(Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q Commission File Number 001-40125 LOCAL BOUNTI CORPORATION (Exact name of registrant as specified in its charter) (State or Other Jurisdiction of Incorporati ...

Local Bounti (LOCL) Q2 2025 Earnings Call August 13, 2025 08:00 AM ET Speaker0Good morning, and welcome to Local Bounty's Second Quarter twenty twenty five Earnings Conference Call. All participants will be in a listen only mode. After today's presentation, there will be an opportunity to ask questions. Please also note today's event is being recorded. At this time, I'd like to turn the conference call over to Jeff Sonnek, Investor Relations at ICR.Please go ahead.Speaker1Thank you, and good morning. Today' ...

Exhibit 99.1 Local Bounti Announces Second Quarter 2025 Financial Results Reports 28% Year-Over-Year Revenue Growth Driven by Expanded Facility Operations and Strengthened Retail Relationships Achieved $7 Million in Annualized Expense Reductions in the First Half of 2025 with Additional $2.5 to $3 Million of Cost Optimization Initiatives to be Actioned in the Second Half of 2025 Closed on $10 Million Convertible Note and Amended Credit Facility with $10 Million Principal Debt Reduction HAMILTON, MT – August ...

Reports 28% Year-Over-Year Revenue Growth Driven by Expanded Facility Operations and Strengthened Retail RelationshipsAchieved $7 Million in Annualized Expense Reductions in the First Half of 2025 with Additional $2.5 to $3 Million of Cost Optimization Initiatives to be Actioned in the Second Half of 2025Closed on $10 Million Convertible Note and Amended Credit Facility with $10 Million Principal Debt ReductionHAMILTON, Mont., Aug. 13, 2025 /PRNewswire/ -- Local Bounti Corporation (NYSE: LOCL) ("Local Bount ...

HAMILTON, Mont., Aug. 8, 2025 /PRNewswire/ -- Local Bounti Corporation (NYSE: LOCL) ("Local Bounti" or the "Company"), a breakthrough U.S. indoor agriculture company, today announced it will release its financial results for the fiscal second quarter ended June 30, 2025 before the market opens on Wednesday, August 13, 2025.Conference CallThe Company will host a conference call with members of the Local Bounti executive management team to discuss financial results and other business updates. The conference c ...

Financial Performance - Sales increased by $3.2 million to $11.6 million for the three months ended March 31, 2025, representing a 38% increase compared to the same period in 2024[78] - Gross profit rose to $1.5 million, an 86% increase from $786,000 in the prior year[78] - The net loss for the three months ended March 31, 2025, was $37.7 million, a 57% increase from the net loss of $24.1 million in the same period in 2024[78] - Interest expense increased by $9.2 million for the three months ended March 31, 2025, primarily due to a $3.4 million increase in the principal amount outstanding on the Senior Facility and a $5.6 million decrease in capitalized interest compared to the prior year[90] - As of March 31, 2025, the company had an accumulated deficit of $460.9 million and cash and cash equivalents of $28.4 million[91] - Net cash used in operating activities was $9.6 million for the three months ended March 31, 2025, due to a net loss of $37.7 million[102] - Net cash provided by financing activities was $35.5 million for the three months ended March 31, 2025, including $21.5 million from the issuance of Series A Preferred Stock[105] - Net cash used in investing activities was $5.0 million for the three months ended March 31, 2025, primarily for purchases related to the Washington and Texas facilities[104] - The company has incurred losses and generated negative cash flows from operations since inception, indicating ongoing financial challenges[91] Operational Developments - The company operates six facilities, with significant production increases from the Georgia, Texas, and Washington facilities[79] - The Texas facility is undergoing a reconfiguration to produce both head lettuce and cut products, expected to begin commercial production in Q2 2025[72] - The company plans to expand its product offerings to include new varieties of fresh greens, herbs, and berries[71] - The company has secured an offtake agreement with Sam's Club for leafy greens production through September 2028[70] Sustainability Initiatives - The company utilizes 90% less water and land compared to traditional agriculture, enhancing sustainability[69] Financial Obligations - The principal amount due under the credit facility with Cargill Financial totaled $312.0 million, with various financial covenants that could risk default if not complied with[92] - Future aggregate financing obligation payments total $141.2 million, with significant payments due in the years following 2025[100] - The maturity date of the Senior Facility is December 31, 2035, with specific repayment terms starting from 2027[98] - The company expects interest expense to decrease by at least 50% following the Eleventh Amendment to the Senior Facility with Cargill Financial, which resulted in a lower principal balance and reduced interest rate[95] Expense Trends - Research and development expenses surged by $3.5 million to $7.0 million, a 100% increase year-over-year[78] - General and administrative expenses increased by $2.3 million to $8.1 million, a 39% rise compared to the previous year[78]

