Local Bounti Corporation (LOCL) AI Stock Analysis

• Market Cap: $50.44M
• Dividend Yield: N/A
• Average Volume (3M): 18.50K
• Price to Earnings (P/E): ―
• Beta (1Y): -1.31
• Revenue Growth: 39.74%
• EPS Growth: 16.76%
• Country: US
• Employees: 333
• Sector: Consumer Defensive
• Sector Strength: 45
• Industry: Agricultural Farm Products
• EPS (TTM): -1.63
• Shares Outstanding: 22,123,010
• 10 Day Avg. Volume: 21,195
• 30 Day Avg. Volume: 18,498
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 10.84
• Enterprise Value/Revenue: 13.22
• Enterprise Value/Gross Profit: 114.75
• Enterprise Value/Ebitda: -12.47
• 1Y Price Target: $6.00
• Price Target Upside: 179.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 44 Neutral
• Price Target: $2.50 ▲(16.28% Upside)

Local Bounti Corporation's overall stock score is primarily influenced by its financial performance challenges, including high debt levels and negative cash flows. While the earnings call highlights positive strategic initiatives and revenue growth, the technical analysis and valuation metrics indicate ongoing financial difficulties and weak market momentum.

Positive Factors

Capital Partnerships

Two major new capital partnerships appear imminent to improve the balance sheet and expand production in a non-dilutive manner.

Gross Margins

Adjusted Gross Margins of 32% exceeded the 30% estimate, highlighting a critical outperformance in the company's path to EBITDA profitability.

Revenue Growth

Revenue is expected to ramp from $27M to $53M and $100M+, driving adjusted Gross Margins up and bringing EBITDA from a $34M burn to positive territory.

Negative Factors

Q3 Performance

Q3’24 results fell below expectations with a sequential ramp being delayed by 3-6 months due to shifts in SKU offerings.

Revenue Growth Expectations

50% revenue growth YoY was solid but fell below expectations.

Revenue Outlook

The Q4’24 outlook was lowered as full-year revenue guidance was taken down from $50M+ to $39M.

Local Bounti Corporation Business Overview & Revenue Model

Company Description

Local Bounti Corporation is an innovative agricultural company operating in the indoor vertical farming sector. The company focuses on sustainable and efficient farming practices to produce high-quality, non-GMO, pesticide-free produce. Local Bounti utilizes its proprietary Stack & Flow Technology™ to optimize the growth cycles of leafy greens and herbs, aiming to provide fresh and nutritious products to consumers while minimizing environmental impact.

How the Company Makes Money

Local Bounti Corporation generates revenue primarily through the sale of its fresh produce to retailers, food service companies, and direct-to-consumer channels. The company's advanced indoor farming techniques allow for consistent year-round production, reducing dependency on traditional agricultural seasons and enabling a steady supply to its customers. Additionally, Local Bounti may engage in strategic partnerships with retailers and other distribution networks to expand its market reach and increase sales. The company's focus on sustainability and quality also positions it to potentially command premium pricing in the market.

Local Bounti Corporation Financial Statement Overview

Summary

Local Bounti Corporation shows strong revenue growth but faces significant challenges in profitability and financial stability. High debt levels and negative equity suggest financial risk, while negative cash flows emphasize the need for improved cash management and operational efficiency.

Income Statement

Local Bounti Corporation shows significant revenue growth over the years, with a notable increase from 2020 to TTM 2025. However, profitability remains a concern as the company consistently reports negative EBIT and net income, leading to negative profit margins. The EBIT and EBITDA margins are significantly negative, indicating challenges in managing operational costs effectively.

Balance Sheet

The company's balance sheet indicates high leverage, with total liabilities consistently exceeding stockholders' equity, resulting in a negative equity position in the TTM 2025 period. The debt-to-equity ratio is concerning due to negative equity, and the return on equity is negative given the persistent net losses. These factors highlight financial instability and potential risks associated with high debt levels.

