Executive Summary

Q1 2025 revenue grew 38% year over year to $11.6M and came in roughly in line to slightly ahead of expectations; management reaffirmed a Q3 2025 positive adjusted EBITDA inflection, supported by distribution wins (e.g., Walmart DCs), 20% yield gains in Georgia, and Texas reconfiguration nearing completion .
Non-GAAP profitability metrics improved sequentially: adjusted gross margin reached ~29% (vs. ~25% in Q4 2024), and adjusted EBITDA loss improved to $(8.8)M from $(9.3)M, reflecting mix optimization and cost actions; however, GAAP net loss widened on higher interest expense due to lower capitalized interest following project completions .
Balance sheet optics reflect the March debt restructuring: GAAP shows a $168M “debt premium” amortized against interest over 10 years, which will lower reported interest expense going forward; cash and restricted cash ended Q1 at $28.4M after a $25M equity raise .
Near-term guide: Q2 2025 revenue of $12.0–$12.5M; management highlighted H2 acceleration as Texas returns to full capacity, Georgia yield gains roll to Washington/Texas, and new SKUs scale. Key stock catalysts: execution toward Q3 positive adjusted EBITDA, Walmart expansion/velocity, yield-driven margin progression, and clarity on Midwest expansion financing .

What Went Well and What Went Wrong

What Went Well

38% YoY revenue growth to $11.6M on production ramps in Georgia and new Texas/Washington output; adjusted gross margin improved to ~29% (vs. 24% LY) and ~400 bps sequentially on mix/efficiency gains .
Commercial momentum: expanded Walmart relationship to 13 DCs for Conventional Living Butter Lettuce; Brookshire’s Texas-grown arugula expansion (~80 stores); H‑E‑B distribution for Organic Living Butter Lettuce; launched/iterated salad kits and basil program .
Execution/operations: Georgia yields up ~20% vs. Q4 due to stack-phase light optimization; the SOAR program to be replicated in Texas/Washington in H2 to drive further yield and margin improvement (“we’re literally seeing 20% increase in packed pounds every single week”) .

“I'm particularly excited to share that our yields in our Georgia facility have increased by 20% in the first quarter compared to our fourth quarter rate...Our next step is to implement this program in our Texas and Washington facilities” — Kathleen Valiasek, CEO/CFO .

What Went Wrong

EPS missed Street despite revenue in line to slightly ahead; GAAP net loss widened to $(37.7)M vs. $(24.1)M LY, largely from higher interest expense as capitalization declined after Texas/Washington builds completed .
Texas reconfiguration temporarily constrained utilization in H2’24 and Q1’25; full efficiency depends on automated harvester installation in early Q3 2025 .
G&A rose to $8.1M (+$2.3M YoY) mainly from stock-based comp dynamics; management cited temporary items (weather-related utilities, donation mix, lower labor capitalization, severance) that impacted Q1 EBITDA by ~$0.9M but are not expected to recur in Q2 .

Financial Results

Quarterly trends (oldest → newest)

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue ($USD Millions)	$10.242	$10.070	$11.605
Adjusted Gross Margin %	32%	25%	29%
Adjusted EBITDA ($USD Millions)	$(8.355)	$(9.320)	$(8.782)
Net Loss ($USD Millions)	$(34.327)	$(36.258)	$(37.675)
GAAP Diluted EPS	$(4.01)	$(4.21)	$(4.32)

Notes:

Adjusted gross margin improved ~400 bps sequentially in Q1, per management commentary .
Adjusted EBITDA improved sequentially (Q1 $(8.8)M) vs. Q4 $(9.3)M) .

Q1 2025 actual vs. S&P Global consensus

Metric	Consensus	Actual	# of Estimates
Revenue ($USD)	$11.3M*	$11.605M*	2*
Primary EPS	$(1.68)*	$(3.796)*	2*

Values retrieved from S&P Global.
Company GAAP diluted EPS reported at $(4.32) .

Balance sheet and cash

Cash and cash equivalents: $18.0M; Restricted cash: $10.4M; Total cash + restricted: $28.4M (as of 3/31/25) .
Debt restructuring accounting: principal $312.0M with a $168.0M debt premium (troubled debt restructuring), amortized against interest over 10 years; no cash interest or principal until April 2027 .

KPIs and non-GAAP

Adjusted Gross Profit: $3.385M; Adjusted Gross Margin: 29% .
Adjusted G&A: $5.815M .
Adjusted EBITDA: $(8.782)M; excludes $0.6M SBC, $18.8M interest, $5.9M D&A, $3.5M warrant FV change, and other items .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	Q1 2025	~$11.5M (guidance issued 3/31/25)	Actual $11.605M	Achieved ~in line
Revenue	Q2 2025	—	$12.0–$12.5M	New
Adjusted EBITDA inflection	2025	Positive adj. EBITDA in Q3 2025 (affirmed 3/31/25)	Reaffirmed positive adj. EBITDA in Q3 2025	Maintained

