Local Bounti (LOCL) investor relations material

Executive summary

• Revenue increased 14% year-over-year to $13.9 million in Q2 2026, with sequential growth from Q1, driven by expanded production at Georgia, Texas, and Washington facilities and disciplined execution.

• Net loss improved to $19.8 million from $21.6 million year-over-year, and to $32.5 million for the six months ended June 30, 2026, a 45% improvement year-over-year, driven by lower operating expenses and reduced interest expense.

• Adjusted EBITDA loss narrowed by 17% year-over-year to $5.8 million, and adjusted G&A expense decreased 17% year-over-year, supporting the goal of positive adjusted EBITDA.

• Strategic partnerships, food safety concerns, and commercial wins—including a pilot launch of single-serve salad kits in 400 Mid-Atlantic stores—are driving increased retailer interest and expanded distribution to approximately 13,000 retail locations.

• Secured an additional $12.5 million investment from a strategic investor post-quarter, supporting growth initiatives.

Financial highlights

• Q2 2026 revenue grew to $13.9 million (up from $12.1 million in Q2 2025 and $13.3 million in Q1 2026); six months: $27.2 million (up 15%).

• Adjusted gross margin was 27% in Q2 2026, down from 30% year-over-year, due to temporary packing inefficiencies; gross profit was $1.0 million, down from $1.5 million year-over-year.

• Adjusted G&A expense was $4.1 million, down from $5 million year-over-year; general and administrative expenses decreased to $7.5 million from $8.0 million.

• GAAP net loss was $19.8 million, improved from $21.6 million year-over-year but higher than $12.7 million in Q1 due to non-cash items.

• Cash and equivalents were $10.1 million at quarter end, with an additional $12.5 million investment received post-quarter.

Outlook and guidance

• Management expects continued improvement in revenue and adjusted EBITDA loss rate in the second half of 2026, driven by new product launches, expanded retail partnerships, and ongoing cost reduction and facility ramp-up.

• Revenue growth and cost discipline remain the primary levers toward achieving positive adjusted EBITDA.

• Capacity expansion projects remain under review, with timing dependent on retailer discussions and demand.