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Local Bounti Corporation (LOCL)
NYSE:LOCL
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Local Bounti Corporation
(NYSE:LOCL)
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Select Model
Rating:53Neutral
Price Target:
$3.00
▲(3.09% Upside)
Local Bounti Corporation's overall stock score is driven by strong technical momentum, despite financial challenges. The company's financial performance is hindered by high debt and negative cash flows, impacting valuation. The positive technical indicators provide some optimism, but the financial instability and lack of profitability weigh heavily on the score.
Positive Factors
Revenue Growth
Strong revenue growth indicates effective market penetration and demand for Local Bounti's products, supporting long-term business expansion.
Cost Reduction Initiatives
Significant cost savings enhance operational efficiency, potentially improving profitability and cash flow sustainability over time.
Product and Market Expansion
Expanding product lines and partnerships can drive revenue growth and strengthen market position, supporting long-term business stability.
Negative Factors
High Debt Levels
High leverage poses financial risk, potentially limiting flexibility and increasing vulnerability to economic fluctuations.
Negative Cash Flows
Negative cash flows challenge sustainability, requiring improved cash management and operational efficiency to ensure long-term viability.
Delayed Positive EBITDA Timeline
Delays in achieving positive EBITDA indicate ongoing profitability challenges, impacting investor confidence and financial health.
Local Bounti Corporation (LOCL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$64.38M
Dividend YieldN/A
Average Volume (3M)44.66K
Price to Earnings (P/E)―
Beta (1Y)-1.40
Revenue Growth39.74%
EPS Growth16.76%
CountryUS
Employees333
SectorConsumer Defensive
Sector Strength42
IndustryAgricultural Farm Products
Share Statistics
EPS (TTM)-1.63
Shares Outstanding22,123,010
10 Day Avg. Volume102,307
30 Day Avg. Volume44,658
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap8.49
Enterprise Value/Revenue13.22
Enterprise Value/Gross Profit114.75
Enterprise Value/Ebitda-12.47
Forecast
1Y Price Target
$4.50Price Target Upside54.64% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Local Bounti Corporation Business Overview & Revenue Model
Company DescriptionLocal Bounti Corporation grows fresh greens and herbs in the United States. It produces lettuce, herbs, and loose-leaf lettuce. The company sells its products to food retailers and food service distributors. Local Bounti Corporation was founded in 2018 and is headquartered in Hamilton, Montana.
How the Company Makes MoneyLocal 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 Earnings Call Summary
Earnings Call Date:Aug 13, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Neutral
The earnings call reflects positive momentum with significant revenue growth, cost reductions, and strategic expansions. However, challenges remain with adjusted EBITDA losses and delays in achieving positive EBITDA, which temper the overall outlook.Q2-2025 Updates
Positive Updates
Revenue Growth and Adjusted Gross Margin Improvement
Second quarter sales increased 28% to $12.1 million compared to $9.4 million in the prior year period. Adjusted gross margin improved to 30% from 29% in the prior year period.
Strategic Cost Reduction Initiatives
Achieved approximately $7 million in annualized cost savings across operating expenses and cost of goods sold in the first half of 2025, with an additional $2.5 million to $3 million expected in the second half.
Successful Product Launches and Commercial Expansion
Launched a new salad kit line in April and expanding product offerings with a leading home delivery service partner and a large multi-national retailer.
Capital Structure Improvement
Closed an additional $10 million of financing through a convertible note payable and reduced debt by $10 million, paired with a March restructuring that brought in $25 million in new equity.
Negative Updates
Adjusted EBITDA Loss
Adjusted EBITDA loss improved to $6.5 million compared to a loss of $8.3 million in the prior year period but still represents a financial challenge.
Delayed Positive EBITDA Timeline
Positive adjusted EBITDA has been pushed to early 2026, influenced by retailer timelines and commercial ramp schedules.
Company Guidance
During Local Bounti's Second Quarter 2025 Earnings Conference Call, the company provided extensive guidance on its strategic initiatives and financial outlook. The company reported a 28% increase in sales, reaching $12.1 million, compared to $9.4 million in the prior year period, with an adjusted gross margin of approximately 30%, up from 29% previously. They achieved a significant milestone with an improved adjusted EBITDA loss of $6.5 million, compared to $8.3 million in the prior year. Local Bounti has implemented cost reduction initiatives resulting in $7 million in annualized savings, with an additional $2.5 million to $3 million expected by the end of 2025. They anticipate reaching a 35% to 40% adjusted gross margin over time. The company has completed facility upgrades and is enhancing operational efficiency, especially at their Texas facility, which now operates at full harvestable capacity. Local Bounti is also expanding its product line and retail partnerships, expecting to launch new salad kits and expand existing relationships in the coming months. They aim to achieve positive adjusted EBITDA by early 2026, supported by increased production capacity, strategic retailer partnerships, and a strengthened balance sheet bolstered by a recent $10 million capital infusion and debt reduction.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.25
Negative
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.15
Very Negative
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.30
Negative
| 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
Positive
2.91
Price Trends
2.69
Positive
2.51
Positive
2.41
Positive
Market Momentum
0.16
Negative
55.18
Neutral
47.32
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LOCL, the sentiment is Positive. The current price of 2.91 is above the 20-day moving average (MA) of 2.65, above the 50-day MA of 2.69, and above the 200-day MA of 2.41, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 55.18 is Neutral, neither overbought nor oversold. The STOCH value of 47.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LOCL.
Local Bounti Corporation Risk Analysis
Local Bounti Corporation disclosed 55 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 |
|---|---|---|---|---|---|---|---|
66 Neutral | $297.38M | 28.95 | 3.64% | ― | -3.53% | ― | |
57 Neutral | $5.41M | 0.85 | 13.67% | ― | 4.42% | ― | |
53 Neutral | $64.38M | ― | -2448.28% | ― | 39.74% | 16.76% | |
43 Neutral | $7.13M | -0.10 | ― | ― | -46.91% | -174.16% | |
41 Neutral | $5.41M | -0.05 | -785.74% | ― | -16.60% | 96.72% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% |
* Consumer Defensive Sector Average
LOCL
Local Bounti Corporation
2.91
0.41
16.40%
AQB
AquaBounty Technologies
1.93
0.71
58.20%
VFF
Village Farms International
3.33
2.40
258.06%
SDOT
Sadot Group
5.83
-36.57
-86.25%
AGRI
AgriFORCE Growing Systems
3.22
-42.32
-92.93%
EDBL
Edible Garden AG , Inc.
1.84
-4.81
-72.33%
Local Bounti Corporation Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Local Bounti Secures $10M via Convertible Note
Positive
Aug 4, 2025
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.
The most recent analyst rating on (LOCL) stock is a Buy with a $5.00 price target. To see the full list of analyst forecasts on Local Bounti Corporation stock, see the LOCL Stock Forecast page.
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.