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what it is
Local Bounti grows packaged greens indoors and sells them to big retailers across 13,000 stores in 35 states.
how it gets paid
Last year Local Bounti made $38M in revenue. living lettuce was the main engine at $13.3M, or 35% of sales.
what just happened
Revenue hit $36M, but the business still posted an ugly loss profile.
At a glance
C balance sheet — red flag territory — real financial stress
-$14.14 fy2024 eps est
$38M fy2024 rev est
n/a operating margin
1.3 beta
xvary composite: 25/100 — weak
What they do
Local Bounti grows packaged greens indoors and sells them to big retailers across 13,000 stores in 35 states.
Stack & Flow Technology → vertical farming plus greenhouse finishing → so what: it tries to grow greens closer to your store without paying to ship them across the country. The company already sells through about 13,000 retail locations in 35 states, including Walmart, Target, Kroger, Whole Foods, and Sam’s Club. Shelf space is hard to win back once your product is in the set, and that footprint is the part of this story you can actually touch.
How they make money
$38M
annual revenue
living lettuce
$13.3M
salad kits
$8.4M
loose leaf lettuce
$6.8M
herbs
$5.0M
50/50 blend and power greens
$4.5M
The products that matter
core leafy green product
Living Lettuce
Q3 2025 company revenue context · $12.2M
management said Q3 2025 revenue reached $12.2M, up 19% from a year ago. living lettuce is still the shelf-level proof that the model can sell through.
retail anchor
value-added produce
Herbs & Salad Kits
$8M · 21% of revenue
this bucket is $8M of annual revenue. it matters because LOCL needs more than plain lettuce if it wants better shelf economics.
21% of revenue
patented growing system
Stack & Flow Technology
90% less water · 50% faster cycles
the process claims 90% lower water use and 50% faster grow cycles versus traditional farming. the catch: efficiency only matters if the capital structure lets you keep scaling.
process bet
Key numbers
$535M
long-term debt
That is the whole story. Your lettuce company has debt equal to about 21 times its roughly $25 million market cap.
-154.6%
operating margin
Operating margin → profit after core costs → so what: Local Bounti lost about $1.55 running the business for every $1 it sold.
12.1%
gross margin
Gross margin → money left after growing and packaging produce → so what: there is barely any room for mistakes.
13,000
retail locations
This is the real asset. Distribution into 13,000 stores is harder to build than another greenhouse.
Financial health
C
strength
- balance sheet grade C — very weak — significant financial distress
- risk rank 5 — safer than 5% of stocks
- price stability 5 / 100
- long-term debt $535M (96% of capital)
C — balance sheet grade and long-term debt are flagged. this stock carries more risk than average.
Total return vs. market
Return history isn't available for LOCL right now.
source: institutional data · return history unavailable
What just happened
missed estimates
Revenue hit $36M, but the business still posted an ugly loss profile.
Sales surged 194% vs. prior year, but gross margin was only 12.1%. Revenue growth is nice. Losing money on the lettuce is less nice.
$36M
revenue
-$5.78
eps
12.1%
gross margin
the number that mattered
12.1% gross margin is the number to watch because high sales do not help much if almost nothing is left after production costs.
source: company earnings report, 2026
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What could go wrong
The top risk for Local Bounti is a capital structure built for scale the business has not reached.
high
debt and liquidity squeeze
Long-term debt is $535M, or 96% of capital. Cash is $6.2M, while quarterly operating losses run about $7M.
If financing closes late or on harsh terms, the equity gets diluted fast.
high
NYSE listing pressure
The company received a notice tied to the $50M market value requirement. The stock sits near a ~$25M market cap.
A listing problem hurts liquidity exactly when the company still needs outside capital.
med
thin gross margin leaves no buffer
Gross margin is 12.1%. That means each added dollar of revenue carries very little protection against labor, energy, packaging, and facility costs.
Revenue can rise and the company can still stay far from breakeven.
med
convertible financing can become equity leakage
The new $15M note adds flexibility, but convertibles often solve one short-term problem by creating another for common shareholders.
If operating progress stalls, the financing story becomes a dilution story.
$535M of long-term debt against $38M of annual revenue means the balance-sheet risk touches the whole equity case, not just one line item.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
gross margin above 12.1%
Sales growth is not enough on its own. You need to see better unit economics, because 12.1% gross margin leaves almost no room for error.
calendar
Q4 2025 earnings
Management needs to show that the cited $2.5M–$3M of extra cost cuts showed up in the numbers, not just the slide deck.
risk
NYSE compliance path
The market value issue is now live. If the remedy is a reverse split without operating improvement, that fixes optics, not the business.
trend
what the $15M note is funding
Watch whether the new capital supports working needs and operations, or whether it mainly buys time against existing obligations.
Analyst rankings
earnings visibility
low
FY2024 EPS est is -$14.14. In human-speak, analysts do not have a real earnings base to anchor valuation yet.
coverage depth
thin
The source set here does not provide a useful consensus target stack. That usually means you should trust operating numbers more than target-price theater.
balance-sheet read
negative
$535M of long-term debt against $38M of revenue dominates the conversation. That is the first screen any analyst would hit.
source: institutional data
Institutional activity
institutional ownership data for LOCL is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$2
current price
n/a
target midpoint · n/a from current
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