Cash Flow

Local Bounti Corporation's cash flow statement reflects a challenging position with consistent negative operating and free cash flows. The free cash flow growth rate is unfavorable, although there is a positive operating cash flow to net income ratio, indicating some efficiency in cash management relative to net income. However, high capital expenditures and financing needs raise concerns about sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	41.36M	38.14M	27.56M	19.47M	638.00K	82.00K
Gross Profit	4.76M	4.09M	2.22M	2.21M	206.00K	-9.00K
EBITDA	-43.85M	-42.11M	-85.14M	-83.91M	-50.28M	-7.60M
Net Income	-133.53M	-119.90M	-124.02M	-111.07M	-56.09M	-8.41M
Balance Sheet
Total Assets	447.20M	428.04M	381.75M	278.74M	143.93M	9.10M
Cash, Cash Equivalents and Short-Term Investments	18.01M	937.00K	10.33M	13.67M	96.66M	45.00K
Total Debt	530.47M	437.16M	327.42M	120.08M	11.20M	9.37M
Total Liabilities	560.19M	528.53M	366.48M	157.41M	42.25M	11.67M
Stockholders Equity	-113.00M	-100.50M	15.27M	121.33M	101.68M	-2.57M
Cash Flow
Free Cash Flow	-81.96M	-109.52M	-195.42M	-130.64M	-49.77M	-7.26M
Operating Cash Flow	-29.53M	-27.06M	-33.16M	-48.81M	-20.11M	-3.84M
Investing Cash Flow	-52.43M	-82.45M	-162.26M	-172.38M	-29.67M	-3.42M
Financing Cash Flow	95.64M	100.09M	187.38M	145.05M	150.81M	5.17M

Local Bounti Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 2.15 is below the 20-day moving average (MA) of 2.45, below the 50-day MA of 2.66, and below the 200-day MA of 2.33, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 37.80 is Neutral, neither overbought nor oversold. The STOCH value of 48.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LOCL.

Local Bounti Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VFF	66 Neutral	$300.76M	37.50	-1.99%	―	-6.23%	―
Sector *	62 Neutral	$20.53B	14.80	-2.69%	3.11%	1.95%	-4.97%
SDOT	56 Neutral	$8.93M	1.47	17.52%	―	4.42%	―
LOCL	44 Neutral	$50.44M	―	-2448.28%	―	39.74%	16.76%
AQB	43 Neutral	$4.54M	―	-53.80%	―	-46.91%	-174.16%
AGRI	―	$3.29M	―	-206.56%	―	―	―
EDBL	41 Neutral	$5.29M	―	-146.28%	―	-16.60%	96.72%

Local Bounti Corporation Corporate Events

Local Bounti Secures $10M via Convertible Note

On August 1, 2025, Local Bounti Corporation entered into a Convertible Note and Warrant Purchase Agreement with U.S. Bounti, LLC, securing $10 million through a convertible note and issuing a warrant for 550,000 shares of common stock. The funds will be used for working capital, general corporate purposes, and capital expenditures. Additionally, the company amended its credit facility with Cargill Financial Services International, Inc., resulting in a $10 million debt reduction, which strengthens its financial position and supports future operational growth.

Local Bounti Corporation Holds Annual Stockholders Meeting

On June 11, 2025, Local Bounti Corporation held its 2025 Annual Meeting of Stockholders, where 81.6% of the 10,677,002 outstanding shares were present to vote. During the meeting, stockholders elected three Class I directors, ratified the appointment of WithumSmith+Brown, PC as the independent registered public accounting firm, approved the issuance of shares upon conversion of Series A Non-Voting Convertible Preferred Stock, and approved an amendment to increase the number of shares for awards under the Plan. Additionally, the 10,728,414 shares of Series A Non-Voting Convertible Preferred Stock were automatically converted into common stock, resulting in 21,709,496 shares of common stock outstanding.