Local Bounti's Q2 Loss Widens, Revenue Falls Short of Estimates, Shares Rise

Local Bounti Corporation reported a Q2 loss of $1.63 per share, beating the Zacks Consensus Estimate of a loss of $1.95. The company's revenue of $12.1 million missed the Zacks Consensus Estimate by 1.6%. Shares have added 21.3% this year, outperforming the S&P 500's gain of 9.6%. The company's earnings outlook is mixed, with a Zacks Rank of #3 (Hold), indicating that the shares are expected to perform in line with the market in the near future.

Local Bounti Corporation (LOCL) reported its Q2 2025 earnings on July 2, 2025, with a loss of $1.63 per share, beating the Zacks Consensus Estimate of a loss of $1.95 [2]. The company's revenue of $12.1 million missed the Zacks Consensus Estimate by 1.6%, indicating a mixed performance. Despite the quarterly loss, shares have added 21.3% this year, outperforming the S&P 500's gain of 9.6% [2].

GAAP sales rose 28% year over year to $12.1 million in Q2 2025 but fell short of the GAAP analyst estimate of $12.4 million [1]. Adjusted EBITDA loss improved to $6.5 million, but profitability remains delayed, with positive adjusted EBITDA now expected in early 2026 [1]. Operating expenses and administrative costs declined on an adjusted basis, with further cost reductions targeted [1].

The company's earnings outlook is mixed, with a Zacks Rank of #3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [2]. Management expects modest sequential sales growth in Q3 2025, followed by faster gains in Q4 as full benefits from facility upgrades, increased yields, and new product offerings begin to flow through [1].

Local Bounti Corporation continues to focus on increasing production efficiency, controlling expenses, and scaling up retail distribution. The company introduced a salad kit line in April 2025 and expanded its partnership with a leading home delivery service [1]. The company's long-term success hinges on converting facility investments into higher sales, improving profit margins, and sustaining retail demand through innovation, efficiency, and strategic partnerships.

References:
[1] https://www.nasdaq.com/articles/local-bounti-posts-28-sales-gain-q2
[2] https://finance.yahoo.com/news/local-bounti-corporation-locl-reports-122502197.html