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Local Bounti Corporation (LOCL)
:LOCL
US Market

Local Bounti Corporation (LOCL) AI Stock Analysis

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Local Bounti Corporation

(NYSE:LOCL)

Rating:53Neutral
Price Target:
$3.00
▲(6.76%Upside)
Local Bounti Corporation's stock score reflects its strong revenue growth and strategic initiatives, offset by high leverage, negative profitability, and valuation concerns. Technical indicators show mixed signals, with potential short-term volatility.
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 (LOCL) vs. SPDR S&P 500 ETF (SPY)

Local Bounti Corporation Business Overview & Revenue Model

Company DescriptionLocal 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 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:May 14, 2025
(Q1-2025)
|
% Change Since: 8.49%|
Next Earnings Date:Aug 19, 2025
Earnings Call Sentiment Neutral
The earnings call presented several positive developments, including significant revenue growth, yield improvements, and strategic partnerships with major retailers. However, these positives were counterbalanced by an increased net loss and persistent adjusted EBITDA losses. The company's restructuring efforts and cost management initiatives are promising, but financial challenges remain evident.
Q1-2025 Updates
Positive Updates
Revenue Growth
First quarter sales were $11.6 million, representing a 38% increase compared to the first quarter of 2024 and a 15% sequential increase compared to the fourth quarter of 2024.
Yield Improvement
Yields in the Georgia facility increased by 20% in the first quarter compared to the fourth quarter, driven by the refinement of the growing system with the stack phase.
Product Expansion
Expanded Texas grown Arugula offering with Brookshire's in approximately 80 stores and began distributing Organic Living Butter Lettuce from California to HEB.
Partnerships with Major Retailers
Strengthened relationship with Walmart, securing commitment to serve 13 additional distribution centers with Living Butter Lettuce.
Cost Management Initiatives
Reduced approximately $3 million of annualized G&A expenses in the first quarter and an additional $4 million during the second quarter-to-date.
Debt Restructuring
Eliminated approximately $197 million of debt through March restructuring, improving the capital structure.
Negative Updates
Net Loss Increase
Net loss for the quarter was $37.7 million, compared to a net loss of $24.1 million in the prior year period, largely reflecting higher interest expense.
Adjusted EBITDA Loss
Adjusted EBITDA loss for the quarter was $8.8 million compared to $6.9 million in the prior year period, despite an improvement of $0.5 million from the fourth quarter of 2024.
Temporary Cost Increases
Q1 experienced temporary cost increases due to higher utilities from weather anomalies, higher G&A expenses, and higher severance costs, impacting EBITDA by approximately $900,000.
Company Guidance
During the Local Bounti's First Quarter 2025 Earnings Conference Call, the company provided guidance indicating a strategic focus on achieving positive adjusted EBITDA by the third quarter of 2025. The first quarter sales reached $11.6 million, marking a 38% year-over-year increase and a 15% sequential rise, driven by enhanced production in Georgia, Washington, and Texas facilities. Adjusted gross margin improved by approximately 500 basis points year-over-year, with a 400 basis point improvement from the previous quarter. Yield at the Georgia facility increased by 20%, attributed to light optimization in the stack phase, with plans to implement similar improvements in Texas and Washington. The company also announced a significant reduction of $197 million in debt through restructuring, which will be amortized over a ten-year period, leading to lower interest expenses. Looking ahead, Local Bounti anticipates second-quarter revenue between $12 million and $12.5 million, with expectations for a material revenue lift in the second half of 2025 due to increased capacity and new product introductions.

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 indicate financial risk, while negative cash flows emphasize the need for improved cash management and operational efficiency.
Income Statement
25
Negative
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
15
Very Negative
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
30
Negative
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue41.36M38.14M27.56M19.47M638.00K82.00K
Gross Profit6.79M4.09M2.22M2.21M206.00K-9.00K
EBITDA-46.63M-42.11M-85.14M-83.91M-50.28M-7.60M
Net Income-133.93M-119.90M-124.02M-100.64M-55.78M-8.93M
Balance Sheet
Total Assets447.20M428.04M381.75M278.74M143.93M9.10M
Cash, Cash Equivalents and Short-Term Investments18.01M937.00K10.33M13.67M96.66M45.00K
Total Debt354.00K437.16M327.42M120.08M11.20M154.00K
Total Liabilities560.19M528.53M366.48M157.41M42.25M11.67M
Stockholders Equity-134.45M-100.50M15.27M121.33M101.68M-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 Flow95.64M100.09M187.38M145.05M150.81M5.17M

Local Bounti Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.81
Price Trends
50DMA
2.25
Positive
100DMA
2.38
Positive
200DMA
2.28
Positive
Market Momentum
MACD
0.12
Negative
RSI
76.90
Negative
STOCH
82.24
Negative
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 2.81 is above the 20-day moving average (MA) of 2.22, above the 50-day MA of 2.25, and above the 200-day MA of 2.28, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 76.90 is Negative, neither overbought nor oversold. The STOCH value of 82.24 is Negative, 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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
$27.33B15.36-4.01%3.14%1.00%1.98%
60
Neutral
$8.64M1.3626.62%16.65%
VFVFF
59
Neutral
$142.67M-14.58%12.09%-40.10%
53
Neutral
$66.00M-2448.28%41.44%-1.20%
48
Neutral
$7.18M-580.71%-8.72%94.96%
AQAQB
43
Neutral
$2.96M-53.80%-46.91%-174.16%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LOCL
Local Bounti Corporation
3.04
0.28
10.14%
AQB
AquaBounty Technologies
0.76
-0.93
-55.03%
VFF
Village Farms International
1.27
0.31
32.29%
SDOT
Sadot Group
1.39
-2.96
-68.05%
EDBL
Edible Garden AG , Inc.
2.60
-28.15
-91.54%

Local Bounti Corporation Corporate Events

Shareholder Meetings
Local Bounti Corporation Holds Annual Stockholders Meeting
Neutral
Jun 16, 2025

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.

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.Date of analysis: Jul 03, 2025