Core Insights - Local Bounti Corporation reported a quarterly loss of $4.32 per share, significantly worse than the Zacks Consensus Estimate of a loss of $1.31, marking an earnings surprise of -229.77% [1] - The company generated revenues of $11.61 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 4.55% and showing an increase from $8.38 million year-over-year [2] - Local Bounti shares have increased by approximately 25.1% since the beginning of the year, outperforming the S&P 500's gain of 0.1% [3] Financial Performance - Over the last four quarters, Local Bounti has surpassed consensus EPS estimates only once [2] - The current consensus EPS estimate for the upcoming quarter is -$1.22 on revenues of $12.3 million, and for the current fiscal year, it is -$4.35 on revenues of $59.2 million [7] Market Outlook - The estimate revisions trend for Local Bounti is currently favorable, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] - The Agriculture - Operations industry, to which Local Bounti belongs, is currently ranked in the bottom 38% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Financial Data and Key Metrics Changes - First quarter sales were $11.6 million, representing a 38% increase compared to Q1 2024 and a 15% sequential increase compared to Q4 2024 [11] - Adjusted gross margin improved approximately 500 basis points year-over-year and approximately 400 basis points sequentially [12] - Net loss for the quarter was $37.7 million, compared to a net loss of $24.1 million in the prior year period, largely due to higher interest expense [12] - Adjusted EBITDA loss for the quarter was $8.8 million, an improvement from $9.3 million in Q4 2024 [13] Business Line Data and Key Metrics Changes - Yield in the Georgia facility increased by 20% in Q1 compared to Q4, attributed to the refinement of the growing system [8] - The Texas facility is undergoing product mix recalibration, which has temporarily decreased capacity but is expected to improve operational efficiencies [7][12] Market Data and Key Metrics Changes - The company is actively engaged in discussions with retailers in the Midwest region to include them in sourcing plans, indicating potential market expansion [9] - The relationship with Walmart has strengthened, with additional commitments to serve more distribution centers [10] Company Strategy and Development Direction - The company aims to achieve positive adjusted EBITDA in Q3 2025, with a focus on operational efficiencies and cost management [6][14] - Plans to implement successful yield improvement programs from Georgia to Texas and Washington facilities [8][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive adjusted EBITDA by Q3 2025, driven by cost reductions and anticipated revenue growth [14][17] - The company is optimistic about the market opportunity for Controlled Environment Agriculture (CEA) products, as customer demand continues to rise [4][10] Other Important Information - The company ended the quarter with cash and cash equivalents of $28.4 million, indicating a strengthened financial position [14] - The debt restructuring resulted in the elimination of approximately $197 million of debt, although accounting rules require the original carrying value to remain on the balance sheet [14][15] Q&A Session Summary Question: What is driving the material lift in the back half of the year? - Management highlighted the Texas transition, Georgia yield improvement, and new products as key drivers for growth [19][20] Question: Can you elaborate on the Georgia yield improvement? - The yield increase is due to a research and development program that has been successfully implemented, with plans to expand this to other facilities [21][22] Question: How will the debt restructuring impact interest expense? - The restructuring will reduce interest expense over time, with the amortization of the premium leading to lower reported interest expenses on the income statement [25][26] Question: What are the financing plans for the Midwest facility? - The company is exploring project-specific financing and bringing in non-dilutive partners into the capital stack [37]

