculture, ensuring accessibility to fresh, sustainable, locally grown produce and nourishing communities everywhere for generations to come,' Local Bounti's food is fresher, more nutritious, and lasts longer than traditional agriculture. To find out more, visit localbounti.com or follow Local Bounti on LinkedIn for the latest news and developments. 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 the United States ("GAAP") and exclude certain expenses, gains, and losses. The Company defines and calculates adjusted EBITDA as net loss attributable to Local Bounti before the impact of interest expense, depreciation, and amortization, and adjusted to exclude stock-based compensation expense, change in fair value of warrant liability, and certain other non-core items. The Company defines and calculates adjusted gross profit as gross profit excluding depreciation and stock-based compensation, and certain other non-core items. The Company defines and calculates adjusted gross margin percentage as adjusted gross profit as a percent of sales. The Company defines and calculates adjusted general and administrative expense as general and administrative expense excluding stock-based compensation, depreciation, amortization, and certain other non-core items. 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. View original content to download multimedia:https://www.prnewswire.com/news-releases/local-bounti-announces-first-quarter-2026-financial-results-302770330.html

Local Bounti (NYSE:LOCL) released first-quarter financial results and hosted an earnings call on Wednesday. Read the complete transcript below. This content is powered by Benzinga APIs. For comprehensive financial data and transcripts, visit https://www.benzinga.com/apis/. The full earnings call is available at https://event.choruscall.com/mediaframe/webcast.html?webcastid=dhbcI4S0 Local Bounti reported a 15% year-over-year revenue growth to $13.3 million for Q1 2026, with a 35% improvement in adjusted EBITDA loss and a 30% decrease in adjusted G&A expenses. The company secured a $15 million investment from an existing strategic investor and was granted a US patent for its computer vision and AI-driven growing optimization technology. Operational highlights include running facilities at full capacity, launching new retail accounts, and improving yields with technological upgrades. Management expressed confidence in continued revenue growth, gross margin stability, and progress towards achieving positive adjusted EBITDA. The financial trajectory is supported by strategic moves, including a $25 million equity raise, debt restructuring, and additional financing arrangements, providing financial flexibility for growth. OPERATOR Good morning and welcome to Local Bounty's first quarter 2026 earnings conference call. All participants will be noticed in only mode. Please note today's event is being recorded at this time. I'd like to turn the conference call over to Jeff Sonic, Investor Relations at icr. Please go ahead. Jeff Sonic (Investor Relations) Thank you and good morning. Today's presentation will be hosted by Local Bounti's Executive Chairman Craig Hurlbert, President and Chief Executive Officer Kathleen Valasek, and Interim Chief Financial Officer and Chief Accounting Officer Tony Hughes. The comments made during today's call contain forward looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts are considered forward looking statements. Statements are based on management's current expectations and beliefs as well as a number of assumptions concerning future events. Such forward looking statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from the results discussed in the forward looking statements. Some of these risks and uncertainties are identified and discussed in the company's filings with the SEC and will also refer to certain non-GAAP financial measures today. Please refer to the press release which can be found on our investor relations website, investors.localbounti.com for reconciliations of non-GAAP financial measures to their most directly comparable GAAP measures. And with that, I would now like to turn the call over to Craig. Craig Hurlbert (Executive Chairman) Thank you Jeff and good morning everyone. As I always do, I want to start by recognizing the work the Local Bounti Team has put into delivering these results. It's an honor to be able to work with each and every one of you. The first quarter is the next data point in the trajectory we've been building toward disciplined execution quarter after quarter across every part of the organization. We told you what we were going to do and we're doing it. When I spoke with you in March, I described 2025 as a year we did the hard work to position Local Bounti for what comes next. Q1 reinforces that view. Two specific developments this quarter underscore where we're headed. First, in February we were issued a US patent covering our computer vision and AI driven growing optimization. This formally protects the proprietary technology that underpins our stack and flow platform. The same capabilities Kathy will speak to in detail when she walks through our operational progress. Second, the $15 million investment from an existing strategic investor that we discussed last quarter closed during Q1. That's a partner who has watched this business closely for years and chose to commit additional capital at this stage. Both signals one technical, one financial point in the same direction. Local Bounty has earned the right to be selective about its next moves and that gives me great confidence in the path ahead. And with that I will now turn it over to Kathy. Kathleen Valasek (President and Chief Executive Officer) Thank you Craig. The themide wraparound Q1 2026 is straightforward continued progress. The work we did throughout 2025 laid a foundation and Q1 is the next data point showing how that foundation is producing Results. Revenue grew 15% year over year, adjusted EBITDA loss improved 35% and adjusted G&A came down 30%. Each metric extends the trajectory we showed