Local Bounti’s Network Yields at Record Levels, Retail Momentum Broadened – Quarterly Update Report

Revenue increased 14% y/y and 4% q/q to $13.9 million, while adjusted EBITDA loss improved 17% y/y to $5.8 million.

Progress toward positive adjusted EBITDA continues, supported by higher revenue, lower adjusted G&A, and ongoing yield and cost-efficiency initiatives.

Commercial momentum broadened across new accounts and SKUs, including a planned ~400-store single-serve salad-kit pilot this fall.

Network yields remain at record levels, with California production improving ~10%; recent $12.5 million investment strengthens near-term liquidity.

Shares trade at ~0.51x LTM sales, leaving rerating potential if margin recovery, EBITDA improvement, and balance-sheet execution continue.

LOCL's 2Q results reinforce the transition from facility build-out toward yield, customer mix, SKU expansion, and operating leverage . Revenue increased 14% y/y to $13.9 million from $12.1 million and rose ~4% sequentially from $13.3 million, driven by higher production and sales from Georgia, Texas, and Washington. 1H26 revenue reached $27.2 million, up ~15% from $23.7 million in 1H25, extending the growth trend as LOCL converts higher output from its installed asset base into retail sales. Adjusted EBITDA loss narrowed 17% y/y to $5.8 million from $7.1 million and was broadly stable versus $5.7 million in 1Q26. The y/y improvement indicates that higher revenue and tighter cost discipline are beginning to translate into operating leverage despite temporary gross-margin pressure during the quarter. With the three Stack & Flow-enabled facilities already at full harvestable capacity, incremental growth is increasingly coming from better asset productivity, although further gross-margin improvement is needed to accelerate progress toward positive adjusted EBITDA.

Food safety and traceability emerged as an important strategic theme this quarter, increasing retailer focus on the attributes that differentiate LOCL's controlled-environment model . Retail sourcing conversations that historically centered on cost and availability are increasingly incorporating water sourcing, environmental control, traceability, and food-safety monitoring. This shift is visible more broadly, with FMI's 2026 research indicating that 31% of responding retailers plan to add food-traceability technology capabilities this year, while recent produce-safety events have highlighted the commercial impact of supply-chain exposure, with U.S. fresh-lettuce unit sales falling 9% w/w during July's Cyclospora outbreak, per NielsenIQ data. Against this backdrop, LOCL's seed-to-package controlled environment and closed-loop water management reduce exposure to several variables associated with open-field agriculture, including runoff, wildlife, and changing outdoor conditions. With approximately 13,000 retail doors already serviced, this strengthens LOCL's positioning with retailers seeking more traceable, controlled, and resilient fresh-produce supply and could support deeper commercial relationships over time.

Commercial momentum continued to build as previously announced wins converted into active placements and new accounts broadened distribution entering 2H26 . The six-SKU Harris Teeter rollout across more than 250 stores and a separate large regional retailer covering approximately 160 stores are now fully launched and tracking in line with expectations. The account base expanded further after quarter-end, with a new Mid-South retailer launching five SKUs across approximately 66 stores in July and a Rocky Mountain partner beginning shipments of four SKUs across approximately 110 stores in early August. LOCL also received bid awards during 1H26 extending supply arrangements with multiple national retail accounts across baby leaf lettuce and organic butter lettuce through 1Q27. The progression from account wins to multi-SKU launches and longer supply commitments provides greater demand visibility and should support more efficient crop planning and facility utilization as retail programs scale.