Local Bounti Reports Q2 2025 Growth with 28% YoY Revenue Increase

Local Bounti Corporation reported Q2 2025 revenue growth of 28% YoY to $12.1 million, driven by expanded facility operations and strengthened retail partnerships. The company also achieved $7 million in annualized expense reductions, reduced its net loss to $21.6 million, and plans to achieve positive adjusted EBITDA by early 2026. Local Bounti anticipates continued growth and expanded capacity to meet increasing demand from retail partners.

Local Bounti Corporation (NYSE: LOCL), a leading indoor agriculture company, announced its financial results for the second quarter of 2025. The company reported a 28% year-over-year (YoY) increase in GAAP sales to $12.1 million, driven by expanded facility operations and strengthened retail partnerships [1]. This growth was slightly below the GAAP analyst estimate of $12.4 million but represented a significant improvement over the previous year's $9.4 million in revenue.

The company also achieved notable progress in cost management, reducing its net loss to $21.6 million, a decrease of $3.7 million from the previous quarter. This improvement was largely due to a $10 million reduction in senior debt principal and the closing of a $10 million convertible note, which helped to improve the company's liquidity position [2].

Local Bounti's adjusted EBITDA loss narrowed to $6.5 million, a 21.7% improvement from the previous year's $8.3 million. The company also reported a 30.0% adjusted gross margin, up from 29.0% in the previous year, reflecting gains in production efficiency and yield optimization initiatives [1].

The company's strategic focus on expanding facility operations, launching new product lines, and leveraging sustainability standards as a market differentiator continues to drive growth. In the second half of 2025, Local Bounti expects to achieve additional annualized savings of $2.5 to $3 million through cost optimization initiatives [2].

Local Bounti anticipates continued growth and expanded capacity to meet increasing demand from its retail partners. The company now targets achieving positive adjusted EBITDA by early 2026, revising its previous goal of reaching this milestone in Q3 2025. Management indicated that ongoing cost control, the outcome of new product releases, and the realization of efficiency gains will be critical to meeting future targets [1].

References:

[1] https://www.nasdaq.com/articles/local-bounti-posts-28-sales-gain-q2
[2] https://www.prnewswire.com/news-releases/local-bounti-announces-second-quarter-2025-financial-results-302528326.html