Local Bounti (LOCL) Q4 2025 earnings summary

Executive summary

• Achieved strong operational and commercial progress in Q4 2025, with all three facilities running at full harvestable capacity and committed to customers on a run-rate basis.

• Annual revenue grew 27% in 2025, with improved cost structure and significant expansion in retail distribution to approximately 13,000 doors.

• 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 proprietary AI-driven growing technology, reinforcing technology leadership.

• Raised $15 million in growth capital from an existing strategic investor in Q1 2026.

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 for the full year, up from 25% and 27% respectively.

• Q4 gross profit increased 182% to $1.5 million; full-year gross profit up 43% to $5.9 million.

• Adjusted SG&A expense decreased 18% year-over-year to $4.3 million in Q4.

• Q4 GAAP net loss was $8.7 million, a significant improvement from $36.3 million in the prior year; full-year net loss reduced to $94.4 million from $119.9 million.

Outlook and guidance

• Expects continued sequential improvements in revenue and adjusted EBITDA loss rate in 2026, with a focus on achieving positive adjusted EBITDA.

• Commercial pipeline remains strong, with additional distribution opportunities anticipated in the first half of 2026.