Local Bounti Corporation (LOCL)
NYSE:LOCL
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Local Bounti Corporation
(NYSE:LOCL)
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Rating:48Neutral
Price Target:
$1.50
▼(-31.51% Downside)
Action:Reiterated
Date:06/13/26
The score is held down primarily by weak financial fundamentals—large ongoing losses, sustained cash burn, and a fragile balance sheet with negative equity—alongside bearish technicals with the stock trading below key moving averages. The main offset is the earnings-call evidence of improving operating metrics and narrowing losses, while valuation provides limited insight due to a negative P/E and no dividend data.
Positive Factors
Capacity utilization & yield gains
Sustained full-capacity operations and a ~10% run-rate yield lift increase output per facility and lower unit costs. These durable throughput gains improve revenue visibility, support operating leverage as scale grows, and materially shorten the path to breakeven if maintained across harvest cycles.
Negative Factors
Negative equity / fragile balance sheet
Material negative equity is a persistent structural weakness that narrows financing options and raises dilution risk. Until retained earnings recover, the company faces constrained capital flexibility, higher cost of capital, and increased vulnerability to creditor actions or onerous financing terms.
Read all positive and negative factors
Positive Factors
Negative Factors
Capacity utilization & yield gains
Sustained full-capacity operations and a ~10% run-rate yield lift increase output per facility and lower unit costs. These durable throughput gains improve revenue visibility, support operating leverage as scale grows, and materially shorten the path to breakeven if maintained across harvest cycles.
Read all positive factors
Local Bounti Corporation (LOCL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$29.41M
Dividend YieldN/A
Average Volume (3M)47.67K
Price to Earnings (P/E)―
Beta (1Y)-2.44
Revenue Growth21.12%
EPS Growth76.13%
CountryUS
Employees333
SectorConsumer Defensive
Sector Strength42
IndustryAgricultural Farm Products
Share Statistics
EPS (TTM)-4.04
Shares Outstanding22,796,270
10 Day Avg. Volume30,280
30 Day Avg. Volume47,674
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)-0.30
Price to Sales (P/S)1.04
P/FCF Ratio-1.20
Enterprise Value/Market Cap0.62
Enterprise Value/Revenue0.36
Enterprise Value/Gross Profit3.08
Enterprise Value/Ebitda-0.63
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-1.93
Revenue Forecast (FY)$93.50M
Local Bounti Corporation Business Overview & Revenue Model
Company Description
Local Bounti Corporation is an American agricultural enterprise primarily engaged in the cultivation of fresh greens and various herbs. Their product line features different varieties of lettuce, specific herbs, and notably, loose-leaf lettuce. Th...
How the Company Makes Money
Local Bounti makes money primarily by selling fresh produce it grows in its controlled-environment facilities to customers such as grocery retailers and foodservice distributors/operators. Revenue is generated from shipment volumes and pricing of ...
Local Bounti Corporation Earnings Call Summary
Earnings Call Date:May 13, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 18, 2026
Earnings Call Sentiment Positive
The call emphasized clear operational and commercial progress: revenue growth (+15% YoY, +7% sequential), meaningful cost reductions (adjusted G&A -30% YoY) and material improvements in adjusted EBITDA (-35% YoY) and GAAP net loss. Strategic and technical milestones — a U.S. patent and a $15 million strategic investment — plus capacity utilization and yield gains (~10% run-rate yield lift; highest yields in company history) reinforce momentum. Key negatives remain: adjusted EBITDA is still negative ($5.7M), GAAP losses persist ($12.7M), cash is limited (~$18.8M) and margin expansion has not yet occurred. Overall, highlights substantially outweigh lowlights given the trajectory of improvement and tangible de-risking of the balance sheet and operations.Positive Updates
Revenue Growth
Revenue grew 15% year-over-year to $13.3 million in Q1 2026, and rose approximately 7% sequentially from Q4 2025, driven by consistent production improvements across the facility network.
Negative Updates
Continued Negative Adjusted EBITDA
Adjusted EBITDA remains negative at a $5.7 million loss in Q1 2026, indicating the company has not yet reached profitability despite meaningful improvement versus prior year.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth
Revenue grew 15% year-over-year to $13.3 million in Q1 2026, and rose approximately 7% sequentially from Q4 2025, driven by consistent production improvements across the facility network.