quarter by quarter through last year and in several cases shows additional sequential improvement on top of an already strong fourth quarter. We're doing what we said we'd do and it's showing up in our results. Following the facility optimization work we completed last year, each of our three state of the art facilities continues to operate at full harvestable capacity with our entire run rate capacity committed to customers. I'd characterize our progress through two complementary threads Commercial momentum and operational discipline at scale. Both continued to advance in Q1, starting with our commercial progress and ongoing strategic partnership discussions. Those conversations remain active and are central to Local Bounti's long term growth strategy. The quality and velocity of our engagements continues to build. The market shift we described last quarter is real and it's holding. Retailers and strategic partners who were once cautious about controlled environment agriculture are designing supply chains today that contain CEA as permanent infrastructure. They are actively seeking the right partners to build with and that's the position we have been working toward. We remain deliberate in how we approach these opportunities so we can best position Local Bounty to realize durable long term value. Our commercial strategy continues to focus on the quality of our volume rather than simply adding capacity, specifically on achieving targeted diversification of our channel mix to enhance our margin profile. The two new retail accounts we announced last quarter have launched. The first is a six-queue placement with a large premier retail customer covering more than 250 stores. The second is a large regional retailer. We are also seeing extensions to supply agreements within our existing customer base. In the first and early second quarter of 2026, we were awarded new bids covering supply arrangements that advance these relationships through the first quarter of 2027. These commitments span several of our key product lines including Baby Leaf Lettuce and Organic Butter lettuce. The awards underscore the strength of our relationships with blue chip retail partners and reflect those customers continued confidence in our ability to deliver consistent high quality products over the long term. These are precisely the sort of outcomes our commercial team has been targeting and they reinforce the channel mix improvement that has been a core priority moving through 2026. Our pipeline reflects the strong commercial momentum we've been building and we continue to have visibility to additional distribution opportunities as we move through the year. Our Caesar Romano Salad Kit is another good example of the focused commercial strategy I described last quarter. The product continues to gain traction with consumers after realizing a 75% increase in its baseline velocity or units sold per store per Week during 4Q25. We were awarded an additional distribution center with a national retail customer in the first quarter of 2026 that is set to launch this month. When customers and consumers provide feedback, we listen, and Caesar Romano demonstrates what Local Bounti can deliver when we apply that approach. That same discipline extends to our Baby Leaf Greens portfolio, which remains an area in particular where there's a notable supply gap in the market. Our retail customers continue to tell us that the conventional arugula supply is unreliable and falling short of customer needs. We intend to maximize our stack and flow capabilities to capture that demand with a more reliable, longer lasting, ready to eat greenhouse grown arugula supply, a message we are actively reinforcing with retail partners throughout 2026. Shifting over to Operations the cohesion between our commercial and operations teams has continued to strengthen and the operational rhythm we built through 2025 carried directly into Q1. We are seeing continued progress on our service performance, freight lane management, packaging, standardization and labor efficiencies. The same building blocks I walked through in March are compounding. Running at full capacity continues to enable a level of network wide consistency that translates directly into stronger yields. Our yields remain at their highest levels in our company's history. The tower upgrades we completed across Georgia, Texas and Washington, paired with the computer vision and AI driven growing optimization are delivering as promised with approximately a 10% increase in run rate yield capacity. Texas continues to benefit from the steady state operational rhythm that comes with running consistently at full harvestable capacity and we are seeing throughput and labor productivity gains that the new automated harvester was designed to deliver. Beyond our stack and flow facilities, we are also focused on expanding a number one market position in Living Butterhead Lettuce. In support of this, we are making selective investments in our California facilities to improve operational efficiency in those legacy assets. We believe these investments can improve yields by as much as 20%, resulting in increased throughput and enhanced margins. As those projects progress through the year, running at full capacity is also informing our ongoing cost optimization efforts within each facility, allowing for better visibility into cost drivers and the tools to address them. That has translated into a more consistent adjusted gross margin profile and meaningful sequential and year over year declines in adjusted G and A. The net effect is showing up clearly in our rapidly improving adjusted EBITDA trajectory. Before I turn it over, I'd like to take a moment to introduce Tony Hughes to those of you joining us today. Tony has served as local bounties senior VP of finance and chief accounting officer since June 2022 and was appointed Interim CFO in December of last year. Tony has been instrumental in the financial work we have executed over the past several years and he brings more than 30 years of finance leadership