Local Bounti (LOCL) Q4 2025 earnings summary

Executive summary

• Achieved strong operational and financial progress in Q4 and full year 2025, with all three facilities running at full harvestable capacity and improved cost structure.

• Built commercial momentum through new retail partnerships, expanded distribution to approximately 13,000 doors, and strategic partnership discussions.

• Focused on optimizing operations, cost structure, and laying the foundation for future growth.

• Net loss and adjusted EBITDA loss both improved significantly year-over-year, driven by higher sales, cost reductions, and debt restructuring.

• Issued a U.S. patent for AI-driven growing optimization, strengthening technology leadership.

Financial highlights

• Q4 2025 revenue grew 24% year-over-year to $12.5 million; full-year sales up 27% to $48.4 million.

• Adjusted gross margin improved to 29% in Q4 and full year, up from 25% and 27% respectively.

• Q4 net loss narrowed to $8.7 million from $36.3 million; full-year net loss reduced to $94.4 million from $119.9 million.

• Adjusted EBITDA loss improved to $5.8 million in Q4 (38% year-over-year improvement) and $28.3 million for the year.

• Adjusted SG&A expense for Q4 was $4.3 million, down 18% year-over-year.

Outlook and guidance

• Expects continued revenue growth, gross margin stability, and declining SG&A in 2026, with progress toward positive Adjusted EBITDA.

• Achieving positive adjusted EBITDA remains a top priority, supported by ongoing sales growth and cost reduction.

• Commercial pipeline and distribution opportunities remain strong for the first half of 2026.