Management reiterated that H2 acceleration should be driven by Texas mix transition completion and automated harvester installation (early Q3), Georgia yield improvements rolling to Texas/Washington, and new product/customer expansions .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2024)	Previous Mentions (Q4 2024)	Current Period (Q1 2025)	Trend
Product mix shift (specialty greens)	Shift to higher-value products; Texas ran half capacity during reconfig; adjusted GM ~32%	Continued optimization; detailed Texas reconfiguration and upcoming harvester in early Q3’25	Reconfiguration finishing; production starting in Q2; harvester early Q3 to drive efficiencies	Executing; margin tailwind
Yield optimization (SOAR/light)	—	—	Georgia yields +20% vs Q4 from stack-phase light optimization; to roll-out to TX/WA	Improving
Distribution/customer wins	Grab-and-go kits; added retailers; Walmart 191 stores	Expanded Walmart; Midwest wholesaler; SKUs expanded	Walmart +13 DCs; Brookshire’s, H‑E‑B, basil program; new salad kit flavors planned Q3	Accelerating
Capital structure	Pursuing lower cost capital; sale-leaseback/USDA lender considered	Completed equity raise and major debt restructuring; no cash interest/principal until Apr-27	TDR accounting lowers reported interest expense over time; clarified P&L mechanics	Improved optics/cash runway
EBITDA inflection timing	Shifted to Q2 2025	Updated to Q3 2025 and reiterated capital access	Reaffirmed Q3 2025 positive adjusted EBITDA	Stable/credible pathway
Midwest expansion	—	Expansion plans “under review” with retailers	“Significant advancement” in retailer discussions; financing likely non-dilutive partners	Progressing

Management Commentary

“Our first quarter progress...positions us to achieve positive adjusted EBITDA in the third quarter.” — Kathleen Valiasek, CEO/CFO .
“Our yields in our Georgia facility [have] increased by 20% in the first quarter compared to our fourth quarter rate...we expect to achieve similar yield increases [in TX/WA].” — Kathleen Valiasek .
“While we eliminated approximately $197 million of debt...accounting rules require us to maintain the original carrying value...with the reduction recorded as a debt premium amortized over the new loan term...the economic benefit remains unchanged and will be reflected through lower interest expense over time.” — Kathleen Valiasek .
“The foundation we've built...has positioned Local Bounti at a crucial inflection point.” — Craig Hurlbert, Executive Chairman .

Q&A Highlights

Yield program mechanics: The 20% yield uplift is driven by stack-phase light optimization (“SOAR”), increasing packed pounds per week; rollout to Texas and Washington targeted for H2’25 .
Interest expense modeling: Following the TDR, amortization of the debt premium will reduce reported interest expense; P&L interest expected to be “less than $5M” per quarter; no cash interest/principal until April 2027 .
H2 acceleration drivers: Full-quarter Texas contribution post-transition, Georgia yield gains, new SKUs (family-size Caesar kit) and customers to lift sales .
Midwest expansion financing: Company exploring project-specific, non-dilutive financing and new capital providers in the stack .

Estimates Context

Q1 2025 revenue slightly exceeded S&P Global consensus ($11.6M actual vs. $11.3M consensus); EPS missed (Primary EPS $(3.796) vs. $(1.68) consensus), reflecting higher interest expense and lower capitalized interest post-project completion .
Q2 2025 guide of $12.0–$12.5M brackets consensus ($12.4M)*; Street models may need to reflect faster H2 margin progression as yield improvements (Georgia → TX/WA), cost actions (~$7M annualized YTD), and Texas automation drive operating leverage .

Values retrieved from S&P Global.

Key Takeaways for Investors

Revenue growth is intact with mix/yield tailwinds; sequential gross margin and adjusted EBITDA trends are improving despite temporary Texas constraints and weather/one-timers .
The Q3 2025 positive adjusted EBITDA target was reaffirmed; watch execution on Texas automation and the yield program rollout to TX/WA in H2 as key proof points .
Debt restructuring materially improved economic interest burden (and reported interest expense via premium amortization) and removed near-term cash interest/principal through April 2027, strengthening liquidity alongside the March equity raise .
Commercial traction with blue-chip retailers (Walmart DCs, H‑E‑B, Brookshire’s) and a broadened product set (salad kits, basil) supports volume ramps and shelf-space expansion into H2 .
Monitor Midwest expansion milestones and financing structure (management leaning toward project-specific, non-dilutive capital) .
Near-term trading: Results that confirm the H2 revenue acceleration and visible monthly margin step-ups could catalyze sentiment; conversely, delays in Texas automation or slower-than-expected velocity gains would challenge the Q3 EBITDA path .

Appendix: Q1 2025 Details (from 8-K/press release)

Sales $11.605M; Gross profit $1.461M; Adjusted gross margin ~29% .
G&A $8.104M; Adjusted G&A $5.815M .
Net loss $(37.675)M; GAAP diluted EPS $(4.32) .
Adjusted EBITDA $(8.782)M; reconciliation provided (excludes $0.6M SBC, $18.8M interest, $5.9M D&A, $3.5M warrant FV change, and other items) .
Cash & restricted cash $28.4M; principal $312.0M; debt premium $168.0M; no cash interest/principal until April 2027 .
Shares outstanding ~10.6M common; ~10.7M preferred; 6.2M warrants; ~0.8M RSUs; fully diluted ~28.3M; pro forma (including preferred) 21.4M as of 3/31/25 .

Footnote on estimates: All values marked with an asterisk (*) are retrieved from S&P Global (consensus/actuals).

Local Bounti Corporation/DE (LOCL)·Q1 2025 Earnings Summary