Local Bounti Corporation (NYSE:LOCL) shares fell 4.76% in premarket trading after the indoor agriculture company reported second-quarter revenue and adjusted earnings below Wall Street expectations, despite delivering year-on-year sales growth and reducing its losses.
Revenue reached $13.9 million, well below the analyst consensus estimate of $22 million. The company reported an adjusted loss of $0.68 per share, compared with expectations for a loss of $0.50 per share.
Despite the miss, quarterly revenue increased 14% from $12.1 million in the corresponding period last year, supported by higher production and stronger sales from Local Bounti’s facilities in Georgia, Texas and Washington.
Local Bounti narrows net and adjusted EBITDA losses
The company’s second-quarter net loss improved to $19.8 million from $21.6 million in the same period of 2025.
Adjusted EBITDA loss narrowed by 17% year on year to $5.8 million, compared with a loss of $7.1 million previously, indicating progress towards the company’s objective of reaching positive adjusted EBITDA.
“Revenue grew 14% and adjusted EBITDA loss narrowed 17% year-over-year, demonstrating progression toward positive adjusted EBITDA,” said Kathleen Valiasek, President and CEO of Local Bounti.
“This has been the product of our team’s focused efforts to enhance our operations, including those designed to further enhance our yields, which are up approximately 10% at our state-of-the-art facilities.”
Gross margin affected by Georgia packing inefficiencies
Gross profit declined to $1.0 million during the second quarter from $1.5 million in the prior-year period.
Adjusted gross margin fell to 27% from 30% a year earlier. Local Bounti attributed the decline to temporary packing inefficiencies at its Georgia facility as the company implements its channel diversification strategy.
The pressure on margins came despite improvements in crop yields, which management said have increased by approximately 10% at the company’s advanced production facilities.
Local Bounti secures additional investment
Following the end of the quarter, Local Bounti received an additional $12.5 million investment from an existing strategic investor.
The new funding follows a $15 million investment completed in March 2026. The company said the combined capital provides greater financial flexibility as it works towards profitability and continues improving its operations.
Retail network reaches approximately 13,000 locations
Local Bounti currently supplies products to approximately 13,000 retail doors and has secured five new or expanded retail partnerships over the past two quarters.
Management expects revenue to continue improving sequentially during 2026, alongside further progress in reducing the adjusted EBITDA loss rate.
While the substantial revenue miss weighed on the shares, Local Bounti’s year-on-year sales growth, narrower losses, improving yields and additional financing highlighted progress in its broader operational strategy.