Shares of Local Bounti Corporation (NYSE:LOCL) declined more than 2% in after-hours trading on Wednesday after the company reported fourth-quarter results that included solid revenue growth but a larger-than-expected loss.
The indoor agriculture company generated fourth-quarter revenue of $12.5 million, representing a 24% increase from $10.1 million in the same period a year earlier. The company posted a loss of $0.38 per share for the quarter. For the full year 2025, revenue rose 27% to $48.4 million, compared with $38.1 million in 2024.
Gross profit for the fourth quarter increased significantly, climbing 182% to $1.5 million from $0.5 million in the prior-year period. The company also reported an improvement in adjusted gross margin, which rose about 400 basis points to 29%, compared with 25% in 2024.
Net loss narrowed to $8.7 million in the fourth quarter, down from $36.3 million in the same period last year. The improvement was largely driven by a $14.3 million reduction in net interest expense, following a debt restructuring completed during the first quarter of 2025.
“Our fourth quarter and full year results reflect a confluence of positive variables — each of our three state-of-the-art facilities are operating at full capacity, our top line grew meaningfully, and the work we’ve done to optimize our network and tighten our cost structure is showing up in our financial performance,” said Kathleen Valiasek, President and CEO.
The company’s adjusted EBITDA loss improved by 38% to $5.8 million, compared with a $9.3 million loss in the same quarter a year earlier. For the full year, adjusted EBITDA loss decreased 12% to $28.3 million, from $32.1 million in 2024.
Local Bounti said it reduced annualized expenses by approximately $1.5 million during the fourth quarter and nearly $10 million across the full year 2025.
At the end of the quarter, the company reported $10.7 million in cash and restricted cash. In March 2026, Local Bounti also secured an additional $15 million investment from an existing strategic investor.