Local Bounti Announces Second Quarter 2026 Financial Results

Local Bounti Corporation (NYSE: LOCL ) ("Local Bounti" or the "Company"), a breakthrough U.S. indoor agriculture company currently servicing approximately 13,000 retail doors, today announced its financial results for the quarter ended June 30, 2026.

Kathleen Valiasek, President and CEO of Local Bounti, stated, "Revenue grew 14% and adjusted EBITDA 1 loss narrowed 17% year-over-year, demonstrating progression toward positive adjusted EBITDA. This has been the product of our team's focused efforts to enhance our operations, including those designed to further enhance our yields, which are up approximately 10% at our state-of-the-art facilities, while we also drive improvements at our California facilities following investments that are designed to strengthen our position in living butterhead lettuce. We are also very pleased with the commercial momentum we are delivering, and to that end, we continued to build on our base of blue-chip retail relationships, adding five new or expanded retail partnerships over the past two quarters and extending supply agreements with multiple national accounts through first quarter of 2027. Furthermore, in August, our existing strategic investor added to their position with an additional $12.5 million commitment, another vote of confidence in the platform we have built and the progress we are demonstrating."

Ms. Valiasek continued, "Over the last several weeks, the advantages of locally grown controlled environment agriculture (CEA) have been the focus of new and existing customer conversations. Growing indoors gives us greater control over growing inputs, including water, the environment, and food safety monitoring in a way open fields can't, and we are seeing more retailers treat consistent food safety, quality, and traceability as core to how they source. These themes have sharpened our retail conversations for long-term supply partnerships, and our strategic financial partners are backing that shift with capital. Those signals point the same direction, and I like where that puts us as we keep working toward achieving profitability."

Second Quarter 2026 Financial Summary Sales increased 14% to $13.9 million in the second quarter of 2026, as compared to $12.1 million in the prior year period, and grew 4% sequentially from $13.3 million in the first quarter of 2026. The increase was due to increased production and growth in sales from the facilities in Georgia, Texas, and Washington.

Gross profit was $1.0 million in the second quarter of 2026 as compared to $1.5 million in the prior year period. Adjusted gross margin percentage1, which excludes depreciation and stock-based compensation, and other non-core items, was 27% as compared to 30% in the prior year period, reflecting temporary packing inefficiencies at the Company's Georgia facility, that have since been resolved, associated with the Company's channel diversification strategy.

General and administrative expenses decreased by $0.5 million to $7.5 million in the second quarter of 2026, as compared to $8.0 million in the prior year period. The decrease was primarily driven by general cost savings measures. Adjusted general and administrative expense1, which excludes stock-based compensation, depreciation and amortization, and other non-core items decreased 17% to $4.1 million, as compared to $5.0 million in the prior year period.

Net loss decreased to $19.8 million in the second quarter of 2026 as compared to net loss of $21.6 million for the prior year period, primarily due to a $1.5 million improvement in loss from operations driven by lower operating expenses and a $0.1 million reduction in net interest expense. Adjusted EBITDA loss improved 17% to $5.8 million, as compared to a loss of $7.1 million in the prior year per...