Local Bounti Reports 28% YoY Revenue Growth, Achieves $7mln in Cost Savings

• Local Bounti reports 28% YoY revenue growth • Revenue growth driven by expanded facility operations and retail relationships • Achieved $7 million in annualized expense reductions in H1 2025 • Additional $2.5 to $3 million of cost optimization initiatives in H2 2025 • Closed on $10 million convertible note and amended credit facility • Reduced principal debt by $10 million

Local Bounti Corporation (NYSE: LOCL) has announced significant financial results for the second quarter of 2025, highlighting robust revenue growth and strategic cost management initiatives. The company reported a 28% year-over-year (YoY) increase in revenue to $12.1 million, driven by expanded facility operations and strengthened retail relationships [1].

The revenue growth was supported by increased production and sales from the company's facilities in Georgia, Texas, and Washington. The Texas and Washington facilities, which began shipping and selling products in the second quarter of 2024, contributed to the overall revenue increase. Gross profit for the quarter was $1.5 million, with an adjusted gross margin percentage of approximately 30% [1].

Local Bounti also achieved substantial cost reductions in the first half of 2025, reducing annualized expenses by approximately $7 million. The company plans to implement additional cost optimization initiatives in the second half of 2025, targeting an annualized savings of $2.5 to $3 million [1].

In terms of capital structure, Local Bounti closed on a $10 million convertible note agreement and amended its credit facility to reduce principal debt by $10 million. These transactions demonstrate the company's ability to secure financing and improve its liquidity and capital structure flexibility [1].

The company's financial outlook remains positive, with expectations for modest sequential sales growth in the third quarter of 2025, followed by sequential improvements in the fourth quarter. Local Bounti continues to expand its product offerings and strengthen its relationships with key retail partners, positioning itself for sustained growth in the sustainable food production market [1].

References:
[1] https://finance.yahoo.com/news/local-bounti-announces-second-quarter-111500018.html