Financial Data and Key Metrics Changes - First quarter sales were $11.6 million, representing a 38% increase compared to the first quarter of 2024 and a 15% sequential increase compared to the fourth quarter of 2024 [12] - Adjusted gross margin improved approximately 500 basis points year-over-year and approximately 400 basis points sequentially [13] - Net loss for the quarter was $37.7 million compared to a net loss of $24.1 million in the prior year period, largely reflecting higher interest expense [13] - Adjusted EBITDA loss for the quarter was $8.8 million compared to $6.9 million in the prior year period, but improved by $500,000 from the fourth quarter of 2024 [14] Business Line Data and Key Metrics Changes - Yields in the Georgia facility increased by 20% in the first quarter compared to the fourth quarter, attributed to the refinement of the growing system with the STACK phase [9] - The product mix recalibration at the Texas facility is expected to begin full commercial production this month, which is anticipated to drive operational efficiencies and margin improvement [8] Market Data and Key Metrics Changes - The company is actively engaged in discussions with multinational and national retailers to include the Midwest region in their sourcing plans, indicating strong market interest [10] - The relationship with Walmart has strengthened, with additional commitments to serve 13 Walmart distribution centers [11] Company Strategy and Development Direction - The company aims to achieve positive adjusted EBITDA in the third quarter of 2025, with a focus on operational efficiencies, product diversification, and cost management [7] - Plans to enter the Midwest with a new facility are progressing, with promising discussions with retailers [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive adjusted EBITDA in the near term, driven by operational improvements and increased retail demand for CEA products [6][7] - The company expects revenue in the second quarter to be in the range of $12 million to $12.5 million, reflecting the impact of the Texas facility transition [17] Other Important Information - The company ended the quarter with cash and cash equivalents of $28.4 million, and a significant debt restructuring was completed, eliminating approximately $197 million of debt [16] - The restructuring will reduce interest expense over time, with no cash interest or amortization payments required for two years [28] Q&A Session Summary Question: What is driving the material lift coming into the back half of the year? - Management highlighted the Texas transition, Georgia yield improvement, and new products as key drivers for growth [21][22] Question: Can you elaborate on the Georgia yield improvement? - The yield increase is due to an R&D program focused on light optimization, which has exceeded expectations [22][23][34] Question: How will the debt restructuring impact interest expense? - The restructuring will allow for a gradual reduction in interest expense over ten years, with no cash interest payments for two years [27][28]

Financial Performance - Sales increased 38% to $11.6 million in Q1 2025, compared to $8.4 million in the prior year period, driven by production growth in Georgia and new facilities in Texas and Washington [4]. - Net loss for Q1 2025 was $37.7 million, compared to a net loss of $24.1 million in the prior year, primarily due to increased interest expense [10]. - Adjusted EBITDA loss was $8.8 million in Q1 2025, compared to a loss of $6.9 million in the prior year period [10]. - Total sales for the three months ended March 31, 2025, were $11,605,000, representing a 38.5% increase from $8,383,000 in the same period of 2024 [28]. - Net loss attributable to common stockholders for Q1 2025 was $38,078,000, compared to a net loss of $24,050,000 in Q1 2024, with a basic and diluted loss per share of $4.32 versus $2.89 [28]. - Adjusted EBITDA for Q1 2025 was $(8,782,000), compared to $(6,874,000) in Q1 2024, indicating a worsening operational performance [31]. Operational Highlights - Adjusted gross margin percentage improved to approximately 29% in Q1 2025, up from 24% in the prior year period, with expectations for further increases as the business scales [4]. - The Texas facility is transitioning to produce both head lettuce and cut products, with commercial production expected to begin in Q2 2025 [5]. - Local Bounti aims to achieve positive adjusted EBITDA in Q3 2025, driven by sales growth and cost reduction initiatives [17]. - The company continues to pursue capacity expansion projects and product development to meet growing demand from retailers and consumers [6][9]. Investment and Debt Management - The company secured a $25 million equity investment and restructured its debt, resulting in a new $312 million senior secured debt agreement [12]. - Long-term debt increased to $480,047,000 as of March 31, 2025, compared to $416,577,000 as of December 31, 2024 [27]. Cash Flow and Assets - Cash and cash equivalents rose significantly to $18,008,000 as of March 31, 2025, from $937,000 at the end of 2024 [27]. - Total current assets increased to $40,629,000 as of March 31, 2025, from $18,823,000 as of December 31, 2024 [27]. Expenses - Total operating expenses for Q1 2025 were $17,195,000, up from $11,085,000 in Q1 2024, driven by increased research and development costs [28]. - General and administrative expenses were adjusted to $5,815,000 for Q1 2025, compared to $4,305,000 in Q1 2024, reflecting increased operational costs [30]. Distribution and Partnerships - Local Bounti expanded its distribution with notable wins, including partnerships with Walmart and regional retailers in the Pacific Northwest [7][8]. - The company expects Q2 2025 sales to be approximately $12.0 to $12.5 million, with acceleration anticipated in the second half of 2025 [16].