experience to this role. We are fortunate to have him in this seat and I'm pleased to hand it over to him for the financial review today. Tony Hughes (Interim Chief Financial Officer and Chief Accounting Officer) Tony thank you Kathy and good morning everyone. While this is my first earnings call in the interim CFO role, I've had the privilege of working alongside Kathy in various finance and accounting leadership roles for more than a decade across several organizations and I'd like to thank Kathy and the Board for this opportunity. The financial trajectory we are reporting on this morning reflects the combination of positive forces that are making a measurable impact in our results, including the great work we've done to improve our capital structure. Now turning to our results, first quarter revenue grew 15% to $13.3 million, reflecting continued sequential and year over year growth driven by consistent production improvement across our full network of facilities. On a sequential basis, revenue was up approximately 7% from Q4, which speaks to the underlying production consistency we are now achieving. Beyond the incremental distribution, we continue to see strong contribution from our focus accounts including the E Commerce and Direct to Consumer customer relationship. We highlighted last quarter which continued to support year over year growth in the first quarter. Adjusted gross margin for the first quarter was approximately 29% excluding depreciation, stock based compensation and other non core items in line with the prior year period and consistent with the gross margin profile we delivered throughout 2025. Gross margin stability has been a deliberate part of the story we are telling. Predictable performance at this level becomes the foundation for operating leverage as we scale adjusted G and A expense for the first quarter was $4.1 million, down from $5.8 million in Q1 2025 representing a reduction of approximately 30% year over year on a sequential basis that is also down $4.3 million in Q4. Combined with our COGS related savings actions, we are now seeing the full benefit of of the roughly $10 million reduction in annualized expenses we delivered in 2025, adjusted EBITDA loss for the first quarter improved to $5.7 million compared to a loss of $8.8 million in Q1 2025. A 35% year over year improvement and a modest sequential improvement from the $5.8 million loss in Q4. Revenue growth stable adjusted gross margins and lower adjusted G and A continue to converge to improve adjusted EBITDA performance. This is exactly the operating leverage we said would compound as the network matured. I'd also like to Highlight that our Q1 GAAP net loss was $12.7 million compared to $37.7 million in the prior year period. The improvement reflects both substantially lower interest expense resulting from our 2025 debt restructuring and the operational progress underway. With respect to the balance sheet, we ended the quarter with cash cash equivalents and restricted cash of approximately $18.8 million, up from $10.7 million at year end. The improvement reflects the $15 million investment we received during the quarter from an existing strategic investor. As Craig noted, this is a meaningful signal a partner who knows our business and our technology chose to increase their stake. It provides additional financial flexibility as we continue to advance our commercial and strategic priorities. As a reminder on our broader capital structure, we completed a $25 million equity raise and executed a comprehensive debt restructuring in the first quarter of 2025 that canceled approximately $197 million of debt, principal and accrued interest and deferred cash repayments until April 2027. In the third quarter of 2025, we secured an incremental $10 million of working capital through a convertible note investment, which was paired with a corresponding $10 million reduction in our senior secured debt principal. We were also able to secure additional financing through an equipment sale leaseback arrangement, and in the first quarter of 2026 we secured an additional $15 million through a convertible note investment. Combined, these transactions position local bounty with the financial flexibility to be strategic about growth and partnership decisions as we advance towards profitability. In terms of our outlook, we expect the trajectory of improvement we demonstrated throughout 2025 and into the first quarter to continue revenue growth, gross margin stability and declining G and A all point toward continued progress against our goal of achieving positive adjusted ebitda. There's still work to do to get there, and we want to be clear eyed about that, but everything we're seeing reinforces our confidence in the path. With that, I'll turn it back to Kathy for closing remarks. Kathleen Valasek (President and Chief Executive Officer) Thank you, Tony. In closing, the strategic and commercial environment around us remains favorable. The operational rhythm we built last year is compounding, and the financial trajectory continues to move in the right direction. The cumulative progress we have made will become even more visible as we move through the rest of 2026. I'm grateful to the entire local Bounty team for their commitment and to our investors and partners for their continued confidence. That concludes our prepared remarks. Thank you for joining us today and for your continued interest in Local Bounti. OPERATOR Ladies and gentlemen, that concludes today's conference call. We thank you for attending. Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company's SEC filings and official press releases. Corporate participants' and analysts' statements reflect their views as of the date of this call and are subject to change without notice. UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga: LOCAL BOUNTI (LOCL): Free Stock Analysis Report This article Local Bounti Reports Q1 2026 Results: Full Earnings Call Transcript originally appeared on Benzinga.com ﾩ 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.