Read all positive updates
Company Guidance
Management guided that the trajectory of improvement should continue and reiterated the goal of reaching positive adjusted EBITDA, supported by Q1 metrics: revenue grew 15% year‑over‑year to $13.3M (≈7% sequential vs Q4), adjusted gross margin was ~29% (ex‑depreciation/stock comp), adjusted G&A fell ~30% to $4.1M (from $5.8M; Q4 was $4.3M), and adjusted EBITDA loss improved to $5.7M (vs $8.8M in Q1 2025; Q4 loss $5.8M). They also noted a GAAP net loss of $12.7M (vs $37.7M), cash of ~$18.8M (up from $10.7M) after a $15M Q1 strategic/convertible investment, and prior capital actions including a $25M equity raise and a 2025 debt restructuring that canceled ~ $197M of principal and deferred repayments to April 2027 (plus a $10M convertible note and equipment sale‑leaseback). Operationally, guidance highlights continued yield and throughput gains—yields at the highest levels in company history, ~10% run‑rate yield lift from tower and AI upgrades, up to ~20% potential yield improvement from selective California investments—three facilities running at full harvestable capacity, and product/distribution momentum (e.g., Caesar Romano velocity +75% in Q4 ’25) that provides visibility to additional distribution into Q1 2027.Local Bounti Corporation Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
9
Very Negative
Cash Flow
12
Very Negative
| Breakdown | TTM | Dec 2025 | Mar 2025 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 50.10M | 48.37M | 38.14M | 27.56M | 19.47M | 638.00K |
| Gross Profit | 5.93M | 5.86M | 4.09M | 2.22M | 2.21M | 206.00K |
| EBITDA | -29.11M | -39.02M | -42.11M | -85.14M | -83.91M | -48.79M |
| Net Income | -69.42M | -94.38M | -119.90M | -124.02M | -111.07M | -56.09M |
Balance Sheet | ||||||
| Total Assets | 414.17M | 410.49M | 428.04M | 381.75M | 278.74M | 143.93M |
| Cash, Cash Equivalents and Short-Term Investments | 12.25M | 4.23M | 937.00K | 10.33M | 13.67M | 96.66M |
| Total Debt | 423.00K | 535.52M | 437.16M | 327.42M | 120.08M | 11.24M |
| Total Liabilities | 592.19M | 576.73M | 528.53M | 366.48M | 157.41M | 42.25M |
| Stockholders Equity | -178.02M | -166.24M | -100.50M | 15.27M | 121.33M | 101.68M |
Cash Flow | ||||||
| Free Cash Flow | -34.59M | -41.92M | -109.52M | -195.42M | -130.64M | -49.77M |
| Operating Cash Flow | -26.85M | -30.34M | -27.06M | -33.16M | -48.81M | -20.11M |
| Investing Cash Flow | -7.73M | -11.59M | -82.45M | -162.26M | -172.38M | -29.67M |
| Financing Cash Flow | 24.94M | 45.18M | 100.09M | 187.38M | 145.05M | 150.81M |
Local Bounti Corporation Technical Analysis
Negative
2.19
Price Trends
1.74
Negative
1.63
Negative
2.11
Negative
Market Momentum
-0.13
Positive
36.70
Neutral
25.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LOCL, the sentiment is Negative. The current price of 2.19 is above the 20-day moving average (MA) of 1.53, above the 50-day MA of 1.74, and above the 200-day MA of 2.11, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 36.70 is Neutral, neither overbought nor oversold. The STOCH value of 25.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LOCL.
Local Bounti Corporation Risk Analysis
Local Bounti Corporation disclosed 56 risk factors in its most recent earnings report. Local Bounti Corporation reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Local Bounti Corporation Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
48 Neutral | $29.41M | -0.45 | 43.72% | ― | 21.12% | 76.13% | |
44 Neutral | $12.04M | -0.15 | 612.34% | ― | -84.17% | -742.59% | |
42 Neutral | $4.84M | -0.21 | ― | ― | ― | ― | |
41 Neutral | $1.19M | -0.09 | -179.10% | ― | -0.07% | 81.57% |
* Consumer Defensive Sector Average
LOCL
Local Bounti Corporation
1.29
-0.85
-39.72%
AQB
AquaBounty Technologies
0.94
0.14
17.50%
SDOT
Sadot Group
16.18
-289.82
-94.71%
AFRI
Forafric Global
10.05
2.31
29.84%
EDBL
Edible Garden AG , Inc.
0.22
-26.48
-99.19%
Local Bounti Corporation Corporate Events
Executive/Board ChangesPrivate Placements and FinancingShareholder Meetings
Local Bounti shareholders approve key financing and governance measures
Positive
Jun 12, 2026
On June 10, 2026, Local Bounti Corporation held its 2026 Annual Meeting of Stockholders, with 87.35% of eligible shares represented, establishing a quorum for business. Shareholders re-elected Mark J. Nelson and Charles R. Schwab Jr. as Class II d...
Business Operations and StrategyExecutive/Board Changes
Local Bounti Announces Chief Commercial Officer Leadership Transition
Negative
May 15, 2026
On May 14, 2026, Local Bounti Corporation ended the employment of Chief Commercial Officer Dane Almassy, effective the same day, and presented him with a separation agreement consistent with his July 15, 2025 employment contract. Under the propose...
Business Operations and StrategyPrivate Placements and Financing
Local Bounti Secures New Financing and Amends Credit Terms
Positive
Mar 16, 2026
On March 13, 2026, Local Bounti Corporation entered into a Convertible Note and Warrant Purchase Agreement with U.S. Bounti, LLC for a $15.0 million convertible note and a warrant to buy 5,500,000 common shares, with proceeds earmarked for working...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.