Local Bounti (NYSE:LOCL) Q4 2025 Earnings call March 25, 2026 08:00 AM ET Speaker3Good morning, and welcome to Local Bounti's fourth quarter 2025 earnings conference call. All participants will be in a listen-only mode. Please note that today's event is being recorded. At this time, I'd like to turn the call over to Jeff Sonnek, Investor Relations at ICR. Please go ahead.Speaker1Thank you. Today's presentation will be hosted by Local Bounti's Executive Chairman, Craig Hurlbert, and President and Chief Execu ...

Exhibit 99.1 Local Bounti Announces Fourth Quarter and Full Year 2025 Financial Results Delivered 27% Annual Revenue Growth and Improved Net Loss and Adjusted EBITDA While Advancing Strategic Retail Partnership Discussions During the First Quarter 2026, Secured New Retail Accounts to Expand Distribution and Improve Channel Mix Existing Strategic Investor Closed on Additional $15 Million in Growth Capital Issued U.S. Patent for Computer Vision and AI-Driven Growing Optimization HAMILTON, MT – March 25, 2026 ...

Local Bounti Announces Fourth Quarter and Full Year 2025 Financial Results Accessibility StatementSkip Navigation Issued U.S. Patent for Computer Vision and AI-Driven Growing Optimization HAMILTON, Mont., March 25, 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 and twelve months ended December 31, 2025. Kathle ...

Local Bounti to Release Full Year 2025 Financial Results on Wednesday, March 25, 2026 Accessibility StatementSkip Navigation HAMILTON, Mont., March 23, 2026 /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 full year ended December 31, 2025, before the market opens on Wednesday, March 25, 2026. Conference Call The Company will host a conference call with ...

Core Viewpoint - Local Bounti Corporation has secured $15 million in new capital through a convertible note with an existing strategic investor, which will support its growth strategy and operational investments [1][2]. Group 1: Financial Details - The company issued a convertible note to raise $15 million, enhancing its financial flexibility for future investments [1][2]. - The terms of the financing agreement are detailed in the Company's Current Report on Form 8-K filed with the SEC [2]. Group 2: Company Overview - Local Bounti is an innovative indoor agriculture company utilizing patented Stack & Flow Technology® to improve crop yields and unit economics [3]. - The company operates advanced indoor growing facilities across the U.S., servicing approximately 13,000 retail doors [3]. - Local Bounti's sustainable farming methods use 90% less land and 90% less water compared to conventional farming, aiming to revolutionize agriculture and ensure accessibility to fresh produce [3].

Core Viewpoint - Local Bounti Corporation has received a notice from the NYSE regarding non-compliance with continued listing standards due to its market capitalization and stockholders' equity being below $50 million [1] Group 1: NYSE Compliance - On February 5, 2026, Local Bounti received a notice from the NYSE indicating it is not in compliance with the Minimum Market Capitalization Standard [1] - The company's average global market capitalization over a consecutive 30 trading-day period was less than $50 million, and its stockholders' equity was also below $50 million [1] - Local Bounti plans to submit a compliance plan to the NYSE within 45 days, aiming to regain compliance within nine months [1] Group 2: Impact and Future Actions - The notice does not have an immediate impact on the trading of Local Bounti's common stock, which will continue to trade during the Market Capitalization Cure Period [1] - The company is exploring all available options to regain compliance with NYSE standards but cannot guarantee success [1] Group 3: Company Overview - Local Bounti is an innovative indoor agriculture company utilizing patented Stack & Flow Technology® to enhance crop yields and improve unit economics [1] - The company operates advanced indoor growing facilities across the U.S., servicing approximately 13,000 retail doors [1] - Local Bounti's sustainable farming methods use 90% less land and water compared to conventional farming, aiming to provide fresh, nutritious produce [1]

Financial Performance - Sales increased by $2.0 million (19%) for the three months ended September 30, 2025, and by $7.8 million (28%) for the nine months ended September 30, 2025, compared to the same periods in 2024, driven by increased production and sales from new facilities[94] - The company achieved a gross profit of $1.4 million for the three months ended September 30, 2025, and $4.3 million for the nine months ended September 30, 2025, representing increases of 22% compared to the prior year[94] - The net loss for the three months ended September 30, 2025, was $26.4 million, a decrease of 23% from a net loss of $34.3 million in the same period in 2024[94] Operating Expenses - Operating expenses totaled $19.6 million for the three months ended September 30, 2025, and $53.7 million for the nine months ended September 30, 2025, reflecting an increase of 1% and 17% respectively compared to the same periods in 2024[94] - Cost of goods sold increased by $2.0 million for the three months ended September 30, 2025, and by $7.1 million for the nine months ended September 30, 2025, primarily due to production ramp-up at new facilities[99] - Research and development costs rose by $0.4 million for the three months ended September 30, 2025, and by $5.0 million for the nine months ended September 30, 2025, driven by the development of production and post-harvest packaging techniques[101] - Sales and marketing costs increased by $0.5 million for the three months ended September 30, 2025, and by $1.1 million for the nine months ended September 30, 2025, mainly due to higher transportation and delivery costs[104] - General and administrative expenses increased by $1.9 million for the nine months ended September 30, 2025, primarily due to a $3.7 million impairment charge related to Pete's trade name[107] Cash Flow and Financing - Net cash used in operating activities was $27.2 million for the nine months ended September 30, 2025, due to a net loss of $85.7 million[125] - Cash and cash equivalents at the end of the period increased to $12.7 million from $6.8 million at the end of the previous year[124] - Future aggregate financing obligation payments total $138.7 million, with significant payments due in the years 2026 to 2029[123] - Net cash provided by financing activities was $44.5 million for the nine months ended September 30, 2025, including $21.4 million from the issuance of Series A Preferred Stock[129] Facility and Production Updates - The Texas facility reached full harvestable capacity in early August 2025 after a reconfiguration to produce both head lettuce and cut products[87] - The company expects yield increases of more than 10% following planned tower upgrades, with optimization completion anticipated in the fourth quarter of 2025[88] - The company operates six facilities, with the latest expansions completed in Washington and Texas, enhancing its production capacity[84] Agreements and Product Offerings - The company signed an offtake agreement with Sam's Club in October 2022 for leafy greens production, which runs through September 2028[85] - The company expanded its product offerings with new Grab & Go Salads and a family-sized 10oz Romano Caesar Salad Kit launched in October 2025[92][93] Interest and Debt - Interest expense, net decreased by $13.8 million for the three months ended September 30, 2025, and by $12.4 million for the nine months ended September 30, 2025, due to a decrease in the principal amount outstanding under the Senior Facility[110][111] - The principal amount due under the credit facility with Cargill Financial totaled $302.0 million as of September 30, 2025[113]

