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Revenue: $11.6 million in Q1 2025, a 38% increase year-over-year and a 15% sequential increase from Q4 2024.
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Adjusted Gross Margin: Improved by approximately 500 basis points year-over-year and 400 basis points sequentially from Q4 2024.
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Net Loss: $37.7 million for Q1 2025, compared to $24.1 million in the prior year period.
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Adjusted EBITDA Loss: $8.8 million in Q1 2025, compared to $6.9 million in the prior year period.
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Cash and Cash Equivalents: $28.4 million at the end of Q1 2025.
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Debt Restructuring: Eliminated approximately $197 million of debt in March restructuring.
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Q2 2025 Revenue Outlook: Expected to be in the range of $12 to $12.5 million.
Release Date: May 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Local Bounti Corp (NYSE:LOCL) achieved a 38% increase in first-quarter sales compared to the same period in 2024, driven by increased production and sales from multiple facilities.
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The company is on track to achieve positive adjusted EBITDA by the third quarter of 2025, supported by cost reductions and anticipated revenue growth.
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Yield improvements at the Georgia facility have increased by 20%, with plans to implement similar enhancements in Texas and Washington facilities.
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Local Bounti Corp (NYSE:LOCL) has strengthened its relationship with major retailers like Walmart, expanding its distribution network significantly.
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The company has successfully launched new products, including grab-and-go salad kits and larger family-size offerings, aligning with consumer trends and retailer needs.
Negative Points
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Local Bounti Corp (NYSE:LOCL) reported a net loss of $37.7 million for the first quarter, an increase from the previous year's loss of $24.1 million, primarily due to higher interest expenses.
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The ongoing product mix recalibration at the Texas facility has temporarily decreased capacity, impacting short-term revenue potential.
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Despite improvements, the company still reported an adjusted EBITDA loss of $8.8 million for the quarter.
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Temporary cost increases in the first quarter, including higher utilities and severance costs, negatively impacted EBITDA by approximately $900,000.
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The company's debt restructuring, while beneficial in the long term, does not immediately reflect the reduction in reported debt balance due to accounting rules.
Q & A Highlights
Q: Can you elaborate on the factors driving the expected revenue lift in the second half of the year, particularly regarding yield improvements and commercial sales? A: Kathleen Valiasek, CFO, explained that the 20% yield increase in Georgia was due to an R&D program implemented last year, which exceeded expectations. This program will also be applied in Texas and Washington in Q3. The increased production from yield improvements will take time for the sales team to place, but several factors, including Walmart projects and new product introductions, are expected to drive revenue growth in the latter half of the year.