Local Bounti Analysts Trim Revenue Forecasts Amid Concerns Over Ongoing Losses

Local Bounti Corporation's revenue forecasts have been downgraded by analysts, with a 21% cut to expected revenues of $53m in 2025. Per-share losses are expected to rise to $6.26. The consensus price target fell 27% to $5.50, with analysts concerned about weaker revenue outlook and ongoing losses. The growth outlook is brighter than the recent past, but the analysts expect Local Bounti to grow faster than the wider industry.

Local Bounti Corporation (NYSE: LOCL), a leading U.S. indoor agriculture company, has seen its revenue forecasts downgraded by analysts. The new projections estimate revenues of $53 million for 2025, a 21% cut from previous expectations. Additionally, analysts anticipate per-share losses to rise to $6.26, with the consensus price target falling 27% to $5.50. Despite these concerns, analysts expect Local Bounti to grow faster than the wider industry [1].

The downgrade comes amidst ongoing challenges for the company, including delayed timelines from retail partners affecting financial targets and a continued focus on achieving profitability. Local Bounti reported an adjusted EBITDA loss of $6.5 million for the second quarter of 2025, despite improvements in operational efficiency and expanded product offerings [2].

The company's Texas facility, which was reconfigured to increase capacity, is now operating at full harvestable capacity. This reconfiguration has led to a 30% adjusted gross margin, the highest in recent quarters. However, the Midwest facility is still in the planning phase, and sales growth has been influenced by the timing of strategic retailer discussions [2].

Local Bounti's Chief Executive Officer and CFO, Kathleen Valisek, highlighted several factors contributing to margin expansion, including cost reductions in raw materials and seed costs. The company also secured an additional $10 million in financing through a convertible note, paired with $10 million in debt reduction, strengthening its balance sheet [1].

Despite the challenges, analysts remain optimistic about the company's growth potential. The addition of a new Chief Commercial Officer, Dane Almay, aims to expand strategic relationships with customers, amplifying the commercial team's efforts. The company's patented Stack & Flow Technology continues to deliver superior unit economics at scale, positioning it for future growth [2].

References:
[1] https://finance.yahoo.com/news/local-bounti-corp-locl-q2-170148762.html
[2] https://www.prnewswire.com/news-releases/local-bounti-announces-second-quarter-2025-financial-results-302528326.html