Local Bounti Reports 28% Revenue Growth in Q2 2025 Despite Net Losses

Local Bounti Corporation reported its financial results for the second quarter of 2025, revealing a revenue increase of 28% to $12.1 million compared to $9.4 million in the same period last year. For the first half of 2025, revenue rose by 33% to $23.7 million, up from $17.8 million in the prior year. Despite this growth, the company continued to experience significant net losses, reporting a net loss of $21.6 million for the quarter, an improvement from a loss of $25.3 million in the second quarter of 2024. The loss for the first half of 2025 was $59.3 million, compared to $49.3 million in the same period last year.

The company’s cost of goods sold (COGS) also increased, reflecting a 31% rise to $10.6 million for the second quarter and a 32% increase to $20.8 million for the first half of 2025. This rise in COGS was attributed to ramped-up production at new facilities in Texas and Washington, which began shipping products in the second quarter of 2024. Operating expenses increased by 11% to $16.9 million for the quarter, driven primarily by a 44% increase in research and development costs, which totaled $6.5 million, as the company focused on enhancing its production processes and product offerings.

Strategically, Local Bounti has made significant operational advancements, including the completion of a reconfiguration at its Texas facility to enhance production flexibility. The company has also launched new product lines, such as Grab & Go Salads, and expanded its distribution agreements with major retailers like Walmart and Sam's Club. As of June 30, 2025, Local Bounti served approximately 13,000 retail locations across 35 states, maintaining a leading market share in living butter lettuce in the Western U.S.

In terms of financial health, Local Bounti's total assets stood at $426.8 million, with total liabilities of $559.5 million, resulting in a stockholders' deficit of $132.7 million. The company has restructured its debt with Cargill Financial, reducing its principal amount from $447.7 million to $312 million, which is expected to lower interest expenses moving forward. Looking ahead, Local Bounti aims to continue expanding its production capacity and product offerings while managing costs effectively. The company anticipates that ongoing yield improvement initiatives and cost reduction strategies will contribute to better financial performance in the future.