Executive Summary

Q4 2024 revenue was $10.07M, up 46.7% year over year but down 1.7% sequentially; adjusted gross margin was 25%, and adjusted EBITDA loss was $9.32M . Versus consensus, revenue missed ($10.95M* est vs $10.07M actual), EPS missed (-$2.87* est vs -$4.41* actual), and EBITDA missed (-$6.37M* est vs -$10.85M* actual). Values retrieved from S&P Global.
Balance sheet transformed post-quarter: $25M new equity, ~$197M of debt extinguished, $312M restructured debt at 3M SOFR +200 bps with no cash interest/principal until April 2027; liquidity near $40M including expected financing access .
Operational narrative: Texas facility reconfigured 3 acres to enable higher-value cut products; temporary capacity impact weighed on Q4 and Q1, but full 6-acre production and automated harvesting slated to lift margins starting Q2–Q3 2025 .
Commercial momentum: Walmart baby leaf expansion to 191 stores and two-year award to supply living butter lettuce to 13 distribution centers; Brookshire’s arugula expansion (~80 stores) and basil distribution (~60 stores) .
Guidance/timing shift: positive adjusted EBITDA now targeted for Q3 2025 (previously Q2 2025); Q1 2025 sales expected at ~$11.5M due to Texas mix transition .

What Went Well and What Went Wrong

What Went Well

Debt restructuring strengthened capital structure: ~$197M debt extinguished; $312M restructured at 3M SOFR +200 bps; extended maturity to 2035 with no cash payments until April 2027 .
Commercial wins and expanded distribution: Walmart baby leaf in 191 stores; new two-year award to supply living butter lettuce to 13 DCs; Brookshire’s arugula expansion (~80 stores); basil expansion (~60 stores) .
Management succession executed: President/CFO Kathleen Valiasek named CEO; Executive Chairman role for co-founder Craig Hurlbert, highlighting leadership continuity and operational focus .
Quote: “With our improved capital structure and clear operational roadmap, our entire organization is fully committed to reaching positive adjusted EBITDA.” — Kathleen Valiasek .

What Went Wrong

Miss vs consensus: Q4 revenue ($10.07M) below ~$10.95M* est; EPS (-$4.41*) below -$2.87* est; EBITDA (-$10.85M*) below -$6.37M* est. Values retrieved from S&P Global.
Sequential revenue softness and margin pressure from production ramp: Q4 revenue fell vs Q3 (Q4: $10.07M vs Q3: $10.24M); adjusted gross margin fell to 25% vs 32% in Q3 due to higher labor during Texas/Washington ramp .
EBITDA timing pushed: target for positive adjusted EBITDA moved from Q2 2025 to Q3 2025 as Texas reconfiguration temporarily reduced capacity .

Financial Results

Metric	Q2 2024	Q3 2024	Q4 2024
Revenue ($USD Millions)	$9.44	$10.24	$10.07
Gross Profit ($USD Millions)	$1.35	$1.41	$0.54
Adjusted Gross Margin %	29%	32%	25%
Net Loss ($USD Millions)	$(25.27)	$(34.33)	$(36.26)
GAAP EPS (Basic & Diluted)	$(3.00)	$(4.01)	$(4.21)
Adjusted SG&A ($USD Millions)	$7.21	$7.45	$7.24
Adjusted EBITDA ($USD Millions)	$(7.54)	$(8.36)	$(9.32)

Consensus vs Actual (Q4 2024)

Metric	Consensus	Actual	Beat/Miss
Revenue ($USD Millions)	$10.95*	$10.07	Miss
Primary EPS ($USD)	$(2.87)*	$(4.41)*	Miss
EBITDA ($USD Millions)	$(6.37)*	$(10.85)*	Miss

Values retrieved from S&P Global.

KPIs and Commercial Footprint

KPI	Q2 2024	Q3 2024	Q4 2024 / Early 2025
Retail doors serviced (approx.)	13,000	13,000	13,000
Sam’s Club DCs serviced	6 (from 3)	—	—
Walmart baby leaf stores	—	—	191
Walmart DCs (living butter lettuce)	—	—	Award to 13 DCs
Brookshire’s arugula stores	—	—	~80
Basil retail rollout	—	—	~60 stores
Grab‑and‑Go Salad Kits distribution	~200 doors; target ~700 H2’24	Continued rollout	New kits launched Q1’25; more flavors expected Q3’25

Balance Sheet & Liquidity

Metric	Q4 2023	Q3 2024	Q4 2024
Cash & Cash Equivalents ($USD Millions)	$10.33	$0.32	$0.94
Restricted Cash ($USD Millions)	$6.57	$6.49	$6.53
Total Debt (LT + ST) ($USD Millions)	$277.99 LT	$398.41 total debt (LT $384.94 + ST $13.47)	$436.78 total debt (LT $416.58 + ST $20.21)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Positive Adjusted EBITDA Target	2025 timing	Q2 2025	Q3 2025	Lowered/Pushed out
Revenue	Q4 2024	“~$11M” outlook	Actual delivered $10.07M	Miss vs prior outlook
Revenue	FY 2024	$50–$60M (reiterated)	Actual delivered $38.14M	Miss vs guidance
Sales	Q1 2025	—	~$11.5M	New disclosure

