Local Bounti Corporation Q4 FY2025 earnings call

• Executive Craig Hurlburt thanked the Local Bounty team for their execution and noted a $15 million investment from an existing strategic investor as a positive signal. - President Kathleen Valasek emphasized focus on fundamentals, with commercial progress including active strategic partnership discussions and operations optimized with all three facilities operating at full capacity. - Commercial progress involves ongoing strategic partnerships, with retailers and strategic partners now integrating controlled environment agriculture into supply chains. Local Bounty's capital-efficient stack and flow technology is seen as beneficial. - Operations have dialed in at scale, with tower upgrades, computer vision and AI-driven growing optimization enhancing yields. Texas facility benefits from steady-state operations at full capacity, leading to throughput and labor productivity gains. Cost optimization efforts have led to a more consistent adjusted gross margin and declines in adjusted SG&A.

Fourth quarter revenue grew 24% to $12.5 million, reflecting continued sequential and year-over-year growth. Adjusted gross margin for the fourth quarter was approximately 29%, up from approximately 25% in Q4 of the prior year. Adjusted SG&A expense for the fourth quarter was $4.3 million, a decrease from $5.3 million in Q4 2024. Adjusted EBITDA loss for the fourth quarter improved to $5.8 million, compared to a loss of $9.3 million in Q4 2024. Our three state-of-the-art facilities are now operating at full harvestable capacity and their entire capacity is committed to customers on a run-rate basis. Yields are at their highest levels ever, and the operational improvements are positively impacting the adjusted EBITDA trajectory.

• Expect the trajectory of improvement seen in 2025 to continue, with revenue growth, margin stability, and declining SG&A pointing toward continued progress toward positive adjusted EBITDA. - Shift from standing up capacity to optimizing the network as a holistic unit to best serve customers and generate optimized returns.

• Forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from forward-looking statements. Some risks are identified in the company's filings with the SEC.