Local Bounti (US:LOCL) Prnewswireยท2025-11-12 12:15Core Insights - Local Bounti Corporation reported a 19% year-over-year revenue growth, reaching $12.2 million in the third quarter of 2025, driven by increased production and sales from its facilities in Georgia, Texas, and Washington [12][2][3] - The company is advancing strategic partnerships to enable capital-efficient expansion and enhance returns, indicating a shift in the marketplace perception of controlled environment agriculture (CEA) from emerging technology to essential infrastructure [2][8] - Local Bounti aims to achieve positive adjusted EBITDA by early 2026, supported by ongoing cost reduction initiatives and sales growth [18][2] Financial Performance - The adjusted EBITDA loss improved to $7.2 million in Q3 2025, compared to a loss of $8.4 million in the prior year period [12][31] - General and administrative expenses decreased by 26% year-over-year to $4.1 million, excluding non-core items [12][30] - The net loss for Q3 2025 was $26.4 million, an improvement from a net loss of $34.3 million in the same period last year [12][31] Operational Updates - The Texas facility has been reconfigured to produce both head lettuce and cut products, achieving full harvestable capacity and increasing labor productivity by approximately 19% [5][6] - Planned tower upgrades across facilities are expected to enhance production efficiency and yield capacity, with management anticipating yield increases of over 10% [6][8] - The company has targeted additional cost reductions of $1.5 to $2 million, expected to be realized in the first half of 2026 [7][8] Product Development - Local Bounti expanded its salad kit line distribution in the Pacific Northwest and launched new grab-and-go offerings, indicating strong demand for convenient meal options [10][11] - The company introduced a family-sized 10oz Romano Caesar Salad Kit in October 2025, aligning with its strategy to offer multi-serve products at scale [11][10] Capital Structure - As of September 30, 2025, Local Bounti had cash and cash equivalents of $12.7 million and completed a $10 million financing through a convertible note agreement [13][14] - The company restructured its debt, resulting in a new $312 million senior secured debt agreement with no cash interest or principal payments until April 2027 [15][16] Intellectual Property - Local Bounti is advancing its intellectual property portfolio, with a patent application related to optimizing growing processes expected to be issued by December 2025 [9][8]