Core Insights - Local Bounti Corporation is a significant player in the U.S. indoor agriculture sector, focusing on innovative farming techniques for sustainable produce [1] - The company reported an earnings per share (EPS) of -$0.001, significantly better than the estimated EPS of -$1.42, indicating effective expense management [2][6] - Revenue for the company was $12.2 million, a 19% year-over-year increase, although it fell short of the estimated $15 million [3][6] - Local Bounti has reduced year-to-date annualized expenses by nearly $8 million and plans to cut an additional $1.5 to $2 million in Q4 2025 [4][6] - The company's current ratio of 1.29 indicates reasonable liquidity, while a debt-to-equity ratio of -3.98 suggests more liabilities than equity [5] Financial Performance - The reported EPS of -$0.001 is a notable improvement over the estimated EPS of -$1.42, reflecting effective expense management [2][6] - Revenue of $12.2 million represents a 19% increase year-over-year, despite being below the estimated $15 million [3][6] - The price-to-sales ratio of 1.32 indicates a moderate valuation, with investors paying $1.32 for every dollar of sales [3] Cost Management - Local Bounti has successfully reduced annualized expenses by nearly $8 million and aims for an additional reduction of $1.5 to $2 million in Q4 2025 [4][6] - The enterprise value to operating cash flow ratio of -16.76 highlights challenges in generating positive cash flow from operations [4] Liquidity and Debt - The current ratio of 1.29 suggests that the company has a reasonable level of liquidity to meet short-term obligations [5] - The debt-to-equity ratio of -3.98 indicates that Local Bounti has more liabilities than equity, which may pose long-term challenges [5]

Core Points - The conference call is hosted by Local Bounti's Executive Chairman Craig Hurlbert and President, CEO, and CFO Kathleen Valiasek [2] - The presentation includes forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995 [2][3] - Forward-looking statements are based on management's current expectations and beliefs, along with assumptions about future events [3] Financial Measures - The company will refer to certain non-GAAP financial measures during the call [4] - Reconciliations of non-GAAP financial measures to their most directly comparable GAAP measures can be found in the press release on the Investor Relations website [4]

Financial Data and Key Metrics Changes - In Q3 2025, the company reported a 19% year-over-year revenue growth, reaching $12.2 million, driven by increased production from its facilities in Georgia, Texas, and Washington [17] - The adjusted EBITDA loss improved to $7.2 million from $8.4 million in Q3 of the previous year, indicating meaningful year-over-year progress [17] - The net loss for Q3 decreased to $26.4 million from $34.3 million in the prior year, primarily due to lower interest expenses from a debt restructuring [18] Business Line Data and Key Metrics Changes - The Texas facility completed its reconfiguration and reached full harvestable capacity, effectively doubling its productive output [6] - Labor productivity increased by approximately 19%, while direct labor costs per pound decreased by about 17%, showcasing operational efficiency improvements [7] - The company anticipates yield increases of over 10% following ongoing optimization efforts across its facilities [9] Market Data and Key Metrics Changes - The packaged salad market is projected to grow at an annual rate of 8.6% through 2029, with the company launching new family-sized salad kits to meet consumer demand in this segment [13] - The company expanded its distribution in the Pacific Northwest, launching a new 10-ounce Romano salad kit across 89 Walmart stores, which is expected to enhance its market presence [12] Company Strategy and Development Direction - The company is focusing on building long-term supply partnerships with major retailers, transitioning discussions from exploratory to strategic [4][5] - There is an emphasis on optimizing product mix and pricing architecture to align with marketplace needs, which is expected to improve overall unit economics [11][16] - The company aims to achieve positive adjusted EBITDA by early 2026, driven by volume growth, operational efficiency, and cost discipline [20] Management's Comments on Operating Environment and Future Outlook - Management highlighted a significant shift in market perception of controlled environment agriculture (CEA), now viewed as essential infrastructure rather than an emerging technology [16] - The company is entering Q4 with enhanced operational capacity and stronger commercial momentum than ever before, positioning itself to capitalize on market opportunities [21] Other Important Information - The company has achieved nearly $8 million in annualized cost reductions through the first nine months of the year, with additional initiatives expected to yield $1.5 million to $2 million in further savings [10][20] - A patent application related to optimizing growing processes using computer vision and AI is anticipated to be issued soon, which could enhance production efficiency [9] Q&A Session Summary Question: What are the expectations for revenue growth and adjusted EBITDA? - Management expects revenue growth and product mix optimizations to be key levers for achieving positive adjusted EBITDA, anticipated in early 2026 [20] Question: How is the company addressing operational efficiency? - The company is implementing tower upgrades and automated harvesting, which are expected to improve cost structures and operational efficiency over time [20]