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Local Bounti Reports Strong Third Quarter 2025 Financial Results

Local Bounti Corporation (NYSE: LOCL), a pioneering indoor agriculture company based in the U.S., has unveiled its financial results for the third quarter of 2025. The company recorded an impressive 19% revenue growth compared to the same period last year, signaling a promising surge in operational momentum.

Kathleen Valiasek, President and CEO, commented, "Our third quarter results illustrate that we are building the operational momentum we anticipated. The 19% growth year-over-year, enhanced adjusted EBITDA, and critical facility upgrades—including the launch of our automated harvesting system in Texas—show a positive trajectory for our business."

Key Financial Highlights

For the third quarter ended September 30, 2025, Local Bounti reported:

• - Sales of $12.2 million, a rise from $10.2 million in the previous year.
• - Gross profit reached $1.4 million, with an adjusted gross margin of approximately 29%.
• - The company achieved annualized expense reductions totaling nearly $8 million, while expecting additional savings of $1.5 million to $2 million in the upcoming quarter.
• - Despite a net loss of $26.4 million—an improvement from $34.3 million the previous year—the adjusted EBITDA loss was narrowed to $7.2 million, suggesting strengthening fundamentals.

Strategic Developments

Local Bounti's third quarter was marked by significant advancements in its strategic partnerships. Valiasek emphasized that conversations with major retailers, who were once hesitant, have transformed. Many now view controlled environment agriculture (CEA) as a vital element of their supply chains. The company is diligently aligning its expanded production capabilities with long-term commitments from these partners.

Furthermore, the operational productivity at the Texas facility has increased by 19% while decreasing labor costs per pound by approximately 17%. This validation underscores the scalability and effectiveness of Local Bounti's patented Stack Flow Technology.

Expansion and Yield Enhancement Plans

The company successfully retrofitted its Texas facility to facilitate more versatile crop production, capable of adjusting to customer preferences. It is also completing tower upgrades at each site, expecting to enhance yield capacity by more than 10% by year-end 2025. Local Bounti has targeted future cost savings from raw material optimizations and operational efficiencies.

Local Bounti's plans for capacity expansion remain steady, as they aim to grow their network of facilities utilizing their innovative farming technology. Discussions with retailers are ongoing to meet existing demand while strategically expanding distribution networks across the Midwest.

Product Innovation

In the realm of product development, Local Bounti finalized the launch of its new 10oz family-sized Romano Caesar Salad Kit at key retailers like Walmart, which aligns with their objective to provide multi-serve products at broader scales. Their grab-and-go offerings have also expanded within home delivery partnerships, further appealing to consumer demand for fresh, convenient meals.

Financial Stability and Outlook

As of September 30, 2025, Local Bounti maintained $12.7 million in cash and equivalents. The company’s tightened capital structure, aided by a recent $10 million financing arranged through a convertible note agreement, highlights its proactive steps toward improved cash flow and operational sustainability.

Looking forward, Local Bounti anticipates continued improvements in its financial metrics, aiming toward positive adjusted EBITDA by early 2026, driven by higher sales, ongoing cost reductions, and its innovative production strategies. The executives will be providing further company insights during an upcoming conference call on November 12, 2025, discussing performance trends and future expectations.

Through its commitment to revolutionizing agriculture, Local Bounti continues to enhance accessibility to fresh, sustainably produced foods while supporting communities nationwide. If you want to learn more about their initiatives and developments, visit Local Bounti's website.