The company also reported a substantial improvement in its gross profit, which surged by 43% to $5.9 million for the full year, reflecting a gross margin increase to 29%. This improvement is a result of operational efficiencies and cost-saving measures implemented across its facilities. General and administrative expenses, however, rose slightly by $0.9 million to $33.8 million, primarily due to an intangible impairment related to the 'Pete's' trade name.
Local Bounti's net loss for 2025 decreased by 21% to $94.4 million, largely due to a $26.8 million reduction in net interest expense following debt restructuring activities completed in early 2025. The adjusted EBITDA loss improved by 12% to $28.3 million, indicating progress towards financial stability.
In addition to its financial achievements, Local Bounti secured a $15 million investment from an existing strategic investor, further bolstering its capital structure. The company is focused on achieving positive adjusted EBITDA in 2026, driven by ongoing sales growth and cost reduction initiatives. Local Bounti's leadership expressed optimism about the future, highlighting the positive reception of controlled environment agriculture (CEA) by retailers and the potential for long-term supply partnerships.
The company continues to innovate, having recently been awarded a U.S. patent for its computer vision and AI-driven growing optimization technology, which is expected to enhance its competitive edge in the indoor agriculture sector. As Local Bounti expands its retail presence and optimizes its operations, it aims to capitalize on the growing demand for sustainable and locally grown produce.