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q4 2024)	Trend
Capital structure/financing	Negotiating up to ~$400M commitments; planned sale-leaseback	$25M equity raised; ~$197M debt extinguished; $312M restructured at SOFR+200 bps; liquidity near ~$40M	Materially improved balance sheet; lower cost capital runway
Product mix shift (specialty greens)	Launching arugula, spinach, blends; salads rollout	Texas reconfigured 3 acres for cut products; margin uplift expected with automation Q3’25	Mix optimization; near-term ramp costs, medium-term margin tailwind
EBITDA timing	Target early/Q2 2025	Now Q3 2025 with Q2 lift from full 6-acre Texas and harvesting automation	Slight delay; clearer operational path
Retail partnerships	Sam’s DCs from 3 to 6; Brookshire’s rollout	Walmart baby leaf in 191 stores; two-year award to 13 DCs; basil/HEB expansions	Broader blue‑chip penetration
Industry/CEA reliability	—	Retailers seeking dependable CEA partners; LOCL “rare air” post-restructuring	Competitive differentiation via reliability
Cost optimization	Overhead reduced ~$5M (late ’23/early ’24)	Additional ~$3M annualized cuts in Q1’25; labor/seed efficiencies led by GA ops	Ongoing opex discipline and unit economics focus

Management Commentary

“The significance of this capital transformation cannot be overstated… we now have a rightsized balance sheet… provides us the runway to achieve positive adjusted EBITDA and sustainable profitability over the long run.” — Kathleen Valiasek .
“We are seeing heightened demand for our specialty products… reworking our growing mix to meet this demand.” — Craig Hurlbert (Q3 PR context) .
“We now anticipate achieving positive adjusted EBITDA in the third quarter… installation of our purpose‑built automated harvesting equipment by early Q3 2025… will significantly improve margins.” — Kathleen Valiasek .
“What we’re seeing from major retailers is a definite interest in more CEA products… today our restructuring really puts Local Bounti in rare air vs other CEA providers.” — Craig Hurlbert .

Q&A Highlights

Texas/Georgia operations and unit economics: Georgia delivering labor and seed cost reductions; Texas conversion enables living head and cut products for Sam’s and Walmart .
Pricing power: Implemented a retail price increase effective April as customers gain familiarity with products .
Shelf space and retailer posture: Restructured balance sheet increases credibility with majors seeking reliable CEA supply; LOCL positioned as long-term partner .
Expansion strategy: Midwest facility remains a priority; design aligned to retailer SKU needs before breaking ground .
Build vs buy: Preference to acquire modern greenhouses and add Stack & Flow; Georgia example boosted productivity ~30–40% .

Estimates Context

Q4 2024 results missed consensus on revenue, EPS, and EBITDA: Revenue $10.07M vs $10.95M* est; Primary EPS -$4.41* vs -$2.87* est; EBITDA -$10.85M* vs -$6.37M* est. Values retrieved from S&P Global.
Limited estimate breadth: only ~2 estimates for Q4 2024 on revenue and EPS, which can increase dispersion and volatility around prints. Values retrieved from S&P Global.
Outlook: Q1 2025 sales guide ~$11.5M; as Texas capacity normalizes and automation is installed in Q3 2025, models should reflect improving adjusted gross margin and trajectory toward positive adjusted EBITDA .

Key Takeaways for Investors

Near-term print was weaker than consensus, driven by Texas reconfiguration and ramp costs; sequential improvements are likely beginning in Q2 with full 6-acre Texas utilization and margin lift from automation by Q3 2025 .
Capital structure reset is a credible catalyst: debt extinguishment and reprice materially reduce financing risk and enhance retailer confidence, a differentiator in CEA .
Commercial traction is broadening: Walmart expansion (191 stores) and two-year DC award, plus Brookshire’s and basil distribution; these support volume visibility into H2 2025 .
Cost discipline continues: additional ~$3M annualized opex cuts in Q1 2025 and operational efficiencies (labor, seeds) improve unit economics, aiding the path to EBITDA breakeven .
Watch adjusted gross margin trend: despite Q4 at 25%, product mix optimization and scaling of Texas/Washington should support margin recovery through 2025 .
Estimate revisions likely lower near-term EPS/EBITDA and modestly trim revenue for Q1, with potential upward bias for H2 if execution on capacity and automation proceeds on plan. Values retrieved from S&P Global.
Trading implications: Weak Q4 print and EBITDA timing push can pressure shares short term; financing de-risking and retailer awards provide asymmetry if margin inflection manifests on schedule .

Bolded beats/misses and surprises: Q4 2024 was a miss vs consensus on revenue, EPS, and EBITDA (see “Consensus vs Actual” table). Values retrieved from S&P Global. All other facts and figures cited to company materials.

Local Bounti Corporation/DE (LOCL)·Q4 2024 Earnings Summary